This is just one more reason to do your homework on who you are trusting when it comes to buying a home and finding financing;
A former mortgage broker, Mark Alan Abrams- age 49, was sentenced to 78 months in federal prison for a fraud scheme that involved buying houses in some of Southern California’s most affluent and exclusive neighborhoods and selling them to fake buyers at drastically inflated prices.
Abrams of Los Angeles was also ordered Friday to pay more than $41 million in restitution to two federally insured banks. The sentence came after Abrams plead guilty to a string of accusations- the likes of; bank fraud, conspiracy to commit bank fraud and loan fraud, making a false statement on a tax return and obstruction of justice.
The judge found that Abrams’ willingness to defraud banks, utilize credit information belonging to unknowing victims and compel employees to participate in the scheme was “particularly evil.”
Abrams and his business partner, Charles Elliott Fitzgerald, bought homes in neighborhoods like Beverly Hills, Bel Air, Malibu, La Jolla and Carmel, and then used fraudulent appraisal information to resell them for inflated amounts to fake buyers who purchased the properties with loans.
Fitzgerald, a real estate developer, was sentenced last year to 14 years in federal prison. He had pleaded guilty to conspiracy to commit bank fraud and loan fraud, running a continuing financial crimes enterprise, money laundering, obstruction of justice and three counts of bank fraud.
Over a three year period , the Lehman Brothers Bank funded 80 loans worth $137 million — $50 million more than what was actually needed to pay for the homes. Fitzgerald and Abrams reaped millions of dollars from these inflated loans and passed kickbacks on to their associates through commissions.
When Lehman Brothers sued Fitzgerald and others involved in the scheme in April 2003, Fitzgerald hid his assets and fled the country- living in Samoa until being extradited to Los Angeles in December 2006. When all is said and done- a total of 11 real estate professionals have been convicted of federal charges related to the scheme.
The Boards of Directors of San Fernando Valley headquartered California United Bank and Conejo Valley based California Oaks State Bank announced yesterday that the companies entered into a merger agreement providing for California United Bank to acquire California Oaks State Bank.
The acquisition is valued at approximately $17.3 million, with approximately half that amount being paid in cash and the balance in the form of shares of California United Bank common stock. As of June 30, 2010, California United Bank had total assets amounting in $532.0 million, total deposits of $420.2 million and seven offices. While California Oaks State Bank had assets of $136.7 million, total deposits of $114.0 million and three offices. Upon completion of the transaction- by close of the fourth quarter 2010, California United Bank will have over $650.0 million in assets and $530.0 million in deposits.
California United Bank intends to continue to operate both of California Oaks State Bank’s branches as full-service branches. At close of the merger, California United Bank will feature six full-service branches; located in Encino, Santa Clarita Valley, Los Angeles, South Bay, Conejo Valley and Simi Valley and three commercial lending offices located in Glendale/San Gabriel Valley, Orange County and Walnut Creek.
The merger was agreed upon unanimously by both banks Board of Directors. However, the acquisition is still subject to approval by bank regulatory authorities and the shareholders of each of California United Bank and California Oaks State Bank as well as other customary conditions.
Price: $698,000
Style: Bungalow, Salt Box
Bed: 2 Bath: 2
Stories: Three or more levels
Year built 1963
View of Catalina Island, City Lights, Coastline, Ocean, Panoramic vista
ASqFt 1,020
ALotSize 2,500
Parking: Concrete Driveway, Single Door Attached Garage
For more information on this property, click here.
Contact Nick Roshdieh today if you are interested in this property!
Price: $425,000
Style: Carriage House, Condominium
Bed: 2 Bath: 3
Stories: Three or more levels
Year built: 2004
View: Park or Greenbelt view, Peek-A-Boo View
ASqFt 1,600
Parking: Attached Garage, Direct Access, Guest Parking
For more information on this property, click here.
Contact Nick Roshdieh today if you are interested in this property!
Bank of America is now starting a new short sale program that will target certain homeowners, in the hard hit states of California, Florida, Arizona and Nevada, according to a top level B of A official. In this new program, B of A will pre-screen home owners who have been considered for a modification under the Home Affordable Modification Program (HAMP) and a short sale under the Home Affordable Foreclosure Alternatives (HAFA) program. And these borowers have either fallen out of these programs or were declined during the qualification process.
Bank of America states that the purpose of this program is give these home owners a better alternative, then foreclosure. They intend to provide a custom program with incentives that are attractive to homeowners experiencing a true hardship. This type of proactive response will help to bring stability to the beleaguered Orange County housing market. This new test short sale program, was developed to streamline the process. In that regard, B of A will use the previous documents that the home owner had submitted, so that no new documents are needed from the prospective seller.
One of the very important beneifts of this new Bank of America short sale program, is that they will be waiving deficiencies, which is the difference between what the home sells for and how much is left on the mortgage. This is a huge benefit to any Orange County home owner who may be contemplating a short sale with a Bank of America loan. Another beneficial feature of this new short sale program, is the B of A will offer the seller a $3,000 relocation fee, for cooperating with the short sale. If the property does not sell, then B of A will consider a deed-in-lieu of foreclosure in order to satisfy the mortgage.
B of A will not be selecting which real estate agent to work with, therefore it is advised that a homeowner work with a certifeid and experienced short sale realtor. B of A will assign a short sale specialist to work with the real estate agent and the homeowner to market the property for 120 days. Letters have already been mailed to qualified homeowners, and this will be a six month trial program.
One of the major stumbling blocks to getting short sales approved, is that the for many loans, the beneficiary is some other investment institution other than Bank of America, and it is often difficult for B of A to get that investors approval in time to meet the time lines of a purchase offer. In this test program, B of A has worked with the investor before hand, to get their preliminary approval so that the short sale can close faster.
There is great need for short sales at this time. Freddie Mac recently reported that its short sale figures were up 600% from two years ago and said it had completed 22,117 short sales in the first half of 2010, up nearly 180% from 7,914 in the first half of 2009. In addition, a research firm named Core Logic, has reported taht short sales in the US have tripled since 2008. In addition, Bank of America has completed more than 25,000 short sales to date. B of A is committed to improving the short sale process, and test for new ways of completing short sales to help their customers avoid foreclosure with a dignified exit.
For more inforamtion or questions about short sales in Orange County, HAFA short sales, or the new Bank of America short sale program, feel free to contact the short sale experts at ShortSalesASAP.com or email us at: Info@ShortSalesASAP.com
This report is for standard sales and short sales in Anaheim . This article is brought to you by the realtor experts at the Short Sales ASAP group, who are #1 in short sale property listings and closings in Orange County. Currently, there are a total of 348 detached homes listed for sale in Anaheim , California. The median price of these active homes for sale is $369,900 and the average price per square foot is $252 . Of this total, 165 are short sale listings active for sale. . These short sale listings represent 47% of the total inventory of detached homes for sale. The median price of these short sale properties is $340,000 and the average price per square foot is $239 .
For attached condominiums, there are 191 condo units currently listed for sale in Anaheim . The median price for these listed condominiums is $275,000 and the average price per square foot is $215 . Of this total, 114 are short sale condo listings. The median price of these short sale condos is $250,000 , and the average price per square foot is $199 . The ratio of short sale condo listings to listings is 60% .
Currently, there are 328 detached homes under contract in escrow, and the median price of these pending properties is $340,000 . Of this total pending properties, 196 are short sales, which is 60% of the total detached properties in escrow in Anaheim . The median price is $328,000 .
For condominiums, there are now 168 attached units in escrow, and the median price is $215,000 . Of this number, 123 are short sales in escrow in Anaheim . These short sale condos are 73% of the total units in escrow, and the median price is $205,000 .
In the past 90 days, there have been a total of 317 detached homes that have sold and closed escrow in Anaheim . The median price of these sold homes was $345,000 and the average price per square foot was $233 . Of this total were 95 short sale properties, which was 30% of the total sales. The median price was $335,000 , and the average price per square foot was $209 .
For attached condos, there have been a total of 317 condominium sales in the past 3 months. The median price was $366,000 , and the average price per square foot was $233 in Anaheim . In addition, there were 139 short sale condos that sold and closed escrow during this same period of time, which was 44% of the total number of units sold. The median price of the sold short sale condos was $267,000 , and the average price per square foot was $197 .
As can be seen above, the ratio of Pending in Escrow short sale listings, to Pending total listings is a much higher percentage, compared to the ratio of Sold short sale properties to Sold total properties. This illustrates that short sales fail at a high rate. Property owners who owe more than their home is worth, should seek to work with an experienced Anaheim short sale realtor. For more information, feel free to call: (888) 201-7066, or email us at: Info@ShortSalesASAP.com.
This report is for standard sales and short sales in Aliso Viejo . This article is brought to you by the realtor experts at the Short Sales ASAP group, who are #1 in short sale property listings and closings in Orange County. Currently, there are a total of 104 detached homes listed for sale in Aliso Viejo , California. The median price of these active homes for sale is $565,000 and the average price per square foot is $308 . Of this total, 33 are short sale listings active for sale. . These short sale listings represent 32% of the total inventory of detached homes for sale. The median price of these short sale properties is $495,000 and the average price per square foot is $289 .
For attached condominiums, there are 129 condo units currently listed for sale in Aliso Viejo . The median price for these listed condominiums is $319,900 and the average price per square foot is $271 . Of this total, 72 are short sale condo listings. The median price of these short sale condos is $295,000 , and the average price per square foot is $263 . The ratio of short sale condo listings to listings is 56% .
Currently, there are 60 detached homes under contract in escrow, and the median price of these pending properties is $549,900 . Of this total pending properties, 28 are short sales, which is 47% of the total detached properties in escrow in Aliso Viejo . The median price is $450,000 .
For condominiums, there are now 115 attached units in escrow, and the median price is $285,000 . Of this number, 81 are short sales in escrow in Aliso Viejo . These short sale condos are 70% of the total units in escrow, and the median price is $275,000 .
In the past 90 days, there have been a total of 74 detached homes that have sold and closed escrow in Aliso Viejo . The median price of these sold homes was $575,000 and the average price per square foot was $283 . Of this total were 23 short sale properties, which was 31% of the total sales. The median price was $560,000 , and the average price per square foot was $247 .
For attached condos, there have been a total of 147 condominium sales in the past 3 months. The median price was $350,000 , and the average price per square foot was $346 in Aliso Viejo . In addition, there were 57 short sale condos that sold and closed escrow during this same period of time, which was 39% of the total number of units sold. The median price of the sold short sale condos was $316,000 , and the average price per square foot was $236 .
Property owners who owe more than their home is worth, should seek to work with an experienced Aliso Viejo short sale realtor. For more information, feel free to call: (888) 201-7066, or email us at: Info@ShortSalesASAP.com.
Just when you thought they couldn’t get any lower, 15- & 30-year fixed mortgage rates have hit yet another historic low.
According to data from Freddie Mac’s weekly survey of mortgage rates, interest rates on 30-year fixed rate mortgages averaged at 4.54%, down from the previous week’s rates of 4.56% and 5.25% a year ago. The 15-year fixed rate mortgages averaged at 4%, down from 4.03% in June. These are the lowest recorded rates since Freddie Mac began tracking the mortgage in 1971.
As the stock market begins to show signs of recovery, this might be the last hurrah for these low rates. If you haven’t considered a home loan refinance, you should definitely start thinking about it. Talk to a Home Loan Expert to find out if refinancing makes sense for you before these rates start soaring. And they will. It’s only a matter of time.
Countrywide is paying the biggest tab yet in settling a subprime class action suit.
And like it or not, the deal brings a rare bit of good news for some embattled former executives of the troubled mortgage lender, including longtime CEO Angelo Mozilo.
A federal judge signed off Monday on a settlement under which former shareholders of the troubled mortgage will get $624 million, the Los Angeles Times reported. The plaintiff lawyers called the sum the largest shareholder settlement since the mortgage meltdown started in 2007.
The company didn’t admit to any wrongdoing. “Countrywide denies all allegations of wrongdoing and any liability under the federal securities laws,” a spokeswoman writes. “We agreed to the settlement to avoid the additional expense and uncertainty associated with continued litigation.”
But shareholders led by a group of New York pension funds say they were ripped off when Countrywide failed to inform them of its growing dealings in low-quality loans.
“Countrywide’s actions have improperly enriched executives at the expense of shareholders,” New York City Comptroller John C. Liu, who serves as a trustee of some of the plaintiff pension funds, said in May when a preliminary deal was reached. “This historic settlement sends a strong message that this behavior is unacceptable in Corporate America, and that management will be held accountable to shareholders, especially when they put self-interest before shareholders’ interests.”
But how strong is the message when all the payments will be made by Countrywide’s owner and its auditor? Not a penny will be paid by the executives and directors who were at the helm when the company plunged head-on into the business of lending to riskier customers.
Bank of America, which acquired the mortgage lender two years ago and has since stopped using the Countrywide name, will pay $600 million and accounting firm KPMG will pay $24 million.
The Countrywide settlement comes just days after officers and directors in another big subprime class action agreed to pay $90 million to settle claims in that case. New Century co-founder Brad Morrice said then that he hoped the settlement “would make up for some of the losses suffered and provide closure to me and the shareholders.”
Closure isn’t coming any time soon for Countrywide. Bank of America’s annual report provides a list of legal cases tied to Countrywide that covers parts of three pages.
Nor is Mozilo out of the woods. He and two other former Countrywide execs still face a Securities and Exchange Commission fraud suit that centers on familiar allegations, that the company duped shareholders by failing to disclose the growing risk of its subprime lending business.
Still, for one more day at least he and his friends atop the nation’s most notorious subprime lender got off scot-free.
