Indymac Bank: Now a CERTIFIED Group of Liars

December 2009

Boy, there is nothing more refreshing than to wake up in the morning to find that you are now mortgage free and own your home outright just after a nasty foreclosure battle with one of the dirtiest lenders in the business, Indymac.

That's right, just ask Greg Horoski and his wife, Diane Yano-Horoski of Long Island who successfully sued Indymac Bank (now known as One West Bank) and won.

Judge Jeffrey Spinner wiped away over $525,000 in mortgage payments (a loan that carried an initial adjustable interest rate of 10.375 percent, which soared to 12.375 percent), blasting Indymac and its "harsh, repugnant, shocking and repulsive acts."

Judge Spinner's direct kick in the nuts to IndyMac left the Horoski family owing absolutely no money on their ranch house in East Patchogue. Judge Spinner pulled no punches as he leveled the truth directly at the bankers of Indymac / OneWest -- the bank that took an $814.2 million federal bailout but have a record of cold-bloodedly foreclosing on any homeowner that owes them a nickel in backed payments. He canceled the debt because the bank "must be appropriately sanctioned so as to deter it from imposing further mortifying abuse against the couple."

Horoski, who had begged the bankers to let him restructure the loan said, "I think the judge felt it was almost a personal vendetta." Dealing with the bank was "like dealing with organized crime."

The good news for Indymac was apparently Judge Spinner was in a good mood that day and decided to take it easy on the preying group of vultures. His honor humbly stated that One West's conduct was "inequitable, unconscionable, vexatious and opprobrious" and that's putting it lightly.

Oh, the quality staff, employees, and personnel that Indymac has to offer. What more can anyone in this nation expect from a certified group of liars that single handedly bankrupt a major bank in a matter of a few years?

A Special Note to All Business Owners and Employers: If you are in need to ruin or demolish your company, offer the worst customer service known to mankind, and feel the need to extinguish any and all remaining business you have left, hire a member of the Indymac staff. Their stellar record and performance speaks for itself. There is no better choice of dirt left on this earth.

GENIUS Banking Employees At It Again

Bank Mistakenly Sells Couple's Home

Despite being up to date on their mortgage payments, a Phoenix couple mistakenly had their home placed in foreclosure and sold.

Jeff and Yanthy Zerner were approved for a mortgage modification with Chase just days before they received a notice giving them five days to vacate the property, a KPHO-TV, Phoenix story said. When Jeff Zerner contacted the number on the notice, he was told the house had been in foreclosure, and it had been bought.

Chase admitted the error and apologized to the couple, the story said. They are also meeting with the couple to work out a solution.

WATCH The FULL STORY HERE:

or click the photo above to view.

Another One Bites The Dust

FDIC officials enter the California National Bank branch at 221 S. Figueroa St. in downtown Los Angeles as the bank is taken over. The bank's 68 branches are set to reopen Saturday or Monday as usual as branches of U.S. Bank. By E. Scott Reckard.

California National Bank fails, is seized by FDIC

October 31, 2009

The Los Angeles-based, 68-branch bank is immediately acquired by the U.S. Bank unit of U.S. Bancorp.

Regulators seized Los Angeles-based California National Bank on Friday night in the country's fourth-largest bank failure this year.The 68-branch bank, a unit of FBOP Corp., was immediately acquired by the U.S. Bank unit of Minneapolis-based U.S. Bancorp, with no losses to be incurred by depositors, the Federal Deposit Insurance Corp. said.The branches, mostly in Los Angeles and Orange counties, were set to reopen as usual Saturday or Monday as branches of U.S. Bank, which has been expanding rapidly in Southern California.Eight smaller banks owned by FBOP, a privately held Oak Park, Ill., company, were also taken over by regulators and acquired by U.S. Bank. They include San Diego National Bank, with 28 offices, and San Francisco's Pacific National Bank, which has 17.The collapse of FBOP's banks, attributed to losses on securities issued by the giant mortgage companies Fannie Mae and Freddie Mac, was the latest in a rash of financial failures that began last year with government takeovers of 25 banks. Before Friday, 106 U.S. banks had failed this year.

California National Bank, with $7.8 billion in assets and $6.2 billion in deposits, is the fourth-largest commercial bank based in Los Angeles County. Only City National Corp., East West Bancorp and Cathay General Bancorp are larger.FBOP's owner, billionaire Michael Kelly, didn't return a call seeking comment.But in a letter to employees, obtained by KTLA-TV Channel 5, Kelly said the holding company and its banks had owned $855 million in preferred shares of Fannie Mae and Freddie Mac, which became worthless when the government placed the firms into conservatorship in September 2008.FBOP had hoped last fall that it could get money from the Treasury Department's $700-billion financial bailout fund, Kelly said. But in the end, he said, changes in the program "meant that we were no longer eligible." A Treasury spokesman couldn't be reached Friday for comment.Kelly said FBOP had been working to obtain $750 million from private investors but was unable to present an acceptable proposal to the regulators when a deadline for raising capital expired Friday."I am so proud of organizations that you helped grow, and I will always be grateful for the work that you have done," Kelly said in his letter to employees. "I apologize that this is the end result."

California National has had its share of lending problems. As of June 30, the last time it reported its financial results publicly, the bank had five times as much foreclosed property on its books and twice as many non-current loans as it had a year earlier. But the bank's main problem was its loss on the Fannie Mae and Freddie Mac preferred shares.U.S. Bancorp has been a major acquirer in the West, buying the remains of Downey Savings of Newport Beach and PFF Bank & Trust of Pomona when those struggling thrifts failed last fall. It also has acquired branches in Arizona, and just this month, it bought 20 Nevada branches from BB&T Corp., which had acquired them as part of a deal to buy Colonial BancGroup Inc. At about $25 billion in assets, Montgomery, Ala.-based Colonial was the largest bank to fail so far this year.The nine FBOP banks had combined loans and other assets totaling $19.4 billion as of Sept. 30, the FDIC said.U.S. Bank is acquiring most of those assets under a loss-sharing plan with the FDIC, which is to absorb 80% of the first $3.5 billion in losses and 95% of any additional losses.Taking such losses into account, the FDIC estimated that Friday's nine bank failures would cost the federal deposit insurance fund $2.5 billion.

Customers with loans from California National and the other FBOP banks were advised to continue making payments.The FDIC had allowed prospective buyers to make offers for individual FBOP banks as well as for the whole company. U.S. Bancorp Vice Chairman Joseph Otting said U.S. Bank was able to work out an offer for all the banks because it already was committed to growing in Southern and Northern California and in Chicago, where FBOP owned Park National Bank.Before the Downey and PFF deals, U.S. Bank had 79 branches in the Los Angeles-Orange County area, a spokeswoman said. The FBOP acquisitions will bring its total in the area to 241.That would create "opportunity for selective branch consolidations," the bank said in an online presentation on the FBOP deal.

There was no immediate word on layoffs, but U.S. Bank sought to allay fears at California National.Otting said representatives of his bank met Friday evening with California National employees at all the branches, telling employees who work face to face with customers that they could keep their jobs and back-office workers that they would be allowed to apply for other jobs at U.S. Bank.The bank plans meetings Sunday to further brief California National workers, he said.California National Bank is unrelated to L.A.-based National Bank of California, which has five branches.

Notice to all INDYMAC Customers - Email Our Office Today For Foreclosure Delay

Indymac Notice of Sale Problem:

As everyone who has a loan owned or serviced by Indymac knows, the bank has had a long, troubled history. When the bank failed to meet FDIC guidelines, the government agency was forced to take over to ensure that the bank did not fail completely, which could have cost depositors all of their money. In early January, the FDIC then decided to sell off the mortgage-backed securities portfolio to a company comprised of a group of strong investment companies called IMB Management Holdings, LP. Indymac has now become One West Bank. The basic terms of the purchase allowed IMB to purchase the $16 Billion dollar portfolio for $13.9 billion. IMB also received $7 Billion in other securities and 33 branches making the acquisition terms very favorable for IMB.

The sale of the portfolio is now complete which puts homeowners, who were hoping to modify their loan in a more compromising position compared to when the FDIC was in control. While the FDIC was heavily understaffed, they were there to help modify loans to favorable terms for qualified homeowners. The process was very slow but the results were strong. Homeowners generally received a step program that would start at a very low interest rate (1%-3%) then gradually go up over the years until it reached a low fixed number. In addition, they would also stretch out amortizations to lower payments and capitalize delinquencies. This enabled homeowners to keep their property even when they were seriously delinquent causing the bank to make less money than when the property was purchased.

Now that the sale of the portfolio is complete and there is a new regime controlling the fate of the mortgage backed securities, these programs seem to be much harder to get. IMB basically bought the portfolio for around $0.40 cents on the dollar, meaning that if they foreclose on a property and only regain half of the note amount, they still make 20%. This is scary for homeowners. Foreclosing on homes is supposed to scare banks because it results in catastrophic losses. In this case, these losses have already been realized and dealt with, meaning that the homeowners have little leverage.

Along with the fear of foreclosure, Indymac is using unethical tactics to collect past due balances from homeowners. It has been seen where Indymac will offer a modification to a troubled homeowner looking to keep their house. The terms look great and the homeowner now believes that they can keep their home. They send Indymac the required ‘Good Faith’ reinstatement payment and the signed documents. Indymac cashes the check then issues a denial upon further review. This practice is becoming very common, so if you are an Indymac customer, understand what you are going up against.

Another important new addition to the ever changing guidelines is that anyone who is on Notice of Sale (NOS) now is required to pay up to 50% of their delinquent balance to delay the foreclosure. This does not guarantee a modification or reinstatement, just delays the sale date. Make sure that you consult an attorney before you make this move. There are other ways to delay the foreclosure without paying 6-8 months of missed payments, fees and taxes. Bottom line is that Indymac borrowers need to beware. They are not playing fair and definitely do not care about you as a homeowner.

If you are in a Trustee state and are heavily delinquent, we can be your answer to delaying the foreclosure. Indymac is taking back homes in the thousands. Do not be one of them just yet.

It Can Happen To Anyone, No One Is Immune:

Bank left holding high-profile property after auction failure
Thomas Holdings lost Sunset Whitney Country Club in foreclosure
Sacramento Business Journal - by Mark Anderson Staff writer

First Banks Inc. of St. Louis is marketing the Stockton Waterfront Hotel for $18.8 million. It cost $60 million to build, and was offered at auction last month for $12 million, but there were no takers. Buyers are scarce, even for distressed commercial properties put on the auction block for a fraction of their former value.

The Stockton Waterfront Hotel failed to attract bidders when offered at auction last month for $12 million. The hotel, which cost more than $60 million to build, is now being marketed for $18.8 million by First Banks Inc. of St. Louis, which owns the hotel free and clear.
The same bank tried to auction Sunset Whitney Country Club on Aug. 27 for a minimum bid of $2.8 million. But no one bid on the Rocklin golf course, which, like the Stockton hotel, had been owned by Sacramento’s Thomas Holdings LLC.

The two properties are some of the first high-profile, real estate-related businesses to go through commercial foreclosure, bankruptcy filings and auction sales.
They will not be the last, said Dan Hayward, a hotel broker and financier with PKF Capital in Sacramento.

“There are a lot of properties that we are watching,” he said. “The fourth quarter is going to be a lot worse.”

And different. Every foreclosure has different players, a different structure and different location, Hayward said. “There are so many different directions properties can go when they start going down this path,” he added.

But different paths aside, both the Stockton and Rocklin properties show that commercial real estate is not selling, even when offered for less than half what it fetched just four years ago at the height of the boom.

Erasing debt and clearing title

Despite the sluggish response, there are many advantages to putting properties on the auction block. At the top of the list: clearing title to the property, getting rid of creditors who may be owed millions of dollars and scrubbing potential liens.

The Stockton hotel was about $40 million in debt before it hit the San Joaquin County courthouse steps last month. Now, following the auction proceedings, the hotel’s deed is uncontested, and First Banks doesn’t need to worry about any liens being placed on its title.
Sunset Whitney Country Club owed the bank $4.6 million. In addition, a former owner of the course was owed about $1 million in a second position, while Thomas and other creditors had unsecured claims of $1.5 million.

In many cases, the foreclosure auction wipes out all creditors other than the senior creditor,

unless another creditor is willing to buy the property.

If a lender has the senior position on the deed, and no one bids over the lender, the lender gets a clear title position on the deed, and all junior debt is wiped out, said Doug Kraft, principal in Kraft Opich LLP in Citrus Heights. As an attorney specializing in distressed loan and property cases, Kraft was talking in general and not about the specific properties.

Some prospects in sight

Sunset Whitney has remained open, with an interim management company taking over and hiring existing employees, said Mike Heutter, general manager of the club.

The Stockton hotel was closed the night before the auction. The plan is to reopen the hotel this month, said Alan Reay, president of Atlas Hospitality Group, the Irvine-based brokerage that is listing the hotel for First Banks. Reay said Atlas has received interest from numerous hotel brands.

The hotel was developed with the city of Stockton by Sacramento developer Regent Hotel LLC, an affiliate of Thomas Holdings. Thomas worked for years on the hotel, investing time and money that has been wiped out by the hotel’s foreclosure.

Thomas didn’t return calls seeking comment.

“As the temporary owner of both properties, First Bank continues to stabilize operations while making sure all the financial details involving both entities are in complete order. The Sunset Whitney Country Club will remain open with no interruptions in service until a new owner is found. A ‘soft’ opening, with limited services, of the Lexington Hotel is tentatively scheduled for Sept. 22 as we continue to look at potential buyers,” said Peggy Lents, First Bank spokeswoman.
The real estate listing for the Waterfront Hotel describes it as “being offered at a fraction of its replacement cost.” It cost more than $60 million to open the hotel less than two years ago.
The hotel is listed as “unencumbered by brand or management.” That can be a selling point, Hayward said, noting that it can be expensive for buyers to deal with an existing management contract or long-term brand affiliation, especially if it isn’t the management or brand a buyer wants going forward. Some major hotel brand contracts run a decade or two, and if a buyer wants another brand, that could entail breaching an existing contract and paying liquidated damages to change brands.

Hotel values are all over the board, Hayward said. The market is in such a slump that the usual metrics of average rate and occupancy are pointing to basement-level pricing. Some bargain-hunters are shopping based on capitalization rates they want; others are shopping on a per-room cost. Nothing is close to replacement value.

The Waterfront Hotel opened as a Sheraton in December 2007 at a cost of $61.5 million. But three stories of penthouse condominiums on top of the hotel were never completed. The revenue from selling the condos was supposed to subsidize the cost of the hotel. But by the time the condos were almost ready to hit the market, the housing market was floundering. The project started falling into technical default early on, and it got hit with waves of mechanics’ liens. Regent sued the bank for not releasing the last $6 million of its construction loan. Meanwhile,

Regent got hit with about $9 million in mechanics’ liens.

First Bank foreclosed on the Stockton Sheraton in July 2008. A court-appointed receiver was named custodian of the property for First Bank. The hotel was still being operated by Regent, but had to drop its Sheraton brand after foreclosure. Regent continued to operate the hotel under the Lexington brand until the property was auctioned last month.

LIES the Lender Doesn't Want You To Know

Uncovered Lies!!

Your mortgage company is only telling you half of the truth.

For example: Loan amount of $400000 term of loan thirty years fix interest rate of 6%. The interest rate of 6% is only true if you pay off the loan in the first year.

But remember you are paying over 30 years. The authorization schedule allows the mortgage companies to front load the interest so they can earn 81% every month on your mortgage payment. The mortgage company want you to think they are charging you just a little interest Compare Mortgage payment Ratios over a five year period

For example: Loan amount $400,000 term 30 years fixed interest rate 6% monthly payment $2398.21.

This amount went to pay down your loan. Total principle paid over a 5 year period divided by total payments paid.

Total principle paid / Total payment x 100 = Percent, $ 27,783.13 / 143,892.60 x 100 = (19.3%).

Total interest paid over a 5 year period divided by total payments made over the 5 year period your lender’s profit.Total interest paid / total payments x 100 = Percent. 116,109.00 / 143,892.60 x 100 = (80.69%)

Your lender’s profit 81% of your mortgage payment every single month Mortgage Interest Calculations Mortgage Amount $400,000.00 Interest Rate 6.00% Term 360 Months Monthly payment $2,398.21 You are going to pay $863,347.00 for a $400,000.00 house. You will have to earn $1,105,084.00 Gross Income if you are in a 28% tax bracket You will have to earn over a million dollars in gross income to payoff a $400,000 house. The Cost of Borrowing Money.

Payment ratios are more important than the interest rate. Payment ratios defines how much of your mortgage payment is going to interest to pay the lender, and how much of your mortgage payment is going to principle to pay down your loan balance.The banks have over played the fix interest rates The banks just wants you think you are paying a little interest. They don’t want you to know the payment ratios.

UPDATE: TMZ.com Report Forces Bailout Bank to Return the Free Bread

Update 7/21/2009

by TMZ Staff

Remember the bank that took federal bailout money and then hosted a lavish golf tourney in L.A. and catered swanky dinners with live entertainment from Sheryl Crowe, Chicago and Earth, Wind & Fire? And all the ladies got Tiffany gift bags. And we got video of the whole thing ....Well Barney Frank and other members of Congress were so pissed, Northern Trust agreed to return the money. We checked every week to see if the money was returned .... nothing. Until a few weeks ago! Northern Trust has returned $1,576,000,000 -- that's $1.576 billion returned to the government.

TMZ.com Exposes Northern Trust Bank PARTYING on YOUR Money

Bailout Bank Blows Millions Partying in L.A.

by TMZ Staff

A bank that received $1.6 billion in bailout money just spent a fortune last week in L.A. hosting a series of lavish parties and concerts with famous singers ... and TMZ cameras caught it all.Northern Trust, a Chicago-based bank, sponsored the Northern Trust Open at the Riviera Country Club in L.A. We're told Northern Trust paid millions to sponsor the PGA event which ended Sunday, but what happened off the golf course is even more shocking.

Northern Trust flew hundreds of clients and employees to L.A. and put many of them up at some of the fanciest and priciest hotels in the city. We're told more than a hundred people were put up at the Beverly Wilshire in Bev Hills, and another hundred stayed at the Loews Santa Monica Beach Hotel. Still more stayed at the Ritz Carlton in Marina Del Rey and others at Casa Del Mar in Santa Monica.Here are the highlights:- Wednesday, Northern Trust hosted a fancy dinner at the Ritz followed by a performance by the group Chicago. - Thursday, Northern Trust rented a private hangar at the Santa Monica Airport for dinner, followed by a performance by Earth, Wind & Fire. - Saturday, Northern Trust had the entire House of Blues in West Hollywood shut down for its private party.

We got the menu -- guests dined on seared salmon and petite Angus filet. Dinner was followed by a performance by none other than Sheryl Crow.There was also a fabulous cocktail party at the Loews. And how's this for a nice touch: Female guests at the Chicago concert all got trinkets from ... TIFFANY AND CO.As for what all that costs: Well, the company isn't talking. We spoke with a rep from the band Chicago who said Northern Trust paid them around $100,000. A House of Blues source told us it cost more than $50,000 to close the joint down last Saturday night. As for Sheryl Crow's fee, her rep didn't get back to us. Earth, Wind & Fire acknowledges payment but won't say how much. As for the golf tournament, a rep from the PGA told us Northern Trust wrote one big fat check in order to sponsor the event. That check covers part of the $6.3 million purse, the advertising costs for the spots on CBS (which broadcast the final two rounds of the tournament) and operating costs.

The rep says the fee was negotiated and is confidential.Lots of people from Northern Trust went to the golf tourney ... in special Mercedes that shuttled them to and from the hotels. But for those who weren't into golfing, they could spend a few hours at the Northern Trust seminar on the credit crunch.Now how's this for outrage? Northern Trust laid off 450 workers in December, 4% of its workforce.And here's what's absolutely amazing: The United States Government flat out gave Northern Trust the $1.6 billion in bailout money, and the bank didn't even request it! Northern Trust gave us a statement yesterday before going total radio silence. A rep for the bank acknowledges they paid for the events, but that the bailout money did not pay for the events. He claims it was paid out of the bank's operating expenses. Here's Northern Trust's full statement to us.Perhaps we're missing something, but money is money. How can they spend like this when they're using taxpayer's money, whether they asked for it or not? And where the hell is Congress in all of this? Is there any oversight or accountability?Your tax dollars, hard at work.

Thomas Jefferson was right -- "A little rebellion, now and then, is a good thing."

UPDATED: St. Regis Hotel SEIZED by CitiGroup

7/20/2009

By Roger Vincent and E. Scott Reckard 2:42 PM PDT, July 20, 2009 LA TIMES

The St. Regis Monarch Beach, the Orange County luxury resort where American International Group Inc. sponsored a luxury retreat just days after accepting a federal bailout, has been seized by Citigroup Inc.The hotel will continue to operate as a St. Regis."The acquisition will have no impact on the hotel, golf club or beach club," Citigroup said today. "Starwood's St. Regis brand will continue to be responsible for the day-to-day management of the properties."Citigroup's takeover is a sign of how deeply troubled the upscale lodging industry is now, said consultant Alan Reay of Atlas Hospitality Group. High-end hotels across the country have been hammered by a cutback in business and leisure travel.Resorts such as the St. Regis, which cater to wealthy travelers and the high-end corporate retreat business, have seen some of the steepest declines in revenue.
"It's not good for anyone when a hotel goes back to the bank," Reay said. He estimated that the hotel was carrying $300 million worth of debt but is probably not worth much more than $100 million now that property values have fallen in the recession.One of the loans -- $70 million from a real estate unit of Citigroup -- had gone into default, resulting in the takeover. Citigroup said it would sell the 8-year-old property at a foreclosure auction. But when no bidders emerged, the bank and the previous owners agreed to let Citigroup take ownership without that formal step.The hotel's place in an infamous recession scandal has been ruinous, investment banker Donald Wise said.The St. Regis became something of an emblem of corporate excess and greed last fall as the global financial system was threatening to melt down.The taint arrived by association with AIG, the giant New York insurer that, because of massive wrong-way bets on the mortgage markets, became the largest recipient of bailout money from the federal government.Just weeks after receiving its first $85 billion in federal funds, AIG shelled out more than $440,000 at the St. Regis for rooms, wining and dining, spa treatments and rounds of golf to reward 100 top salespeople."The property has already been nearly catastrophically damaged, through no fault of its own or the previous ownership, by the unwanted media exposure going back to when AIG held their conference," Wise said.The Makarechian development family of Newport Beach, which does business as Makar Properties, built the hotel and will continue to own adjacent land targeted for high-end residential development, a spokesman said."We are happy to say that Makar and Citi were able to reach an agreement that resulted in our continuing to own significant portions of the overall resort, while at the same time allowing for the public sale to be canceled," the family said in statement.

Interim Asst. Treasury Sec. Gets His Ass Handed to Him and is Called a "CHUMP"

California Imposes a 90-day Moratorium on Foreclosures

6/14/2009

California is imposing a 90-day moratorium on housing foreclosures under a new law that takes effect Monday. The law is expected to make lenders try harder to keep borrowers in their homes. Loan companies must prove they tried to modify the delinquent loans before they can begin foreclosing. But supporters acknowledge the California Foreclosure Prevention Act won't stop thousands of foreclosures from eventually happening. There have been more than 365,000 foreclosures in California since early 2007, with many more already scheduled. The bill passed in February is similar to the Obama administration's Making Home Affordable Program that began in March. Both encourages lenders to cut interest rates or rewrite loans to affordable levels.

Bank Pushes Families Out of Foreclosed Apartment Building

6/11/2009

When Liset Herrera's apartment building was foreclosed upon, she said the bank instructed her not to pay rent until a new contract was sent.

Six months later, the bank is evicting every family in her fourplex for failure to pay back rent after never mailing out its contract.

"I pleaded with the bank to give us a chance to pay the rent, to allow us to stay," Herrera, 36, of North Hollywood, said through a Spanish translator, her voice breaking as she clutched her 3-month-old daughter. "I've pleaded with the bank to have a heart."

Housing advocates on Thursday gathered in front of Herrera's run-down apartment building during a nationwide protest against unfair evictions and for greater banking accountability.

They said despite a federal program to help modify mortgages, thousands of properties are being lost to foreclosure. As a result, many poor families are being booted.
Families are being uprooted. Children are being removed from school. Properties are not being maintained. And neighborhoods are falling into blight.

"President Obama's plan is not working for California. Simply put, it's not working for Arizona, it's not working for Florida," said Nativo Lopez, president of the Los Angeles-based Mexican American Political Association. "It's an infamy ... these people are being evicted from their homes."

Hoisting signs such as "Stop Evictions Now," advocates for the poor called upon banks to permit renters to live in foreclosed homes while ensuring such properties are maintained.
They also called upon banks to loosen credit to small businesses to preserve jobs in low-income communities.

"We are concerned," said Antonio Pizano, program director for the Valley Economic Development Center. "We have particularly seen an impact to the owners of minority businesses, who have traditionally used their homes as collateral."

The nationwide day of protest was organized by the National Community Reinvestment Coalition, an advocate for working families.

"As the bailout of the financial system continues, working families have been left behind," John Taylor, who heads the coalition, said in a statement.

A federal law passed last month requires that tenants in foreclosed properties be allowed to live there 90 days.

The California Bankers Association said it is the legal responsibility of banks holding foreclosed properties to maintain them, inside and out.

"As an industry, we were supportive of the law that extended eviction notices to tenants living in foreclosed properties," said Beth Mills, vice president of communications for the association. "We also supported legislation that specifically required maintenance to reduce blight.

"Financial institutions are doing their best to help people stay in their homes whenever possible. Some of these demonstrations ignore that fact. (Banks) don't want to be property owners."

After her complex in the 5800 block of Whitnall Highway was foreclosed, Herrera said she received a call from a bank in November instructing her not to pay any rent until a new contract was delivered.

Months went by, with tenants not knowing where to send their payments, she said. No rental contract ever came.

Then the mother of three said someone calling themselves a bank rep dropped by two weekend nights in April to demand five months back rent. The caller had no identification or formal lease agreement.

In the meantime, the small stucco apartment building - which had already received health and safety citations from the city and the county - fell further into disrepair.

A lawyer from U.S. Bank National Association, the bank representing the property owner, Terwin Mortgage Trust, could not be reached.

On Thursday, the two-bedroom apartment that Herrera and her husband had once paid $700 a month for was a dump - with scuzzy carpet, peeling paint, a busted sink, broken stove, crumbling cabinets, dangling ceiling wires and chipped electrical sockets.

Outside, the landscaping had turned dead brown.

The tenants have been given a court order to move by June 19.

"This was totally unfair," said Hermes Ayala of the San Fernando Valley Housing Coalition, which advocated their case. "In my opinion, these people were protected by federal laws and municipal laws.

They have been "abandoned, totally. This is a habitable issue, when the landlord didn't fix the property."

California Resort in Foreclosure

Calif. resort that hosted AIG faces foreclosure

6/10/2009

The Southern California resort where AIG sponsored a luxury retreat after receiving federal bailout money is facing a foreclosure auction, according to a published report.
The owners of the St. Regis Monarch Beach in Dana Point are in default on a $70 million loan from Citigroup Global Markets Realty Group, and the coastal resort will go on the block July 7 unless they can negotiate a new agreement with the lender, the Los Angeles Times reported in Wednesday's edition.
The newspaper cites unnamed sources knowledgeable about the debt but speaking on condition of anonymity because of the sensitivity of the situation. The sources say the owners refinanced the property in 2007 and incurred $300 million in debt. They said the owners are current on two other mortgages totaling $230 million.
The St. Regis, which has 400 rooms, a golf course, several restaurants and a private beach club, has seen a steep drop in bookings amid the deepening recession.
Citigroup and resort co-owners Capital Pacific Holdings Inc. and Farralon Capital Management declined to comment.
"The situation will have no impact on our regular operation," St. Regis spokeswoman Leah Goldstein said, adding that Starwood Hotels & Resorts will continue to manage the property.
The sprawling resort became a symbol of corporate excess when the giant insurer American International Group Inc. spent some $440,000 on a posh retreat for its executives.

Countrywide's Mozilo charged with fraud

Insider Trading by SEC

06-04-2009

Former Countrywide Financial CEO Angelo Mozilo has become the highest-profile executive to be accused of wrongdoing in the subprime mortgage meltdown. The Securities and Exchange Commission charged him with allegedly lying to investors and reaping $140 million in profits from illegal insider trading this afternoon.

A civil lawsuit filed by the SEC alleges that Mozilo knew that increasingly lax mortgage underwriting standards at Countrywide, once a heavyweight in the subprime home loan industry, would endanger the company but failed to disclose the risk to investors.
"Countrywide portrayed itself as underwriting mainly prime quality mortgages using high underwriting standards," said SEC enforcement chief Robert Khuzami in a statement. "But concealed from shareholders was the true Countrywide, an increasingly reckless lender assuming greater and greater risk."

Two other Countrywide executives were also charged with securities fraud, according to the SEC.

The insider trading charges stem from pre-arranged stock sales Mozilo executed in 2007, the Associated Press reported. The SEC accused him of illegally using information not known to the public or investors to profit from the trades.

Mozilo's lawyer, David Siegel of Irell & Manella in Los Angeles, last month dismissed allegations of insider trading as "scandalous and inconsistent with even a cursory examination of the facts," according to Bloomberg News.

Once the biggest mortgage lender in the country, Countrywide was hit hard as more and more of the borrowers to whom it had given subprime loans fell behind on payments and defaulted in 2007. Badly damaged by losses, it sold itself to Bank of America (BAC) in early 2008.

Hot Shot Realtor to the "Stars" Miami Beach Finds Himself Broke and In Foreclosure

The Rise and Fall of Carlos Justo

The Desert Suns Expose on Indio's New Foreclosure Ordinance

Indio's foreclosure ordinance drawing national attention

05/09/2009

Xochitl Pena covers Indio and Coachella for The Desert Sun. She can be reached at 760-360-1340 or at Xochitl.Pena@thedesertsun.com.

Indio is at the forefront of battling the foreclosure fallout and the nation is taking notice.
More than a year ago, the valley's largest city was plagued with eyesores.
Abandoned, foreclosed homes with overgrown lawns and dirty pools peppered the community.
There are still unsightly homes, but the problem isn't as rampant, thanks to adoption of a foreclosure ordinance that is being used to craft a national model for cities across the country.
The progressive ordinance holds banks responsible for upkeep of the homes and has garnered interest from media outlets across the country as well.
The Wall Street Journal ran a front- page article on May 1 about the ordinance. ABC's "Nightline" was in Indio filming as recently as Friday and "CBS Evening News with Katie Couric" crews are supposed to be in town next week.
"It's made a huge difference. Once the banks comply, windows are fixed, the pools are drained. ... they're selling (the homes)," said Jennifer Stroud, a code enforcement officer with the city.
There are about 2,600 homes in foreclosure, with about 1,100 of those vacant.
Not only is the city battling blight through the ordinance, but it's also trying to keep people in their homes through counseling and intervention.
And beginning this summer, it will begin to purchase foreclosed homes to fix up and sell.
The city was notified Wednesday it had been awarded $2.8 million from the county to purchase the homes and then sell them to qualifying first-time homebuyers.
"We have a total package. We're addressing the foreclosure problem, but now we're putting people back in the homes," said Mark Wasserman, assistant to the Indio city manager.
Foreclosure ordinance
Indio was the first valley city to adopt a foreclosure ordinance that hold banks responsible for keeping homes tidy.
The law, adopted in March 2008, requires that abandoned properties be registered with the city and maintained. If not, the owner — usually the bank in foreclosed situations — could face fines and in a worst case scenario be arrested for violation of a city ordinance, which is considered a misdemeanor.

"They could be arrested and go to jail," said Jason Anderson, a code enforcement officer with the city who helped draft the ordinance.
With a high compliance rate and most banks taking responsibility, the city hasn't had to make an arrest yet.
Since adoption, 458 homes have been registered by banks and about $68,700 in fees have been collected.
The new law's success led to a recent invitation to Washington, D.C., for Anderson and other city officials to share details with federal officials alongside the cities of Baltimore, Miami, Dallas and St. Louis.
The ordinance is now being incorporated into a national model that cities across the country will be able to use to help combat abandoned homes and related crimes.
"We responded successfully to a problem that every community is facing," Wasserman said. "It's been a team approach to a very complex problem."
Housing resource center
With a handle on blight, the city decided in August to open the Housing Resource Center to provide free and confidential default and foreclosure prevention counseling.
The center, operating in conjunction with the Inland Fair Housing and Mediation Board, is sponsored by the city and located inside a city-owned building at 82-862 Miles Ave.
On Wednesday, the City Council approved moving the operation to a larger building at 45-110 Oasis St. starting July 1 and plans to expand services.
New services could include fair housing and tenant landlord mediation, first-time homebuyer training, and home property maintenance workshops.
"It's another way we can better serve our community," said Jesus Gomez, housing programs manager.
Buying homes
Beginning this summer, the city plans to purchase approximately 20 foreclosed homes, rehabilitate the properties and resell them to first-time, low- to moderate-income homebuyers.
The $2.8 million to purchase the homes comes from the Federal Neighborhood Stabilization Program funds from the Riverside County Economic Development Agency.
Proceeds from the sales of the homes will be returned to the county.
"We're addressing the blight and making the bank responsible," said Wasserman. "Now we're getting money and funds to rehab the homes and get people back into the homes."

California New Home Track Gets Knocked Down

Click The Pic Above For VIDEO and INTERVIEW

Banks find a new solution to the foreclosure crisis:

Let's knock down brand new, never lived in homes rather then keeping them!

These unsold California homes get demolished after the bank foreclosed on them. Lender execs stated they decided to demolish the homes since it was cheaper than maintaining them.

Click the pic above to view the video.

South Carolina Supreme Court Stops Foreclosures

5/6/2009

State Supreme Court Stops Foreclosures, Gives Loan Modification a Chance: What Next, and Will Other States Follow?

One recurring theme of the ongoing recession has been the seemingly incessant stream of foreclosures. However, South Carolina's highest court late yesterday afternoon issued a temporary restraining order (TRO) putting a freeze on thousands of imminent foreclosure sales in the state, reports the AP. The ruling provides some very needed relief to qualifying homeowners in distress by providing them with some time to seek mortgage modification under new government programs.

The TRO specifically "prevent[s] the foreclosure sale of any property arising out of a loan owned or guaranteed by petitioner or Freddie Mac or held by a servicer who has signed an agreement to participate in the HMP." The HMP refers to the Home Affordable Modification Program, which was announced in March of this year, and is a government program designed to help millions of qualifying at-risk homeowners by modifying their loans (see links below).

The South Carolina ruling requires the companies seeking foreclosure to notify all parties by May 15, 2009 as to whether or not the loan is subject to modification under the new programs. If the loan qualifies, then the freeze on that foreclosure will continue until a decision on modification is made. If the lender says the loan doesn't qualify for modification, that finding can be disputed in court. If a borrower qualifies and obtains a modification, then the foreclosure proceedings will be terminated. Of course, should they not qualify or obtain the modification, then the foreclosure proceedings can resume.

RealtyTrac Inc. says the ruling could affect 5,000 South Carolina homes. Although it is unclear whether such relief will be sought by Fannie Mae in other states, homeowners with qualifying mortgages facing imminent foreclosure might be able to follow up directly with the agency. By the same token talking to a local real estate attorney about pursuing similar (or other) relief may also be a good option.

Ed McMahon On Facing Foreclosure

Ed and Pamela McMahon speak out against their recent battles with keeping their home and battling the foreclosure process. The McMahon's owed Countrywide approx. 5 million dollars on a Beverly Hills home they've tried to sell for the past 2 years.


The Six Bdrm Estate is located within the gated Beverly Hills development known as "The Summit" and reports have been that the difficulty in selling the Mansion is due to the fact that Britney Spears is a neighbor and the lack of privacy (due to the number of reporters and paparazzi constantly on site) has held back solid offers and interested buyers.

Update! A deal was recently made allowing the McMahons to remain in their residence due to a successful loan modification.

Am I Nuts ?

4/3/2009

Reader’s Question:

I’m really ticked off. Last year I was hospitalized for some severe health problems and had 3 operations. Thankfully, today I am alive and cancer free. What is really upsetting me is that with my battle to save my life, I had to endure a battle to save my home from foreclosure. With the mounting hospital bills, surgery bills, and being out of work for over a year, I could no longer afford to pay my mortgage.

With that said, I thought I would do the right thing and short sale my home. My friend is a Realtor and she assured me that she could pull off a short sale for me so that I would avoid a nasty foreclosure proceeding and further damage to my credit. Long story short, we received 4 offers to buy my home and the lender rejected all of them. After 8 months, the lender foreclosed on me and I lost my home.

The purpose of my email to you today is because I feel duped and cheated. Why you might ask? Not because of the foreclosure but because of the lenders current actions. The 4 offers my agent submitted to the bank were above $400,000. Today, I drove by my former home and it is listed for sale as an REO foreclosure and the asking price is $299,000. WHAT ??? How could the bank refuse $400,000 and then list it for $299,000? Why would the bank choose to lose an extra $100,000? I am so angry it’s beyond belief. Is it just me or am I nuts ?

Christian’s Response:

Reader, trust me, it’s not you that is nuts. This is just another great example of the gross incompetence that leads the banks and lenders in our country. The small minded individuals that make many of the short sale decisions have little sense of true reality. They sit in high rise luxury buildings and get served gourmet lunches. That is why it is of upmost importance to hire an experienced Broker/Realtor that specializes in short sales (or what is known as or referred to as, loss mitigation) that can assist in bringing a dose of reality to the forefront. Not just your average Realtor that has his or her picture plastered on all bus benches and your generic open house special, rather a Realtor that has a proven track record and can show you actual short sale lender approvals in writing.

It would be unfair and irresponsible for me to place blame and point fingers in all directions as I do not have all the specifics of your short sale request but, I can share with you the following thoughts. There are approx. 600,000 Realtors in California. Approx. 1,400 are true short sale specialists that are SS certified with a proven record. The players know each other and interact with each other from within. We share stories, experiences, and network with each other constantly. I’m sure the realtor you chose was a wonderful agent and did the best that he or she could but many do not have the knowledge or the know how in dealing with the banks. Lenders speak a certain language and they absolutely know when an agent is savvy and aggressive verses one that they can mold and take advantage of. If they get the feeling that the Realtor is a "new comer," you can bet your bottom dollar that the lenders will ride that agent like a mule and squeeze the life out of them. Let’s face it, what bank enjoys losing money? You can’t necessarily blame them. Oh, sure you can. The lenders themselves created this mess and absolutely knew that this crisis was before us. Nevertheless, they continued down a path of destruction handing out money to anyone that could breathe. Negative amortization loans, 1% loans, no questions asked loans, you name it, they funded it. If you could spell the word CAT, you got a loan.

Sure the bank could have experienced a smaller loss by selling your home for $100k over what they are selling it for now but why would they care? Just create another weeping session before congress and get another bailout. The banking staff that is responsible for accepting or declining a short sale can care less about true losses. It’s not their money. They will continue to get their pay check every Friday. It means nothing to them. It’s your life they ruin, not theirs. Hire a professional. Hire the best representation known to mankind and there are many reputable loss mitigators to chose from. Remember, it’s not always the homeowners fault. The lenders have no one to blame but themselves. Thank you for attempting to do the right thing and being responsible. My best wishes to you and your health.

No Foreclosure Here !!!

3/27/2009

The widow of producer Aaron Spelling is placing "The Manor" in the exclusive Holmby Hills neighborhood on the market for a jaw-dropping $150 million, making it by far the most expensive home for sale in the U.S.

The French chateau-style mansion has 56,500 square feet of space on more than 4.6 acres and is the largest home in Los Angeles County. Among the neighbors are the Los Angeles Country Club and, not too far away, the Playboy Mansion.

Candy Spelling's late husband produced hit shows such as "Charlie's Angels," "Dynasty" and "Beverly Hills 90210." He died in 2006.

The three-story mansion, built in 1991, is gated and features a winding driveway that leads up to the three-story house, which includes ceilings that reach up to 30 feet high.

While some published reports put the tally of rooms in the mansion at well past 100.

Spelling says she doesn't know.

"You're really asking the wrong person," Spelling jokes. "There's a lot. (The house) has evolved and I actually haven't gone around and counted."

The Spellings found no shortage of uses for the many rooms in the mansion, however.

There's a bowling alley, wine cellar, wine tasting room, gift-wrapping room, a humidity-controlled silver storage room, China room, library, gym and media room, among many others.
The screening room is one of Spelling's favorites.

"I had some really wonderful times entertaining in that room," she said. "We showed movies and I still do."

The room features a movie projection system that automatically comes up from the floor at the same time that shades extend over the windows. It's an idea that came to Candy Spelling in dream as she sought to avoid having a projection screen open all the time.

"I wanted Aaron to have the best projection room anyone had ever seen, and the biggest, so I came with this solution, not realizing that we had to excavate a lot of dirt to get down that low, to have a special room that housed the screen that was totally dust free," said Spelling, 63.

The Spellings also finished the 17,000 square-foot attic that includes a barber shop and beauty salon.

The home also includes a wing for service staff, including a kitchen and seven bedrooms, and five fireplaces and four wet bars.

Lavish features also can be found outside the house, including a tennis court, fountains, a waterfall, a pool and spa, a reflection pool and a pool house with a kitchen, and 16 car ports.

The estate also boasts an 18th Century-style garden, a rooftop rose garden and a citrus orchard.
Prospective buyers won't have to worry much about parking when they host big parties. The property includes a winding motor court with space for more than 100 cars.

Spelling plans to trade her mansion lifestyle for a luxurious, two-story condo atop a residential tower in Los Angeles that she bought last year for $47 million.

"I have a lot of wonderful, wonderful, wonderful feelings about this house and special things that I went through in building it, with a love that you can't even imagine," she gushed. "Yet I feel like I'm moving on to a new chapter in my life."

Cram Down Measure Takes A Step Back

3/21/2009

Opposition from the banking industry and moderate senators of both parties has stalled a proposal to let judges modify mortgage terms in bankruptcy court.

The judicial maneuver, known as a "cramdown," is endorsed by President Barack Obama and the Democratic leadership as part of a sweeping plan to help strapped homeowners.

The cramdown issue has become a flash point for lawmakers who seek to aid homeowners -- in particular those who owe more than their house is worth -- and lawmakers who feel such aid penalizes people who have kept up with their debts.

With Congress due to start a two-week recess on April 6, Senate negotiators haven't been able to lure a handful of moderates to secure the 60 votes needed to clear a procedural hurdle and get the bill through the chamber.

Financial institutions strongly oppose court-ordered mortgage workouts, which could entail easing homeowners' payment terms by lowering interest rates or the principal owed. They say this would increase risks for lenders, raise mortgage rates and clog courts. Mortgages have long been excluded from modification in personal-bankruptcy filings.

Mr. Obama endorsed the idea as part of his broader housing plan, which includes both sticks and carrots to persuade lenders to rework troubled mortgages. The carrots come in the form of payments to servicers for modifying loans. Cramdowns would be the stick -- a financial penalty if lenders don't deal with a mortgage before a client files a bankruptcy petition.

The House bill is already substantially weaker than one crafted by senators several weeks ago. It limits cramdowns to existing mortgages; loans made in the future wouldn't qualify.

A Sign Of The Times

3/20/2009

From earning $750,000 a year as a hedge fund CEO to now earning $7.29 per hour as a pizza delivery man, Ken Karpman plummeted from a six-figure salary to now earning tips ..... Say it ain't so.

Having graduated from UCLA with a bachelor's degree and M.B.A., then got a high-paying job Karpman is now faced with credit card debts in excess of $100,000 and now losing his Florida home in foreclosure.

Karpman now delivers pepperoni and mushroom pies in a Mercedes 500 SL and states that "at some point you have to swallow your pride and put food on the table."

This story is a clear demonstration that no one is immune from our sinking economy.
WATCH THE INTERVIEW: Click on any of the pics in this story to watch an eye opening interview aired on ABC's Good Morning America.

Ken Karpman hard at work at Mike's Pizza and Deli Clearwater, Fl

VIDEO: Larry King on Foreclosures

Here's some insight on foreclosures today including what questions to ask a Investor Buyer, Loan Modification companies that do Nothing, and thoughts from BRAVO's Flippin' Out Star, Jeff Lewis, a self made flipping millionaire who bought, fixed and sold million dollar homes in Los Feliz, CA.

Click on the "Foreclosure Crisis" pic above to view .... Watch and Learn !

VIDEO: IndyMac Internal FRAUD Caught Red Handed

3/07/2009

The Truth Shall Set You Free .........

IndyMac gets caught with its pants down.

The allegations of fraud finally caught up with IndyMac and the lender now admits to BACK DATING legal documents costing YOU, the taxpayer, over 9 Billion dollars while internal bosses and regulators approved the fraud, sat back, and watched it all happen.

Now you to can watch it happen ......... Click on the Indymac Pic above and feast your eyes on this report filed by the Good Folks at Good Morning America.

The Lender Locked My Ass Out !

3/6/2009

Christian - Some jerk calling himself a "bank representative" showed up at my house and RE-KEYED my property. I called the police! What is going on in this world? I am NOT yet in foreclosure but I have missed the past 3 months mortgage payments. I called your office and a member of your staff asked me if I received a "N.O.D" [Notice of Default] or a Notice of Trustee Sale and the answer to both is NO. I haven't received jack from this lender. Can they just walk into my house and re-key it?

Christian's Response:

Calling the police was a GREAT move. Make sure you get a copy of the police report. Here's what you do....Call your Lender and advise them as to what just occurred then call an attorney. This lender has absolutely NO RIGHT to act in any manner even remotely close to what you described. I will not quote law. I will leave that to the professionals with a bar license. You are more than welcome to email me back or contact our office anytime but at this point.......call the lender and advise them that you are no dummy and they have violated about 98% of the laws written to protect a homeowner and furthermore, trespassed on to your property. Tell the lender the entire story. [Remember all calls to your lender are RECORDED.] Document the bank reps name and the time you called. Raise hell. Make your case over the phone with them. Remember the questions my office asked you about (N.O.D.) Once you've finished and you've heard what they have to say, let us know .........

Reader's Response and Follow Up:

Hi Christian, Thanks for responding back to me so quickly. Well, I contacted [lender's name] themselves and get this, the rep told me "what do you expect if you don't make your payments?" I retorted ...... Sorry but I know my rights, you are to inform me in writing if I am in default with a NOD. Have you filed a notice of default, I asked?

BAM! Suddenly this "smart" bank employee wasn't so smart and immediately changed her tune. She explained that the notice of default was filed last week and they called a guy in to check out the property and change the locks, if possible. Could you believe those scum bags. Then, to add further salt to the wound, the rep told me that I would need to speak with someone in their "short sale dept" to see if I "qualify" for a short sale. CAN YOU BELIEVE THAT!

Thanks to this site, I was ready and prepared for that one!!! [See posting "I Need The Banks Permission"] I told the rep. I didn't need to speak anyone. Just put it in your notes that I will be doing a short sale and you'll be receiving a short sale package from a firm I retained, Thank you!

Christian I feel GREAT! You have empowered me !!! It pays to educate people.

P.S. I found out that the guy they sent out to my house was in "property preservation." I called this fatso back as well. He told me that if the property is empty the bank has all the right in the world to come in and just take possession. I told him not to worry about it anymore, my attorney would be taking it from here.

House Ok's Bankruptcy "Cram Down" with Revisions

3/5/2009

Since lenders have no clue what they are doing and are floating by day to day with their heads firmly stuck up their ass, U.S. Judges just might come to the rescue.

Today, the U.S. House approved a broader/revised bill that would allow U.S. Bankruptcy judges to set a new prinicipal loan amount on loans issued to primary residences.

Before that can happen, homeowners would have to seek a loan modification from their lender and wait 30 days from the loan modification request in order to file for a Cram Down. Homeowners must also agree to share any profits if they sell the house within five years.

The legislation now would require the lender to get 90% of profits if the house is sold in the first year after the mortgage is revised in bankruptcy, 70% in the second year, 50% in the third year, 30% in the fourth year and 10% in the fifth year.

The revision was approved with a vote 234 to 191 and now heads to the Senate for an approval ...... God Willing ! Wake up lenders, you've made billions off the backs of the very same people you are now screwing.

Let's screw the homeowners even more by leaving them no choice but to file for Bankrutpcy in an effort to save their homes and gain lender attention. Sure, just leave it to the court system to figure out since the lenders don't know how to clean up the mess they created.

I Need The Banks Permission

3/3/09 Realtor Question:

Christian, a client made an offer on a house last year when the property was offered as a short sale. Nothing ever came of the offer. From what I heard the other agent had no idea how to do a shortsale. I guess from what I was told the listing agent asked the bank for permission before even sending in a package or anything. The bank responded back with "no." So the agent told my client sorry you can't do a shortsale. Now the family lost the house, has the burden of a foreclosure haunting them on their credit report and the home is now offered for sale as an REO.

My question: Does a Realtor need to ask the banks permission prior to submitting a short sale package ?

Christian's Response:

Take a look at the picture above ........ Let's all say it together ......... LOSER.

Shame, Shame, Shame on that Realtor. The Realtor needs to leave the business and check in at the nearest McDonalds. What a flat out stupid, low rate, degenerate. It's Realtors like that that gives everyone else in this business a bad name. It's lame ass licensees like this that make the lenders appear to be God's gift to our planet.

The Answer is NO, NEVER. You never ask a banks permission to lose money. Good Morning........

Hire a professional short sale Realtor and Loss Mitigator that has a record of successful short sale closings. A homeowners first question when interviewing a Realtor should be:

Provide me a list of how many short sale approvals you've had in the post 6 months? Most Realtors will piss in their pants as many are all talk and no action. They couldn't produce a short sale approval if their license depended on it.

The last time a homeowner asked my firm that question, we bundled together dozens of lender approvals from the top 10 lenders in the nation and emailed it to her in alphabetical order.

The homeowner signed the listing agreement with our firm that night without ever meeting with us in person or asking another question.

VIDEO: Wall Street - Executive Air

Now This Say's It All ..........

Click On The Cartoon Above and Turn Up The Speakers!

How Banks Are Worsening the Foreclosure Crisis

Reader's Question:

Mr. Arbid, why are you blaming the lending institutions for the foreclosure mess that we are in? The Reinvestment Act passed, I believe, in the mid 90s, is responsible and those in Wash. DC, in Congress, Barney Frank, Chris Dodd and others (read democrats) and those in charge of Fannie Mae (Raney at the time) are totally responsible for placing specific requirements to all lending institutions to allow the tremendous amount of sub-prime loans. I must say that even Bush proclaimed in his last year in office the need for more home ownership by those who "have been left out". John McCain did write a letter to Harry Reid (I read the letter) stating, basically, that we need to put a stop to these subprime lending practices. These loans were pushed through because of this law, albeit, the lending institutions weren't about to complain in the short term -- they got their money. This unrestricted lending was the result of this outrageous Act. The lending institutions knew that they could package these loans and pass them on to Fannie Mae, etc., who then packaged them and sold to everyone -- pension plans, etc., both in the US and internationally. It was this Reinvestment Act -- this outrageous idea that everyone should own a home regardless of creditworthiness that was responsible. The bubble did indeed burst. M.W.

Christian's Response:

The bad mortgages that got the current financial crisis started have produced a terrifying wave of home foreclosures. Unless the foreclosure surge eases, even the most extravagant federal stimulus spending won't spur an economic recovery. The Obama Administration announced an initiative of $50 billion or more to help strapped homeowners. But with 1 million residences having fallen into foreclosure since 2006, and an additional 5.9 million expected over the next four years, the Obama plan -- whatever its details -- can't possibly do the job by itself. Lenders and investors will have to acknowledge huge losses and figure out how to keep recession-wracked borrowers making at least some monthly payments. So far the lending industry hasn't shown that kind of foresight. One reason foreclosures are so rampant is that banks and their advocates in Washington have delayed, diluted, and obstructed attempts to address the problem. Industry lobbyists are still at it today, working overtime to whittle down legislation backed by President Obama that would give bankruptcy courts the authority to shrink mortgage debt. Lobbyists say they will fight to restrict the types of loans the bankruptcy proposal covers and new powers granted to judges. In public, financial institutions insist they've done their best to prevent foreclosures. Most argue that giving bankruptcy courts increased clout, known as a ― "Cram Down" (see additionals posts on this topic below), would reward irresponsible borrowers and result in higher borrowing costs. On the defensive, the industry nevertheless benefits from one strain of popular opinion that home buyers who took on risky mortgages -- even if the industry pushed those loans -- don't deserve to be rescued.

An Industry In Denial

However the skirmish ends, the industry‘s contention that it has done as much as possible to limit foreclosures seem hollow. Some statistics it cites appear to be exaggerated. Even pro-industry figures such as Steven C. Preston, a Republican businessman who headed the Housing & Urban Development Dept. late in the Bush Administration, concede that many lenders have dragged their heels. One program, Hope for Homeowners -- which Bush officials and banks promised last fall would shield 400,000 families from foreclosure -- has so far produced only 25 refinanced loans.

Meanwhile, an already glutted market sinks beneath the weight of more foreclosed homes. Borrowers whose equity has evaporated have nothing to tap into if the recession costs them their jobs. Some lawmakers and regulators are calling for a foreclosure moratorium.
In early 2007, as overextended borrowers began to default on too-good-to-be-true subprime mortgages, housing experts sounded an alarm heard throughout Washington. Christopher Dodd (D-Conn.), chairman of the Senate Banking Committee, wanted to push a bill requiring banks to modify loans whose enticingly low "teaser" interest rates soon give way to tougher terms. But he knew that with Republicans strongly opposed, he lacked the muscle, according to Senate aides. So Dodd did what politicians often do. He convened a talkfest: the Homeownership Preservation Summit. A who's who of banking executives gathered on Apr. 18, 2007, behind closed doors in an ornate hearing room in the marble-faced Dirksen Senate Office Building. Dodd told them they needed to get out in front of the foreclosure fiasco by adjusting loan terms so borrowers would continue to make some payments, rather than stopping altogether. Foreclosure proceedings typically cost banks about 50% of a property's value. That's assuming the home can be resold -- not a certainty when empty houses multiply in a neighborhood. Some from the industry denied a foreclosure problem existed, including Sandor E. Samuels, at the time chief legal officer of subprime giant Countrywide Financial. They vowed to continue selling loans with enticing introductory rates as well as those requiring minimal evidence of borrowers' income. "We are going to keep making these loans until the last second they are legal," Samuels later told a fellow participant. On May 2, 2007, Dodd's office issued a "Statement of Principles" stemming from the summit. It outlined seven vaguely worded industry aspirations, such as making "early contact" with strapped borrowers and offering modifications that could include lowering loan balances. The principles had no effect, some summit participants now concede. Much of Dodd's attention shifted to his campaign for the Democratic Presidential nomination. Senate Banking Committee spokeswoman Kate Szostak says Dodd aggressively pursued the foreclosure issue, but "both the industry and the Bush Administration refused to heed his warnings." The lawmaker accepted $5.9 million in contributions from the financial-services industry in 2007 and 2008. Asked about his role at the summit, Samuels confirmed in an e-mail that he "did speak -- formally and informally -- about the performance" of subprime loans. But he declined to elaborate. He now works as a top in-house lawyer for Bank of America, which acquired Countrywide in July 2008. By mid-2007, Bush Administration officials were deeply worried about the financial industry's unwillingness to confront the growing catastrophe. Even banking lobbyists say they realized that their clients had lapsed into denial.

That summer, Paulson, a former CEO of Goldman Sachs, summoned industry executives to the Cash Room, one of Treasury's most elegant venues. There, beneath replica gaslight chandeliers, Neel T. Kashkari, a junior Goldman banker whom Paulson had brought to Treasury, urged industry leaders to move swiftly to keep more consumers from losing their homes. Bankers know how to adjust interest rates, extend loan durations, and, if necessary, lower principal, said Kashkari, who has temporarily remained in his post. A couple of months later, Paulson summoned the executives again, this time to his conference room. "We told them we need to get over the goal line," recalls a former top Treasury official. "Cajoling is a euphemism for what we did. We pounded them." One product of the Treasury conclaves was the Hope Now Alliance, a government-endorsed private sector organization announced by Paulson on Oct. 10, 2007. Lenders promised to cooperate with nonprofit credit counselors who would help borrowers prevent defaults. Faith Schwartz, a former subprime mortgage executive, was then hired and placed in charge.

*** Portions of the above response were obtained by the Business Weekly publication.

Don’t Blame the Realtors ..........

While 1.7 million people in California are currently unemployed and while another 46,000 homes in Los Angeles County currently sit in pending foreclosure status, many homeowners now ask themselves - How did we get here?

It's becoming more and more often that you see all the fingers pointing in the direction of the Realtors and other professionals that work in the real estate industry. To all those that believe the Realtors are solely or in part responsible for the housing bubble gone wrong - try again.

While it is true that many fly by night Realtors jumped into the California real estate game with hopes of getting rich quick, it's simply inaccurate to rest the blame of a housing foreclosure bust on the backs of the Realtors. If there was any particular industry that is to be held responsible for the current economic crunch we now find ourselves in, that my friends can be chalked up to none other than the lending institutions. The fact remains that is was the credit and lending institutions that provoked and allowed this train wreck to occur. Lenders were handing out loans to every Tom, Dick, and Harry that lived, breathed, and could sign loan documents. Forget about that little thing known as employment and income. If you had good credit and could breath, you got yourself a loan! Many fell right into the trap. Congratulations, you just qualified to purchase a house! You too can achieve the American Dream! No one would tell you that your American Dream would shortly end up being your American Nightmare. "Don‟t worry about the loan interest rate and payment adjusting in a few years," many lenders told home buyers. Just refinance the loan once you get close to the expiration and by that time you would have tons of equity built up in your home.

Unfortunately, that much awaited and highly anticipated friend called "equity" never showed up at the front door step and those God afoul loans came due. Monthly mortgage payments of $2,000 jumped, in many cases, to $5,000 and $6,000 per month. Families caught flat out with their pants down and the lenders laughed all the way to the bank. Next time you wonder how it is that the housing bubble did finally burst. Just pick up the phone and call the banker that sold you your loan. That is, if he or she hasn't high tailed it to a foreign country or if their phone number still works. You might want to try reaching them in the Virgin Islands, if you don't mind disturbing them from their evening cocktail served beach side.

Historic Overlay My Ass et

Reader's Question:

A local resident is trying to persuade me to jump into this "Historic Preservation Zone" that some in the city are pushing. I live in an old "historic" home built in the late 20's and we are being encouraged to jump on the band wagon and classify my neighborhood as part of a historical area. A lady came knocking on my door and mentioned that this redistricting would be a good way to maintain my property value or maybe even increase the value of my home. What's your thought on this?

Christian's Response:

Read, please, you know better. If your idea of fun is essentially having an HOA present in your neighborhood, knock yourself out. Don't come crying when heaven forbid you want to change your front door, paint your house green, re-landscape your yard, or change a light bulb. Why on earth would anyone want to place restrictions on their homes and be told what you can and cannot do? If you wanted that lifestyle, one would most likely opt to live in a gated community and let others tell you what kind of rocks and plants to use in your front yard landscaping. Although, my remarks are merely my personal comments and thoughts on the topic, don't take it as gospel. It's just my personal feelings on the subject that you asked about. To each their own.

Listen, I own properties outside of LA with HOA's, CC&R's and other homeowner restrictions. When my wife and I purchased our Los Angeles area home, we purposely set out to avoid that type of choke hold. For that reason alone we did not purchase in an area that offered those restrictions but we had our eyes set in that general area. It gets real old, real fast.

So what if you want to remodel your bathroom? Hire a contractor, get the appropriate permits, and off you go. Good luck after you have that "Historic" zone classification.

As to increasing the value of your home, it's hogwash. Many of us unfortunately are about to take a nice financial bath. If your neighborhood becomes the next historic district then great for you. You can place a nice shinny plaque on your front lawn to which no one will really give two squats about. This new, shinny bronze plaque does make a lot of people feel very good as it gives them a feeling of self entitlement and bragging rights.

Oh please, move past the stucco and explore real life. There is so much more value in life other than roof tops and who's lawn is better contests. It's always interesting to listen to some historical homeowners speak. You just have to laugh from within. The grandeur to which they speak of. The glory of their beautiful and rare home. Oh please.

Bel Air, Beverly Hills, La Canada Flintridge you are not. Many of these homeowners should drive down portions of Descanso Dr, Chevy Chase, Highland, Commonwealth and Berkshire in La Canada Flintridge. Now there you'll find HISTORY and elegance by the truck load. Next time this lady comes knocking at your door and lays the line regarding increasing your property value, ask her for a copy of her California appraisers license and her psychic friends network membership card.

Once you get past that, remind her of the current 10,000 foreclosures a day that are occuring nationwide. If I were a betting man, I place my chips on a value freefall based on the mounting foreclosure filings killing property values. Unfortunately, no city designation or bronze plaque will save you from the declining real estate market we are now facing.