Is The FDIC Killing Indymac OneWest Bank Short Sales? March 9, 2010
Posted by Sarah in : Updates , add a commentHere is an excerpt from a blog regarding information you may find very interesting:
As some of you may already know, I specialize in helping homeowners avoid foreclosure through the use of short sales. Recently, I dealt with a very interesting case involving Indymac/OneWest Bank that I felt needed to be brought to the attention of all American taxpayers.
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 client’s actual 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, and then get a deficiency judgment! Talk about making some big bucks!
Can you say “GREED”?
But wait, here’s the best part… I sent letters to Senators John McCain and Jon Kyl, with a cc to the CEO of OneWest, explaining the current loss-share agreement, as well as including the FDIC worksheets, with the actual numbers in this case, showing them that OneWest was making a profit of over $100,000 on this deal, thanks to the FDIC. Within 24 hours, I received a response from the PR Firm representing OneWest, telling me that OneWest would dismiss the promissory note requirement, and the short sale was approved. We closed escrow 3 weeks later. My client not only avoided a $75,000 commitment, but also salvaged his credit by short-selling his home, versus handing it back to OneWest via foreclosure.
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 laid 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!
Wait, it gets better…The FDIC just announced that they are “considering” borrowing money from the U.S. Treasury 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! Don’t believe me? Click Here to read it.
Information supplied from a blog by Robert G. Hertzog.
Springtime and the livin’s easy! February 23, 2010
Posted by Sarah in : Updates , add a commentI realize that we live on a beautiful island and that our winter’s are not as harsh as many places on the mainland; however, on Kauai, we did have a much colder winter than we are used to and we are ready for spring on this island!
There are signs everywhere that spring is in the air on the North Shore of Kauai. Plumeria flowers are beginning to come out of their dormant state and buds are appearing on the end of some branches. It is beginning to get lighter in the mornings allowing for the birds to begin their songs earlier in the day. More people are awakening from their winter slumber and enjoying the outdoors whether it is by walking Hanalei Bay or bicycle rides along the Hanalei town.
I did a stand up paddle session and was amazed to see so many large sea turtles lounging in the Hanalei River among some fish that decided they needed the protection of the river mouth as well.
The tourists that are still on island are truly enjoying the beautiful warm weather and the locals are welcoming them with open arms. Most of the local families are having family gatherings under the bright stars on the beaches of the North Shore with bon fires, music, laughter and lots of love. The spirit of “Aloha” is alive and well.
If this lifestyle appeals to you, please give me a call. Let my experience be your guide to obtaining your own slice of paradise.
It’s all about the lifestyle February 3, 2010
Posted by Sarah in : Updates , add a commentOn the North Shore of the island of Kauai is a quaint little town called Hanalei. Hanalei Bay was named the “Best Beach” by Dr. Beach for 2009. Our beautiful beach is a horseshoe shaped bay of warm crystal blue water teaming with various sea life. There is a lot to do in our sleepy little town too. You can join one of the two canoe clubs. You can paddle board in the bay or go up the Hanalei River. You can surf big waves in the winter and enjoy the calm waters of the bay in the summer. You can literally walk or ride a bike everywhere in Hanalei town where there are great restaurants, shopping or simply relax on a patch of grass in front of the old school house. Hanalei has something for everyone! If Hanalei appeals to you, I have two listings that you will love. Both are approved and very successful vacation rentals.
Hanalei Kahakai Hale is a classic Hawaiian beachfront estate is a great blend of natural beauty and modern sensibility. A world class setting where you can embrace the gentle trade winds, savor the setting sun, shimmering waterfalls and dancing rainbows all while floating in the arms of Hanalei Bay. This substantial residence, located in one of the premier spots on the Bay, is being presented to the market for the first time. From the west-facing wraparound lanai you have a spectacular vantage point to soak in the sweeping vistas. Panoramic big sky views abound, but you’ll find it difficult to take your eyes of the mesmerizing waves, and the sandy bottom, turquoise blue waters. The 1+ acre parcel is dotted with swaying palms and has a long rolling expanse of lawn that leads to the endless golden sand beach. Surfing, swimming, beachcombing, boating, fishing, you name it and it’s all at your doorstep. The 4 bedroom, 4 bath home has a real semblance of gracious island style and rich flavor. An extremely comfortable setting where you can enjoy casual island living and take advantage of Kauai’s ideal year-round climate and indoor-out lifestyle. We have a DVD of this property available upon request and you can see our web brochure at http://5156wekeroad.isnowforsale.com.
Hanalei Palms Hale is a large Hanalei home with Mountain and distant Ocean views. It is located on a corner lot with direct access to Hanalei Bay just steps away. It has the classic Plantation style wrap around covered deck, extra large master suite on top floor with panoramic views of waterfalls, two bedrooms and baths on main floor with open beam ceilings in great room, a beautifully remodeled kitchen and baths throughout and there are two bonus rooms on the ground floor. The pride of ownership shows throughout as this is the original owner. Hanalei Palms is the perfect neighborhood with underground utilities and walking distance to beach, dining, shopping and entertainment. This property also has the added option of owner financing for qualified buyers. You can see my web brochure at http://5095opelustreet.isnowforsale.com.
I don’t sell homes, I sell the lifestyle and Hanalei has been my home for over 20+ years.
Aloha 2009 and E’ Komo’Mai 2010 December 31, 2009
Posted by Sarah in : Updates , add a commentThe first nine months of the year were slow, but the last three months of the year have proven to be the best over all. The number of transactions closed in our office has more than tripled each month for the last quarter. Hanalei sales for 2009 numbered five with $17,650,000 in volume, which accounts for about a third of the sales volume for residential and land sales in Princeville, Hanalei and Haena.
2009 Sales for the Hanalei Beach Area and Town Areas
MLS 216543 Tax Key 4-5-5-2-109 Address 5282 Malolo Land
Listed for $899,000 Sold 9/4/2009 $825,000 all cash
MLS 214070 Tax Key 4-5-5-2-87 Address 4460 Aku Residence
Listed for $1,195,500 Sold 8/26/2009 $1,075,000 all cash
Permitted TVNC Rental
MLS 229346 Tax Key 4-5-5-5-19 Address 4384 Anae Residence
Listed for $2,250,000 Sold 12/22/2009 $2,000,000 all cash
Permitted TVNC Rental
MLS 223673 Tax Key 4-5-5-4-4 Address 5486 Weke Residence
Listed for $3,650,000 Sold 5/21/2009 $3,650,000 Mortgage
Permitted TVNC Rental
MLS 227638 Tax Key 4-5-5-4-13 Address 5418 Weke Residence
Listed for $11,500,000 Sold 12/17/2009 $10,100,000 all cash
Currently in Escrow
MLS 219161 Tax Key 4-5-5-3-17 Address 5325-B Weke Two Residences
Listed for $1,895,000 Permitted TVNC Rentals
For a quick look at my listings just click on the Web Brochures below:
http://3855albertroad.epropertysites.com/
http://5222honoikiroad.isnowforsale.com/
http://3175kalihiwairoad.isnowforsale.com/
http://6492puupiloroad.isnowforsale.com/
http://poipukapilicondo39.isnowforsale.com/
http://5156wekeroad.isnowforsale.com/ Permitted TVNC rental
http://55891kuhiohighway.isnowforsale.com/
http://hanaleipalmshale.isnowforsale.com/ Permitted TVNC rental
Wishing you and your family the very best for 2010.
Living the Hanalei Dream December 11, 2009
Posted by Sarah in : Updates , add a comment
“Hanalei Kahakai Hale” ~ Hanalei House-by-the-Sea is a rare offering on world renowned Hanalei Bay. The classic Hawaiian beachfront estate is a great blend of natural beauty and modern sensibility. A world class setting where you can embrace the gentle trade winds, savor the setting sun, shimmering waterfalls and dancing rainbows all while floating in the arms of Hanalei Bay. The over one acre parcel is dotted with swaying palms and has a long rolling expanse of lawn that leads to the endless golden sand beach. Surfing, swimming, beachcombing, boating, fishing, you name it and it’s all at your doorstep. The 4 bedroom, 4 bath home has a real semblance of gracious island style and rich flavor. This substantial residence is located in one of the premier spots on the Bay and from the west-facing wraparound lanai you have a spectacular vantage point to soak in the sweeping vistas. Panoramic big sky views abound, but you’ll find it difficult to take your eyes of the mesmerizing waves, and the sandy bottom, turquoise blue waters. An extremely comfortable setting where you can enjoy casual island living and take advantage of Kauai’s ideal year-round climate and indoor-out lifestyle. Just a short stroll from the front gates is Hanalei Town, an idyllic locale for a shaved ice or a Mai Tai.
If you enjoy watching the big waves of winter, one of the premier surf events just took place this week. The 25th Anniversary of the Eddie Aikau Memorial Big Wave Surfing Contest was truly exciting, it is held at Waimea Bay on the North Shore of Oahu, can only take place if the waves are 20 feet or higher and you must be invited to participate by the Aikau family. This year we had some of the largest waves in years and the event was put on at a moments notice. The winner of the event, Greg Long from San Clemente, California, had a fantastic session with a perfect score on a wave of about 40 feet.
If you are more of a stay at home, get away from the crowds, but still want to be within walking distance to the ocean kind of person then “Hanalei Palms Hale” could be the perfect home for you. This large Hanalei home has Mountain and distant Ocean Views, Plantation style wrap around covered deck, extra large master suite on top floor with panoramic views of waterfalls, two bedrooms and baths on main floor with open beam ceilings in the great room, remodeled kitchen and baths throughout. It is on a corner lot with direct access to Hanalei Bay just steps away. Pride of ownership shows throughout as this is the original owner. Hanalei Palms is the perfect neighborhood with underground utilities and walking distance to beach, dining, shopping and entertainment
Thanksgiving November 24, 2009
Posted by Sarah in : Updates , add a commentThe weather has turned beautiful and just in time for the Thanksgiving holiday. New things are happening around Hanalei town for the holiday…The new “Iti Wine Bar” is opening on Thanksgiving night, from 6pm to midnight. It’s the new tapas and wine bar next to Tahiti Nui. They will have top shelf wines and a new cocktail called the Maitini. This is the only venue open for light fare until midnight. No matter where you spend your Thanksgiving holiday I hope you are sharing the day with good friends and family.
Great Value in Paradise October 26, 2009
Posted by Sarah in : Updates , add a commentHanalei Palms Hale
Are you looking for a piece of paradise that you can call your own? I have a fantastic opportunity available.
Hanalei Palms Hale is a wonderful property steps away from world renowned Hanalei Bay located on the North Shore of the island of Kauai.
This large Hanalei home has Mountain and distant Ocean views. It is a Plantation Style home with wrap around covered lanai, and an extra large Master Suite on the top floor that has panoramic views of Waterfalls.
There are two bedrooms and two remodeled baths on the main floor with open beam ceilings in the Great Room. The Kitchen has been remodeled and there are two bonus rooms on the ground floor. A pride of ownership shows throughout as this is the original owner.
Hanalei Palms is the perfect neighborhood with underground utilities and is within walking distance to the beach, dining, shopping and entertainment.
There is owner financing available for qualified buyers and pursuant to Ordinance 864, the TVR application has been approved making Hanalei Palms Hale a County Approved Vacation Rental.
Please do not let this opportunity pass you by. Give me a call today for a showing appointment.
Hanalei Palms Hale
Hanalei Palms Hale October 6, 2009
Posted by Sarah in : Updates , add a comment
Are you looking for a piece of paradise that you can call your own? I have a fantastic opportunity available.
Hanalei Palms Hale is a wonderful property steps away from world renowned Hanalei Bay located on the North Shore of the island of Kauai.
This large Hanalei home has Mountain and distant Ocean views. It is a Plantation Style home with wrap around covered lanai, and an extra large Master Suite on the top floor that has panoramic views of Waterfalls.
There are two bedrooms and two remodeled baths on the main floor with open beam ceilings in the Great Room. The Kitchen has been remodeled and there are two bonus rooms on the ground floor. A pride of ownership shows throughout as this is the original owner.
Hanalei Palms is the perfect neighborhood with underground utilities and is within walking distance to the beach, dining, shopping and entertainment.
There is owner financing available for qualified buyers and pursuant to Ordinance 864, the TVR application has been approved making Hanalei Palms Hale a County Approved Vacation Rental.
Please do not let this opportunity pass you by. Give me a call today for a showing appointment.
The Kauai Marathon 2009 September 9, 2009
Posted by Sarah in : Updates , add a commentOn Sunday, September 6th, more than 1,700 runners participated in the Inaugural Kauai Marathon on the South Shore of the island of Kauai. With the perfect back drop of the ocean and palm trees of Poipu, the runners were able to choose between doing the half marathon at 13.1 miles or the full enchilada at 26.2 miles.
This being my first marathon, I decided to do the half marathon. Already being a runner, I trained for this event (thanks to Lois Lutz, my trainer) and felt great during the run all the way through to the finish! My friend and associate, Ruth Marvin, also decided to do her first half marathon and we ran it together. Ruth, who didn’t even train for this marathon did great and finished a little before me…that brat! Lois Lutz, our office accountant, ran her first full marathon and did fantastic! Debi Rickert, our front desk goddess, and my personal friend and ghost writer volunteered and was at aid station #10 that was located just before the 10 mile mark.
Debi and a crazy group of volunteers at aid station 10 handed out water and other essentials while cheering all of us runners with enthusiastic smiles and lots of energy which spurred us on.
This event, which drew Kama’aina and Tourists from around the globe, was a major success and will hopefully become an annual event for the island of Kauai. Congratulations to all of the participants and a big Mahalo to all of the volunteers!!!
If you would like to become a part of the Kauai lifestyle, there are truly some fantastic real estate deals available.
Makua Hideaway, a County Approved Vacation Rental, located in Haena on the North Shore of Kauai is just one of the great deals I am writing about. This three bedroom, three bath home is walking distance to some of the best beaches and is available for $598,000.
Hanalei Palms Hale, also a County Approved Vacation Rental, is located in the lovely town of Hanalei on the North Shore of Kauai. This three bedroom, four bath home is within walking distance to the world renowned Hanalei Bay, shopping and restaurants and is available for $1,875,000. The owner is willing to do seller financing for qualified buyers.
Please contact me today for more information.
Calling all fence dwellers! September 4, 2009
Posted by Sarah in : Updates , add a commentNow is the time to stop dwelling and start making a move towards owning your own piece of paradise. I have had two significant price reductions on two of my North Shore listings.
Makua Hideaway is located on the beautiful North Shore of Kauai in Haena and is now offered at $598,000.00.
The elevated design gives you wonderful tropical views as well as the lofty breezes for which our island is well known. Many large windows and glass doors bring the natural beauty inside. You will enjoy relaxing on the wrap-around lanai for even closer views. As you enter, you will immediately feel the spaciousness of the great room with its vaulted ceiling and generous dimensions. The perfect blend of natural wood and island style furnishings makes this a very comfortable place to entertain your guests. The large deck, which is accessible from several rooms, wraps around the home and offers ample space for quiet time alone as well as plenty of room to be together. This home is offered turn-key and is a County Approved Vacation Rental. Activities nearby include seasonal swimming, snorkeling, scuba diving, fishing, surfing, windsurfing, kayaking…all within walking distance to the ocean.
Hanalei Palms Hale is located on the beautiful North Shore of Kauai in Hanalei and is now offered at $1,875,000.00.
Hanalei Palms Hale is a large Hanalei home with Mountain and distant Ocean views. It sits on a corner lot with direct access to Hanalei Bay just steps away with a Plantation style wrap around covered deck. The extra large master suite on the top floor has panoramic views of waterfalls. There are two bedrooms and two baths on main floor with an open beam ceiling in the great room. The kitchen and the baths have been remolded and the pride of ownership shows throughout as this is the original owner. Hanalei Palms Hale is located in the perfect neighborhood with underground utilities and is within walking distance to beach, dining, shopping and entertainment. There are two bonus rooms on ground floor. There is owner financing available and pursuant to Ordinance 864, TVR application has been approved making this a County Approved Vacation Rental.
Call me today to view these wonderful properties!
