At the end of June, BofA agreed to pay $8.5 billion to settle soured residential mortgage-backed securities to investors. The bank struck the agreement with Bank of New York Mellon (BK: 24.97 -0.56%), which was the trustee for 530 MBS trusts with a combined principal balance of $424 billion in Countrywide loans.

While some of the 22 institutional investors continue to challenge the initial settlement, one portion of the deal should be far along by the time an agreement is finalized. BofA and the investors will tabulate a list of between eight and 10 subservicing companies – firms that specialize in servicing delinquent and high-risk mortgages.

“We believe that Bank of America’s actions to move the servicing of high-risk loans to qualified sub-servicing firms, at Bank of America’s expense, are particularly significant,” said Laurie Goodman, an analyst at Amherst Securities.

BNY Mellon would then approve at least four of the subservicers. In total there are 256,000 mortgages in the trusts. According to Amherst, each firm would be able to handle roughly 30,000 each with the rest being sold off before transferring over.

These high-risk loans would include mortgages more than 45 days delinquent without the servicer contacting the borrower, mortgages more than 60 days past due and have been delinquent more than once over the past year, and loans 90-plus days delinquent but have avoided the foreclosure process for more than 90 days.

Mortgages in the foreclosure process but have not been assigned to a sale date and other loans for which the borrower has declared bankruptcy would also qualify as transferable, according to Amherst.

“Very few of these sub-servicers have the ability to service an additional 30,000 loans without building capacity,” Goodman said. “We would assume that when a sub-servicer contracts, they will require Bank of America to cover any costs involved in the build-out if the contract is not fulfilled.”

By Inman News, Wednesday, June 29, 2011.

The number of suspected cases of mortgage fraud reported by lenders was up 31 percent during the first quarter from a year ago, but most of those reports involved questionable activity on loans originated years ago.

Lenders are conducing additional reviews after receiving demands from Fannie Mae, Freddie Mac and others that they repurchase poorly performing mortgages, the Financial Crimes Enforcement Network (FinCEN) said in releasing its latest report on suspicious activity reports filed by lenders.

Of the 24,485 suspected cases of mortgage fraud reported by lenders, 79 percent involved activities that occurred more than 3 years ago. Six of the top 10 metro areas for mortgage fraud were in California.

A “substantial majority” of the reports involved activities that occurred in 2006-07, an indication that the industry is slowly making its way through the most problematic mortgages, FinCEN Director James H. Freis Jr. said in a statement. Which is not to say that fraud is not a problem on more recently originated loans.

Top 20 metros for mortgage fraud

1. San Jose-Sunnyvale-Santa Clara, Calif.
2. San Francisco-Oakland-Fremont, Calif.
3. Lost Angeles-Long Beach-Santa Ana, Calif.
4. Riverside-San Bernardino-Ontario, Calif.
5. Sacramento-Arden-Arcade-Roseville, Calif.
6. Miami-Fort Lauderdale-Pompano Beach, Fla.
7. San Diego-Carlsbad-San Marcos, Calif.
8. Las Vegas-Paradise, Nev.
9. Atlanta-Sandy Springs-Marietta, Ga.
10. Salt Lake City, Utah
11. Chicago-Naperville-Joliet, Ill.
12. Washington, D.C.-Arlington-Alexandria, Va.-Md.-W.Va.
13. Tampa-St. Petersburg-Clearwater, Fla.
14. New York-Northern N.J.-Long Island, N.Y.-N.J.-Pa.
15. Orlando-Kissimmee, Fla.
16. St. Louis, Mo.-Ill.
17. Seattle-Tacoma-Bellevue, Wash.
18. Phoenix-Mesa-Scottsdale, Ariz.
19. Richmond, Va.
20. Denver-Aurora-Broomfield, Colo.

Rankings based on first-quarter 2011 per capita. Source: FinCEN.

FinCEN said a review of nearly 70 suspicious activity reports filed less than 90 days after suspicious activity was detected turned up evidence of income falsification, property “flopping,” and loan modification and foreclosure rescue scams.Among those reports, FinCEN found evidence of income misrepresentation on about a dozen. Unemployed or underemployed subjects and small business owners in some cases falsified income records such as tax returns, W-2 forms, and pay stubs to qualify for new mortgage loans or loan modifications, including government-sponsored modifications.

Property flopping often involves unethical real estate agents who withhold offers on a short-sale property from lenders in order to help an investor purchase the home at a lower price. The home can then quickly be resold to a buyer who made a higher offer.

“In one (report), a former bank employee helped facilitate numerous short sales, which the buyer flipped within days of the short sale for profits ranging from 15 to 300 percent,” the finCEN report said. “In another, a filer described a ‘short sale flop’ that would have yielded a nearly 100 percent gain, but the filer stopped the sale upon discovering the property listed with a Realtor for nearly double the short-sale price.”

Other noteworthy activities found in very recent reports included a case in which a Realtor referred a potential homebuyer to two “loan officers” who supposedly worked for a lender in a nonbranch location. The buyer was told these “loan officers” could work around his credit problems, but not if he asked for them by name at the bank branch. The lender reported the incident as “predatory lending.”

In another case, a granddaughter with power of attorney signed an agreement to sell her grandmother’s home to a financial partner for far less than the home was worth. The lender reported the incident as “elder financial abuse.”

1. Super Slides: Nothing says wet-and-wild thrills like waterslides and you’ll find two towers of fun at The Fairmont Scottsdale Princess’ Sonoran Splash recreation area. This 6,000-square-foot water park boasts two of the state’s longest waterslides. Over at The Phoenician, a 165-foot waterslide is just one of the attractions you’ll find among the property’s nine pools. Don’t miss the 11-million-gallon Necklace Pool and Lagoon where families can help feed the resident Koi fish.
2. Sandy Beaches: Beaches in the desert? You bet! The 2.5-acre Water Playground at the Hyatt Regency Scottsdale Resort and Spa offers 10 sparkling pools, including the area’s largest white sand beach. Kimpton’s FireSky Resort & Spa creates a Scottsdale “coastline” at its Sandy Beach Pool, which offers plenty of room for lounging and building sandcastles.
3. Dive-in Movies: This summer, you can combine two of your favorite things – movies and swimming – with the seasonal return of dive-in movies! Among the resorts offering these poolside family-friendly flicks for guests are The Fairmont Scottsdale Princess, Four Seasons Resort Scottsdale, Hyatt Regency Scottsdale Resort and Spa at Gainey Ranch, The Phoenician and Westin Kierland Resort & Spa.
4. Winding River: Grab an inner tube and take a ride down the Westin Kierland Resort & Spa’s 900-foot Lazy River. The resort’s water park also includes a 110-foot-long waterslide and a children’s play area.
5. River Rafting: The Salt River just east of Scottsdale provides river rafting fun for the whole family. For high adventure, the Upper Salt serves up thrills and chills on Class III and IV rapids with names like Wall Slammer and Overboard. Steep canyon walls and Sonoran Desert scenery add to the adventure. For a more relaxing calm-water float, the lush desert oasis of the Lower Salt provides mild rapids that are perfect for rafting, tubing, canoeing and kayaking.
6. Fun Fountains: With its museums, performing arts venues, public art installations and abundant restaurants, the grassy park-like setting of Scottsdale Civic Center Mall is an oasis of cool all year-round. But in the summertime, the pop-jet fountains on the northwest corner of the Scottsdale Center for the Performing Arts make a splash with kids of all ages. You’ll also find pop-jet fountains at the open air shopping malls at Kierland Commons and Desert Ridge Marketplace.
7. Pool Parties: Guests at downtown Scottsdale’s trendy Hotel Valley Ho will be enjoying fab parties at the OH Pool this summer. Happy Hour Fridays feature nicely priced small bites, drink specials and live music from Elvis Before Noon from 3 p.m. to 7 p.m. (through July 1). During Session Saturdays, DJ P-Body spins a mix of retro and modern tunes from 1:30 p.m. to 5:30 p.m. (through Oct. 29). And on special Tiki Sundays (May 29, July 3 and Sept. 4), DJ P-Body spins reggae and island music from 1:30 p.m. to 5:30 p.m. as guests sip Mai Tais from souvenir cups.
8. Spa Coolers: Relax with a dip at one of Scottsdale’s resort spas. Not only do many of these award-winning dens of Zen offer private pools just for spa guests, you also can enjoy water-based treatments like the Lotus Flower Aquatic Reflexology at Sanctuary Resort & Spa and Eastern Harmony Watsu at the Golden Door Spa at The Boulders Resort. With treatments like these, you’ll be lightly supported in a private pool as your therapist uses gentle stretching and pressure point massage to instill a state of deep relaxation.
9. Summer “Skiing”: Arizona Outdoor Fun Rentals has everything you need to explore Scottsdale’s nearby rivers and lakes. From Jet Ski rentals at Bartlett Lake to guided kayak or canoe tours of local rivers, your next memorable water adventure is just a phone call away!
10. Water Wars: All’s fair in love and water wars at CrackerJax Family Fun and Sports Park! You’ll man your battle station with a bucket of water balloons, load and aim your balloon launcher, and let ‘er rip at your opponent! Just remember, retaliation means getting splashed, sprayed or saturated. If you’re not sufficiently doused, CrackerJax also offers bumper boat rides on Lagoona Island. Watch out for the waterfall and sprays of mist that dampen anyone who strays close to the island!

Kudos to the Romeros for checking their credit report after they assumed their home was sold. It is imperative to check your credit report regularly in case similar issues may spring up on you.

There are three credit reporting bureaus and you can obtain one free credit report a year from each.

www.transunion.com
www.equifax.com
www.experian.com

Read more: http://www.azcentral.com/12news/news/articles/2011/06/16/20110616owe1dollarweb.html#ixzz1PdkaA7qy ]]> http://homesaverrealestate.com/foreclosure-over-a-dollar/feed/ 0 http://homesaverrealestate.com/phoenix-police-warn-about-foreclosure-rental-scam/ http://homesaverrealestate.com/phoenix-police-warn-about-foreclosure-rental-scam/#comments Fri, 10 Jun 2011 19:08:05 +0000 admin http://homesaverrealestate.com/?p=204 by Matt Haldane and Brittany Smith – Jun. 9, 2011 05:05 PM
The Arizona Republic-12 News Breaking News Team

Phoenix police are investigating a scam that has people pay a deposit on a rental home that turns out to be in foreclosure and not available for renting, Phoenix police said Thursday.

The scammers are targeting people throughout the Valley, Phoenix police Sgt. Trent Crump said at a Thursday news conference. One arrest has already been made in connection to four of these scams in Phoenix, Glendale and Avondale.

Raul Juarez, 35, was arrested on April 16 in connection with the case.

Crump said the scam works like this: After breaking into foreclosed homes and switching the locks on the doors, scammers use the Internet to target potential home renters.

They place ads on websites such as Craigslist and mostly involve month-to-month rentals with no credit checks. These scams also target people who have recently had homes foreclosed, Crump said.

Alejandra Caayon and her husband responded to such an ad on Craigslist. “The house was beautiful,” Caayon said. They were told they would need the pay the first month’s rent and a deposit, amounting to $1,600 in cash.

The man Caayon dealt with described himself as “just a middleman,” saying that the house belonged to his mother who was not available. After showing the house, the man refused to meet there again. He also did not initially have a contract, though he later printed one off the Internet, Caayon said.

A combination of cheap rent, a beautiful house and limited time to find a new place to live led to the couple to seal the deal.

Caayon and her husband were showing their children the house when they heard a knock at the door. “My husband made funny a joke,” she said. “We heard the door and he said, ‘Oh, our first guests are here.’ ”

Those guests were another family with their own contract for renting the house. Caayon knew then that it was a scam.

“I just cried,” she said. “They didn’t care that they put us in a (financial) bind.”

Caayon decided to speak out to advise people to “be careful, do your research.”

For Caayon and her family, “everything worked out,” she said. They were able to find a Realtor willing to work with them given their financial predicament.

Though Juarez was arrested in connection with Caayon’s case, others are believed to be conducting similar scams, according to police.

There have been six known scams of this sort in Phoenix, Crump said. Other victims have reportedly lost between $800 to $1,900 per incident.

Like the scammers, police used the Internet to track down Juarez.

“If you put (ads) up there, it might be police that are responding to check or to verify now,” Crump said.

Crump also warned renters to be aware of “red flags,” like those in Caayon’s case.

These include supposed proprietors only accepting cash, not wanting a contract or having abnormally small deposits. Some scammers also might not have a vehicle around in case someone takes note of the license plate, Crump said.

Additionally, Crump advised checking with neighbors and the Maricopa County assessor’s website to verify the owner of the property.

Jay Carey, 23, had the option of going back on his parents’ health insurance plan when he left his last job to become a freelance graphics designer.

But that didn’t mean he should have.

His family, and its health insurer, were based in Chicago. That meant a long commute for the Los Angeles-based Carey to see a plan physician. Besides, his dad, who probably would have to pay more for “family” coverage if Carey were to boomerang back onto the policy, wasn’t wild about the idea.

“It seemed like it would be a lot easier for me to get my own plan,” Carey said.

In this post-health reform era, millions of twentysomethings are likely to be faced with a similar choice. Thanks to changes implemented in the nation’s health law, people under the age of 26 can rejoin their parents’ healthcare plans. But they might have better options.

“You can’t just assume that going on your parents’ plan is the best choice,” said Carrie McLean, manager of customer service at EHealthInsurance in Mountain View, Calif. “There are a lot of things to consider.”

How do you wisely evaluate health insurance choices?

• Know your options

There are three good ways to get coverage if you’re a graduate under the age of 26. You can be covered by your own employer; you can go (or stay) on your parents’ plan; or you can buy an individual policy for yourself.

• Consider your health

If you have chronic health issues — diabetes, asthma, a heart condition or bipolar disorder, to name a few — you can make the evaluation simpler by dropping the individual policy option from consideration.

Individual policies are individually “underwritten,” which means they’re cheap when you’re young, healthy and not likely to use much in the way of medical care. Carey, for example, pays just $107 a month.

But they can be prohibitively expensive, if available at all, for those who are on medications and need regular medical attention.

Health insurance offered through employers, on the other hand, is group coverage. Group plans usually charge the same to every member of the group, regardless of whether they’re sick or healthy. That can make group insurance a great deal if you’ve got medical issues. But it can make it comparatively expensive if you don’t — even, in some cases, when the employer is subsidizing the coverage.

That’s one of the reasons that 20-year-olds should shop before joining a group plan. They might pay less on their own.

• Health insurance plans are not all alike

Some provide sweeping coverage, small co-payments and minuscule deductibles, while others restrict coverage for certain conditions (most commonly pregnancy) and require policyholders to pay a significant amount of costs upfront through substantial co-payments and deductibles.

Getting familiar with the details of each plan is pivotal to figuring your annual cost. That cost will hinge on five things: the premiums you pay, your deductible, your co-payments, the cost of filling prescriptions and whether all the health services you need are covered.

Be sure to pay attention to any restrictions the plan might impose on where you get care, particularly if you’re planning to piggyback on an out-of-town parent’s plan.

• Add up the parts

To evaluate your annual cost of coverage, make a grid with the plans you’re considering listed horizontally. On the vertical axis, you’ll want to leave ample space for several categories — premiums, deductibles, co-payments, prescriptions and projected cost for uncovered services. Your final line will be for the section totals.

To figure out your total cost, you have to project your healthcare use over the course of the coming year. Unfortunately, the only cost you know for sure is the monthly premium, so start there. Multiply each plan’s premium by 12 and put the annual cost in the total for premiums.

You’ll have to guesstimate the other costs, based on how often you typically use healthcare and what you use. For example, if you normally see a doctor just once a year for a check-up, you’d examine the plan details to see if that visit is covered completely (which is increasingly common) or whether it would be subject to a deductible and co-payments.

If a plan covers it, note the item and a zero. If the plan wouldn’t cover it or would impose a co-payment or deductible, plug in the appropriate amount. Do the same with any other anticipated healthcare use, from prescriptions to surgeries.

Of course, you can’t foresee all your possible healthcare needs for the year. But this exercise can give you the opportunity to make apples-to-apples comparisons of plan costs. And that can help you make a wise decision about which health insurance plan works best for you.

They say there are snake pits on Wall Street.

Chase has learned there are snake pits on Main Street too.

Last year, the J.P. Morgan Chase banking unit foreclosed on a home near Rexburg, Idaho, that is infested with garter snakes.

They slide through the yard, the crawl space, the walls, the ceilings, even across the floors. Sure, they’re harmless, but there are perhaps thousands of them. They give off malodorous secretions when alarmed, and can even leave the well water tasting a bit like the way they smell

Two families have fled the house in scenes reminiscent of horror-film classics. One turned to a local TV station in 2006 to document the infestation, complaining of not being able to sleep at night. The video is still available on YouTube and is doing absolutely nothing for sales. Watch the video on snakes in the house.

The next family appeared on TV’s “Animal Planet” earlier this year. They said they were told the previous owners came up with the snake story to explain why they stopped paying their mortgage. But, it turns out, the story was true.

Search “Idaho snake house” on the Internet and several intriguing posts emerge. Zillow.com offers a sales description that mentions “a large kitchen with center island,” but nothing about snakes on the kitchen floor.

The house, built in 1920 and remodeled about five years ago, has somehow become a hibernaculum, where snakes gather en masse for winter. It’s so famously infested that Chase has taken it off the market.

Earlier this year, the five-bedroom home at 675 W. 5000 North was listed for $109,200. That’s about $66,000 below its market value. But somehow there were no takers, even in a region known for its Snake River.

Chase is now in the unenviable position of having to be delicate with snakes that continue to live in the home despite a defaulted mortgage. Once a house has been featured on “Animal Planet,” you can’t just burn it down or otherwise slaughter its reptilian residents. You have to be nice to snakes. It’s just good business.

“We have contracted to have the snakes trapped and released,” said Darcy Donahoe-Wilmot, a Chase spokeswoman in Seattle.

“We plan to seal the foundation and install a barrier around the foundation to help prevent future access,” she said. “A report will be issued by the contractor to be provided to any potential buyers.”

Possible buyers might include some guy with a flute and a turban, or maybe a slippery salesman looking to replenish his line of proprietary oil. More likely, though, Chase is going to be stuck with the Idaho snake house for a long time.

Protesters recently appeared in Ohio at the annual meeting of Chase’s parent, J.P. Morgan Chase & Co., to complain about the company’s foreclosure practices. There have been similar protests at all major banks, as if these institutions actually love foreclosing on homes.

Banks currently have about 1.9 million homes on their books or in foreclosure proceedings, according to RealtyTrac, a real estate market researcher.

Imagine all the disrepair, the pet-fouled carpets, the mold, the bugs, the rats and the snakes.

Foreclosures have slowed in recent months, but that trend is largely attributed to legal delays, including banks’ dubious use of “robo-signers” on court documents.

Yes, major banks have major problems. But they’re still swamped with more foreclosures than they can handle, and Americans are still slithering away from their homes like it’s not a snake-like thing to do.

The Mortgage Bankers Association recently reported that about 8.3% of homeowners missed at least one mortgage payment in the January-March quarter. In a healthy market, that figure holds at about 1.1%.

Foreclosed homes made up 28% of all U.S. home sales in the quarter, according to RealtyTrac. And 2011 is on track to be another record year, with about 1.2 million foreclosures expected. This dashes any hope for a housing market recovery any time soon.

The snakes are just starting to awaken at the Idaho snake house. Chase can’t chase them out just yet.

“Hopefully, in a few weeks,” Donahoe-Wilmot said. “The contractor feels there is not yet enough activity to perform the capture.”