Comments on: CNBC – Big Banks, Short Sales, Kick Backs and Fraud

By: Christopher Austin Mortageg Banker

Christopher Austin Mortageg Banker — Mon, 25 Jan 2010 18:48:20 +0000

I am a paracticing Mortgage Banker in California. In addition I buy short sales every month as an Investor. We have had many issues with B of A in stalling and postponing quality short sales while they try to get cash on the side. Now from what i understand regarding 2nd trust deeds in California is that the junior lien holder can release their security in the real estate and become a unsecured debt and can then settle outside of the short sale transaction and HUD/RESPA rules. But if they hold a security interest in the residential property all items payable including payoffs of a deed of trust must be on the HUD-1 form. I understand the 2nd TD holders right to collect but to hold the real estate hostage in the meantime is not right as if their true intent is to collect a unsecured debt they must release the security and allow the sale to proceed. I believe a mandatory short sale process where 80 of current value is the final max sales price and seconds get $2,000 or 2% which ever is less and authority is given to the the title ins co to reconvay on behalf of the TD holders with Rec of the mandatory funds. That would speed up the sales process and put equity positions in the market place to bolster the housing market and sub service markets like contractors.

By: Short Sale Story Continues « Jeremy Brandt

Short Sale Story Continues « Jeremy Brandt — Tue, 19 Jan 2010 21:42:17 +0000

[...] Larry King Live / CNN « CNBC – Big Banks, Short Sales, Kick Backs and Fraud [...]

By: JIm

JIm — Tue, 19 Jan 2010 17:09:54 +0000

As a short sale specialist, I believe these Banks are afraid of investor/shareholder backlash when the amount of toxic assets finally comes to light.
Top executives at these banks are quaking in their boots that the day of atonement is almost at hand. Of course then they cash in the stock options and walk away-no harm no foul.

By: Robert Steffens

Robert Steffens — Tue, 19 Jan 2010 00:15:34 +0000

Infuriating, yes. BUT, none of this surpirses me. It does connect some dots as to why banks obviously are not motivated to deal rationally on short sales…it’s more profitable for them to foreclose…thanks to the tax payers. RESPA violations and the appropriate enforcement agencies ignore this behaviour? If it was a single lowly Realtor, they would be locked up. BUt, since it’s the banks who write tha laws via our duly elected legislators, they get away with behaviour that can only be described as “DOMESTIC TERRORISM.” Throw the heads of the banks into that little resort in Cuba. Seriously, these people care about nothing except to make a buck. They are within their rights to seek a profit, BUT this activity demands actual people see jail time. Name one person in the banking industry who has gone to jail yet? they cause billions in damage and get 140 billion in bonuses?!
Lastly, I agree that our legislators are asleep at the wheel. It’s time to wake them up. Call your legislators.

By: Bill Richard Realty Groups

Bill Richard Realty Groups — Mon, 18 Jan 2010 20:15:34 +0000

Think about how much the business of Real Estate has changed. WE are being asked to help people dissolve a major investment. We are being asked to make value judgements on what is right and wrong. Those judgements are way out of the scope of our licenses.
The banks change the rules each and every day. When you ask them they say you can not give anything outside of escrow to the second. When you asked them if they ask for money outside of escrow the answer is yes.
Our clients end up paying more for the home which has been stripped of sinks, copper piping, built in’s and many other valuable assets all because the banks don’t have their act together.
If you want to stop this nonsense it will have to come from the top down not the other way. We need real leadership and right now we are not getting it.
Solution: Change the percentage owners pay on their loans to 3% for the next ten years. Don’t even ask for a hardship just do it. We will save thousands upon billions of dollars.
By the way I closed personally myself last year over 15 million in short sales. It is easier then any one thinks and all these outside negotiators have nothing to offer if someone is willing to simply work.
Just my thoughts.

By: Susan

Susan — Mon, 18 Jan 2010 18:07:47 +0000

I have a 1 YEAR OLD contract, yes same buyer, Cash, above appriased value.!! Wamu let it fall through the cracks at 8 months when they merged with Chase. One year later (and 5 new packets) it has been ‘reassigned’. Here we go again! And, BOA is the ‘invester’ behind Chase so I am sure we are in for at least another 2-3 months!!! If it goes back on the market it will cost them at least 150,000 right now.

Maybe someone will finally get something going correctly with short sales now. It is so bad that most of my fellow agents won’t work a short sale purchase and are willing to loose the client or referr them because of the process. So, these homes prices are plumeting right now around here thus affecting all the other values.

By: Scott McDonald

Scott McDonald — Mon, 18 Jan 2010 17:23:37 +0000

Jeremy, great start, now for some action!

Fellow Realtors, we must awaken to this reality: These practices are illegal, and destructive to our livelihood and the Entire US economy. Amongst our allied industries there surely must be litigation specialists in these markets whom our Associations can, as a class, engage to bring suit against these thug companies? Also, turn these companies in the the Federal Trade Commission. Also, send letters (as well as emails… though they are easily deleted) to your Congressmen, and Senators! Send copies of the tapes!

When 100,000 of us raise enough racket and send enough paper to Washington, the Bureaucrats will act, if only to save trees and their hairy behinds!

The Obama Administration is the throne of corruption, and inept as it is corrupt. You will have to bludgeon it into ‘change’, and you’d better get your stick out and start swinging…now!

By: Linda

Linda — Mon, 18 Jan 2010 17:19:42 +0000

I have worked dozens of short sales and every one has been different. The banks have no consistent guidelines. I always advised my client to first try to get a loan modification. One home owner has been trying since Sept, he is on his 9th contact phone number and still no answer. I have not seen a single successful modification. The President’s Plan is a joke. The bank “negotiators” are mostly inaccessible or rude. One has a voice mail that says “do not leave a message on the phone, I will contact you if I need more information”, of course she does not call. I called a supervisor who said the file is incomplete and they need current pay stubs from the borrower (which are not current by the time they review them). I have had three deals actualy go to foreclosure when I had good offers on the table. All three were put back on market for considerably less than the offers I presented. When borrowers/buyers are asked to pay additional blood money, they often just throw in the towel. BofA is, by far, the worst with Chase close behind. Does anyone care that it is a blood bath out here?

By: David Tannenbaum

David Tannenbaum — Mon, 18 Jan 2010 16:32:16 +0000

In response, BOA consistently requests or better demands for a note over and beyond the 2nd mortgage payment to release the lien. this is quite proveable and probably as illegal!

By: Report os Short Sale Fraud «

Report os Short Sale Fraud « — Mon, 18 Jan 2010 15:06:34 +0000

[...] read a recent CNBC report which was a bit disturbing. This report depicted fraud when it came to these short sales. [...]