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


October 4, 2010


I have a strong feeling this Congressman’s video is going to lead us into a more logical system of bringing distressed property to the market.   J.P. Morgan CHASE who stopped 56 thousand foreclosures will be looking for ways to soften the bad public relations of this business that has turned nasty.

HAFA is all of the sudden going to look like a miracle, delivered  as if by providence when the Banks do a Command Appearance in front of  Congress and then the Senate.   Fraud when committed at the level this Congressman alleges,  should being some prosecutions.  Just think if they lie to Congress, I have a feeling we are about to hear some real truth.   Here is some truth, there is not one Bank that cares about “Votes” they care about Payments and Deposits, and trying to influence Congressman… What a web we weave.

This is National Economic history in the making, it will be slow to develop but I have a feeling it will not go away.

Their is also another issue looming on the HAMP / HAFA Short Sale System this is the practice of “Grossing UP”  sales values on HAFA Short Sale Agreements.  This story is breaking story that all HAFA Realtors are just now dealing with.

Please do not hesitate to contact us if you have a HAFA Short Sale Nightmare we have the e mail address for the NATIONAL ASSOCIATION of REALTORS e mail box, that is gathering the information to take to our Regulators and Congressman.

George Kenner , Broker AssociateGeorge Kenner

Broker Associate

Keller Williams Realty


Lic.# 01229951

All Internet marketing done with the assistance of Kalabash Marketing

Goodnight Mrs. Kalabash where ever you are!

December 23, 2009

The Good the Bad and the Ugly

When I saw this movie the first time,  I was a kid seated in a hospital theater on Camp Pendleton.  I was  just mesmerized by Clint Eastwood and the music of Hugo Montenegro. I did not know that the movie title would become a cliche for business news related to mortgages some 43 years later,  but it has. 

Today in an AP news article Yahoo announced that home sales were up and the recession was recovering, that was good news.  But then the L.A. Times went and ruined the positive news with word that  12.5 percent of mortgages were not paying  and the currently defaulting loans are prime loans not subprime.  That was not only  bad but  ugly news no one wants to hear.

I got word from a client that Bank of America had set up information on their web site about doing a “Short Sale” .  This reminded me at the end of the movie.  The “Good” came out on top.   And we are going to come out on top of this situation also.  These are rough times for all of us, but we will survive by working together because that is what communities do.   We help our neighbors and we care.  If you looking to do a “Short Sale” instead of being foreclosed upon please call us we can aid you determine your best path.

If your looking for a good lender,  one of my favorites is Sally Soto also from Bank of America in the La Mesa Mortgage Center.   She is not only very knowledgeable she is a prior Real Estate agent,  fluent in Spanish.  If you have any question about loans or need a contact at Bank of America she is always happy to help. 619-337-3409  –

This article was written by George Kenner, Broker Associate Lic. 01229951

All marketing done with the Assistance of Kalabash Marketing

“Good Night Mrs. Kalabash where ever you are.”

December 20, 2009

Enter the Bermuda Triangle a Foreclosure and Exit as a Short Sale

Looking at the “Matrix of Numbers” is very important when your trying to solve any problem, so lets address two numbers.   At the time this is being written (Dec 19, 2000)  there are 19,495  properties in San Diego County that are in the formal process of foreclosure.  (this number can be verified at www.ForeClosureRadar.c0m)  This number is twice what is available in the Multiple Listing Service. The main stream media has labeled this  as the shadow inventory.  In this broker’s opinion  the  shadow inventory  being twice as large as the MLS,   is like a rouge elephant who is walking towards the housing market.

Foreclosure  is a rough process that no one enjoys , the banks hate it because they end up with destroyed properties,  the Sheriff hates it when he arrives to remove the people, the people hate it because losing ones home is very emotional. The Local Government of course would have difficult times dealing with homeless people.   The Foreclosure Process  is truly the Bermuda Triangle of home ownership and the responsibilities that come along with it for everyone involved.

So now our economy has established the problem lets evaluate the solution that the Government and banks have presented.   In early 2009 the Treasury introduced a Program called the Foreclosure Alternate Program.   This established that it would be better for the Banks to leave people in their homes while a “Short Sale” could be arranged for.  Implementation of the program has been slow but as unemployment has risen and property values have fallen making that shadow even larger.     I will compare this to being bounced around in the Bermuda Triangle but the exit is about to arrive.   The Treasury has set a date (Apri 2010)  and guidelines  for  the Banks to follow established Short Sale Protocols.

The  April 2010 date  seems to coincide with the the actions of the major banks and Fannie Mae who have suspended foreclosures during the holiday season.   Of course this reprieve for family’s over the holidays will come an go as the clock ticks.

I can only speculate but I believe  that shortly after the holidays the Government will be discussing the Foreclosure Alternative Program in the Media with a much greater frequency.  Trade organizations  like the California Association of Realtors are now sharing what they know with their members about the program.  They have  posted the broad programs as they have been presented to them on the internet.

This article was written by George Kenner, Broker Associate at Keller Williams Realty in La Mesa.   He like  all the other Realtors at Short Sale Nurse specialize in this market area.   Their experience and professional contacts can aid anyone though what feels like the Bermuda Triangle, call them today for a free consultation.

All marketing is done with the Assistance of Kalabash Marketing

“Good Night Mrs. Kalabash where ever you are.”

Lic. 01229951

December 17, 2009

Citi banks Slows Foreclosures, Treasury Announces Improvements to Short Sale Process

Today Citi Bank announced that they were going to slow the Foreclosure Process for all of their clients for 30 days, to cover the holiday season.  This does not apply to all the Citi serviced loans but does cover what is supposed to be the majority.   The news from Citi is however  not the Big news of “The Week”.

The Treasury Department has announced changes to a program that could aid thousands of Americans.  (this change will start in April 2010) The basic change is that they are getting more forceful with the lenders or so at least that is the impression that is desired.   To describe the changes that are the most important I will just cut and paste what the California Association of Realtors said

“The HAFA program will permit pre-approved short sale terms before a property is listed; prevent servicers from attempting to reduce real estate commissions established in the listing agreement as a condition for short sale approval; release borrowers from future liability for the debt; and provide financial incentives to borrowers, servicers, and investors.”  Here is a link to the program for the complete details   This is provided by the California Association of Realtors.   They are working on the final details of the Plan with the Government and expect this to be a positive move forward for all.  If you have any questions and would like to know how this program could assist you, please contact any of the Agents on the Shorts Sale Team.  We follow this infomation as closely as possible to aid our community.


This article was written by George Kenner, Broker Associate Lic. 012229951


July 3, 2009

Short Sale Values, It is all Values !


The Rules of Real Estate Seem to be changing. The big rule used to be Location, Location, Location and now is Value, Value, Value. So lets discuss “Value”, there has been a recently adopted program call HVCC, it is a new communication protocol where loan officers and Realtor can no longer discuss property conditions with an appraiser.

The rule makes it impossible to have a conversation about items that could have been missed. This has everyone in a uproar, including the President of the National Association of Realtors. This system is not working well. It is delaying appraisal times and putting appraisers that have no experience or knowledge of local markets on assignments. It is also creating that third tier of expense in the process. Now someone is assigning the appraiser and collecting a fee for scheduling. This was not involved in the old system. So this planned improvement is not working to improve anything. In fact it is costing more, bringing in inferior results for the public, and refusing to let the market grow, something that is vital to our economic recovery.


I recently saw a transaction where the client was putting more than half the value of the property down on a property that was only on the market for 12 days and that counts the days of negotiation and the appraisal came in lower that the agreed upon price. The difference in value was only about 2.5 percent of the total but this but the buyer and seller back at the negotiation table. It put the loan in flux and creates a market that has no possibility to rise even if the market influence is positive. Yes, where can the market go if the Appraiser disagrees with someone who has more that half the money as a down payment.

Here is my advise, there is power in knowledge, just be aware of this. This is just one more twist in a crazy real estate market. The professionals are doing all they can to bring this new Rule to the Attention of all our elected and administrative leaders. Move forward in good faith and buy the home you want to live in, this kind of silly market movement will pass and you will be living in a home you may not have an opportunity to own at some time in the future.

George Kenner is a Licensed California Real Estate Broker with 19 years of industry experience.

June 13, 2009

The President’s New Short Sale Program

Not only are homeowners scrambling to figure out how to fix their financial position so is the Treasury and the FDIC. President Obama has announced a new program to help people in mortgage distress, it is called the “Foreclosure Alternative Program”. The entire details can be seen at the United States Treasury web site.

My summation of the program is that the President would like to see lenders attempt loan modifications and if that process fails to aid the homeowner short sell their home. To do this the lender or homeowner will select a local area short sale Realtor to assist in the process. It is my understanding some lenders will have preferred or approved Realtors who are experienced in the short sale process.

If this process “short sale process” fails the lender will take possession of the property under terms less forceful that a full foreclosure called a “deed in lieu”. In some case it even appears that the lender may provide funds to the homeowner to make arrangements to leave the property provided it is still in good condition.

This program on its face appears to be a good move in the right direction. It is relatively new and even some of the Real Estate community is not yet aware of it. Like all Government Programs it has the details to be worked out.

This will not change the advise that I give to my clients. That advise being consult with an attorney and a tax professional to see how a short sale could effect your own situation. This is the same advise the California Association of Realtors provides in their Short Sale form.

As a team we at and Prudential California Realty work hard to stay on the cutting edge of how our San Diego County clients are effected by changes in the law. In the coming days as the Foreclosure Alternative Plan develops we will continue posting on this blog.

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