Lisa and Jim's Northern Nevada Real Estate Blog: September 2009

Is The FDIC Killing Short Sales?

As some of you already know, I blogged recently about being interviewed recently by our local NBC news affiliate.  To read the blog, click here.  Basically, IndyMac Bank (now OneWest Bank), is holding one of my clients hostage, demanding a $75k promissory note, or they will proceed to foreclosure.  For the life of me, I couldn't figure out why they were doing this.  The BPO came in at the contract price of $275k, with a net to IndyMac of $241k.  What advantage could there possibly be for them to proceed to foreclosure?

Yesterday, I figured it out.  You see, IndyMac was taken over by the FDIC and sold to OneWest Bank in March/2009.  Guess who the investors are behind OneWest?  George Soros, Michael Dell, Steve Mnuchin (former Goldman Sachs executive), and John Paulson (hedge-fund billionaire).  

Now, listen to the deal they got from the FDIC....

Basically, they purchased all current residential mortgages at 70% of par value (70% of the outstanding loan amounts).  They purchased all current HELOCS at 58% of Par Value!!!

Next, in order to "sweeten the pot", the FDIC stepped in and guaranteed the following:  For any residential mortgages where OneWest experiences a loss, the FDIC will step in and cover anywhere from 80%-95% of the loss.  The loss is calculated using the ORIGINAL LOAN BALANCE, not the amount that OneWest paid for the loan.  Let's use my clients situation as an example:

Loan Amount is $478,000, plus 6 months of missed payments, for a grand total of $485,200

OneWest pays $334,600 for the loan

We have an all cash offer of $241,000, net to OneWest.

So, let's do the math, shall we?  The net loss, according to the FDIC formula is the ORIGINAL LOAN AMOUNT minus the amount of the offer.  In this case, $485,200-$241,000, or $244,200.  Next, the FDIC, according to their Loss Share Agreement, writes a check to OneWest for 80% of the so-called "net loss".  So, in this case, OneWest gets a check from Uncle Sam for $195,360 (.80 X $244,200).

Add the $195,360 to the sales price of $241,000, and you get a grand total of $436,360.  Remember, OneWest paid $334,600 for the loan.  So, OneWest puts $101,760 in their pocket, thanks to the FDIC.  Folks, that is over $100k of our hard-earned tax dollars!

So, you ask...Why does this program hurt short sales?  Because, our brilliant government offers this SAME PROGRAM FOR FORECLOSURES!  The only difference is, the government picks up 80% of the tab on all of the extra costs associated with a foreclosure (BPO's, upkeep, utilities/maintenance, legal fees, etc.)

So, If I'm OneWest, why would I want to waste my time negotiating through a Short Sale, when I can make the same amount of money (if not more) by just letting it go to foreclosure?  And we wonder why nobody can get a Loan Modification?  Why would OneWest approve a loan modification for this guy, when they can foreclose and make over $100k?  And, to add injury to insult, they have held this loan for 6 months!  Not a bad ROI, huh?

What infuriates me the most is that in my particular case mentioned above, they have the guts to hold my client hostage for a $75k promissory note, after they are already making more than $100k on the sale!!! This is his primary residence, 1st Position loan, and OneWest has NO RECOURSE!  Imagine if they could make $100k, then get a deficiency judgement!  Talk about making some big bucks!

Can you say "GREED"?

The scary thing is that over 50 banks have Shared Loss Agreements in place with the FDIC.  Some of them include:  Bank of America (go figure), CitiMortgage, Wells Fargo, etc.  

This entire agreement between the FDIC and OneWest can be found here, on the FDIC website.  It's all there, for the world to see!  They have it all layed out.  All of the formulas, worksheets, etc.  

Now, it's up to us to bring it to the attention of our elected officials and the media.  Enough is Enough!

UPDATE 9/18/09:  I JUST READ AN AWESOME ARTICLE ON THIS, THAT GOES INTO WAY MORE DETAIL THAN MY BLOG ABOVE.  TAKE THE TIME TO READ IT WHEN YOU GET A CHANCE! CLICK HERE TO READ IT.

Wait, it gets better...The FDIC just announced that it needs to start borrowing money from the U.S. Treasure in order to replenish it's deposit insurance fund (the same fund being used to pay all of these banks in the Loss Share Agreements).  Go Figure!  Click Here to read it.

 

 

 

Here is your Nevada Wolf Pack Football Home Schedule for 2009!

Friday, September 25 ~ Missouri ~ 6:05p.m. ~ First home game of the season! ~ ESPN Radio 630 AM

Saturday, October 03 ~ UNLV ~ 1:05p.m. ~ ESPN Radio 630 AM

Friday, October 09 ~ Louisiana Tech ~ 6:05p.m. ~ ESPN Radio 630 AM

Saturday, October 24 ~ Idaho ~ 1:05p.m. ~ ESPN Radio 630 AM

Saturday, October 31 ~ Hawaii ~1:05p.m. ~ ESPN Radio 630 AM

Saturday, November 14 ~ Fresno State 1:05p.m. ~ ESPN Radio 630 AM

Here are a few things you should know if you plan to attend a Wolf Back Football Game:

Gates open two hours prior to kick-off. There is no re-entry to Mackay Stadium once you are inside!

Tickets ~ You can purchase tickets at the following locations:

1) Lawler Events Center Ticket Office ~ 1664 N. Virginia Street ~ 775-784-465 ~ Monday - Friday 10:00a.m. to 5:00p.m. or game days starting at 10:00a.m.

2)Legacy Hall Ticket Office ~ UNR Campus ~ Monday - Friday 10:00a.m. to 5:00p.m.

3) Via phone 775-348-PACK(7225), option #1 for single-game tickets or option #3 for season tickets.

4) Via the Internet. See Nevada Wolf Pack 24 hours a day, 7 day a week.

Parking ~ General parking lots (free and paid areas) are available to the north, south and east of Mackay Stadium.

General Paid Parkingwill be available in the West Stadium Parking Complex for $100 for the season and in the South Lawlor Parking Lot for $50 for the season or $10 per game. Please call or visit the Wolf Pack Ticket Office to purchase a parking pass or get more information.

 Donor parkingis a benefit for contributors to the Pack Educational Fund.  Donors at the $250 - $1,499 level qualify for Area 1 parking permits.  Donors at the $1,500 level and above qualify for Area 2 parking permits.  One permit is allocated for every four season tickets held.  For more information on donor parking and the Pack Educational Fund contact Mark Urick at (775) 682-6972.

 Parking for disabled patrons is available on the first floor in the West Stadium Parking Complex and within close proximity to the elevators on the remaining five floors of that garage.  These locations are all very close to the disabled seating areas on the West Concourse and South Grand Stands of Mackay Stadium.

 Fan Behavior ~ OK folks, you most behave if you go to a UNR Wolf Back footballgame! Nevada has a "zero tolerance" program established for Wolf Pack fans. Those who behave inappropriately will be asked to leave the football game. Fans who appear intoxicated will be denied access to Mackay Stadium. Alcohol will not be allowed into the stadium or consumed while standing in line.

If you have any other questions about the Nevada Wolf Pack Football Schedule or 2009 football season, visit www.nevadawolfpack.com.

__________________________________________________________________________________________________

If you are interested in buying or selling a home in Reno, Nevada, feel free to call me at 775-846-5424 or email me at Terrieleighton@hotmail.com. You can also visit Serving Reno and Sparks to see a complete list of homes available for sale.

 Posted by Terrie Leighton. Terrie is a licensed real estate agent with Ferrari-Lund Real Estate in Northern Nevada. If you would like  information homes listed for sale in Northern Nevada, call Terrie at 775-846-5424 or email Terrie at Terrieleighton@hotmail.com. You can visit her website at Serving Reno and Sparks. If you are interested in listing your home, call Terrie Leighton at 775-846-5424. She can help you get started today.

~X~X~X~X~X~X~X~X~X~X~X~X~

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My father never drove a car. Well, that's not quite right. I should say I never saw him drive a car.
He quit driving in 1927, when he was 25 years old, and the last car he drove was a 1926 Whippet.
'In those days,' he told me when he was in his 90s, 'to drive a car you had to do things with your hands, and do things with your feet, and look every which way, and I decided you could walk through life and enjoy it or drive through life and miss it.'

At which point my mother, a sometimes salty Irishwoman, chimed in: 'Oh, bull----!' she said. 'He hit a horse.'

'Well,' my father said, 'there was that, too.'

So my brother and I grew up in  a household without a car.  The neighbors all had cars -- the Kollingses next door had a green 1941 Dodge, the VanLaninghams across the street a gray 1936 Plymouth, the Hopsons two doors down a black 1941 Ford -- but we had none.
My father, a newspaperman in Des Moines, would take the streetcar to work and, often as not, walk the 3 miles home.  If he took the streetcar home, my mother and brother and I would walk the three blocks to the streetcar stop, meet him and walk home together. My brother, David, was born in 1935, and I was born in 1938, and sometimes, at dinner, we'd ask how come all the neighbors had cars but we had none.  'No one in the family drives,' my mother would explain, and that was that.

Sometimes, my father would say, 'But as soon as one of you boys turns 16, we'll get one.'  It was as if he wasn't sure which one of us would turn 16 first.

But, sure enough, my brother turned 16 before I did, so in 1951  my parents bought a used 1950 Chevrolet from a friend who ran the parts department at the local Chevy dealership.  It was a four-door, white model, stick shift, fender skirts, loaded with everything, and, since my parents didn't drive, it more or less became my brother's car.

Having a car but not being able to drive didn't bother my father, but it didn't make any sense to my mother.  So in 1952, when she was 43 years old, she asked a friend to teach her to drive.  She learned in a nearby cemetery, the place where I learned to drive the following year and where, a generation later, I took my two sons to practice driving.  The cemetery probably was my father's idea. 'Who can your mother hurt in the cemetery?' I remember him saying many times.

For the next 45 years or so, until she was 90, my mother was the driver in the family.  Neither she nor my father had any sense of direction, but he loaded up on maps -- though they seldom left the city limits -- and appointed himself navigator. It seemed to work.
Still, they both continued to walk a lot.  My mother was a devout Catholic, and my father an equally devout agnostic, an arrangement that didn't seem to bother either of them through their 75 years of marriage.

(Yes, 75 years, and they were deeply in love the entire time.)
He retired when he was 70, and nearly every morning for the next 20 years or so, he would walk with her the mile to St. Augustin's Church.  She would walk down and sit in the front pew, and he would wait in the back until he saw which of the parish's two priests was on duty that morning.   If it was the pastor, my father then would go out and take a 2-mile walk, meeting my mother at the end of the service and walking her home.   If it was the assistant pastor, he'd take just a 1-mile walk and then head back to the church.  He called the priests  'Father Fast' and 'Father Slow.'

After he retired, my father almost always accompanied my mother whenever she drove anywhere, even if he had no reason to go along.  If she were going to the beauty parlor, he'd sit in the car and read, or go take a stroll or, if it was summer, have her keep the engine running so he could listen to the Cubs game on the radio.  In the evening, then, when I'd stop by, he'd explain: 'The Cubs lost again. The millionaire on second base made a bad throw to the millionaire on first base, so the multimillionaire on third base scored.'

If she were going to the grocery store, he would go along to carry the bags out -- and to make sure she loaded up on ice cream..  As I said, he was always the navigator, and once, when he was 95 and she was 88 and still driving, he said to me, 'Do you want to know the secret of a long life?'

'I guess so,' I said, knowing it probably would be  something bizarre.

'No left turns,' he said.

'What?' I asked.

'No left turns,' he repeated. 'Several years ago, your mother and I read an article that said most accidents that old people are in happen when they turn left in front of oncoming traffic.  As you get older, your eyesight worsens, and you can lose your depth perception, it said.  So your mother and I decided never again to make a left turn.'

'What?' I said again.

'No left turns,' he said. 'Think about it. Three rights are the same as a left, and that's a lot safer.  So we always make three rights.'

'You're kidding!' I said, and I turned to my mother for support.

'No,' she said, 'your father is right. We make three rights.  It works.'
But then she added: 'Except when your father loses count.'

I was driving at the time, and I almost drove off the road as I started laughing.

'Loses count?' I asked.

'Yes,' my father admitted, 'that sometimes happens. But it's not a problem. You just make seven rights, and you're okay again.'

I couldn't resist. 'Do you ever go for 11?' I asked.

'No,' he said ' If we miss it at seven, we just come home and call it a bad day.  Besides, nothing in life is so important it can't be put off another day or another week.'

My mother was never in an accident, but one evening she handed me her car keys and said she had decided to quit driving.  That was in 1999, when she was 90.
She lived four more years, until 2003.  My father died the next year, at 102..
They both died in the bungalow they had moved into in 1937 and bought a few years later for $3,000.
Sixty years later, my brother and I paid $8,000 to have a shower put  in the tiny bathroom -- the house had never had one. My father would have died then and there if he knew the shower cost nearly three times what he paid for the house.

Anyway, my father continued to walk daily -- he had me get him a treadmill when he was 101 because he was afraid he'd fall on the icy sidewalks but wanted to keep exercising -- and he was of sound mind and sound body until the moment he died.

One September afternoon in 2004, he and my son went with me when I had to give a talk in a neighboring town, and it was clear to all three of us that he was wearing out, though we had the usual wide-ranging conversation about politics and newspapers and things in the news and more politics.

A few weeks earlier, he had told my son, 'You know, Mike, the first hundred years are a lot easier than the second hundred.'  At one point in our drive that Saturday, he said, 'You know, I'm probably not going to live much  longer.'

'You're probably right,' I said.

'Why would you say that?' He countered, somewhat irritated.

'Because you're 102 years old,' I said.

'Yes,' he said, 'you're right.'  He stayed in bed all the next day.
That night, I suggested to my son and daughter that we sit up with him through the night.
He appreciated it, he said, though at one point, apparently seeing us look gloomy, he said: 'I would like to make an announcement. No one in this room is dead yet.'
An hour or so later, he spoke his last words:
'I want you to know,' he said, clearly and lucidly, 'that I am in no pain.  I am very comfortable.  And I have had as happy a life as anyone on this earth could ever have.'
A short time later, he died.

I miss him a lot, and I think about him a lot.  I've wondered now and then how it was that my family and I were so lucky that he lived so long.  I can't figure out if it was because he walked through life, or because he quit taking left turns.

Life is too short to wake up with regrets.   So love the people who treat you right.  Forget about the ones who don't.  Believe everything happens for a reason.   If you get a chance, take it.   If it changes your life, let it.  Nobody said life would be easy, they just promised it would most likely be worth it.

Video below is provided by renotahoe via youtube.com.

Catherine T. Sinocruz, e-Pro, ABR, GRI, CRS
Broker-Salesperson
"Fluent in English & Tagalog"
www.CatherineNevadaHomes.com ~ Homes for Sale
info@CatherineNevadaHomes.com ~ Stay in Touch
Prudential Nevada Realty
1675 Robb Dr. Suite 6
Reno, NV 89523
(775) 338-3757 Mobile

Disclaimer: The opinions expressed by The Active Rain Network and its members and those providing comments are theirs alone, and do not reflect the opinions of Catherine T. Sinocruz of Prudential Nevada Realty. Catherine T. Sinocruz and Prudential Nevada Realty are not responsible for the accuracy or content provided by The Community. Contents of this blog should not be copied or reproduced without the consent of Catherine T. Sinocruz.

Are you buying because of the $8,000 credit? Looking at short sales, you need to give the bank a timeline and be prepared to walk if they can’t meet it. I tell every one of my buyers that are looking at short sales, that it may not be worth it and neither is the $8,000 tax credit. But, if you are looking at short sales, give the bank a firm timeline and be prepared to walk away if they aren’t willing to meet it.

You see, many buyers are willing to pay more for a home than it is worth just to get the $8,000 tax credit and I tell them that it might be better to wait until December to buy when fewer buyers are looking. But, if they are looking to buy now to get the tax credit, the deadline of November 30^th is fast approaching.

What I’m doing with buyers right now is, I’m telling the banks that if they want this offer, they need to close by November 30^th, and if they can’t do that, then our offer is lowered by the $8,000, and that my clients will lose by not closing by that November 30^th deadline.

My hope is that by making the banks accountable, maybe, just maybe, we can get a few of these short sales off the market before winter hits when the market looks like it may take a slide backwards because of the loss of the tax credit.

What are you telling your clients that are counting on the $8,000 tax credit when all they can afford are short sale properties?

Todd Clark - Broker / Sales Coach
Palazzo Realty Group
Phone: (503)524-9494
Fax: (503)622-8739

©2009 Todd Clark - Are you buying because of the $8,000 credit? Looking at short sales, you need to give the bank a timeline and be prepared to walk if they can’t meet it.

Are We Having Fun Yet? It Is All About Your Attitude!

I was at a hot rod show a few weeks back out at the beach in Seaside, Oregon. The show was loaded up with cars that easily cost over $100,000. (Some were more than twice that!) Their owners watched over their show cars like hawks. "Please Don't Touch" signs were strategically placed on 90% of the cars.

About half way through the show I ran across an interesting fellow. He was clearly having more fun than any of the others around him. He asked to pet every dog that walked by. He introduced himself to every child that came close and asked their parents if the kids would like to sit in his car. The crowd around his hot rod was at least 3 times as large as that around the other cars. I had my camera with me and I snapped a few shots. When I got home, I was surprised to see that I had taken 4 times as many shots of his car than any other in the show. His enthusiasm certainly was infectious!

Now I know that this is a stretch, but try to go along with me here, who are you? Are you one of the owners who takes their car to the show and dreads the possibility of someone touching it and leaving fingerprints? or are you the one who takes what life has to give and makes the most of it?

Life is too short to worry about fingerprints!

When you choose us to handle your Vancouver Washington real estate needs, you choose a team of realtors® who care about you and your family. Buying or selling a home is always more enjoyable when you work with professionals who will listen to your needs and who will work together with you to achieve your objective. We are very familiar with all types a real estate in Clark County and we specialize in Vancouver, Ridgefield and BattleGround. We are also very experienced with new home and custom home construction having assisted several local builders in selling new neighborhoods in the Vancouver Washington area.  Additionally, we have helped numerous families build their own Vancouver Washington dream homes. We are dedicated to helping you make intelligent, informed decisions and to providing you with exceptional service. Go to www.ernw.org for more information. See our video here.

Photo by Jim Valentine, RE/MAX Realty Affilliates, 1320 Highway 395, Gardnerville, NV  89410.  www.carsonvalleyland.com   dpwtigers@hotmail.com    775-781-3704   Lisa Wetzel and Jim Valentine Serving Northern Nevada for 30 years - Carson Valley, Gardnerville, Minden, Genoa, Topaz, Smith Valley, Carson City, Dayton, Stagecoach.  Land, ranches, residential, short sale, REO, investment, and development properties.

 

 

 

Photo by Jim Valentine, RE/MAX Realty Affilliates, 1320 Highway 395, Gardnerville, NV  89410.  www.carsonvalleyland.com   dpwtigers@hotmail.com    775-781-3704   Lisa Wetzel and Jim Valentine Serving Northern Nevada for 30 years - Carson Valley, Gardnerville, Minden, Genoa, Topaz, Smith Valley, Carson City, Dayton, Stagecoach.  Land, ranches, residential, short sale, REO, investment, and development properties.

 

 

Life can only be understood backwards, but it must be lived forwards.
- Soren Kierkegaard

 

Life is the art of drawing sufficient conclusions from insufficient premises. - - Samuel Butler

 

For everything you have missed, you have gained something else, and for everything you gain, you lose something else.
- Ralph Waldo Emerson

 

Life is a building. It rises slowly, day by day, through the years. Every new lesson we learn lays a block on the edifice which is rising silently within us. Every experience, every touch of another life on ours, every influence that impresses us, every book we read, every conversation we have, every act of our commonest days adds to the invisible building.
- J. R. Miller

We should employ our passions in the service of life, not spend life in the service of our passions.
- Richard Steele

 

It's a very short trip. While alive, live.
- Malcolm Forbes

 

"Don't try to be perfect; just be an excellent example of being human.” Anthony Robbins

 

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