CalHFA Debacle with San Jose Short Sale

CalHFA Debacle with San Jose Short Sale

My client requested a loan modification from CalHFA and was denied.

The reason stated was “large surplus of funds.”

Client contacted me to assist with a San Jose short sale.  Value of property is $180,000.

 Loans on property:

  • 1st with CalHFA in the amount of $309,000
  • 2nd with CalHFA in the amount of $15,000
  • 3rd with CalHFA in the amount of $15,000
  • 4th with the City of San Jose in the amount of $65,000
  • 5th with the Housing Trust of Santa Clara County in the amount of $6,500

    • Total Loans = $410,500

 Property was listed and short sale package submitted.  Short sale DENIED.  Reason: “large surplus of funds.”

I don’t know what financial documents the person was looking at because the package I submitted clearly shows a shortage of funds. 

The clown said to me, and I quote: “Often times borrowers overstate their financials. We go by the bank statements. The borrower over stated food costs.”  Huh?

My response:  Really.  If there is a large surplus of funds, and you go by the bank statements, then why are there numerous over draft fees showing on the bank statements? 

The more questions I asked the more I realized I was speaking with an idiot! 

Not uncommon when working with lenders and servicers.  The problem is the people working the files don’t have a clue what they are doing. San Jose short sale agents know more than the people assigned to work the files.

After twenty plus minutes going over the financial documents I uncovered the fact that he failed to factor in $1,210.00 which was listed on the financial statement under credit cards/loans.  The borrower has been paying this amount on a debt consolidation for nearly one year.

Drum roll please!  This amount clearly shows on the bank statements, which “they go by.”  However, because Mr. Bright One did not see it on the credit report, he unilaterally decided it was “overstated” and denied the short sale.

After sending him more “proof” of the debt consolidation he reopened the file and sent it to the loan modification department (again)!

Now that they are factoring in the $1,210 payment for debt consolidation, the borrower qualifies for a loan modification

They recommend that the borrower work with Keep Your Home California to get a $50,000 principal reduction.

You do the math!

CalHFA states that they will not approve a short sale if a borrower qualifies for a loan modification.  If the borrower does not want a loan modification they will foreclose.

I was told by another Bright One at CalHFA “we are human and we make mistakes.”

Yes, indeed you do. You made two of them back to back and you were paid to do it!  You had all the documentation in your possession and you still could not connect the dots. Adding insult to injury, rather than picking up the phone and asking a few questions, you simply DENY and close the file. 

The bottom line:  I have spun my wheels working a short sale only to discover that the two people who have touched my clients file can’t find their ass with both hands.

The borrower did all the right things.  The San Jose short sale agent did all the right things.  Is it any wonder why some people simply walk away and let their home foreclose? It’s no wonder in this case.  CalHFA left the homeowners with no viable option other than the forced foreclosure which CalHFA will proceed with.

CalHFA Debacle with San Jose Short Sale – CalHFA opts to foreclose rather than cooperate with a San Jose short sale!

San Jose Duplex for Sale

San Jose Duplex for Sale


Multi Family
Main Features
3 Bedrooms
2 Bathrooms
2 Units
Interior: 1,149 sqft
Lot: 6,534 sqft
1295 – 1297 Branham Lane
San Jose, CA 95118
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Kathleen Daniels, CDPE, CHS, CSSN, RDCPro

Kathleen Daniels, CDPE, CHS, CSSN, RDCPro

KD Realty
(800) 972-1822

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San Jose Short Sales: When Best Efforts Fall Short

San Jose Short Sales: When Best Efforts Fall Short

I have been working San Jose Short Sales for over two years.  There is one component that all short sales have in common.  The common link to all short sales is the short sale fingerprint. No two short sales are alike – all short sales have a unique fingerprint.

Despite the best efforts of San Jose homeowners and their certified San Jose Short Sale Specialist, unpredictable and unforeseen events occur that are virtually out of our control.

American Home Mortgage Servicing, Inc. (AHMSI) claims to have: “A higher level of mortgage services. A higher level of customer satisfaction.”

AHMSI certainly has not provided any level of customer service to my San Jose homeowners who have fully cooperated with the short sale process from the moment they contacted me to discuss a short sale.

  • After waiting months to get a response on the first offer submitted, AHMSI presented a counter offer $70,000 higher than the fair market value offer.
  • The buyers released contract.
  • Within ten days we submitted another offer slightly higher than the first offer.
  • AHMSI countered that offer $15,000 higher than the first counter offer … resulting in a counter offer $85,000 higher than fair market value.
  • Buyers submitted a counter offer back to AHMSI. We were told week over week the file was with the negotiator and under review.
  • On 9-15-2010 AHMSI negotiator advised us “this loan is being service released to another servicer on 10/1. Here is the contact info for: RCSI at 800-737-1192. You can work with them on the offer presented. Thanks.”
  • We responded: “What if we can close before then? We are knee deep in this and 10/1 is weeks away! Please help.”
  • AHMSI negotiator’s response: “Sorry, you would have to secure an approval from the new servicer effective 10/1.”
  • Second buyer released contract saying: “My clients have been closely watching the market over the last few weeks and it now seems there are so many better opportunities for price.  We have submitted an offer on a larger home, 4 bedrooms, a regular sale, preferred location and will need less work. We are terribly sorry the bank has been difficult in negotiations and wish the home owners the best of luck.”
  • On 9-21-2010 – 6 days after we received notice that the loan is being service released AHMSI posted a Notice of Trustee Sale on my clients’ door.
  • Date of Trustee Sale is October 12, 2010.

Has AHMSI acted in Good Faith?  The concept of “good faith” is important in law, especially equitable matters.

Has AMMSI acted in Bad Faith?

I am not an attorney, judge or licensed to make a good faith or bad faith determination.

I am a licensed California Real Estate Broker and Certified Short Sale Specialist who has worked tirelessly on the AHMSI short sale for nearly six months. My clients have fully cooperated with the short sale process and have done all the right things to avoid foreclosure.

It is my professional opinion and the sentiments of my clients that AHMSI

OUCH - That hurts!

the San Jose Short Sale homeowners who may now likely experience a foreclosure despite their efforts and the efforts of a team of professionals who worked tirelessly week over week for nearly six months to help the homeowners avoid foreclosure.

Even the top professionals in the industry cannot guarantee results when the lender or servicer does what AHMSI did to my San Jose Short Sale clients. We are definitely not giving up. We will now take other steps to get the trustee sale postponed.

If you, or someone you know are having difficulty making your mortgage payment(s) and don’t know what to do, visit San Jose Short Sale Specialist and schedule a free, no-obligation consultation or call 1-800-972-1822 today!

San Jose Homes for Sale

Certified San Jose Short Sale Specialist

Certified HAFA Specialist

Copyright © 2010, All Rights Reserved by Kathleen Daniels, Certified Distressed Property Expert, Certified HAFA Specialist, RDCPro *San Jose Short Sales: When Best Efforts Fall Short*

California Anti-Deficiency – SB 1178

California Anti-Deficiency – SB 1178

California’s legislature recently passed SB 1178 which is the bill to extend anti-deficiency protection to homeowners who have refinanced. SB 1178 will ensure that homeowners keep the same “anti-deficiency” protections they have in the original loan after the loan has been refinanced.

Now California Realtors have the opportunity to use our collective voice.

If you have not yet acted on the C.A.R.RED ALERT asking California Realtors to contact Governor Schwarzenegger and urge the Governor to sign SB 1178 … consider taking a few moments to do so. Thank You!

Certified San Jose Short Sale Specialist

Certified HAFA Specialist

Copyright © 2010, All Rights Reserved by Kathleen Daniels, Certified Distressed Property Expert, Certified HAFA Specialist, RDCPro *California Anti-Deficiency – SB 1178*

San Jose Short Sale Specialist – HAFA Certified

The California Association of Realtors (“CAR”)  HAFA certification (CHS) is designed for real estate professionals to understand Treasury Supplemental Directive 09-09 which was implemented on April 5, 2010.

Working with a San Jose Short Sale Specialist who is also a Certified HAFA Specialist can save you thousands of dollars. If you are considering a short sale, make certain the short sale specialist you hire understands the HAFA guidelines. If you qualify, you may be able to walk away from your home without any further obligation to the bank(s) and be paid $3,000 for moving expenses.

HAFA is currently the only program that uses standard processes, documents and timelines for eligible short sale and deed in lieu transactions. It is imperative that the agent you hire understands the government programs as well as the lender/servicer guidelines in order to ensure that you are in complete compliance with the HAFA program.

Choosing to work with an agent who is not a certified short sale specialist and who is not HAFA certified can cost you thousands of dollars … not just in losing the opportunity to be paid $3,000 for moving expenses, but also in ensuring that you literally walk away without further obligation to the bank.

If you are interested in learning more about HAFAthe new government short sale program, then give me a call. I am certified and understand the guidelines of the program.

Intero San Jose Ca

San Jose Short Sales – Show me the Money!

As a San Jose Short Sale Specialist I am often asked: “Why are we required to put in a good faith deposit BEFORE the bank approves the short sale? “This is often followed by: “No one else requires a deposit.”

My response is typically something like this: The reasoning is that buyers must have skin in the game. It’s measures buyer commitment.

Think about it … would you write an offer on a bank-owned REO without a deposit?

Would you write an offer on a traditional sale without a deposit?

My questions to you are:

  • Have you ever booked a vacation without a deposit?
  • Have you ever booked a hotel room without a deposit?
  • Have you ever been able to book a conference room, a church, a reception hall without a deposit?

In most cases, those deposits may be non-refundable. A deposit for a purchase of a short sale is refundable under the provisions of the Purchase Contract. We ask for a “good faith” deposit as a measure of a buyers’ good faith.

The homeowners listed their home as a short sale because they want to avoid foreclosure. The sellers are unwilling to essentially take their home off the market for a buyer who is unwilling to provide a small initial deposit. My years of experience working short sales tells me that buyers who are unwilling to put up a deposit are most likely buyers who are writing offers all over town and ultimately may walk away from their promise to purchase. If that happens, my clients are at a higher risk of foreclosure.

Therefore Mr. and Mrs. Buyer (and Buyers’ agent) as Jerry Maguire says:


Intero San Jose Ca

Certified San Jose Short Sale Specialist

Copyright © 2010, All Rights Reserved by Kathleen Daniels,San Jose Short Sale Specialist, RDCPro *San Jose Short Sales – Show me the Money!*

San Jose Short Sales – another success story!

Ever wonder why San Jose short sales “don’t close”?

We just closed another San Jose Short Sale! We received Short Sale Lender Approval on 5-3-2010. We closed in 19 calendar days. We could have closed sooner IF only the Listing Agent had timely performed. Because we were waiting for the listing agent to perform we faced unexpected delays in the San Jose short sale process. Delays can not only be costly, delays can cause a San Jose short sale transaction to blow up.

It’s not always the short sale negotiator as many inexperienced San Jose short sale listing agents claim. That certainly was not the case in this transaction. Despite the delays caused by the listing agent and the errors created by the Old Republic Title Escrow Officer … we did close on the San Jose short sale.

Congratulations to my Super Star client who understands the San Jose short sale process and played like a Champion.

A special thanks to my friend Julie for the referral.

I truly enjoy working with San Jose short sales and helping San Jose homeowners avoid foreclosure.

Certified San Jose Short Sale Specialist

Copyright © 2010, All Rights Reserved by Kathleen Daniels, San Jose Short Sale Specialist
*San Jose Short Sales – another success story!*

California Governor Schwarzenegger takes Action for Californian’s facing Foreclosure!

An emergency measure taken this week, Senate Bill 94 is effective immediately and will remain in effect through January 1, 2013. The action taken by California Governor Arnold Schwarzenegger was designed to prevent distressed homeowners from being taken by companies charging upfront fees for loan modifications and then abandoning them.

Senate Bill 94 prohibits foreclosure consultants, which includes attorneys who specialize in loan modifications and loan modification companies, from taking any compensation or fees before completing the service.

This new law may likely cause many law firms and individual legal practitioners previously engaged in providing loan modifications services to close their doors. The same may be true for loan modification companies which have historically provided services only with payment of upfront fees regardless of whether the loan modification was approved or denied by the servicer.

Only time will tell how many individuals and companies will remain committed to helping distressed homeowners facing foreclosure now that upfront payment for providing such services are prohibited.

Many truly dedicated real estate professionals provide loan modifications services at no cost to the homeowners with the understanding that if the loan modification is not approved, the homeowner will list the property with the agent and attempt to complete a short sale.

Senate Bill 94 is a big win for California homeowners facing foreclosure. It is now against the law to charge before completing a loan modification service.

Kathleen Daniels – Certified Short Sale Specialist

Intero San Jose Ca

Intero San Jose Ca

Number One in Silicon Valley

Copyright © 2009, All Rights Reserved by Kathleen Daniels *Schwarzenegger takes Action for Californian’s Facing Foreclosure*

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