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than requiring all short sales to be arm's length transactions, an exception was made. The directive, which took effect June 2011, gives servicers the freedom to approve a short sale that is not an arm's length transaction if the sale is for a nonprofit and if the property is to be rented or resold to the borrower. In addition, the sale must meet all HAFA program requirements. When Bob Irish, a broker based out of Riverside, California, and owner of Lake Hills Realty, learned of Treasury's change, he was inspired to create a program based on the new guidance. Irish now runs a company called National Short Sales, which offers a Short Sale LeaseBack (SSLB) program. Through the program, struggling homeowners can remain in their home as a tenant after the property is sold via short sale to a nonprofit. In the case of Irish's program, former homeowners reside in the home for at least three years as renters. They must take six financial counseling courses over the three years; the classes are free and offered through the nonprofit Irish's company works with, HomeStrong USA. Irish explained the three-year rule was implemented based on the approximate time it might take for a former homeowner to build his credit again and become eligible for an FHAinsured loan after going through a short sale. While the idea of the program was based on HAFA guidelines, the option is available to everyone, as long as the lender agrees to the program. Irish says his company has received both HAFA and non-HAFA approval. KNOW THIS Oakland and San Jose ranked fourth and fifth respectively in Trulia's list of the top markets that saw price recovery in 2012. Oakland experience an uptick of 12.7 percent and San Jose's prices increased by 16.1 percent. 104 According to the National Short Sales Facebook page, Bank of America has approved its first SSLB program, and Irish says Well Fargo has agreed to the program for its portfolio loans. In addition to helping struggling homeowners, National Short Sales also offers classes for real estate agents interested in learning about the program and receiving SSLB certification. Irish says since he first started offering classes in September 2012, National Short Sales has trained more than 200 agents. While Irish says he is not aware of other programs out there that offer what his company does, he is quick to emphasize homeowners shouldn't be asked to pay upfront fees if they are trying to pursue a short sale with a lease-back option. CFPB Stops Two Operations for Allegedly Scamming Homeowners The Consumer Financial Protection Bureau (CFPB) put a stop to two companies it believes took part in mortgage modification scams that cheated thousands of struggling homeowners. The CFPB alleges Gordon Law Firm and the National Legal Help Center amassed more than $10 million after charging consumers for services that falsely promised to stop foreclosures or provide modifications. At the bureau's request, U.S. District Court judges in California ordered both companies to halt operations and froze their assets. "We are especially concerned with those who misrepresent government programs or websites to divert distressed homeowners from needed assistance." said CFPB Director Richard Cordray in a release. The CFPB's complaints allege the defendants in both cases violated the Dodd-Frank Act and Regulation O. According to a release from the CFPB, the laws prohibit unfair, deceptive, or abusive practices. The CFPB alleges violations in both cases include illegally charging upfront fees ranging from $1,000 to $4,500, claiming affiliation with the government, misleading homeowners into believing modifications would be secured, and instructing consumers to stop paying and stop contacting lenders. The CFPB also alleges the defendants stopped returning calls and emails from customers after taking thousands of dollars in illegal fees from distressed homeowners. Colorado rank: 47 90+ Day Delinquency Rate Foreclosure Rate november 2012 1.76% Unemployment Rate 1.13% 7.7% year ago 1.99% 1.70% 8.0% percent point change -11.7% -33.7% -3.8% Top County Las animas CounTy 90+ Day Delinquency Rate Foreclosure Rate november 2012 2.65% 3.16% year ago 2.87% 2.63% percent point change -7.5% 20.0% Top Core-Based statistical area monTrose, Co 90+ Day Delinquency Rate Foreclosure Rate november 2012 1.99% 2.27% year ago 1.88% 3.43% percent point change 5.8% -33.8% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the November 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary November 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. Colorado Re/Max Alliance & The Haas Team ZAC BROWN 303-456-7790 Direct || 303-619-4803 Cell www.zacbrownrealestate.com www.thehaasteam.com zaclbrown@aol.com IN THE NEWS ULS Recognized for Job Growth Nationwide and in Colorado Urban Lending Solutions (ULS) is among the nation's top job creators, according to Inc. magazine, which recognized the company with its Hire Power Awards.