January 3, 2011 at 10:55 am

Register Quickly for January Live Training Event

Readers have asked for more in-depth information on short sale compliance for both investors and the real estate agents and brokers working with them, as well as third party negotiators.

On January 13-15, 2011 (just ten days away), I am conducting the most intensive, California-specific short sale education and training that likely will be held this year focusing on legal compliance and business methods.

Vist http://bit.ly/profitinjan for more information about the “Short Sale Profit Preserver” training and business relationship building event. There are discounts for registering before the end of this week.

I look forward to seeing many of you in Newport Beach next week.

December 22, 2010 at 6:00 am

Wells Fargo CA Settlement Is Politics As Usual

It’s “politics as usual” in California – more publicity than substance.

On December 20, 2011 the California Attorney General’s office announced a settlement with Wells Fargo Bank (WFB) “worth more than $2 billion to Californians with risky adjustable-rate mortgages.” It didn’t say that this value is possibly attained only IF all eligible borrowers complete the modification process, accept the terms and then pay the resulting 40 year mortgage over the life of the loan for an average monthly relief value of $280 month. (Read on to see how I come upon that amount – or less.)

Just what does this news release mean? I’m sure that few people reading the news articles will ever read Read the rest of this entry »

at 5:25 am

Get The Wells Fargo Bank – California Settlement

 Yesterday’s “big news” in California, and even national, real estate news was about the “$2 billion” settlement reached between the California Attorney General and Wells Fargo Bank regarding “pick-a-pay” loans. It made for good publicity but does it make for any benefit to borrowers?

Registered readers can get your own copy of the “settlement” (actually titled as an “Assurance”) by downloading from the link at the end of this article. I’ll post my initial comments on this Assurance very soon.

See if the Assurance makes more sense to you than it did to me and please comment on the upcoming article.

Here’s the Assurance:  Wells Fargo Bank – California Pick-a-Pay Settlement

December 20, 2010 at 8:28 am

It’s OK To Be Unfair When You’re The Bank

A Federal District Court once again affirms what those of us involved with short sales and loan modifications have been experiencing all along: It’s Okay To Be Unfair With Borrowers When You’re The Bank.

On December 13, 2010, a federal district court in Oregon found in Vida vs. OneWest Bank FSB that the borrower does not have a private right to sue it’s mortgage lender (a “private right of action”) when the mortgage lender treats them unfairly in the process of administering the HAMP loan modification program. The court also said that borrowers are not the intended beneficiaries of the servicing contract between the bank and the U. S. Treasury for servicing the federal HAMP loan modification program.

So if the borrower Read the rest of this entry »

November 23, 2010 at 10:46 am

REO Shadow Inventory Increases – Get the Details

A major real estate research company released a four page report yesterday (November 22, 2010) providing a significant look into the size of both listed REO (“real estate owned” by banks after foreclosure) and the increasing size of the “shadow inventory.” Shadow inventory consists of properties taken back by lenders through foreclosure but which are not yet on the market. The full report is available to free registered members of this site.

In short, the report states there are 4.2 million properties listed as “visible inventory” and 2.1 units of “shadow inventory.” This inventory is broken down state-by-state in the report in terms of the number of months of inventory.

Either lenders cannot get properties on the market quickly Read the rest of this entry »

November 18, 2010 at 6:01 am

California Short Sale Anti-deficiency Law – Will Other States Follow?

What starts in California often spreads east across the country. Will that be the case for California’s new short sale anti-deficiency law?

On August 19, 2010, the California Legislature approved Senate Bill 931 (SB 931) which added Section 580e to the Code of Civil Procedure (CCP §580e). It expands existing anti-deficiency laws regarding loans secured by dwellings of one to four units to short sales, but only to the first lien holder. It was not passed as “urgency legislation” or with a delayed effectiveness, so it will take effect on January 1, 2011.

In part, the new law provides that: “No judgment shall be rendered for any deficiency under a note secured by a first Read the rest of this entry »

October 12, 2010 at 4:56 am

Becoming Liable for the Impossible: FMV Certifications in Short Sales

Are sellers, brokers and buyers in a short sale transaction being set up by the big banks?

Most lenders routinely require that the seller, listing agent and often the buyer and their agent sign some kind of certification, representation, or declaration/affidavit that the short transaction is being conducted at “fair market value” (FMV) or “market value” or “based on market value.” Often the certification takes the form of a sworn affidavit or a declaration under penalty of perjury.

By definition, it is IMPOSSIBLE for a short sale to occur at fair market value. By refusing to approve the short sale without the FMV certification, the banks are requiring the signers of the certification to engage in Read the rest of this entry »

October 5, 2010 at 9:38 am

Short Sales Negotiations – A Navigable Quagmire of Agency, Duty and Compensation

Posted by in Everyone

Until two or three years ago, short sales “negotiation” was the purview of a small niche of real estate agents, attorneys and investors. Depending upon the particular market, real estate agents advise me that anywhere from 30–50% of the properties on the market (which includes properties which are not on the MLS) at any given time may be short sale properties. Accordingly, short sales “negotiations” – and how they are paid – have become a very hot topic involving tens, if not hundreds, of thousands of California homeowners and real estate professionals a year.

Disclaimers: Once again, this is a long article that could be even longer. With so much discussion, I’m not including Read the rest of this entry »

September 29, 2010 at 5:00 am

Freddie Mac: Fighting “fraud” or “crying wolf”?

Posted by in Everyone

Here we go again.

Freddie Mac is out lumping legitimate resale transactions in with the fraudulent ones in order to deflect accountability for its massive loan losses due to buying loans it had to know were bogus.

I’m tired of exposing their fallacies and lack of effective reasoning, but apparently they aren’t tired of exposing themself. Maybe they are getting ready to go to Congress for billions more dollars to cover losses exacerbated by the market fear they have fostered and the drag it is having on housing sales.

The Freddie Mac web site has a new article rehashing old issues. This time it’s titled “Fighting Back Against Mortgage Fraud” and has a real, named author in Read the rest of this entry »

September 21, 2010 at 6:22 am

Flip, Flop or Hold – A Tale of Three Myths

There’s a lot of discussion and warnings in residential real estate circles regarding various forms of “short sale fraud.” Unfortunately, too much of it neglects realistic market analysis and results in labeling legitimate business practices as “fraud.”

Usual disclaimer:  this is a lengthy post because it provides in-depth analysis of complex issues. It’s not just repetition of brief “sound bite” type of statements that are all too common about this topic.

The Setting

When a person buys a short sale property, one of three transactions may be involved: a “flip”, a “flop,” or a “hold.” Various commentators engage in diatribes about how flipping and flopping increase lender losses. In short, these arguments are myths.

Any Read the rest of this entry »

© 2010-2010 California Short Sale Lawyer™: Attorney Ron Ballard's blog about California short sale laws and procedures