Jocelyn Saenz Carrillo, 53, a former branch manager and escrow officer with Alliance Title Co. in Fremont, was arraigned on 31 counts of real estate felonies in Alameda County Superior Court. She’s charged with diverting home loan money from 10 Bay Area homeowners, mostly elderly and Spanish-speaking,  to two unlicensed loan salesman Altaf Shaikh (aka Zak Khan) and Kaseem Mohammadi, both reportedly convicted felons.

Total losses are alleged to be more than $200,000 and occurred around or in December 2003, according to the Alameda County District Attorney’s Office.

Saenz Carrillo is accused of preparing false and misleading documents which concealed theft. Alliance Title closed its doors in 2007. Information on this case can be forwarded to the Alameda County District Attorney, Real Estate Fraud Unit, 800-287-9862.

From our illustrious brethren in online media, Bloomberg News:

In April, 73,880 homeowners with privately insured mortgages fell more than 60 days late on payments, compared with 39,584 who got back on track, a report today from the Washington-based Mortgage Insurance Companies of America said.

The Hope Now program has so far proven insufficient, Sandra Braunstein, the head of consumer and community affairs at the Fed, told the Conference of State Bank Supervisors at a meeting in Florida last week.

At least that’s what a report prepared for the Department of Housing and Urban Development said:

The average fees for brokered loans ($4,000) are higher than the average for direct lender loans ($3,150). Upfront cash charges paid by the borrower average $1,400 for direct lender loans and $1,600 for brokered loans.

Other findings:

• Loans made by mortgage brokers are approximately $300 to $425 more expensive than those made by direct lenders. Banks, thrifts, and credit unions are the lowest cost, followed by large mortgage banks. 
• African-American borrowers pay an additional $415 for their loans after accounting for other borrower differences and Latino borrowers pay an additional $365.
• Borrowers who completed college are charged $1100 less than borrowers who did not go to college at all, other things equal.
• The most expensive States—Nevada, Michigan, and Utah—are more than $2,500 per loan than the least expensive State, Alaska.
• “No-cost” loans, which generally have higher interest rates than loans with up-front  fees, cost $1,200 less than loans that pay some lender/broker fees in cash.

Title fees:

• Borrowers in African-American neighborhoods pay on average an additional $120 for title services and those in Latino census tracts pay an additional $110, compared to non-minority neighborhoods.
• Borrowers from neighborhoods where all adults have a college degree pay $200 less than those from neighborhoods where none do, other things equal.
• Differences in average title charges from the lowest-cost state—North Carolina—to the highest cost states— New York, Texas, California, and New Jersey—is more than $1,000.

When I lived and worked in the San Joaquin Valley  a significant number of the Hmong community (originally from the highlands of Vietnam and Laos) grew strawberries in empty lots. Some obviously had permission to create mini-plantations and offered the owners a few trays of fresh strawberries in payment. Admiring their ingenuity, people buy their produce each spring.  Now they are losing business with vacant land disappearing. (Photo of strawberry fields in Fresno/USDA)

I thought of them when I saw this story in the L.A. Times:

Scott is a guerrilla gardener, a member of a burgeoning movement of green enthusiasts who plant without approval on land that’s not theirs. In London, Berlin, Miami, San Francisco and Southern California, these free-range tillers are sowing a new kind of flower power. In nighttime planting parties or solo “seed bombing” runs, they aim to turn neglected public space and vacant lots into floral or food outposts.

One of a slew of DIY gardening currents, such as permaculture (design of highly sustainable ecosystems), urban homesteading, composting and free fruit movement, guerrilla gardening is a response to dwindling green space, limited land and suspicions about food sources, say experts. It’s also part of a time-honored American tradition of gardening public spaces.

The story goes on to explain how to “seed bomb” an empty space with wildflowers by placing little seed pellets in your purse and digging a hole with a stiletto heel. Subversion was never so glamorous! (Photo is of Caroline Kim cycling in her high heels and armed with a trendy red bag full of seedbombs/Gina Ferrazi-LATimes)

It’s almost the end of May and that means it’s time for our monthly look at the real estate market! WARNING: Some of these properties may be too intense for discriminating viewers.

COUNTY: Marin  

PRICE: $319,900

I wanted to call this, “Does a homeowner poop in the woods?” because of the obviously unusable toilet (it doesn’t appear connected to a wall or actual pipes.) But the agent does give you lovely views of redwoods that will take your mind off all the holes in the wall, floor and flooded basement. And maybe they do, if you live in the trees rather than this little “cabin.” My favorite piece of chatter is “easy access to downtown larkspur and madrone park.” Yes, easy access through your own wall!

Still, it’s Larkspur and an easy commute to San Francisco. May need a ladder from the garage to get to the house, though.  Originally priced at $519,000 in January,  owner has dropped it a believable four times. Only 690 sq. ft and two bedrooms, one kind-of bathroom. It was previously bought in August 2006 for $581,000, which may account for its possible mid-flip status. All yours for $464/ft.

COUNTY: Contra Costa   PRICE: $61,500

Yeah, you read that right. This is Richmond, where a large amount of inventory  is “4 Sale” or simply abandoned. This house, a two-bedroom, one-bath bungalow has been reduced 12 times since July (it started at $270,000) and is referred to as “needs repairs and tlc.” No other photos which I think never bodes well. I like scary honesty best. $110/ft.

COUNTY: Alameda  PRICE: $139,900

Own your own theater in Oakland! OK, I saw this and immediately thought of a community theater box office. The entire 917-square-foot, two-bedroom, one-bath home is a big question mark, including how apparently how it’s built about 18 inches perpendicular from its neighbor.  Love the chatter:

This tucked away freakishly situated secret small bungalow snuggled with blocked views on a little street off the beaten path asphalt and barbed wire could use some paint & love! And $150,000 Recently updated kitchen, small tinyfenced yard, utililty room off kitchen, and cozy microscopic fireplace in living room, locked storage — great opportunity awaiting a smart new homeowner!

You have to know when a highlight is the “locked storage,” there’s trouble ahead.  But good luck! $153/ft.

COUNTY: San Mateo  

PRICE: $375,449

It took several pages of listings to find one in Redwood City that was more than 1,000 square feet. Finally I found this minor feat of engineering , 1,290 square feet on a 2,500-square-foot lot. This three-bedroom, two bath also has a carport that apparently is unnecessary when one can park on the 4′ by 6′ lawn. It previously sold for $600,000 (yes, you saw that right) in December 2004. Price has been reduced twice from $445,349 and been on the market for 58 days.

Aside from its outside unsightliness, the interior isn’t terrible and as long as there are no more than two cars ever, it might be OK. $291/ft.

My story today on foreclosure scams seemed to strike a nerve. I got about 6 phone calls this morning, most seeming interested and needing clarification. (Moody photograph of Elias Escobedo by Bob Larson.)

The Better Business Bureau had these tips for avoiding these con artists:

• Calls itself a “mortgage consultant,” “foreclosure service” or similar name.
• Contacts or advertises to consumers whose homes are listed for foreclosure.
• Collects a fee before it provides services to you.
• Tells you to make your home mortgage payments directly to the individual or company.
• Tells you to transfer your property deed or title to the individual or company.

 I know most of you reading this think it can’t happen to you, but when you are losing your home people are most willing to grasp at straws. Stay strong, people!

Sadlowski said that the East Bay has a huge amount of mortgage fraud and fraudsters target low-income and ethnic communities, specifically new immigrants or non-English-speaking populations that may not be aware of laws or regulations. It helps that people are naturally trusting, he said.

“In my personal opinion, they’re already in a bad situation, so they kind of cross their fingers and hope it turns out for the best,” he said. “People are working from an emotional deficit.”

Don’t get too excited, folks, it’s a $250,000, but you can probably afford more than you think. So let’s get started.

In Alameda County, you can get this three-bedroom, one-bath house in Hayward. It’s been on the market two weeks and hasn’t been reduced, so the sellers are probably still optimistic. The 1,046-square-foot house originally sold for $515,000 on July 15, 2005, so we’re at more than the halfway point. The interior isn’t bad and the exterior actually looks like it’s not a foreclosure nightmare. Don’t ask me about the neighborhood, though, I have no idea.

You can also buy this three-bedroom, two-and-a-half-bath in Brentwood which has been on the market for the last two months. It’s 1,158 square feet and has laminate floors and an outdoor kitchen/barbecue and paved patio. It’s not bad, especially for the price. I’m not as much into the tract housing, but this one was built in 2000, so you may or may not have fewer problems than older homes. I’m kind of surprised there are three bedrooms and more than two bathrooms in a home less than 1,200 feet. I guess it really uses every bit of space.

 It’s $250,000 and it’s San Mateo County, so you know East Palo Alto would be in the mix. And here she is, a 950-square-foot, three-bedroom, one-bath vision in lavendar which sold for Feb. 9, 2006 for $579,000 . You know it’s got to be bad when the agent only seems to have this to say about the property, “15 miles north of san jose. 25 miles south of san francisco.” I don’t know what that really means, because you’re still in East Palo Alto, but I guess you could always drive away from it. It’s been reduced from $300,000 earlier this month and the photos of the interior aren’t very promising … but you have to love the color!

I first saw this and reminded me of a tiara, so I call it the tiara house — but it’s in Rio Vista and nobody wears very many tiaras there. Tank tops and denim shorts . . . that’s a different story. Anyway, the house was also built in 2000, four bedrooms, two-and-a-half baths, 1859 square feet and actually pretty cute. The only problem? Probably Highway 12, not known for its easygoing or safe drivers. It’s been on the market for a month. $134 a square foot.

In yet another ripple-effect of the foreclosure crisis, the City of Manteca voted this week to ease up on dunning builders for $3.5 million in fees. The Sun Post reports:

Manteca-based Raymus Development and Sales can now wait until January 2011 to pay the city $2 million for homebuilding reservation fees for its Shadowbrook subdivision. The money was originally due in February.

Similarly, Standard Pacific and Woodside Homes, based in Irvine and Salt Lake City, Utah, respectively, were allowed until January 2010 to pay $1.5 million in overdue fees, and a two-year extension of their reservations’ lifetime.

I grew up in the San Joaquin Valley and I’m familiar with city and county leaders in developers’ back pockets. So I’m not surprised they are short-changing their cities to keep a shiny, happy relationship with developers. But in this era, where housing turned out to actually create a recession, is this still the attitude cities should have?

San Joaquin Valley, you are good enough to make demands! You are a desirable place to live. Quit selling yourself so low! Quit putting it all out in the window! Show some self-respect! They won’t buy the cow if they can get the milk .  .  . you get the gist.

As always, discussion is encouraged.

Attorney General Jerry Brown announced today arrest warrants for five people allegedly  getting homeowners in foreclosure to pay $10,000 and save their home by deeding their property to a “land grant” company. 

The Federal Land Grant Company, run by Bill Hutchings and wife Xiaoke Li out of San Diego, reportedly attached a survey of the Spanish Land Grant of 1872 and said the deed reinstated the land grant. More than 300 properties were transferred to the company in San Diego, Riverside, Los Angeles, Orange and San Bernardino counties, Brown said.

The San Diego District Attorney’s office and FBI agents served arrest warrants and three search warrants at one of the company’s seminars in San Diego on Wednesday. Among those arrested: Hutchings, 62, Li, 43, Edgar Martinez, 30 and Diego Gil, on charges of conspiracy, grand theft and deceitful practices. Another warrant was issued for Shawna Landis, 29, of Sorrento Valley.

Brown offers this gem to those who think a land grant could protect them:

“There hasn’t been any legitimate use of the land grant since the conclusion of the Mexican-American war,” Brown said. “If some fast-talking scam artist offers a quick escape from foreclosure using archaic documents, be extremely suspicious.“

Amen.

Unfortunately, Rep. Laura Richardson has no tie to the Bay Area, so I didn’t first blog about this when I read it on LAObserved.com yesterday, but it’s blown up way, way too much, so here it is from our sister paper, the Daily Breeze:

Rep. Laura Richardson lost her Sacramento home in a foreclosure auction two weeks ago and left behind nearly $9,000 in unpaid property taxes.

Richardson, D-Long Beach, appears to have made only a few payments on the house, which she bought in January 2007 for $535,000.

“I have worked with my lender to complete a loan modification and have renegotiated the terms of the agreement - with no special provisions,” Richardson said in the statement. “I fully intend to fulfill all financial obligations on the property.”

That would come as a surprise to James York, the Sacramento real estate broker who bought Richardson’s house at auction. . . . The real loser in the deal was Washington Mutual Bank, which issued Richardson a $535,000 loan with no money down in January 2007. By the time the default notice was issued, Richardson was underwater on the loan. She owed about $575,000, including $18,000 in missed payments.

Washington Mutual ended up writing off nearly $200,000 of that debt to get rid of the property. “They took a beating,” York said.

York plans on reselling at a profit (hey, flipping in this market? He is brave.)

She maintains her primary residence, a four-bedroom home, in Long Beach. Richardson, formerly in the state Assembly, ran in a hard-fought election for the congressional seat of late Rep. Juanita Millender-McDonald who died of cancer. To fund that campaign, Rep. Richardson lent herself more than $75,000, around the same time she stopped making payments on the Sacramento home.

The Associated Press reported she did not vote on three foreclosure bills in Congress.