Shortsalenurse's HAFA Blog

April 3, 2011

Financially Troubled Homeowners Have Very Little Hope, But How about Promissory Estoppel and False Advertising

I can empathize  with someone shopping for a short sale Realtor, they are lost in the confusing world of Government Programs, rules & regulations and Banks that seem to be above the law.   The same banks that NEVER lose mortgage loan applications but can not keep track of a loan modification package if their lives depended on it.

You feel just like the other  7 million Americans who are in a default on their loans, many of who are dealing with credit problems because of unemployment.   Some hopeful people say change in on the way, I for one have always felt like the change I fought for arrived after it was too late for me to take advantage of it.  But the good fight is and always will be the good fight.

I am still trying to figure out how the Banks on a good percentage of the loans that they service are ignoring the HAFA protocols without a penalty. In one case I know of,  in Riverside County a client did everything necessary to obtain HAFA benefits and was ignored.  This happen in a case where the loan was backed by one of the big Government Sponsored Enterprises, who state they made the HAFA program mandatory.   The sad thing about this case is I was directly involved.   I want to name names so bad, but I am still waiting for this case to resolve.  This family had 3 children all under the age of 5 and the father was fighting for a job, his family and a little dignity.  Just when he thought he had it figured out, and could see firm footing on the  pathway it was snatched away from him.  The financial $3000.00 benefit was taken and the credit reporting now will show a foreclosure.  That is just plain “WRONG.”

I am seeing more and more cases where what is advertised in the HAFA program is not coming out to be true.  This makes me contemplate what the resolve will be.  Is it a Class Action Law Suit?  That  seems to sound good but that is a resultant effect after the fact, meaning that will not put you back in your home after your gone.   Maybe the threat from the State Attorney Generals and the Federal Trade Commission will wake the servicers up.

If you are into legal theory maybe now is the time to tell that bill collector about, promissory estoppel or maybe false advertising is a good path to take.  What your  resolve will be I am not sure.  Maybe Title 6 of RESPA and a “qualified written request” is the path for you.  Maybe advancing  questions about these theories to your Congressmen is the way to improve the  social problem we are all facing.

Heck, I have knowledge of a HAFA transaction where one of the Nationally known Banks failed to provide a fair marketing price on a home in HAFA and the clients elected to take a Deed in Lieu of foreclosure.  Not only could the bank not provide the clients the paperwork to bring the property to market for about 9 months they can not even find the time to do the Deed to take the property back.  If this is not resolved quickly for these clients the Realtor is going to do a RANT and post it at their BLOG.. Our elected officials need to see the frustration on our faces, and for that matter so do the CEO’s at the Banks that are getting no where fast.

I was talking late this week,  to an elected official who had about 25 to 30 years of Banking experience and they noted that the different divisions of the bank do not talk to each other.   Of course with my almost 20 years in Banking I knew that to be true also.  Maybe a RANT addressed to a CEO, but I have a question, when you are telling the truth is that a RANT?   When you warm a Federally Chartered Bank, and their sub contractor,  action is going to be taken, is that a speech in the court of public opinion or is that a RANT.

Maybe this will serve as an example of what can happen from willful inaction.  See the  introduction to a RANT  in the article and link below.

Outraged at Bank of America’s attempt to secure a home that she had already sold, Concord Realtor Leigh Brown turned to YouTube and Twitter this week to vent her frustration

Read more:

I saw this video it was great.  The Realtor  was on point, she called it as she saw it and the resolve arrived., she was a justified advocate for her client. Consumer Protection by YouTube Rant,  who would have ever thought that was possible… ME!

All marketing is done with the assistance of Kalabash Marketing!

Goodnight Mrs. Kalabash where ever you are!

Secret Message to Mrs. Kalabash, for who I am Ga -ga.

George Kenner Broker Associate, Keller Williams Realty, Lic. 01229951

619-723-5714  –

Not portion of this is to be considered Legal Advise.  I stongly agee with  the advise the  Ca. Association of Realtors gives in the Short Sale Advisory, Please Consult an Attorney for any Foreclosure Issue that you are facing.


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