1316 Florence St

September 17th, 2006

HUD
451 7th St S.W.
Washington DC 20410
Attn: Alphonso Jackson

Attachments: Current MLS pg1, listing history, deed, county records, foreclosure. Prior MLS - May 2000, Dec 2003, Jan 2005, June 2005.

My snail mail letter to Alphonso Jackson, dated 11/10/05, called attention to the 1300 block of Florence Street in Aurora, Colorado. I presented details about several of the properties on this block. This is what I said about 1316 Florence:

the Searles made a $60,000 profit and HUD got screwed for about $85,000

Since then, things have gotten worse.

The current listing shows an asking price of $125,000. It's advertised as a short sale, subject to bank approval. The asking price is $35,000 short of the $160,000 loan amount.

The property is vacant. The lawn needs to be mowed and trash picked up. The "for sale" sign is hidden behind a tree. There is a city code violation notice posted near the front door.

The listing agent is Jesus T Alonzo, who has a history with the Colorado Real Estate Commission. Pursuant to the Stipulation and Final Agency Order, Alonzo paid a $1,000 fine and his license was suspended for a year. Except the way it works at the Real Estate Commission is they collect the fine, but only pretend to suspend the license. They never suspend anyone's real estate license. The only known exception (where they actually did suspend a license) was 3 years ago when Ken Salazar got serious about some guy named

Ryan Searle, and his family-owned corporations

They fined Ryan Searle $1.1 million, revoked his license, and deported him out of the country (i.e., to Texas).

From a June 2005 report by the National Consumer Law Center:

Ryan Searle is facing a criminal charge of aggravated assault with a deadly weapon in Texas. The charge stems from allegations that Searle pulled a gun and tried to run over the president of a homeowners’ association who was trying to flag him down after he snuck into a gated community before the gate closed.

1316 Florence St is owned by Sean Searle, Inc. The value of this property has been up and down like a yo-yo, with 5 transactions in the past 6 years. Refer to the MLS listing history, and see if you can follow along.

May, 2000 - The property sold for $127,500 with an FHA loan of $126,033.

The 3 Amigos

About 3 years later, in September 2003 , Jesus T Alonzo (the real estate agent) listed the property for sale, asking $147,500. In order to sell the property, Jesus bumped up the price $10,000 and reported a $7,940 seller concession. This hocus pocus was to justify an FHA loan of approximately $157,000. This FHA loan would go bad in less than a year, with an estimated $85,000 cost to the American taxpayer.

In November 2004 , 1316 Florence St was listed for sale with an asking price of $114,000. It was advertised as a short sale, subject to lender approval. It sold in 8 days for $101,900. Sean Searle sold the property to Ron Searle.

Is that confusing? Does it make you dizzy?

Ron Searle (the owner) fixed it and flipped it in 5 months. On May 11, 2005 Ron Searle listed 1316 Florence St for sale with an asking price of $154,451. 29 days later, he sold the property. Ron reported a sold price of $160,000 and a $9,600 seller concession.

The purpose of this hocus pocus was to justify an FMF Capital, LLC mortgage loan of $160,000. The buyer was Hermicenda Ortega. Estimated $60,000 profit (including commissions) to the Searles.

The $160,000 FMF mortgage didn't last long. 6 months later, the property was back on the market, advertised as a short sale, subject to lender approval. My best guess is Hermicenda Ortega never made a payment. Somehow, Sean Searle, Inc is now the owner of this property, and Jesus T Alonzo has the listing. The loss on this mortgage will be about $75,000.

Someone is getting screwed here.

Sincerely,

Philip G Rice
11268 E Linvale Dr.
Aurora, CO 80014
720-282-3376

Attachments: Current MLS pg1, listing history, deed, county records, foreclosure. Prior MLS - May 2000, Dec 2003, Jan 2005, June 2005.

-- End of Letter --

Part 1 -- 1373 Florence / photo essay.
Part 2 -- 1332 Florence
Part 3 -- 1316 Florence
Part 4 -- 1301 Florence / photo essay.

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1316 Florence St

The 3 Amigos

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