How to get a HAMP Loan Modification

After watching this, join our free webinar on the 7 biggest mistakes homeowners make when attempting a loan modification:

Click HERE

California and Nevada AGs Announce Mortgage Investigation Alliance

Attorneys General Kamala Harris of California and Catherine Cortez Masto of Nevada have entered into a joint investigation alliance targeting both mortgage servicers and perpetrators of mortgage-related fraud.

The AGs say the initiative is designed to assist homeowners who have been harmed by misconduct and fraud in the mortgage industry.

The alliance will link the California and Nevada attorney general offices’ civil and criminal enforcement teams in order to speed up investigations of wrongdoing in the two states, which have experienced similar foreclosure and mortgage fraud crises.

“The mortgage crisis is a man-made disaster that has taken a heavy toll on the country, but it saved its worst for California and Nevada,” Harris said. She described the mortgage crisis as “a law enforcement matter,” adding

that she and Masto will pursue prosecution to hold those responsible accountable.

The partnership forged between Harris and Masto illustrates the deep rifts that have developed within the attorney general camp in recent months over robo-signing settlement negotiations.

What started out as a united front of lead counsels from all 50 states has splintered as talks between the AGs and servicers has dragged on for over a year.

Massachusetts Attorney General Martha Coakley filed her own individual lawsuit against the five servicers taking part in the negotiations last week.

The California-Nevada mortgage investigation alliance is the product of weeks of discussion between Attorneys General Harris and Masto to ascertain “the most effective and efficient means of achieving justice” for their respective states, the two said in a joint statement. Tuesday’s announcement formalizes an agreement reached between the two officials last week.

By most measures, California and Nevada have been the states hardest hit by the nation’s foreclosure crisis. The attorneys general note that the crisis in their states are similar because both employ a non-judicial foreclosure system in which a bank can foreclose on a borrower’s home without court oversight.

“The collective result has created a rich opportunity for predators, leading both states to make mortgage-related law enforcement action a top priority,” according to Harris and Masto.


If you know of anyone facing foreclosure please send them to www.CallToni.com or call our office at 310-482-2034.

Source: DSNEWS

4 Keys To Saving For Your Future Home

In this video, we will explore some things to consider when you're getting ready to save for your next home purchase.

CALL US TODAY AT 310-482-2035 or Email Toni@ToniPatillo.com

Mutifamily Properties for the First Time??

If you’re getting ready to purchase your first home, you may want to consider the advantages of leveraging your money through the use of a multifamily property. This can be especially appealing to young families just getting started out or busy couples/singles on the go. So let’s review some of the top benefits of multifamily investing:
First, by purchasing a 3 or 4+ unit within a desirable area, you will immediately start reaping the benefits of home ownership and collecting strong investment income. By finding reliable tenants, you will be able to cover up to a half or more of your mortgage payments.

And you will be consistently paying down principle and building up great equity. When the time comes to upgrade to a different property, the consistent income from you multi-unit home will help to cover a portion of your new mortgage, plus you will already be on the path to building your investment portfolio.
Additionally, instead of driving across town to keep up with maintenance and tenant issues, you will essentially be your own on property manager. This makes it infinitely easier when trying to collect rent or conduct showings, and you don’t need to pay another party to keep up with your home.

Next, in today’s market, cash flow is of the utmost importance. Nothing is worse for a new investor then when the property goes vacant for months. With a multifamily unit, you can alleviate the fear of being stuck with the full amount of mortgage payments, because typically your home should be at least 50% occupied.
Finally, you will be learning the ins and outs to one of the most effective investment strategies available. Purchasing your first multi unit will teach you all about how to buy, repair homes, market your property to tenants, collect rent, and how to invest your income into future properties.

Therefore, it is worth considering a multifamily home for your first purchase. Before choosing an area to live in and searching for a property that fits your needs, it will be to your advantage to consult an experienced Realtor within you local area that can give you professional guidance.

Contact us today to start learning more about the opportunities available to you and to discover where you can make a wise investment for your financial future! 310-482-2035 or Toni@tonipatillo.com

Weird Video Makes You Think??

How many money trees are you walking by without noticing?

Thinking of Selling Your Home FSBO??

If you’re looking to sell your home in the near future, you may feel inclined to list it as a For Sale By Owner (FSBO) before working with a Realtor. For many, this is considered one good way to cut back on costs and possibly earn a little more profit on the sale.
However, there are certain aspects you may want to consider before going down this path. Statistically, over 80% of FSBO’s end up being listed with a Realtor at some point. Therefore, it pays to take the time to fully assess whether or not this is the right plan of action for you.

Properly Marketing Your Property

First of all, listing a home for sale can be a very time consuming and difficult process. Unfortunately, this typically is not as easy as posting a sign in the yard and setting up a classified ad in the local newspaper. There is certainly a lot more than meets the eye.
For instance, many FSBO websites will tout that you can obtain a wide exposure to buyers nationally, but this pales in comparison to the results that you can expect from big named sites like Realtor.com, which only agents can post to.
Next, your agent will have a lot of expertise with implementing online real estate marketing strategies that will gain you a ton of locally targeted searches. And in fact, nearly 90% of all searches for real estate related inquiries start online.
Realtors will also have a strong network of both agents and buyers that they work with on a regular basis. This is a business where it pays to network. More contacts equals greater exposure.

Asking Price & Showings

For starters, a lot of FSBO’s will start at the wrong asking price. This is by far one of the most important factors that goes into marketing your home, so you want to do this properly off the bat. But, without being fully invested in your local market and understanding the current trends, it can be difficult to price the home accurately.
As alluded to in section one, selling a home can be a lot of work. Most individuals these days have to juggle a full time job, family obligations, recreational activities, household chores, etc. Where do you find the time for fully investing into the sale as well?
When the opportunity would arise for interested parties to view your property, you would need to schedule individual showings, open houses, inspectors, appraisers, etc., while also trying to stage and maintain your property’s appearance. Miss out on a good opportunity for matching schedules and you can quickly lose interest.

Negotiations & Contracts

If you get to the point where you negotiate with a buyer, it is much more difficult to handle this aspect without a qualified agent. Selling your home can be a very emotional undertaking, so it is easier to set unrealistic expectations, or to even concede on more than necessary when you don’t have a 3rd party buffer.
During most real estate transactions, both the buyer and seller will typically have a set of concessions and contingencies. For a majority of buyers, they will expect to have some type of a financing, inspection and/or termite contingency.
This is set up for their protection, in order to complete their due diligence on the home before moving forward to closing. If other issues are found, this may even been grounds for further negotiation or eventually walking away from the deal.
Or you will be expected to lower the price, fix the issue or offer a concession on something else in order to alleviate the problem. Likewise, you want to ensure that the buyer is not overstepping their boundaries or that you are pressured into giving away more than is reasonable.
In summary, it’s worth taking the time to carefully consider these 3 areas before making any final decisions. If you still decide to take the FSBO route, we sincerely wish you great success. Also, please feel free to share our information with a friend and to bookmark our page for future reference as well!


Call us today at 310-482-2035 or email Toni@tonipatillo.com

If you're looking to buy a fixer upper here are some rules to follow:

• Pick the right location!
• Know Your Stuff
• Make sure you consider the time and cost associated with doing a rehab
• What are your financing options?

Once you are ready to move forward, call our office for a free list of "Fixer Uppers" in your area. 310-482-2035 or www.CallToni.com

Attorney General Kamala D. Harris Sues Law Firms Engaged in National "Mass Joinder" Mortgage Fraud

SAN FRANCISCO --- Attorney General Kamala D. Harris today announced that the California Department of Justice, in conjunction with the State Bar of California, has sued multiple entities accused of fraudulently taking millions of dollars from thousands of homeowners who were led to believe they would receive relief on their mortgages.

Attorney General Harris sued Philip Kramer, the Law Offices of Kramer & Kaslow, two other law firms, three other lawyers, and 14 other defendants who are accused of working together to defraud homeowners across the country through the deceptive marketing of "mass joinder" lawsuits. "Mass joinder" lawsuits are lawsuits with hundreds, or more, individually named plaintiffs. This is the first consumer action by the Attorney General's Mortgage Fraud Strike Force.

Kramer's firm and other defendants were placed into receivership on Monday, Aug. 15. The legal actions were designed to shut down a scheme operated by attorneys and their marketing partners, in which defendants used false and misleading representations to induce thousands of homeowners into joining the mass joinder lawsuits against their mortgage lenders. Defendants also had their assets seized and were enjoined from continuing their operations. Nineteen DOJ special agents participated as the firms were taken over Wednesday, Aug. 17, along with 42 agents and other personnel from HUD's Office of Inspector General, the California State Bar, and the Office of Receiver Thomas McNamara at 14 locations in Los Angeles and Orange Counties. Sixteen bank accounts were seized.

"The defendants in this case fraudulently promised to win prompt mortgage relief for millions of vulnerable homeowners across the country," said Attorney General Harris. "Innocent people, already battered by the housing crisis, were targeted for fraud in their moment of distress."

"The number of lawyers who have tried to take advantage of distressed homeowners in these tough economic times is nothing short of shocking," said State Bar President William Hebert. "By taking over the practices of four attorneys accused of fraudulent marketing practices, the State Bar can put a stop to their deplorable conduct as part of our ongoing effort to protect the public."

It is believed that at least two million pieces of mail were sent out by defendants to victims in at least 17 states. Defendants' revenue from this scam is estimated to be in the millions of dollars.

As alleged in the lawsuit, defendants preyed on desperate homeowners facing foreclosure by selling them participation as plaintiffs in mass joinder lawsuits against mortgage lenders. Defendants deceptively led homeowners to believe that by joining these lawsuits, they would stop pending foreclosures, reduce their loan balances or interest rates, obtain money damages, and even receive title to their homes free and clear of their existing mortgage. Defendants charged homeowners retainer fees of up to $10,000 to join as plaintiffs to a mass joinder lawsuit against their lender or loan servicer.

Consumers who paid to join the mass joinder lawsuits were frequently unable to receive answers to simple questions, such as whether they had been added to the lawsuit, or even to establish contact with defendants. Some consumers lost their homes shortly after paying the retainer fees demanded by defendants.

This mass joinder scam began with deceptive mass mailers, the lawsuit alleges. Some mailers, designed to appear as official settlement notices or government documents, informed homeowners that they were potential plaintiffs in a "national litigation settlement" against their lender. No settlements existed and in many cases no lawsuit had even been filed. Defendants also advertised through their web sites.

When consumers contacted the defendants, they were given legal advice by sales agents, not attorneys, who made additional deceptive statements and provided (often inaccurate) legal advice about the supposedly "likely" results of joining the lawsuits. Defendants unlawfully paid commissions to their sales representatives on a per client sign-up basis, a practice known as "running and capping."

Defendants' alleged misconduct violates the following laws:
-False advertising, in violation of section 17500 of the Business and Professions Code
-Unfair, fraudulent and unlawful business practices, in violation of section 17200 of the Business and Professions Code
-Unlawful running and capping, in violation of section 6152, subdivision (a) of the Business and Professions Code (i.e., a lawyer unlawfully paying a non-lawyer to solicit or procure business)
-Improper fee splitting (defendants unlawfully splitting legal fees with non-attorneys)
-Failing to register with the Department of Justice as a telephonic seller.

Homeowners who have paid to be added to one of the lawsuits should contact the State Bar if they feel they may be victims of this scam. They can also contact a HUD-certified housing counselor for general mortgage related assistance.

The Department of Justice has seized the practices of the following non-attorney defendants:
Attorneys Processing Center, LLC; Data Management, LLC; Gary DiGirolamo; Bill Stephenson; Mitigation Professionals, LLC; Glen Reneau; Pate Marier & Associates, Inc.; James Pate; Ryan Marier; Home Retention Division; Michael Tapia; Lewis Marketing Corp.; Clarence Butt; and Thomas Phanco.

The State Bar has seized the practices and attorney accounts of the attorney defendants:
The Law Offices of Kramer & Kaslow; Philip Kramer, Esq; Mitchell J. Stein & Associates; Mitchell Stein, Esq.; Christopher Van Son, Esq.; Mesa Law Group Corp.; and Paul Petersen, Esq.

Attorney General Harris is challenging the defendants' alleged misconduct in marketing their mass joinder lawsuits; her office takes no position as to the legal merits of any claims asserted in the mass joinder lawsuits filed by defendants.

Victims in the following states are known to have received these mailers, or signed on to join the case. This is a preliminary list that may be updated:

Alaska, Arizona, California, Colorado, Connecticut, Florida, Hawaii, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Texas, Washington

The complaint, temporary restraining order, examples of marketing documents and photos of the enforcement action are available with the electronic version of this release at http://oag.ca.gov/news

Source: Office of the Attorney General Press Release

If you or anyone you know needs free help with a loan modification go to www.FreeHelpForHomeowners.com or call our office at 310-482-2034.

My Electric Bill is HOW MUCH??

With rising utility costs and overall living expenses, people everywhere are looking for creative ideas on how to reduce spending. One of these major areas that can have a significant impact on your bottom line long-term is with heating, cooling and electric bills.

Therefore, it is important to take strides whenever possible to help alleviate this financial burden. We have devised a checklist of 6 items for you to review and determine where you can start cutting back expenses and improving efficiency in your home:

1. Maintain your furnace and air conditioning units:

this is one area that homeowners can tend to disregard. Yet, just like conducting routine repairs on your automobiles; likewise, it is just important to keep up with these items as well. And it’s only necessary once per year!

In fact, the amount of money you can save in the long run by avoiding more significant maintenance hassles or losing a unit well before it’s time makes this step well worth it. Additionally, you will maintain a higher efficiency and experience cleaner air too.

2. Standby power:

Did you know that many items around your house such as your TV, entertainment system, Wii, computer, microwave, etc. are constantly drawing electricity even when they are not powered on?

In fact, items throughout your house such as these typically can account for approximately 10% of your total energy consumption! Simply by having certain items plugged into a power cord that can be switched off when not in use may have a significant impact.

3. Consider investing in a programmable thermostat:Installing one of these can be fairly inexpensive and is extremely useful for families that are always on the go! Simply set the meter to fluctuate a few degrees during key time frames, and the savings will really start to add up.

4. Decrease your water heater’s temperature: By switching the temperature down to the lowest setting can impact your energy bills from 5-10%. You will still have plenty of hot water and can enjoy some extra cost savings as well. .

5. Change you appliance settings: Many dishwashers, washers, and dryers have advanced settings that could also be increasing your utility bills. Consider turning off those extra bells and whistles such as the heated dry, automatic sensor settings, or wrinkle shield. Also, you can wash with cold water and only do larger loads when necessary.

6. Dimmer switches and motion detectors: Another tip is to replace your current fixtures or switches with these energy efficient alternatives. You will be able to consume far less energy and your family will only use light when necessary. Even if you do not install these items, get in the habit of shutting off the lights in any room that is not occupied..

By following these 6 simple steps, you will begin to save more money and consume fewer resources. There are so many other ways that you can improve energy efficiency as well, so we encourage you to take the time to research what may be beneficial for you. Be sure to bookmark our page for regular updates and other free real estate related tips. Also, please don’t hesitate to refer us to a friend or family member! Thanks for stopping by.

Oh..and by the way. If you know of anyone who needs Free Help with a Loan Modification, tell them to go to www.FreeHelpForHomeowners.com

Or...Call us at 310-482-2035

Today’s Loan Modification Scams Exploit Foreclosure Crisis

Fewer things are worse than taking advantage of someone losing their home. This is precisely what mortgage loan modification scams are doing at the worst time in the foreclosure crisis. Perhaps worst of all, most of those targeted are minorities, bringing an even more sinister edge to what’s already a heinous crime.

How Loan Modification Scams Work

First you’ll get a call telling you how to renegotiate the terms of your home loan. Often times, you’ll be promised or strongly led to believe you will get a modification of loan terms and a lowered principle. You’ll also be asked to cough up around $3,000 to make it happen.

Telling the modification company you aren’t interested won’t get them to stop–they’ll keep calling, lowering the cost of services and promising more and more. Finally, you give in, pay half what they originally asked for and wait for… nothing.

Get Out of Debt?

The loan modification scams work around the idea that there are problems with your original mortgage. The company offers to audit your mortgage.

This is fair enough. Most mortgage audits reveal some problems that aren’t mortgage fraud on the level of the robo signing scandal, but should get some attention. Unfortunately for you, this almost never leads to a reduction in principle or a substantial renegotiation of the terms of your loan.

Mortgage Fraud and the Foreclosure Crisis

Sad as it might be, the foreclosure crisis has been a booming industry for less-than-ethical businesses. It seems not a week goes by without hearing about the continued robo signing scandal or a bank foreclosing on a family current with mortgage payments.

The loan modification scams are merely the latest attempt by unscrupulous businesses to turn a profit on people’s misery during the foreclosure crisis.

Fighting Loan Modification Scams

Many people are not taking being targeted lying down, however.

Jose Chirino, the subject of a Daily Finance article, contacted a non-profit legal aid agency specializing in mortgage law. Such non-profits have begun aiding consumers in their fight against loan modification scams and mortgage fraud.

The robo signing scandal has sent a clear message to consumers: Know your rights and mount a fight. Homeowners wishing to get out of debt during the foreclosure crisis have a number of legitimate debt consolidation and debt management agencies to appeal to.

Hallmarks of Loan Modification Scams

There are some clear indications of a loan modification scam. Avoid any company that:

• Guarantees results of any kind.
• Urges you to stop making payments on your mortgage.
• Pressures you to sign contracts or puts a deadline on how long you have to sign.
• Demands a fee up front for services rendered.

Most legitimate loan modification companies are non-profit enterprises who exist for no other purpose than to help consumers like yourself get out of debt. When someone seems more interested in getting their hand in your wallet than helping you deal with mounting debt, contact the Federal Trade Commission.

Those looking for legitimate help with a mortgage should contact the FTC or the Department of Housing and Urban Development. Either can direct you toward reputable services, often at low or no cost.

By Nicholas Pell

Job Loss Could Put One in Three Out of Their Home

One in three Americans would be unable to make their mortgage or rent payment beyond one month if they lost their job, according to the results of a national survey taken in mid-September.

Despite being more affluent, the poll found that even those with higher annual household incomes indicate they are not guaranteed to make their next housing payment if they lost their source of income.

Ten percent of survey respondents earning $100K or more a year say they would immediately miss a payment.

The survey was conducted on behalf of a financial consortium comprised of the Certified Financial Planner Board of Standards, Financial Planning Association, Foundation for Financial Planning, and the U.S. Conference of Mayors.

Sixty-one percent of those surveyed said if they were handed a pink slip, they would not be able to continue to make their mortgage or rent payment longer than five months.

Job loss has become the primary driver of mortgage defaults. With the national unemployment rate holding

above 9 percent for five straight months and not expected to drop by any significant measure in the foreseeable future, the state of the labor market is one of the biggest obstacles for struggling homeowners and their lenders.

A number of programs at both the national and state level have been launched to assist unemployed homeowners, but so far the expected results haven’t materialized.

HUD has told DSNews.com that it does not expect to meet the original goal set for the $1 billion Emergency Homeowners’ Loan Program (EHLP) of subsidizing 30,000 unemployed homeowners’ mortgage payments.

The New York Times reports that fewer than 15,000 borrowers are likely to receive EHLP assistance and more than half of the money allotted for the program will go unspent.

An analysis of government records by USA Today shows that a separate federal program which provides money to individual states to assist homeowners who’ve lost their jobs has been slow in ramping up.

Through the Treasury’s Hardest Hit Fund, 18 states were awarded a total of $7.6 billion to develop their own localized programs to counter unemployment and falling home prices in the fight against foreclosure.

USA Today says only about 1 percent of this money has actually been distributed to distressed owners, 16 months after the program was launched.

The news agency found that as of June 30th, 17 states had used the federal funds to help about 7,500 homeowners.

USA Today noted that several states are just now getting their individual programs off the ground and dispersing the money to qualified applicants, and the states have until 2017 to use their allotted funds.

By: Carrie Bay

Homeowners Beware: Mortgage Mod Scammers Are Selling an Audit to Nowhere

The calls started last November. Speaking in Spanish, a representative from New Century Solutions in Lake Forest, Calif., pitched Jose Chirino to purchase a forensic loan audit. For $2,995, the representative said, an audit could help the San Jose, Calif., homeowner get a much-desired loan modification and principal reduction. Chirino, who works for Santa Clara County, said no, but New Century called again -- and again, and again. After about 20 such calls, Chirino finally agreed and sent $1,500 to start the process in January.

In a written contract, New Century said an attorney would review and advise Chirino, draft a demand a letter, and negotiate with his lender. And then, nothing happened.

He's not alone. Hundreds of organizations have cropped up over the last two years offering forensic loan audits, often linked to professional attorneys and auditors. They promise to review a homeowner's mortgage loan documents to determine whether the lender complied with state and federal lending laws, and expedite a loan modification request. While the audit may indeed reveal errors in loan documents, the process very rarely results in a loan modification or rescind.

Thousands Have Been Scammed

In 2010, the Federal Trade Commission issued its first alert about the bogus auditing practice. That year, the Better Business Bureau had no complaints filed in its category for forensic loan audits. But in the first eight months of 2011, the BBB said it filed 50 complaints in that category, with more than half of them against Accelerated Equity & Development, Inc., and Tila, LLC.

Since 2008, the FTC has seen a jump of more than 300% in mortgage foreclosure relief and debt management complaints, and last year received more than 28,580 for the category that includes all mortgage-related issues. The not-for-profit Homeownership Preservation Foundation, which operates a national free counseling hotline, receives 4,000 calls a day for housing help, and between 100 to 150 of those callers identify themselves as victims of a mortgage scam, says Josh Fuhrman, the organization's senior vice president of community affairs.

"They lure consumers to believe that by hiring them for a review of loan modification package, they can expedite the process and get better results, or they make false promises that they can get a loan mod or principal reduction," says Fuhrman. "Homeowners are not typically getting any results. [Scammers] are just stringing [homeowners] along, or they disappear."

Fighting Back

By March, Chirino started to wonder why hadn't heard anything from his lender. He contacted the audit organization, which pressured him to pay the remaining $1,495, he said. After a few rounds of back-and-forth with the company -- and still no movement on his primary mortgage -- Chirino contacted a local nonprofit, the Fair Housing Law Project, for assistance. With the help of a volunteer attorney, he drafted a demand letter in July and was able to recoup his $1,500 from New Century. Separately, he was able to obtain a loan modification through a HUD-approved housing agency, and today remains in his house, where he lives with his wife and daughter.

Like so many mortgage scams, this one was based on a kernel of truth: Chirino says his original 2006 home loan from Countrywide -- which has since been accused of widespread lending violations -- may have marked him as a potential scam target. But the difference between what New Century Solutions promised -- a loan audit and modification -- and what it delivered -- nothing -- is the hallmark of the scams that continue to plague distressed homeowners. Homeowners, burned once by bad mortgages, are now getting burned again as scammers try to milk their distress for profit.

New Century Solutions did not return several calls for comment on Chirino's case.

How the Scam Works

Bait-and-switch auditing shops attempt to leverage specific guidelines in the Truth in Lending Act that allow for some loans to be rescinded if certain disclosures were not made in the loan origination documents. The practice of forensic loan auditing is in fact a real one, and it has been used in recent years to expose mortgage fraud in specific instances. However, scammers have deployed their own marketing to exploit the law and capitalize on people's misunderstandings of it -- with door-to-door, radio, TV, direct calls, and web advertising. Their goal is to lure vulnerable homeowners into paying a substantial sum of money for an toothless audit.

The latest evolution of this scam involves approaching homeowners who are current on their payments.

"The [scam] that we have seen have a lot of traction with most recently is targeting borrowers who are current. [They are selling] the notion of taking a preventative measure," says Marietta Rodriguez, the national director of home ownership programs for NeighborWorks, a government agency. "With the forensic audit, [the scammers] see if they can refi or get you into a lower mortgage."

Reilly Dolan, assistant director for the division of financial practices at the Federal Trade Commission, says operators promise to find the mistakes that [the homeowner] can use to obtain the loan modification they want. "If they are making false promises like, 'We'll find a violation and guarantee you can use this information to make a loan modification,'" that's a deceptive practice, he says. In reality, however, very few loans qualify for the Truth in Lending Act exception.

Another complication surrounds the three-year statute of limitations for the right to rescind. "Even if they do uncover something, they are very unlikely to able to assert [a case] because of the statute of limitations," says James Zahradka, supervising attorney at the Fair Housing Law Project of the Law Foundation of Silicon Valley, where Chinino found help. The foundation has been providing resources to homeowners to mount their own small claims cases to get their money back from auditing shops that make false claims. Zahradka says it has helped about 100 homeowners with loan mod scams over the last year.

He adds that this particular scam undermines real cases because it can pit real legal work against feckless attorneys, who are either not filing cases at all based on the audit or creating frivolous cases.

There is still an estimated 4.5 million to 5 million homes at risk of foreclosure, according to the Homeownership Preservation Foundation. Mortgage mod scams are continuing to cloud the path to help for distressed homeowners, and borrowers looking for help are increasingly faced with a confusing landscape. One outcome is that many of the government- and lender-sponsored events offered to provide help to homeowners have been poorly attended, as DailyFinance has reported.

Fuhrman says that many homeowners turn unwittingly to scammers after getting frustrated with legitimate attempts to work with the lenders. As the loan modification process has become more visible in the last year, the number scammers has shot up.

"They go where there is blood in the water," he says.

Five Ways to Spot a Mortgage Mod Scam

• Don't trust any organization or person who guarantees results.
• Avoid any organization that asks for an upfront fee before providing any services.
• Don't sign any contracts under time pressure, and don't sign an that you do not understand.
• Don't stop making payments on your loan, even if they advise you to.
• Don't hand over your personal financial information unless it to an appropriate loan help organization.

Learn more about scams.

What To Do If You Have Been Scammed

Zahradka says that many homeowners must take matters into their own hands if they hope to get the money back from scam organizations. The first line of defense is a persuasive demand letter, in which the homeowner asks for the money back, specifies what happened, what was promised and what was delivered including dates. The letter can threaten to take the organization to small claims court. He suggests that homeowners be ready to compromise and accept partial refund.

If you have been scammed, report the fraudulent company to your state's licensing entity, and make a complaint to the state bar if an attorney was involved, and/or the local district attorney.

Where to Get Free, Legitimate Help

All homeowners in the United States who have questions or are facing foreclosure can call (888) 995-HOPE for free, nonprofit housing counseling 24 hours a day, 365 days of the year, with assistance in more than 160 languages. Housing counselors work with homeowners in a three-way conversation with the lender. HUD also provides a list of housing organizations providing help to homeowners by state.

Catherine New is a staff writer for DailyFinance.com with the AOL Huffington Post Media Group.

See full article from DailyFinance: http://srph.it/qUdaBs

List of Foreclosure Trustees and Posting Websites

If you are facing a foreclosure, you may be able to find out more information on your foreclosure sale by checking on of the foreclosure trustee and posting sites. Here is a list of many of the sites we use to help inform our clients about their upcoming foreclosures:

Trustees and Posting Companies

Trustees will process your foreclosure, posting companies handle the posting, legal publication and auctioning. This is not an all inclusive list, but does include many companies with an internet presence. Trustees listed first, Posting companies listed second.

USFN
A network of Trustees and foreclosure attorneys throughout the U.S. Use the member directory to search by state.

Trustees

ALL AMERICAN FORECLOSURE SERVICE
Specializing in San Luis Obispo County, CA trustee sales and posting.
We are Certified Trustee Sale Officers with years of Experience and can provide service throughout the State of California.

AMERICAN TRUST DEED SERVICES

ASSURED LENDER SERVICES
Commercial and residential foreclosures and related services in Arizona, California, Nevada and Idaho.

BEST ALLIANCE FORECLOSURE & LIEN SERVICES

C & H TRUST DEED

CAL WESTERN RECONVEYANCE

CALIFORNIA DEFAULT SERVICES
We know that a defaulted loan ties up your capital. So, with CDS, we begin processing your foreclosure THE SAME BUSINESS DAY that we get your file, and complete your foreclosure AS FAST AS LEGALLY POSSIBLE, guaranteed.

COUNTY RECORDS RESEARCH

FCI LENDER SERVICES
FCI has an excellent reputation for processing foreclosures efficiently and professionally.

FIRST AMERICAN FORECLOSURE TRUSTEE SERVICES
First American LoanStar Trustee Services provides a complete suite of foreclosure trustee services to assist with each case and individual client.

INTEGRATED LENDER SERVICES
Integrated Lender Services is the only place to turn for complete, foreclosure and default management services.

PLM FORECLOSURE SERVICE

PREMIER FINANCIAL ASSOCIATES,INC.
Premier Financial Associates is a full service trustee company established in 1994 to meet the needs of financial institutions as well as Homeowner Associations. We provide foreclosure and lien services in California, Nevada, Arizona, Oregon and Washington.

REDWOOD TRUST DEED

RELIABLE FORECLOSURE
It's our goal to insure that our clients receive quality information and the best representation possible throughout the foreclosure process.

RELIABLE TRUST DEED SERVICES

REGIONAL TRUSTEE SERVICES
Foreclosure, bankruptcy, eviction and post-sale related services in Washington, Oregon, California, Nevada, Arizona, Idaho, Alaska, and Montana.

SBS TRUST DEED NETWORK
SBS Trust Deed Network, a financial services company located in Westlake Village, California, has been providing a complete spectrum of trustee services since it was founded in 1978. SBS provides foreclosure services in California, Arizona, Washington and Nevada.

SEASIDE TRUSTEE, INC.
Seaside Trustee will process foreclosures in Arizona, California, Nevada, Oregon and Washington.

STANDARD TRUST DEED
Some forms and links. Process foreclosures in AZ, CA, NV, OR, WA

T.D. SERVICE

TRUSTEE CORPS

WEST COAST POSTING & PUBLISHING
Search by Trustee Sale Number, or find sale sites in California, Nevada and Washington

WOLF FIRM

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Foreclosure service for trustees offering services on full-cycle foreclosure settlements and legal publishing (Trustee's Sales, Articles of Incorporation, Notice to Creditors, LLCs, Summonses, Etc.)nationwide



If you or anyone you know needs help avoiding foreclosure, call our office immediately at 310-482-2035.

Foreclosures: Uncle Sam and His 248,000 Homes

The number of homes listed for sale by Fannie Mae, Freddie Mac, and the Federal Housing Administration on Aug. 29, 2011: 89,819

For sale or rent by distressed owner: 248,000 homes. That’s how many residential properties the U.S. government now has in its possession, the result of record numbers of people defaulting on government-backed mortgages. Washington is sitting on nearly a third of the nation’s 800,000 repossessed houses, making the U.S. taxpayer the largest owner of foreclosed properties. With even more homes moving toward default, Fannie Mae (FNMA), Freddie Mac (FMCC), and the Federal Housing Administration are looking for a way to unload them without swamping the already depressed real estate market.

Trouble is, they haven’t figured out how to do that. The government admitted as much in August, when Fannie, Freddie, and FHA issued a joint plea to the public for ideas about how to solve the problem. (Give it your best shot: You have until Sept. 15 to submit ideas.) “They’re stuck,” says Karen Shaw Petrou, managing partner of Federal Financial Analytics, a Washington-based consultant that advises banks and other clients on government policy. “They don’t know what to do.”

Since the 2008 financial collapse, the government has spent billions of dollars trying to extricate borrowers from high-cost loans, aid delinquent homeowners, and stabilize neighborhoods. The results have been disappointing. The Obama Administration’s signature loan-modification program has helped about 657,000 homeowners—far short of its goal of 3 to 4 million. The program was a victim of its complexity and its inability to cope with overwhelming demand. Many families hit hardest by the housing downturn are concentrated in states that are having the most difficulty recovering from the recession, including Florida, Ohio, and Nevada.

The government’s call for ideas is a sign it is deluged with repossessions, commonly known as real-estate-owned properties or REO. “It’s almost like having the captain of the Titanic go on the public address system and say, ‘Does anybody have an idea?’” says Mark Wiseman, a former director of Cleveland’s foreclosure-prevention program. “It’s not a confidence builder.”

Fannie Mae, Freddie Mac, and FHA made progress in the first half of this year, reducing their combined backlog from 295,000 single-family homes in December to about 248,000 in June, according to the Housing and Urban Development Dept. The nation’s total number of repossessions also fell during that period, from nearly 981,000 to about 817,500. The government’s share has remained steady at about 30 percent. In coming months, however, as lenders and the courts clear up the “robo-signing” scandal that slowed new disclosures, the number of government-owned properties will likely grow. More than a fifth of the 3.65 million homes for sale at the end of July were foreclosures, according to RealtyTrac, a housing data provider.

“It isn’t necessarily our preference that FHA is going to itself continue to hold these properties,” says FHA Acting Commissioner Carol Galante. “We want to move homes through the system so we can recover.” The agency has to be careful as it goes, she says. “If you’re putting too much through that system you are helping to drive down prices.” That’s especially true in regions congested with government properties.

Shielding the market from a flood of government homes might be good for property values and the economy. It’s not such a great deal for taxpayers, who bear the costs when government-guaranteed loans go bad and who pay for maintenance on vacant homes the feds take over. One idea the Administration is exploring: allowing Fannie, Freddie, and FHA to keep an ownership stake in the properties by converting them to rentals in partnership with private investors. When the market recovers, the government would sell the homes for more than they could get now and not risk glutting the market. Structured properly, such joint ventures could reduce the impact of foreclosures on struggling neighborhoods.

It’s not at all clear whether that would work on a large scale. The government would have to spend money to bring the rental properties—many of them old and dilapidated—to code; pay still more to insure the rentals; and build a bureaucracy to manage and maintain them. Even if they do all that, there might not be people willing to move in. In parts of Cleveland and Detroit, for example, some houses are stripped and vandalized the minute they’re vacant. “Some of the neighborhoods, you can’t move into,’’ says Wiseman. “There are so many empty houses, it’s just not safe.”

In places like that, it’s sometimes difficult to convince people to stay in their houses. Freddie Mac allows occupants of foreclosed homes to remain on a month-to-month lease until the house is sold. Few do, says spokesman Brad German. “People prefer to take cash for keys and move on.”

The bottom line: The government, struggling to figure out what to do with 248,000 foreclosed homes it took over, has issued a plea to the public for ideas.

Woellert is a reporter for Bloomberg News. Benson is a reporter for Bloomberg News.

West Coast States See a Surge in New Foreclosures

Foreclosure starts soared during the month of August in states along the country’s western coast, reversing what had been a declining trend over the past several months, according to the tracking firm ForeclosureRadar.

The California-based company keeps close tabs on foreclosure activity in the states of Arizona, California, Nevada, Oregon, and Washington. ForeclosureRadar recorded a spike in the first notice filed in the foreclosure process across its five-state coverage area last month.

ForeclosureRadar says the jump appears to have been primarily driven by Bank of America and its related entities, which initiated 116 percent more foreclosures in August than in July. Wells Fargo and U.S. Bank also saw increases in foreclosure start filings, while filings by JPMorgan Chase and Citibank were essentially flat.

“Bank of America appears to be primarily responsible for the surge in foreclosure starts this month,” said Sean O’Toole, founder and CEO of ForeclosureRadar.

“Since their average time to foreclose has recently increased to more than a year, it is unclear that these foreclosure starts will lead to an increase in foreclosure sales anytime soon,” O’Toole noted.

Foreclosure sales also increased throughout most of ForeclosureRadar’s coverage area in August.

Investors bought more properties on the courthouse steps in August than in July everywhere except in Washington, while the number of properties taken back by the bank jumped significantly in Oregon and also rose in California and Nevada.

In Arizona, ForeclosureRadar found that notice of trustee sale filings jumped 15 percent between July and August, reversing a four-month downward trend.

Foreclosed properties sold back to the bank as REO, however, continued a five-month decline, with an 8.0 percent drop from July to August, and a 42.8 percent drop

compared to this time last year. Arizona investors were more active in August, with properties sold to third parties up 4.9 percent month-over-month and up 38.7 percent year-over-year.

California’s notice of default filings increased 69.5 percent to their highest level in 12 months. Notices of trustee sale were up more moderately, rising 6.0 percent month-over-month.

Activity on California courthouse steps increased in August. Properties returned to the bank as REO increased 12.3 percent from the prior month, while properties sold to third parties rose 9.9 percent. Time-to-foreclose in the Golden State increased to 333 days in August, which is 49 days longer than a year ago.

Notices of default in Nevada jumped 44.2 percent month-over-month, but fell 13.6 percent year-over-year. Notice of trustee sale filings slipped for the fifth consecutive month, dropping 9.9 percent from July.

Investor activity increased in August, with 19.8 percent more foreclosed properties sold to third parties in August than in July. Foreclosure cancellations declined for the fourth straight month, dropping 9.0 percent in August to the lowest level in 15 months.

Time-to-foreclose in Nevada jumped 14.3 percent in August when compared to July’s timeline, reaching a new record of 368 days. The time to resell a foreclosed home increased month-over-month for both banks and third-party investors, to 179 days and 108 days, respectively.

In Oregon notices of default were up in August over July by 35.6 percent, but filing activity remains 45.8 percent below this time last year.

Properties returned to the bank rose dramatically in the state, up 243.3 percent month-over-month, as Recontrust, a subsidiary of Bank of America, began to clear the 2,800 foreclosures it started in April.

Properties sold to third-party investors were up as well, 46.0 percent month-over-month and 17.4 percent year-over-year. The time-to-foreclose in Oregon dropped in August for the second month in a row, down 9 days from July to 150 days.

Washington saw a 3.4 percent increase in notice of trustee sale filings in August from July, which reversed four months of consecutive declines.

Activity on the courthouse steps slowed as foreclosures sold back to banks dropped 29.4 percent month-over month, and those sold to third-party investors were down 33.3 percent.

Source: DSNews

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Banks Now Prefer Short Sales to Foreclosures

The nation's biggest mortgage servicers- Bank of America, JPMorgan Chase and Wells Fargo are beginning to step their efforts to ease the short sale process for borrowers who are unsuccessful in getting loan modifications and face the threat of foreclosure.

Servicers are attempting to reach out to borrowers and are paying out more incentives to those suffering financial hardship to help proceed with a short sale. They are also cutting down the time taken to approve short sales, although realtors still complain that the process takes too long.

JPMorgan has processed 120,000 short sales through its proprietary program since June 2009 and now averages 5,000 short sales a month. The bank says its average response time to approve a short sales transaction is 30 days.

"We think the short sale is a good solution for many struggling homeowners and we let them know that it's an option," said Christine Holevas, spokesperson for JPMorgan in an email. "Our outreach efforts have increased in the past year or so. Foreclosure can be an expensive and lengthy process for all parties. It's a good deal for the homeowner and a good deal for us (a cheaper way to get a bad loan off the books.)"

A short sale is seen as a more palatable alternative to foreclosure for borrowers. In its simplest form, borrowers with underwater mortgages sell their homes to a buyer at a price that is approved by the lender. The lender normally forgives the difference between the loan and the sale proceeds- in essence the bank is being shorted for the loan amount.

Previously, lenders were said to prefer foreclosures to short sales because they -- or the investors in the loans -- figured that more money could be made from the former.

But the average time for the foreclosure process- from the time of notice to the completed foreclosure- is now 318 days in the U.S., according to RealtyTrac.

The foreclosure process in the state of New York, which follows a judicial process, took 966 days on average for properties foreclosed in the second quarter. New Jersey and Florida followed with an average processing time of 944 days and 676 days respectively.

The longer it takes for a foreclosure to be approved, the longer bad loans stay on banks' books.

Foreclosures are also more expensive, because of the legal expenses involved as well as the expenses for maintenance and upkeep while the property is in foreclosure.

Wells Fargo, for instance, incurred expenses on repossessed homes to the tune of $305 million in the second quarter and $408 million in the first quarter, according to data from SNL. Data for the other big banks wasn't available.

But at a time when analysts are paying more attention how well expenses are managed, banks might be more willing to look at other alternatives.

According to real estate analytics firm CoreLogic, the number of short sales in the market have tripled in the last two years and transactions are anticipated to grow by 25% in 2011. The markets with the largest short sale volume are California, Arizona, Colorado and Florida.

"Lenders often consider short sales as the lesser of two evils when compared to foreclosures," Core Logic noted in a May 2011 report on short sales. "While significant losses may be incurred in both foreclosure and short sale scenarios, the overall negative financial impact of short sales is typically less than that of foreclosure. In many cases short sales represent the best way for lenders to minimize their overall losses. In general, all parties fare better when a foreclosure is prevented."

JPMorgan is now paying certain types of borrowers- such as those with infamous option-arm mortgages as much as $35,000 to help them out with a short sale, the Herald Tribune reports.

JPMorgan spokesperson Holevas told TheStreet that the incentives vary and that they are available only for certain kinds of borrowers. She would not share specifics about the incentives.

CitiMortgages, the mortgage servicing arm of Citigroup is paying an average $12,000 in incentives, up from between $3,000 and $5,000 in 2010 for short sales on its own loan portfolio, HousingWire reported in June, citing a senior real estate management executive.

Again these incentives are paid out by servicers on the short sales of their own loan portfolios. In cases where loans have been sold, investors often dictate how much is paid out. But it suggests that servicers are beginning to push short sales more aggressively.

J.K. Huey, a senior vice president at Wells Fargo Home Mortgage- REO and Short Sales says transactions through the bank's proprietary program have been fairly stable. But the bank has seen a pickup in short sales through the government's HAFA (Home Affordable Foreclosure Alternatives) program, which loosened restrictions in February.

Most of the short sales executed by Wells are in the harder-hit housing markets such as California and Florida, which is also where they service more loans. The borrowers in these transactions are fairly late in their delinquency stage, although Wells does engage with borrowers who reach out to them earlier in the process.

Investors too are willing to consider short sales as a first option.

"Short sale is considered a positive alternative to foreclosures," said Huey. "Investors for the most part will do a short sale over a foreclosure provided the net present value shows it that way. Investors have been very attentive to this, as has the Treasury."

Still, the short sale process is not easy and industry observers say sellers and buyers of short sale properties must set realistic expectations.

For one, borrowers should realize that their credit scores aren't any less affected under a short sale than it is in the case of a foreclosure. In both case, the borrower is considered in default.

However, in a short sale, the borrower's debt is often forgiven, at least on the first lien. Also, a borrower who does a short sale might be able to apply for another mortgage sooner than he or she could in the case of a foreclosure, where the wait can be as much as 7 years.

For buyers interested in bidding for short sale properties, the process can be frustrating. P/>Jeff Lischer, managing director for regulatory policy at the National Association of Realtors says banks are trying to do improve the process, but realtors still complain that the process is chaotic.

Most still say there is a lot of back and forth in the documentation process as well as disagreements over valuation of the property. Short sale contracts often fall through because there are multiple parties involved. And the process varies significantly from one servicer to another.

"It is hard to know what the rules are," says Lischer. "You can have a house with two loans serviced by two different servicers. You need to get four parties to sign off on your short sale, instead of one."

Wells' Huey says that servicers are now using workflow processes that have shortened the processing time considerably.

In the simplest of cases, where loans are owned by the bank and there are no junior liens or mortgage insurance companies involved, a short sale transaction can be approved in as little as five days, provided all the documentation is in order, she says.

It gets more complicated when there are more parties involved. Investors, junior lien holders and mortgage insurers often want more documentation to prove financial hardship of the seller, proof of funding for the borrower and they usually want to negotiate the price. That adds to the processing time, which takes Wells on an average 15 days.

She also adds that the short sale process can go a lot more smoothly when the real estate agent is someone who understands how to do a short sale. "This is not a regular sale where there is just one contract between a buyer and a seller," she said.

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Home prices rise again, but experts are unimpressed

Home prices in major U.S. cities increased in May for the second consecutive month, according to a closely watched index, although experts dismissed the uptick as seasonal while separate reports provided fresh evidence of a weak housing market.

The Standard & Poor's/Case-Shiller index of home prices in 20 metropolitan areas rose 1% from April to May when left unadjusted for seasonal variations.

Prices often rise in spring because of changes in the types of homes selling: Foreclosures make up a higher proportion of sales during the winter as families take a break from home shopping and cash-rich investors dominate the market. Higher sales volumes in spring also push up prices.

But compared with May 2010, home prices slid 4.5%, according to the index released Tuesday.

"Year-over-year, prices continue to deteriorate, although there has been a seasonal uptick over recent months," said Stuart Gabriel, director of UCLA's Ziman Center for Real Estate. "This reflects a market that continues to be in search of a bottom."

Chris G. Christopher Jr., an economist with consulting firm IHS Global Insight, said in a research note that the seasonal kick in prices will probably fade by October.

"Things do not look very favorable on the housing front since the employment situation has taken a turn for the worse in May and June," he wrote. "The unemployment rate now stands at 9.2%, and consumer confidence is at depressed levels. Going forward, the Case-Shiller indexes are likely to post increases during the home-buying season, and then turn down again."

The housing market began a renewed decline last year after the expiration of federal tax credits and has been limping along ever since. In March, home prices fell below their recession-era low, hit in April 2009, confirming a much-expected double-dip. Values have ticked up slightly since then.

One factor keeping housing weak is the high number of homes in foreclosure or headed into the foreclosure process. Then there's the stalled jobs market, weak consumer confidence in the economy's direction and the significant number of people saddled with mortgage debt that exceeds the value of their homes.

A separate report released Tuesday by Santa Ana research firm CoreLogic indicated that the nation's housing market is hampering the broader U.S. economic recovery. The report said that while several temporary factors have contributed to a slowing recovery, including high gas prices, U.S. floods and fading stimulus programs, "fundamentally, the recent slower economic growth illustrates that as the housing market goes, so does the economy."

Housing influences the economy directly through residential construction, which typically gives a recovery a key boost. But with stiff competition from foreclosures, sales of new homes have been very weak for more than a year.

Sales of new homes in June dropped 1%, according to data released Tuesday by the Commerce Department. That put sales at an annualized pace of 312,000.

"We see no chance that a strong rebound in new-home sales will be a key driver of broader economic growth any time soon," Ian Shepherdson, chief U.S. economist for High Frequency Economics, wrote in a research note.

Housing also influences the U.S. economy in less direct ways because people often buy new furniture and other items when they purchase a new place to live, or even when they do home improvement projects such as adding new rooms.

In California, a recent poll for The Times and USC's Dornsife College of Letters, Arts and Sciences shows that Californians are coping with hard times by cutting household expenses, skipping restaurant meals and forgoing home improvements.

Tiffany Suarez-Martinez, 34, and her husband, Eduardo, 32, rent a house in the Inland Empire town of Chino. The parents of three young children said that they are concerned about the future and scraping to get by because of high gasoline costs and lost work hours. Their neighborhood has been ravaged by foreclosures, bringing down property values and leaving empty homes with dead front lawns, Tiffany said.

"Everybody I know has almost lost their home or is in the process of losing their home," she said. "I am renting, thank God, because I didn't think we could afford a house, so we didn't buy."

Homeownership remains a dream for the couple, but "we are still not ready," she said, "with a family of five and only one person working."

The state of the housing market also influences consumer views on the economy. Consumer confidence improved slightly in July, with expectations for the economy rising slightly, although pessimism remains high, according to the Conference Board's consumer confidence index, released Tuesday. The index now stands at 59.5, up from 57.6 in June.

The Case-Shiller index, created by economists Karl E. Case and Robert J. Shiller, is widely considered the most reliable read on home values. The housing index compares the latest sales of detached houses with previous sales and accounts for factors such as remodeling that might affect a house's sale price over time.

Sixteen of the 20 metro areas tracked by the Case-Shiller index posted increases on a month-over-month basis, but only Washington was up from May 2010, rising 1.3%. From April to May, Los Angeles was up 0.5%, San Diego 0.2% and San Francisco 1.8%.

The index also provides seasonally adjusted data. S&P has warned that the adjusted data are unreliable because the high number of distressed properties has distorted the market.

Source: LATIMES

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California foreclosure starts fall to lowest level in four years

The number of Californians entering foreclosure dropped steeply in the second quarter to hit its lowest level since 2007, a sign the foreclosure crisis in the Golden State could be easing amid a more stable housing market and increased scrutiny from regulators.

Notices of default filed against California homes dropped 19.2% during the three months ended June 30, when compared withthe same period a year earlier, and 17.0% from the prior quarter, according to San Diego research firm MDA DataQuick.

A total of 56,633 homes received a notice of default, which is the first formal step in the foreclosure process.

Foreclosure practices have slowed nationally as homeowners challenge foreclosures in court and the nation's biggest banks face settlement talks with regulators over faulty repossession practices. The nation’s five largest mortgage servicers are currently negotiating with a committee of all 50 state attorneys general over last year's robo-signing scandal, where banks employed people who attested to the veracity of key documents without reading or understanding what they were signing.

Some experts believe if a settlement is reached, foreclosures could spike again once banks overhaul their practices. Unlike other states whose foreclosure system is overseen by the court system, foreclosure activity in California has seen a steady decline for more than two years, as the housing market has recovered faster than other hard-hit states.

John Walsh, DataQuick president, attributed the declines to a steadier housing market.

"Homeowner distress spreads fastest when home price declines are steepest," Walsh said in a statement. "And it now appears likely that, barring some new economic shock, the worst of the price declines are behind us.”

The number of homes taken back by banks also fell in the second quarter. A total of 42,465 homes were taken back by banks during those three months, a 10.9% decline from the same period a year earlier and a 1.4% drop from the prior quarter.