Shortsalenurse's HAFA Blog

August 21, 2012

Secret BULK Sale to the HEDGE FUNDS? Sure looks like Companies are getting RICH!



As I’ve been communicating to you over the past year about the Federal Housing Finance Administration’s (FHFA) REO “bulk sales” initiative, I have an important update to share with you.

Despite vehement opposition from C.A.R. and California Congressional members, the negative economic impact to the state’s housing market, and cost to taxpayers, FHFA is moving ahead with its REO bulk sales pilot initiative, which calls for the sale of nearly 500 Fannie Mae-owned foreclosed homes in the Los Angeles and Inland Empire areas to undisclosed institutional investors.

Not only are Fannie Mae and FHFA moving forward with the plan, they are doing it in a secretive manner and are refusing to disclose any details. We are disappointed they fail to understand that this initiative will harm the communities in which it will be implemented and are carrying out this ill-conceived plan.

In response to FHFA’s failure to implement the REO initiative in an open and transparent manner, C.A.R. is filing a request for details through the Freedom of Information Act.

FHFA, Fannie Mae’s conservator, announced earlier this summer that winning bidders in the foreclosure auction had been chosen, with transactions expected to close in the third quarter. But FHFA didn’t release any details of the transactions, such as property locations, final property count, sales price, or names of winning bidders.

While FHFA and Fannie will not provide details of the transaction, C.A.R. has confirmed that Fannie Mae has created an LLC in California, called SFR 2012-1 US West LLC, to transfer the foreclosed properties from Fannie Mae to the LLC. It is unknown whether the winning bidders will purchase the full LLC or only a share, thus splitting the ownership between Fannie Mae and the winning bidders.

This REO initiative poses a direct threat to the Inland Empire housing market. According to C.A.R. statistics, the targeted properties are in markets that have seen significant stabilization over the last three years. Not only is the Inland Empire experiencing a severe lack of available housing, demand is also strong, and REO listings are selling in less than 30 days. In fact, the unsold inventory currently stands at a 3.1- and 3.8-month supply in Riverside County and San Bernardino County, respectively, half of the long-run average of 6 to 7 months.

C.A.R. is also concerned that FHFA and Fannie may have used antiquated market data, perhaps as old as 2011, to determine property valuations. Because the bulk sales initiative is only now in the process of closing, these dated valuations will drag down comparables and harm the Inland Empire housing market, which has shown strong signs of stabilization. Additionally, because of this price discrepancy and the very nature of bulk sales, we believe Fannie Mae is assured to not receive fair market value of the properties, thereby saddling taxpayers with their loss.

We have voiced our opposition to the bulk sales program with Acting Director Edward J. DeMarco on numerous occasions advising him that investors don’t need government incentives to purchase properties by offering REOs at a discount price and that home prices will be further depressed in affected areas.

C.A.R. also has provided FHFA with multiple updates on California’s housing market conditions over the past year, which it has clearly ignored. FHFA has provided no rationale or supporting evidence to C.A.R. leadership explaining why it is moving forward with the sale of unmarketed REO properties, despite the overwhelming evidence C.A.R. has provided why bulk sales shouldn’t be pursued.

In May, California Congressmen Gary Miller (R-Brea) and seven other California congressional members introduced a bill that called for FHFA to cease its bulk sales plan in California. H.R. 5823, the “Saving Taxpayers from Unnecessary GSE Bulk Sale Programs Act of 2012,” prevents the FHFA from implementing the sale of Fannie Mae real estate-owned (REO) properties in California to institutional investors.

The introduction of H.R. 5823 followed on the heels of a letter Congressman Gary Miller and 18 other California Congressional members sent to the FHFA in April asking the agency to refrain from implementing its “REO Initiative” pilot program in California. The letter stated, “We are concerned that including California counties in this initiative is in direct conflict with your duty as conservator to preserve and conserve the Company’s assets… In California, there is no question that disposing properties through bulk sales will yield a lower return for the GSEs and taxpayers than through traditional disposition methods. This means that such a program will increase losses to the taxpayer and GSEs,” the letter concludes.

C.A.R. will continue to fight the implementation of bulk sales in California, and I will continue to keep you updated on this important topic as it unfolds.


LeFrancis Arnold


 George Kenner, Broker Associate   2060 Otay Lakes Road, Chula Vista  CA. 619-723-5714

Ca. Brokers Lic. # 01229951


May 18, 2012

Sitting on the Doc of the Bay Hoping this Short Sale will go away!

Sitting by the dock at the bay hoping this short sale will go away.  This week my problem file is with GMAC Mortgage who states they are servicing a loan for IMPAC Mortgage.  The NOTICE OF DEFAULT however does not clearly name IMPAC as the owner.  But I have lots of E Mails that say IMPAC.  It is my understanding the true owners name is supposed to be on the NOD.

There are two issues with this file one is that there is no relocation funds for the Seller / Homeowner and the other is they waited till they presented the approval to take commission dollars away from the real estate agents.  This may or may not be legal but I for one do not think it is MORAL.   As many great men have said doing what is legal is not always the best standard to follow.   Even this very week Bank of America announced relocation fees on some transactions that will go as high as $30,000.00 and HAFA is set at $3000.00.   3000 times by the current approval I hold still comes out to ZERO dollars for my client.  Is that an error.   Well that is what I am trying to find out.  In my view I have a duty to my client to try to make sure there is not some mistake.  How do you feel.   Here are two videos that I hve posted to try to put a human face on the subject.  If I get as satisfactory correction to this I will post it, and if I do not, well excuse me I do not even what to think to think negative.   Some higher power will not allow my unemployed client to hit the streets without having something in his pockets.   San Diego and California Mortgage Lenders at not that cold hearted!

George Kenner, Broker Associate  Lic. 01229951 619-723-5714

January 30, 2012

OK! Bank of America and Freddie Mac CEO’s, The BALL Is On Your Side of the Court ! UPDATE UPDATE UPDATE!

Fair Warning Was Given!  I have e mailed, made repeated calls, I have even sent pictures of this home to try to bring it to a fair value with Bank of America management but nothing has happened.  This means the PUBLIC FIGURE CEOs are the only ones to turn to. Were I them, I would pic up the phone and call me to say thank you for bringing this “systems issue” to their attention.  Will they fix this or will they run and hide from simple questions?

Let me share a few other things  I have done to support the efforts I have made to bring this to a resolve.  I have sent in local foreclosure “Pin Maps”,  I have begged borrowed and pleaded with my fellow Realtors to bring me some type of offer but they tell me I am nuts.  I use coded entry log lock boxes, and those entry logs were provided to the bank to call the other Realtors to see if what I was saying was true.  Were all my fellow Realtors and their clients crazy?  Was the Market lying?   I will give the CEOs the name of a Real Estate Managers in my area who have seen this home and found it was not properly priced, if they want to call.

This is the first of what may be more videos on this home.  There is really more to say.  Frankly I want to know who owns the appraisal company that valued these properties and did not tell Freddie Mac that FHA was the prevailing loan used in this demographic and that it would not be eligible because of condition.  Freddie Mac belongs to us, the “Tax Payers” the way they are doing business is our business.  Do they really not know the condition of this home and was it hidden from them?

HERE IS ANOTHER HOT  QUESTION for the CEO of Freddie Mac.   Why not give us a special HOME PATH Rehab loan NOW?  Why wait till it is foreclosed upon.  Please give me the logic for this, because I can not see it.   STAY TUNE FOLKS.. if this is corrected I am going to pull this video as there is no reason to make villains but on the other hand we have to have change in the short sale system for US the taxpayers.  We are backing programs and people who don’t seem to have a handle on the problem.

The picture of me holding video ball is part of an e mail that I am sending to my friends in the Industry.  It will show up on your Iphone, or I pad or your droid and go straight to the UTUBE by just tapping the ball.   If you want a copy of this to forward to your friends by all means just ask i will send you a copy of the e mail it can be fowarded and in most systems the link is maintained.  Sooner or later someone will know one of these CEOs and they will see the reason it is important to help my clients and my community.  I have heard the banks say many times that they want to short sell.

Am I not doing them a service bringing this to their attention?

All Marketing done with the Assistance of Kalabash Marketing, Good Night Mrs. Kalabash where ever you are!

George Kenner, Broker Associate, Lic # 01229951 – Keller Williams Realty.619-723-5714

Top Secret Message for Mrs. Kalabash… dont be taken your eyes to places where they are not invited!

October 5, 2010

Banking Madness, Is there room in Jail for Ebenezer The Banker

More and more frequently we are told  by our elected officials of the frauds and thefts by Banks and Bank employees but there seems to be no room at the Slide Bar Motel (Jail) for these criminals.  In Congressman Grayson’s recent video he shows us evidence of the frauds and forgery’s committed  by or in the name of the Officers of the Bank, but I have not heard of a single arrest.

To date other than Barkley’s Bank who paid about 289 million for their transgressions I have yet to see any penalty.   Some would argue that if you paying your fine with someone else’s money your considered “a cost of doing business” not a criminal.   Is it time we put a few of the Banking Community into general population at one of our finer Federal Correctional facilities, and let them become part of the rest of the community  who has not followed the laws.

As Congressmen Grayson pointed out in his foreclosure video, he has names and signatures, coming out of a Law Firm.  Are we to believe that no one knew what was happening was wrong.   I have not even heard of a planned Congressional Hearing and it’s election time when everyone  to busy kissing babies and talking about future plans.   Is it going to be the same old , same old, do our elected officials  not see a major meltdown coming? Can no one rebuild  the attitude of the American people?

Where is the money going to come from to recoup the loss from the 56, 000 foreclosures that Chase just halted? Is is going to come on the backs of the Taxpayer or the investor that believe they were doing business with a lawful institution.

We have a moral cancer working its way through our banking community and personally I don’t think it is the Branch Managers and the Tellers who are the problem.  It is not the Mortgage loan officers.  It’s the nameless faceless chicken,  hiding behind the ROBO signing  executive that not only  knew what was going on, put paid to have the illegal act done.     And the funny thing is our politicians have been convinced these people are a talent pool that keep us all going.  I have one world to express my opinion of this , Balderdash!  Give these guys a pink jump suit. Look what they did in France to a Banker with his hand in the Cookie Jar…. come on America.

I think it is time for those who did this,  and knew better to get some quantitative easing at the weight pile, or maybe have their credit taken away from them at the  snack commissary.  Maybe they should be given three cigarettes a day and 2.3 hours of sunlight to keep their color.  Maybe a few days in the Federal Retreat at Lompac would do our economy some good.  I have a feeling seeing the law enforced could be just the medicine the economy needs, a little consumer confidence builder, if you will allow me to call it that.   Hell, today it seems like drunk driving carries higher penalties that conspiracy to defraud, forgery and false statements on Government records, heck with these there is not even the excuse of bad judgment because your were impaired and at a party.  Unless signing false document is something Bankers consider a party.

I believe we are at a point in our Nations History where free speech is the only thing that will bring us out of the situation the lawless greedy have put us into.  We must demand  our leaders maintain the opportunity  a fair playing field gives us all.   Right now I don’t see the Bankers being equally treated.  Some say the politicians are owned by the Banks, I disagree no one can own the truth, they can sway the truth. Soon  our  “LEADERS” will say enough is enough and call for enforcement of already existing rules instead of trying to distract us with new laws. These are just my personal opinions and do not reflect the views of anyone with whom I work, or associate with.

George Kenner, Broker Associate    Keller Williams Realty

La Mesa, Ca. 91941, Lic 01229951

Goodnight Mrs. Kalabash where ever you are.

Create a free website or blog at