Category Archives: angry about housing

FHAs Back to Work Program Waives Waiting Times

(Courtesy NKS Financial)

Purchase again sooner than you think

The Federal Housing Administration (FHA) recently announced its “Back to Work” program, which is giving individuals who suffered a long period of hardship during the recent housing crisis a second chance to prove they can carry a mortgage and own a home.

The program will waive many of the waiting periods associated with a significant “economic event” such as bankruptcy (Chapters 7 and 13), short sale or foreclosure.

Potential candidates may be first-time or repeat home buyers, and the program can be used for the 203K rehab loan. It must be approved by an FHA lender, and as some lenders are choosing not to participate, you may want to contact your mortgage professional for more information on this.


To participate in the program, individuals must be able to demonstrate they’ve recovered fully from the “event”, and document the fact that they did have a household income loss of at least 20 percent for a period of at least six months that coincided with the “event.” They also need to prove current, stable and documentable employment to qualify.

As well, they need to demonstrate a 12-month positive payment history, and this specifies on-time payment of all mortgage and installment debt. There is some latitude for credit card debt, but it is slight.

Counseling sessions

Applicants also must attend counseling sessions before being able to participate in the program. This is usually a one-hour session with a HUD-approved counselor, and was designed to help participants prevent the “economic event” from happening again.

Check Your Mail – Payments to 4.2 Million “Distressed” Borrowers Happening Now

Actual check received in the amount of $2000 by one of my past clients in her mail today; she had completed a short sale. Envelope reads "Important Payment Agreement Informaton Enclosed" from the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System
Actual check received today by one of my past clients who completed a short sale. Envelope reads “Important Payment Agreement Informaton Enclosed” from the Office of the Compftroller of the Currency and the Board of Governors of the Federal Reserve System
If you have been foreclosed on or have completed a short sale, don’t be so quick to throw away mail from your past lender. Payments to 4.2 million borrowers will be distributed to those whose homes were in any stage of the foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of the following companies, their affiliates, or subsidiaries: Aurora, Bank of America, Citibank, Goldman Sachs, HSBC, JPMorgan Chase, MetLife Bank, Morgan Stanley, PNC, Sovereign, SunTrust, U.S. Bank, and Wells Fargo.

In most cases, eligible borrowers will receive a letter with an enclosed check sent by the Paying Agent–Rust Consulting, Inc. Some borrowers may receive letters from Rust requesting additional information needed to process their payments. Rust is sending all payments and correspondence regarding the foreclosure agreement at the direction of the OCC and the Federal Reserve.

Borrowers can call Rust at 1-888-952-9105 to update their contact information or to verify that they are covered by the agreement. Information provided to Rust will only be used for purposes related to the agreement.

Watch out for scams. Beware of anyone who asks you to call a different phone number than the number above or to pay a fee to receive a payment under the agreement.

The Federal Reserve Board issued enforcement actions against four large mortgage servicers
–GMAC Mortgage, HSBC Finance Corporation, SunTrust Mortgage, and EMC Mortgage Corporation–in April 2011. Under those actions, the four servicers were required to retain independent consultants to review foreclosures that were initiated, pending, or completed during 2009 or 2010. The review was intended to determine if borrowers suffered financial harm directly resulting from errors, misrepresentations, or other deficiencies that may have occurred during the foreclosure process.

A number of servicers supervised by the Office of the Comptroller of the Currency (OCC) were also required to conduct independent reviews.

The deadline to request an independent review was December 31, 2012.

Improve Your Chances in Multiple Offer Situations

multiple-offers, Sacramento Listing Agent, Elk Grove Listing Agent
multiple-offers, Sacramento Listing Agent, Elk Grove Listing Agent
(Guest article, Dian Hymer – Client Direct)

Some buyers in hot markets with a low inventory of homes for sale are losing out over and over in multiple-offer competitions. You can improve your chances of having an offer accepted by clearing up any issues that might cause a seller to look askance at your offer when compared to one from another buyer.

If your purchase offer is littered with contingencies that protect you, the sellers are more likely to see the contract as risky, especially if they are looking at other offers that contain fewer contingencies.

A clean contract is free of contingencies, which can give buyers a competitive advantage, especially if they are offering less than full price or are in competition with other buyers.

Timing is everything in the home sale business. Buyers often lose out on the opportunity to make an offer on a listing because they are traveling for business or vacation. One partner may see the home of their dreams, but the other won’t be back in town to take a look for days or weeks.

Making an offer contingent on the absentee buyer’s approval of a property is risky from the seller’s standpoint. If the seller accepts the offer, he takes his home off the market not knowing if the absentee buyer will like the house enough to buy it.

It would be very difficult to get such an offer accepted if there are multiple offers from buyers who have all seen the property. The Internet can give a great introduction to a listing, but it usually doesn’t include photos of items that might cause you to pass on the property, like a neighbor’s home that is in poor repair or a location close to a noisy freeway.

Some buyers buy property without having seen it. To get an offer accepted, these offers usually have a generous price, and close quickly. The buyers may later find problems that they could have discovered had they seen the property before making an offer. It’s better for both buyers and sellers if all potential buyers have seen the property before an offer is made.

HOUSE HUNTING TIP: Try to anticipate if there is any condition of your home purchase that would cause the sellers to shy away from accepting or countering your offer. If such conditions exist, try to address them before you make an offer.

For example, let’s say your parents are willing to give you a large amount of cash for a down payment to make your offer more competitive. Make sure this will be acceptable to your mortgage lender.

Find out what verification the lender will require from your parents. If the lender needs a gift letter that stipulates you don’t need to repay the money, have your parents write this letter and include a copy with your offer.

Sellers are always concerned about the buyer’s financial capability to close the transaction. Your offer should include a letter from your lender stating that you are preapproved for the financing that you need. The letter should stipulate that the lender has verified the cash you need for the down payment and closing costs.

If the verification of funds needed to close is not included in the preapproval letter, make a copy of a bank or brokerage statement that verifies the amount you need. Black out the account number and include a copy of this with your offer.

In some areas, buyers are making offers without any contingencies. That is as clean as it gets. However, there can be problems with contingency-free offers. Buyers can feel pressured into waiving an inspection contingency because they’re sure they can’t compete unless they do. The sellers could end up in a legal hassle with the buyers after closing if problems arise that weren’t disclosed to them.

THE CLOSING: Buyers should ask the sellers for permission to preinspect the property before they make an offer without an inspection contingency.

There may be money available for you under the National Mortgage Settlement

Elk Grove Short Sales -Mortgage Rescue
Elk Grove Short Sales -Mortgage Rescue
Recently, well last year, I wrote about both the National Mortgage Settlement (In February 2012, 49 state attorneys general and the federal government announced a historic joint state-federal settlement with the country’s five largest mortgage servicers), and the Independent Foreclosure Review (Ten mortgage servicing companies subject to enforcement actions for deficient practices in mortgage loan servicing and foreclosure processing reached an agreement in principle with the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board to pay more than $8.5 billion in cash payments and other assistance to help borrowers).

Today I received an e-newsletter from BPE Law Group which summarizes the most recent happenings with both lawsuits settlements. I thought it was very well put together and so I’m sharing it with you below. I highly recommend BPE Law Group (info at the end of this post) should you have any further questions regarding these legal matters, and how they might affect you.


If your loan was owned or serviced by any of the settling banks – BofA, Wells Fargo, Chase, Citi, or Ally – and your home was foreclosed upon between January 1, 2008 and December 31, 2011, you may be eligible to receive a cash payment as part of the settlement. A settlement administrator has been appointed to accept claims and to oversee the distribution of settlement payments.

Claim forms must be submitted by no later than January 18, 2013.

The easiest and fastest way to submit your claim is online.
Go to: and follow the instructions.

Information about the settlement administrator is also available at: The e-mail address for the administrator is The administrator can also be called toll-free at 1-866-430-8358.


In addition, a separate Program had been lauched previously creating a Independent Foreclosure Review for those who may have been foreclosed between 2009-2010. However, the processing has been a nightmare. Last week, a Settlement was reached whereby the settling lenders agreed to pay $8.5 Billion to a fund and the Foreclosure Review was shut down. Within the next few weeks, a process will be set-up to submit claims. Watch your mail box for more. You can learn more at:


None of the above Settlement programs bars a foreclosed party from asserting separate damage claims against their lender, assuming they have the financial capacity to do so. A few Class Action lawsuits have been set up around the country although they, like individual lawsuits, appear to be bogged down in the Courts.

If you have questions concerning your rights and possible recovery against your lender, you may want to have a follow-up consultation with us.

This home loans crisis is destroying hopes and dreams and families across our nation. If you know anyone struggling with these problems, please do them a favor and pass this newsletter along to them. We have a flat fee $200 consultation that guides you in identifying the problems and risks and creates a strategy to deal with them. A similar program is being set-up for Commercial Property Owner Consultations.

Steve Beede, Founder and Managing Partner
BPE Law Group, Inc.
Main: 11140 Fair Oaks Blvd., Suite 300, Fair Oaks, CA 95628
Satellite: 9245 Laguna Springs Dr., Suite 200, Elk Grove, CA 95758
(Appointment Only)
(916) 966-2260

Don’t miss out on an opportunity to get your financial house in order.

Foreclosure: What It Really Means & How To Avoid It

Foreclosure: What It Really Means & How To Avoid It.

What You Can Do If You Have Been Scammed In Real Estate


1. The DRE if a real estate licensee is involved, or if the person or company is unlicensed. If the person or company is unlicensed, the DRE will file a Desist and Refrain Order. If the person or company is licensed, the DRE will commence disciplinary action,

2. The District Attorney, Sheriff, local police and local prosecutor in your community.

3. The California Attorney General, at

4. The California State Bar if a lawyer is involved, or if an unlicensed person claims to be a lawyer at

5. The California Department of Corporations, at, if a loan modification claims to be operating under a California Finance Lender License.

6. The Federal Trade Commission, at They have an excellent fact sheet on Foreclosure Rescue Scams.

7. Federal Bureau of Investigation (FBI), at

8. HUD, at

9. The Federal Deposit Insurance Corporation (FDIC), at

10. The Better Business Bureau in your community.

11. The Chamber of Commerce in your community.

12. File a Small Claims Court action. These are informal courts where disputes are resolved quickly and inexpensively by a judge. Since 2008, you can recover up to $7,500 in Small Claims Court. You represent yourself, and can request a judgment for money damages.If your judgment is based on fraud, misrepresentation, or deceit, or conversion of trust funds, and the judgment is against a real estate licensee, DRE has a Recovery Fund that may be able to pay your claim. Go to the DRE web site at, and look under the tab for “Consumers”. Also, the California Secretary of State has a “Victims of Corporate Fraud Compensation Fund” that provides restitution to victims of corporate fraud. Go to the Secretary of State’s web site at for more information.

(info above issued 3/2009 via

An Angry Letter to Bank of America – A Day in the Life…

Message :

Hi Todd

After calling in again this week to get the
approval Bank of America has been sitting on, I
was told once again that “he will call you today”

Unfortunately, it is now too late. The buyer’s
offer on another property in that area has been
accepted at $39,000. In addition, the buyer then
told his agent that it is ridiculous to wait on
this property when the area values continue to
drop right before his eyes while waiting.

Further, he has found two more at the same price,
$40k and has asked his agent to remove his money
from escrow and transfer to the new escrow
account in preparation to offer on the other

Todd, I know you don’t have much time to read
this or much control over what has occurred but I
must say that I am greatly disappointed in your
company’s system and jaded about the process and
principles of Bank of America at this time.

As a short sale negotiator and a first-hand
witness to the horrific one-year ordeal that I
have endured with your company, I am sure you
have experienced this before. It is sad that all
I have gained from this experience is a
paper trail of incompetence on the part of Bank of
America. It is enough to write a short book. I
could literally just print it and publish it.

This transaction has moved from the original all
cash offer of 60K, to 68K (at the unsubstantiated
request of B of A), to 71K (again at the
unsubstantiated request of B of A), and finally
down to 66K (at the substantiated request of the
buyer’s lender… B of A, after the buyer took
out part of his cash to purchase a comparable REO
property in the same neighborhood).

Why do I say unsubstantiated? Because most of
your bank’s “appraisers” are in it for you. The
very same tactics they used several years ago to
get “creative” loans approved they are now using
to get short sales denied or prolonged to the

Yes, I understand that they are working on behalf
of the mortgage holder, as it should be, but they
are not using appropriate methods (they lump
properties without getting the specifics) and
they are self policed (which can be interpreted
as no policing).

When I ask about the methods used at coming to an
appraisal result, the negotiator on the other end
often times does not know how to interpret the
results because the negotiator in New York can
not be expected to know what the market
conditions are from county to county, let alone
state to state (I’m in Sacramento, CA).

The result, a short sale offer/transaction which
began in April of ’08 is ending in February
of ’09 with the buyer walking away and purchasing
two REO properties at the price of one short
sale. Even further, B of A loses four times, they
lose the buyer twice (lost the original offer
where they could have had more money, lost the
last offer where they could have had less but
could have had something), they lose the borrower
as a customer (the mortgage has gone unpaid for
one year), and they will lose again when the
property goes REO due to the costs and losses
incurred with that transition.

Talk about mismanagement of funds and resources.
Actually, there have been all kinds of
misappropriations with this one transaction. I am
left speechless and hopeless for those
individuals yet to come that will succumb to the
same fate with your company.

This is the sad reality that our legislators do
not see, yet they parade themselves and
grandstand on our televisions and radios as if
they are doing America a favor by passing laws
which, by the time they trickle to the general
populace, are way too little, and way too late.

For several weeks (weeks have turned to months)
now I have been told that the file was in a
closing status. For the sake of my personality
type, I will publish this letter in my blog as a
way of attaining some true form of closure.


Keisha M. Mathews, REALTOR®
Century 21 Landmark Network
Short Sale Negotiator/Pre-Foreclosure Specialist
8801 Folsom Blvd #260
Sacramento , CA 95826
(916) 266-4835 office – direct
(916) 405-3886 efax