December 7, 2011
Deed In Lieu as an option for homeowner experiencing a severe financial hardship that is causing them to miss their mortgage payments. Part 2 of a 7 part series brought to you by Short Sale Assistance Group and Ascendant Realty on what the options are for people facing foreclosure on either their home or investment property. We interivewed one of the top financial planners and credit repair professional in Minnesota in April 2009 about how these options are working in todays economy.
Filed under Short Sale by 
Americas Watchdog & its Homeowners Consumer Center are offering important tips for all US homeowners to survive the mortgage meltdown and other very useful information about being a smart homeowner in 2008. According to the group, “the worst is yet to come so homeowners need to be very smart with respect to the choices they make in 2008″.
Americas Watchdog and its Homeowners Consumer Center are the premier consumer advocates for homeowners in the United States. The Homeowners Consumer Center is one of the best known homeowners advice, or homeowners information resources in the United States. The Homeowner Consumer Center has just released its top seven list for smart homeowners wishing to survive the 2008 real estate disaster, along with some hard cold truths about the future of the US real estate markets. As follow:
1. Home prices will continue to fall in the US. Americas Watchdog’s National Mortgage Complaint Center expects a 10% decrease in 2008 and at least a 10% decrease in 2009. According to the Federal Reserve, currently 1 out of 7 US homeowners owes more on their home than it is worth. Americas Watchdog expects that by mid 2009 1 out of 5 US homeowners will owe more on their home than it is worth. This is because with 2 million expected foreclosures in 2008, banks are slashing home prices by as much as 40%, to get rid of the property. Americas Watchdog says, “dramatic sales price reductions by banks has the affect of creating new comparable home sales data for a neighborhood, and by doing so the value of all homes in a neighborhood is decreased. The National Mortgage Complaint Center’s web site is located at Http://NationalMortgageComplaintCenter.Com
2. Potential homeowners or real estate investors should be extremely wary of real estate auctions or foreclosure events according to the Homeowners Consumer Center. The group says, “why buy a house in 2008 that will be worth 15% less in late 2009″.
3. If a homeowner is currently more than 10% upside down on the value of their home related to their loan amount, they should consider contacting their attorney about going deed in lieu of foreclosure (simply walking away from the home), or doing a short sale (where the bank accepts whatever price the borrower can get for the house). According to the National Mortgage complaint center, why continue to make payments on a mortgage, that is greater than the homes value?”
4. If a homeowner intends to stay in their home, they should gather recent home sales information in their neighborhood, and appeal their county property taxes. US real estate values are down at least 15% to 25% in almost every major US real estate market. Why pay a higher property tax bill than required?
5. All US homeowners who intend to stay in their homes need to update their homeowners insurance policy. Six months ago the Homeowners Consumer Center completed a study where it was discovered that less than 5% of all US homeowners have updated their homeowners insurance policy. Americas Watchdog used to be based in New Orleans, before, during and after Hurricane Katrina. The group is begging all US homeowners to do the following:
- If a homeowner lives in an area that could flood or be impacted by a hurricane, get flood insurance & flood insurance contents coverage (All states along the Atlantic & Gulf Coast)
- If a homeowner has not updated their homeowners insurance in at least two years, they should invite their insurance agent to come by their home & make a list that includes all home electronics, jewelry, home improvements, etc. Have the agent verify in writing the additional items covered.
- All homeowners insurance policies should include loss of use insurance, in the event the home floods, or has a fire. Loss of use will provide rental assistance to a homeowner if their home is undergoing repair work rendering it unsafe to occupy.
6. Americas Watchdog is still demanding that Congress do away with the worst case of mortgage fraud in US history, where banks and mortgage bankers are allowed to get a huge kick back called a “yield spread premium” with no disclosure to the consumer. According to the group, “mortgage brokers are required to disclose this kick back, but banks and mortgage bankers have no such requirement even they get this huge kick back too”. Americas Watchdog estimates that 50 million US homeowners pay a higher monthly mortgage payment than they should have received, because a mortgage banker or bank received a huge hidden kickback for increasing the borrowers interest rate/monthly mortgage payment, with no requirement to disclose it to a unsuspecting consumer. All US homeowners should write their Congress Person & US Senator & demand this double standard be changed. All US Presidential candidates should have to explain this double standard to the voters.
7. Americas Watchdog’s Homeowners Consumer Center is encouraging all US homeowners to review their free mortgage guide. The 20 page guide was designed to assist all US homeowners understand the mortgage process and the tricks of banks and mortgage lenders related to mortgages. The free mortgage guide is located on the Homeowners Consumer Center’s resource page. The Homeowners Consumer Centers web site is located at Http://HomeownersConsumerCenter.Com
Americas Watchdog thinks this is vital information for all US homeowners or potential homeowners. The group asks that readers of this press release forward it onto friends, co-workers and family members.
Americas Watchdog & its Homeowner Consumer Center are all about truthful Homeowners advice, consumer protection and corporate fair play.
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Posted On: Washington, DC April 2, 2008
Filed under deed in lieu of foreclosure by
Call 888-566-8222 or www.MyOneStop.net or Text “PLAN” to 82257 Loan Modification- Chris- A loan modification is a process where the original terms of a mortgage are modified, giving the homeowner new payment terms that they can handle. It will usually involve a lower interest rate, extension of the term, adding missed payments to the end of the loan, reduction in principle, or a combination of these. Some families find success in modifying their loan, but you must meet all financial, employment and hardship requirements in order to qualify. Deed in Lieu of Foreclosure- Deeding your house title to the lender in exchange for their agreement not to foreclose is called a deed in lieu of foreclosure. You negotiate with the lender to accept the deed and they cancel the foreclosure action. It is not without negative consequence to your credit, but If a short sale or loan modification is not an option, a deed in lieu may be an answer. One difficulty in negotiating a deed in lieu settlement is that lenders do not want the property back because it creates liability issues for them and additional costs. If you are able to negotiate a deed in lieu, be aware of the possible negative consequences. Walk-Away Foreclosure- Foreclosure is rarely the best option for homeowners. In a foreclosure, the homeowner stops making payments and the lender takes possession of the house. A foreclosure creates additional expense and liability for the lender. You may still owe the debt even after a …
Filed under deed in lieu of foreclosure by
Michael Gray interviews attorney William Mahan about the mechanics of short sales and foreclosures of real estate for the Financial Insider Weekly. Part 2 of 3 focuses on deeds in lieu of foreclosure. (What happens if you “walk away”.)
Filed under deed in lieu of foreclosure by
December 6, 2011
For over two years Americas Watchdog & its National Mortgage Complaint Center has been warning about suicidal mortgage products and a real estate/mortgage industry seemingly out of control. The warnings were that if the mortgage or real estate sector greed were allowed to continue, the consequences would be dire for the entire economy. The shoe has now dropped, the industry has severe problems, and other sectors of the economy will now suffer.
For over two years Americas Watchdog & its National Mortgage Complaint Center have been warning that if a very greedy mortgage industry was allowed to continue with ridiculous mortgage products or programs, at some point the entire economy could be put at risk. The last two weeks of declines on Wall Street are but one indicator that the self-inflicted damage to the economy has started. According to Thomas Martin President of Americas Watchdog, “things are about to get much worse”. Americas Watchdog has five simple tips for consumers or industry insiders to prepare for the next two very turbulent years of record real estate foreclosures and Wall Street mayhem.
1. If you have an “Option Adjustable Rate Mortgage” try to see if your current lender will assist you with a conversion to a more stable fixed rate product. Option Arms were always a ridiculous mortgage product & should have never been offered to the average consumer.
2. Homeowners who purchased in 2004, 2005 & 2006 may literally have no ability to refinance their home if they used 100% financing. In many regional or local real estate markets prices have dropped 10% or at best prices are flat. If you do not have to sell your home….. don’t. If you can no longer afford your payment; Americas Watchdog suggest that the consumer attempt to do a work out with his/her/their lender. For many consumers a “deed in lieu of foreclosure” might be your best option if your lender is not willing or able to do a work out.
3. Congress has been heavily funded by the mortgage industry (campaign donations). The practice of any industry buying Congress needs to stop and homeowners need to be afforded the right to a transparent mortgage transaction where all fees must be disclosed. As an example at the present time only mortgage brokers are required to disclose a kickback for increasing a borrowers interest rate. Banks or mortgage bankers are not required to inform the borrower of this extra income. The fee is called a “yield spread premium” and Congress needs to immediately require that consumers get to see exactly what the lender is making on the mortgage transaction to include all banks and all mortgage bankers.
4. Home Builders need to get out of the home lending business. Aside from inflating appraisals, homebuilders have been gouging consumers with undisclosed yield spread premiums for years. The mortgage industry is currently being crushed with calls on non-performing loans. Homebuilders could be next. What will homebuilders do when Wall Street comes knocking with pay back provisions for non-performing loans. Many homebuilders could end up going the way of New Century Mortgage. Appraisal fraud in the home building industry is a massive national problem that has received little to no attention.
5. Consumers with 401 K investments along with pension fund advisors need to wake up & examine their portfolio’s. Wall Street Investment Bankers are largely to blame for much of these problems because they either financed it, or they put the deal together. While much of the mortgage industry is going down the tube, Wall Street Investment Bankers are recording record profits. What is wrong with this picture? Americas Watchdog also believes that the shake out in the mortgage industry will result in “flat fee mortgage lenders” much like what happened to the stock brokerage industry after the “Dot Com” bust. The flat fee approach is the future of the mortgage industry.
Americas Watchdog is all about consumer protection and corporate fair play. If as a consumer you feel like you were cheated in the mortgage process or by a homebuilder you are welcome to contact the National Mortgage Complaint Center at http://NationalMortgageComplaintCenter.Com . If you are an insider with a mortgage lender, a national homebuilder or a Wall Street Investment Banker & you have proof of wrong doing you are welcome to contact Americas Watchdog at http://AmericasWatchdog.Com
Contact:
Thomas Martin
Phone 866-714-6466
Metro Washington DC
Web Site http://AmericasWatchdog.Com
Distribution Worldwide
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Posted On: Ferndale, WA March 15, 2007
Filed under deed in lieu of foreclosure by
Bills.com outlines 9 tips to prevent problems, avoid foreclosure
As any real estate agent knows, home sales heat up with rising temperatures every summer. Now, with mortgage interest rates more than a full point higher than at this time last year, fuel costs riding high, higher minimum credit card payments and consumer debt still raging, many U.S. homeowners risk foreclosure on their homes – but they don’t have to lose their slice of the American dream.
Last year, 31 percent of home loans issued were adjustable-rate mortgages [ARMs], which could spell big trouble as fixed mortgage rates hover around 6.83 percent and ARMs are poised to go much higher, said Brad Stroh, chairman of Bills.com. Holders of ARMs will be paying an additional billion annually for every 1 percent increase in mortgage rates. People who bought homes at the edge of their spending ability with an ARM could face dire consequences as their mortgage payments increase — but they can take steps to keep their financial situations in check.
According to the Mortgage Bankers Association of America, 4.7 percent of U.S. mortgages were delinquent at the end of 2005. With trillion in outstanding U.S. mortgage debt, that places 3 billion at risk of foreclosure. Homeowners who are at risk (as well as prospective homeowners) can use the tips below to avoid mortgage trouble.
How to prevent problems:
1. Create a budget and don’t stretch yourself too far. The unexpected can and does happen to millions of Americans each year. For people who live at the far edge of their means, one life event can hijack their lives and lead to defaults on bills and/or mortgage payments. The key is to build a detailed budget of income and expenses, making sure to allow some breathing room to weather an unexpected downturn.
2. Be very careful with ARMs or interest-only loans. These types of loans let borrowers qualify for more expensive homes – but beware as rates (and payments) climb. If you can barely afford the payment on your ARM or interest-only mortgage, you are asking for trouble in a few years when the teaser period expires and your loan re-sets to a fixed rate. Be sure you have extra cushion in your budget with these loans.
3. Don’t jump to refinance your home to pay off credit card debt. Many people faced with large credit card debt or other unsecured debts consider refinancing their homes. But this strategy only moves the debt, securing it with your home. That puts your home is at risk of foreclosure if you are unable to pay. If you are not confident that you can keep up with your home loan payments, consider debt resolution or another debt relief option.
We can’t emphasize enough that people must educate themselves about what they’re getting into with a mortgage, Stroh added. Overall debt problems will continue to escalate unless people rein in their spending to live within their means. Unfortunately, for some people, that may mean losing their home to resolve their financial situation.
How to avoid foreclosure – if it’s already on its way:
1. Enter into a forbearance agreement. For a temporary hardship, lenders might grant a forbearance agreement to lower – or eliminate – payments for a limited time.
2. Consider loan modification. A loan modification seeks a permanent change to the loan, such as lowering the payment and extending the loan’s term, or incorporating any delinquencies into future payments.
3. Obtain a deed in lieu of foreclosure. A deed in lieu essentially allows the borrower to return the title or deed of the property – giving the home back – to the mortgage holder to avoid foreclosure.
4. Sell the home. Selling your home may not be ideal, but it is a way to avoid foreclosure proceedings on your house and pay back your lender.
5. Refinance the loan. It may be possible to refinance your mortgage for a lower interest rate and/or lower monthly payment (this is much different than refinancing to take cash out to pay off credit cards). However, if you already have had late payments on your mortgage, the interest rate offered to you may be too high to lower your monthly payment. Educate yourself on current rates by checking online rate comparison sites and using online calculators to determine the real costs of refinancing. These tools are available on a number of Web sites, including http://www.bills.com/calculators/.
6. Be cautious. Be wary of so-called equity skimmers. If your house is facing foreclosure, you will probably receive numerous solicitations from companies looking to help you prevent foreclosure by offering to sell your home for you or by taking ownership of your home. In most cases, these solicitations are scams trying to take advantage of people in difficult situations. The perpetrators aim to snatch the equity you have built up in your home.
In many states, foreclosure rates have already started to increase, especially impacting the segment of the population that carries adjustable-rate mortgage loans, whose payments climb upward with every interest-rate increase. However, homeowners can make choices – ideally, before they purchase a home, but even after problems arise – that will help them keep a home, or at least minimize the damage a foreclosure could have on their futures.
Based in San Mateo, Calif., Bills.com is a free one-stop online portal where consumers can educate themselves about complex personal finance issues and save money by choosing the best-value products from a network of qualified service providers. Since 2002, Bills.com’s partner company, Freedom Financial Network, has provided consumer debt resolution services, serving more than 7,500 customers nationwide and managing more than 0 million in consumer debt. The company’s co-founders, Andrew Housser and Brad Stroh, were recently named Northern California finalists in Ernst & Young’s 2006 Entrepreneur of the Year Awards.
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Posted On: San Mateo, Calif. July 3, 2006
Filed under deed in lieu of foreclosure by
December 1, 2011
Lenders’ use of deceptive or inaccurate practices is not limited to the home mortgage market. Similar issues challenge entrepreneurs, says leading commercial debt resolution firm Covendium.
While the media continues to focus its attention on the wide-ranging accusations of robo-signing and other shady practices that banks engaged in to foreclose on troubled residential borrowers, it rarely brings attention to the fact that similar practices exist in the commercial market as well. Covendium, the nation’s largest commercial debt resolution and advocacy firm, has found instances of miscalculation of principal, interest and fees; assertion of claims unsupported by the loan documentation; and overcharging for services related to commercial loans.
This issue is not just about consumer mortgages, says Cody Smith, Senior Managing Director for Covendium. The first thing we do when we start our analytics work for a new client is recalculate their principal, interest and all other fees billed by the bank. We’ve seen errors on more than one occasion, and won’t even start our negotiations with the bank until all errors are resolved.
The New York Times recently reported that findings by the United States Trustee Program, the component of the Department of Justice responsible for overseeing bankruptcy cases, have indicated that in addition to sending inflated deficiency notices, banks often assert claims that are not supported by home mortgage loan documentation. Smith says these findings are applicable to the commercial market as well, noting that in some cases, Covendium has seen banks argue claims that are not supported by law or banking regulation.
We understand that banks are struggling under the weight of the tremendous distress in the commercial real estate market, but lender errors only prolong the resolution, continues Smith. Clients come to Covendium to help them find a way to work with the bank; learning that the bank has made errors creates mistrust. However, if approached properly, dealing with the error upfront may lead to a more beneficial resolution, as the banks never want to be perceived as purposely making errors.
Covendium also notes that lenders may overcharge borrowers for legal work, insurance, appraisals and property inspections. And while banks may claim that these fees are honest errors that amount to less than 1% of their loans, Clifford J. White III, Director of the Executive Office of the United States Trustee Program, estimates that overcharging for residential lending could be as much as ten times more frequent than the banks have acknowledged. The frequency of overcharging in the commercial lending market remains unclear.
Whether it is a homeowner facing foreclosure, or an entrepreneur being pressured by their bank on a commercial property loan, there is never a downside in asking for a full accounting of what the bank claims is due, Smith recommends. Most people just accept what is provided by the bank, thinking that computer automation prevents errors.
Commercial borrowers who suspect they are the victims of lender miscalculation are urged to enlist the assistance of a third-party negotiator. Working with a professional debt resolution firm empowers the debtor with information to ensure that their deficiency calculation is accurate, and in many instances, negotiate a significantly better resolution than the entrepreneur would achieve on their own, concludes Smith.
For more information about how Covendium can help commercial debtors negotiate with their lenders, or any of Covendium’s products or services, call them at (407) 284-4000, or view them on the web at http://www.covendium.com.
About Covendium
Covendium specializes in comprehensive commercial debt restructuring and resolution for clients whose financial model has been destroyed by debt service payments that have become unsustainable.
For some clients, all they need is an experienced negotiator to provide their lender with the reality of the financial situation and the tool-set to restructure their obligations. For other clients, Covendium may assist in the replacement of the debt from a bank to a private funding source.
Their team of professional advisors has successfully restructured billions in transactions, with dozens of banking institutions (including major national, regional and community banks) and over 30 separate non-bank financial counterparties.
Bad things happen to good people. Covendium is a premier national debt resolution firm that helps their clients with everything from avoiding bankruptcy in Chicago to commercial debt restructuring in Charlotte to eliminating personal guarantees in Miami to avoiding commercial foreclosure in Phoenix.
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Posted On: Charlotte, NC (Vocus/PRWEB) May 18, 2011
Filed under Mortgage Servicing Abuse by
Bills.com offers tips for home short sales that leave owners with mortgage debt
Although national housing markets have not necessarily recovered from the economy’s recession, some home owners must sell immediately, even at a loss, and free online consumer portal Bills.com has six suggestions to ease the pain of a home sale that leaves sellers in debt.
“Although some economic indicators hint that the U.S. economy is moving toward a recovery, home values are still suffering from a serious economic hangover. Many home owners are putting off a sale until prices recover. But some owners must sell at a loss,” said Ethan Ewing, president of Bills.com. “Selling a home for less than the debt on the loan — called a ‘short sale’ — is not desirable, but sometimes it is necessary for those who face major financial hardship.”
Statistics on home price trends vary. One August report indicated that 80 percent of real estate markets increased in median home value over the previous year. A separate July report found that home values are down 21 percent from their peak in the second quarter of 2006. However, July was the sixth consecutive month that the decline in national home values lessened.
Overall lower home values mean that many home owners are “upside down” in their mortgages. This term means that they owe more on a mortgage than the home is now worth. “This is especially true in the current real estate market, because low down payments and cash-out refinance deals were the norm in the past decade,” Ewing noted.
Home owners who are facing a possible short sale should consider these points:
1. Know what qualifies for a short sale. Several factors make a home a candidate for a short sale. Typically these are a general drop in home values (such as has happened in many markets), a mortgage that is near default status, or a home owner who is unable to pay due to hard times.
2. Find the right real estate agent. The short-sale process is specialized. Lenders have stringent requirements and might ask agents to take a lower-than-standard commission. Look for agents with experience.
3. Talk to the lender. If a home is worth less than the mortgage amount, sellers will need special permission from the lender to sell the home at a loss for its current value. If the sale stems from financial hardship, home owners will need to prepare a hardship letter explaining why they need to sell. “Remember that some lenders will be open to the possibility of a short sale to avoid the alternative of foreclosure,” Ewing said. “If you are a good borrower hit by bad times, make sure to communicate this effectively to the lender.”
4. Understand tax consequences. In some cases, a lender forgives the difference between what is owed and the selling price. Lenders can classify that forgiven debt as income to the seller, which means that the seller would be required to pay income tax on the amount. However, the Mortgage Forgiveness Debt Relief Act of 2007 allows some home owners to exclude that income. This exclusion primarily applies to those whose home was foreclosed on or who had debt forgiven as part of a loan restructuring. Individuals who are truly insolvent (total liabilities are greater than total assets) also can file IRS Form 982 declaring the insolvency to have the tax waived. Sellers should consult a licensed tax advisor to learn whether these exceptions apply to their situation.
5. Know it will impact credit. A short sale is recorded on a credit report as a pre-foreclosure proceeding. As such, it will damage credit scores. Still, it may be the best alternative for some homeowners.
6. Consider alternatives. If paying the mortgage is the problem and there is no desire to sell — some home owners have options available. Some lenders will consider a loan modification, which seeks a permanent change to the loan, such as lowering the payment and extending the loan’s term, or rolling delinquencies into future payments. Government programs such as Hope for Homeowners also fall into this category. Another option is a “deed in lieu” of foreclosure, which essentially allows the borrower to return the title or deed of the property giving the home back to the mortgage holder to avoid foreclosure. The borrower forfeits equity in the property, but avoids a foreclosure on his or her credit record.
“Short sales are hard facts of life following a serious real estate downturn like the one our nation has undergone,” Ewing said. “Do your homework before agreeing to a short sale. Becoming a knowledgeable seller will help make the process as painless as possible.”
About Bills.com
Based in San Mateo, Calif., Bills.com is a free one-stop portal where consumers can educate themselves about complex personal finance issues and comparison shop for products and services including credit cards, debt consolidation, insurance, mortgages and other loans. Bills.com holds the No. 273 spot on the Inc. 500 list for 2009.
Bills.com and its sister companies, Freedom Debt Relief and Freedom Tax Relief, are wholly owned subsidiaries of Freedom Financial Network, LLC. The company has served more than 50,000 customers nationwide since 2002 while managing more than billion in consumer debt. Its RSS feed is available here.
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Posted On: San Mateo, Calif. (Vocus) October 28, 2009
Filed under deed in lieu of foreclosure by
November 29, 2011
With 1 in 4 American homes underwater and an estimated 1.7 million in foreclosure proceedings, strategically defaulting is becoming a more popular option for borrowers. However, Strategic defaults also come with a slew of personal and legal ramifications. Attorney at Law, Laura I. Shidlovitsky discusses the unglamorous side of foreclosing and what you can do before deciding to foreclose.
On average, it takes over one year for a homeowner to be evicted from their house once they stop paying their mortgage, according to a recent report by the New York Times. With close to 25% of homeowners owing more than their homes are worth, strategically defaulting may seem like a great way to live rent-free for a year. But, what are the legal ramifications of doing so?
Defaulting is stressful, but defaulting is not a walk in the park either. In addition to your credit score taking a nosedive, you’ll receive a slew of calls, visits, and correspondence by collection agencies, and in some cases, you may even be shunned by your neighbors for being responsible for a drop in neighborhood housing prices. Shidlovitsky. In certain states, like California, a short sale on your home might result in taxable state income, not to mention potential personal liability charges from the foreclosure proceedings. In other words, you might lose more than just your home.
A lot of discussion in the news on strategically defaulting has revolved around the morality of doing so. When asked whether strategically defaulting was morally acceptable, Attorney Shidlovitsky said it depends. âWhile, I am by no means, an expert on moral authority, I do believe that strategic defaults are wrong under some circumstances. For instance, borrowers who stop paying their mortgage and use those funds for personal items, like expensive dinners or trips to Disneyland, are doing a disservice to the rest of the society. It is not completely ethical to have your neighbors or the remaining tax payers carry the burden of oneâs irresponsibility”. If you are a borrower who did not overextend yourself in obtaining the mortgage in the first place, and are currently in financial distress due to something out of your control, like unexpectedly losing a job or being diagnosed with a serious medical condition, and need the money for those expenses, then defaulting is a morally acceptable option.
Moral or not, what can financially distressed borrowers do? Shidlovitsky, Is that homeowners still have several options besides foreclosing and being proactive can really pay off. As soon as you experience hardship, contact your lender to explore options, such as FHA refinancing. Try to sell your property. If that doesn’t work, you can do what is called deed in lieu of foreclosure where you turn your keys in to the lender and walk away. While some of these options may still impact your credit score, it is not as bad as the decline caused by a forced sale. Shidlovitsky’s other suggestions? Watch out for modification scam artists who charge high fees and guarantee modification and/or a stay of foreclosure proceedings, and don’t make any upfront payments, unless it is to an attorney, for loan modifications.
Laura I. Shidlovitsky, Esq., owner and founder of the Law Offices of Laura I. Shidlovitsky, is a very creative and personable Attorney at Law who tailors her legal counsel to meet the unique needs of her clients in all aspects of commercial and real estate transactions and negotiations. She has extensive experience representing individuals and publicly traded corporations in a variety of industries, including metals distribution, commercial real estate, healthcare, pharmaceuticals, restaurant, media and entertainment, transportation, and consulting. Ms. Shidlovitsky is also an active member in many professional organizations, including the LACBA Business and Corporate and Real Property Sections, the ABA Business and Litigation Sections, the National Association of Professional Women, and the Century City Chamber of Commerce.
To find out more about what to consider when facing a foreclosure or to interview Laura I. Shidlovitsky, Esq., please call (310) 684-3843.
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Posted On: Los Angeles, CA August 25, 2010
Filed under deed in lieu of foreclosure by
November 27, 2011
ACORN Financial Justice Center Director Austin King takes on Fox Business News hosts in a debate on the cause of the mortgage crisis.
Filed under Predatory Lending Foreclosure by
According to Kramer Law, the bank is hopeful to settle for millions instead of billions and avoid criminal prosecution.
The Huffington Post is reporting that, “Federal and state prosecutors are in advanced negotiations with Bank of America in pursuit of a settlement that would forgive the bank for a broad range of past mortgage abuses in exchange for fines that would finance a significantly expanded relief program for struggling homeowners, according to three people with direct knowledge of the matter.”
The Huffington Post goes on to say, “The agreement, if reached, could be used as a template for the other four banks. The state and federal prosecutors are operating on the assumption that if they could strike a deal with Bank of America — the nation’s largest mortgage servicer — that would compel the other large banks to go along or risk prosecution.Participants described the talks as fluid. Remaining issues include the scope of the release and the breadth of borrower relief, sources said.”
Philip A. Kramer, perennial recipient of the “Southern California Super Lawyer” award is disturbed by what he is hearing. “I represent thousands of homeowners across the country with claims against Bank of America and others.”
Philip Kramer alleges, “It looks to me like the banks are trying to skate out of their wrongdoing by agreeing to pay millions of dollars, not billions. In exchange, they get amnesty? For all their wrongdoing? That sounds terrifying to me. It sounds like officials want to sweep this under the rug so they don’t have to deal with it any more.”
The Huffington Post seems to be in agreement with Philip Kramer. They report that, “An accord would provide a sense of finality to BofA’s shareholders, who have seen the value of their holdings erode over the past year as the bank’s mortgage-related losses have mounted. Shares are down 34 percent over the past year. By comparison, the 24-company KBW Bank Index, which tracks large banks like BofA, is down just 11 percent over the same time period.”
“I smell such a rat!” Philip Kramer says, trying to contain his outrage. “In my opinion, these banks falsified documents. They conspired to create fraudulent loans, they then cooked the books on the underwriting, and went on from there to create bundles, which they then sold knowingly to pensions and other large institutions whose clients were depending on the “safety” of these financial instruments, and when the whole thing started to come apart they covered their tracks with fraudulent paperwork and testimony. The only reason we don’t know the entire extent of their malfeasance is that the money has not been spent to properly investigate. I think they’re trying to settle this with an amnesty before real money has to be paid in damages, and before bank executives have to go to jail.”
Mr. Kramer is admitted to practice before all courts in the State of California, the United States Supreme Court and the United States Court of Military Appeals. Mr. Kramer has tried in excess of 200 cases. He has appeared on nationally televised programs regarding pre-trial procedure and trial strategy and has appeared as a guest lecturer on topics ranging from constitutional law to trial practice, and Mr. Kramer frequently lectures on a broad spectrum of various legal and business issues.
Mr. Kramer also serves as a Judge Pro Tem for the Los Angeles Superior Court and as a Mediator.
Mr. Kramer is also a past president of the Los Angeles West Inns of Court, a national organization dedicated to bringing professionalism and civility back into the legal profession. He also serves on numerous Boards of Directors and serves as an officer in many companies. For more information call (818) 224-3900 or visit http://kramer-kaslow.com
The article referenced by Mr. Kramer can be found here: http://www.huffingtonpost.com/2011/08/02/bank-of-america-justice-foreclosure-fraud-settlement_n_916490.html
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Posted On: August 15, 2011
Filed under Mortgage Servicing Abuse by
November 23, 2011
The modern system of mortgage refinancing and assignments created during the housing boom has left behind a wave of title defects on properties that have ever had a foreclosure in their history, due to a loophole in the property records recording system. This has been detected on a number of properties currently in foreclosure, and found to have been uncorrected on properties previously foreclosed.
A previously undetected title flaw has been discovered on many previously foreclosed properties. As the number of real estate foreclosures skyrockets, the odds are higher that a home you live in today, or at some point in the future may have had a foreclosure in its history. Even if the foreclosure has long since passed, a loophole in the way mortgages are recorded can create a serious title defect for future owners. Title analysis performed this month by AFX Title has detected this error to be common in random samples of properties it reviewed. “This could affect the property ownership of millions of homes nationwide” said David Pelligrinelli, of AFX Title. “The mortgage recording method which created this title flaw did not exist until recently. As title abstractors are just seeing this problem emerge now but a wave of title claims is coming over the next year or so.”
The problem is created through a break in the chain of mortgage ownership. Until the 1980s, most mortgages were loans between the homeowner and a bank, who lent the money directly. More recently, the mortgage financing system transformed into an international system of securitization, with mortgage lenders packaging their loans into securities, bought and sold by investors like stocks. These transactions even split individual mortgages into sections, where each loan could have parts owned by different investment banks.
The transfer of ownership in these mortgage backed securities (MBS) was done with contracts on the balance sheets of Wall Street investment banks, such as Morgan Stanley and Goldman Sachs. The company who originally appeared to make the loan was normally a retail lending company such as Countrywide or Lending Tree, who typically acted as a sales company, and sometimes remained contracted to service the loan.
In the event that the loan goes into foreclosure at a later date, the then-current owner of the loan files the foreclosure and sells the property to a new owner, often at auction. The land records would show a deed of transfer from the investment bank to the new owner. This creates a break in the chain of ownership of the mortgage rights. In many cases, the transfer of ownership of the mortgage loan has gone from the original lender, through several owners, and then to the foreclosing bank, none of which is recorded on the property title history. Technically, the foreclosing bank has no recorded title rights to foreclose in the first place. Owners of the loan normally do not publicly record each of the transfers out of expediency, and cost. Filing a document of transfer (called an assignment) in the land records incurs a substantial fee paid to the county clerk.
Some delinquent homeowners have used this error to delay the foreclosure, forcing lenders toproduce the note. In these cases, the bank has to go through the process of getting assignments to the foreclosing bank after the fact. However, the title repair process is not required however in the majority of cases when the homeowner does not contest the foreclosure.
This leaves the break in chain of title dormant in the property records, vulnerable to be contested in the future. A few largely overlooked cases have already been decided by courts on this issue. In Lowell MA, a judge invalidated the foreclosure of homes based on missing and out-of-order assignments (US Bank v Ibanez).
Unraveling the chain of title and clarifying ownership of loans will create challenges for the courts and legislative bodies in all states. In the meantime, homeowners and buyers should be aware of how this could affect their property title. There are reports that some title insurers are indicating that they will not insure for this title defect.
As a national provider of property title searches, AFX Title is seeing an increasing number of files where the chain of title has obvious gaps in the recorded mortgage assignments. According to Pelligrinelli, the issue is serious. When running searches for clients, we are noticing that a significant number of previously foreclosed properties have unconnected chain of assignments in the mortgage history. This could represent a title defect which could technically affect ownership rights for future owner.
Pelligrinelli adds that some lenders and government institutions are rushing to repair the titles on lender-owned properties as they discover them in their portfolio. This does not help individual owners who own properties previously foreclosed.
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Posted On: Dawsonville, GA February 10, 2010
Filed under Defective Mortgage And Note Foreclosure by
Foreclosure attorney Troy Doucet understands how it feels to experience foreclosure, and recommends homeowners explore their defenses before giving into the bank’s demands.
After spending years working in the mortgage industry, Attorney Troy Doucet is pleased to announce the opening of his law firm that is dedicated to helping those facing foreclosure. Mr. Doucet’s involvement in the mortgage industry, including owning a mortgage company, offers his clients an insider’s perspective on lending. Doucet’s life experiences also bring his clients one additional perspective: what it feels like to experience foreclosure. In 2006, the bank foreclosed on his home.
Mr. Doucet began working in the mortgage industry in 2000, opening a mortgage company shortly thereafter. Doucet built that company, Cornerstone Home Finance, away from subprime mortgages, and he worked hard to eliminate surprises at loan closing. In 2004, Doucet was featured in Broker magazine for proposing the mortgage industry eliminate junk fees. Doucet’s companys grew quickly, but that growth ultimately caused it to collapse, forcing Doucet into bankruptcy and costing him his home. He started law school after that experience.
Mr. Doucet says homeowners should not assume foreclosure is a foregone conclusion because multiple defenses are available. Falling on hard times is no excuse for banks to ignore mortgage laws, he says. A homeowner’s loan could contain substantial violations of federal law, and they may never know it without the help of a knowledgeable attorney. For example, the Truth in Lending Act (a federal law that applies in every state) requires the lender provide specific disclosures to homeowners at the time that the loan closed, or face significant consequences. Failing to provide two copies of the Notice of Right to Cancel per borrower, for example, can give the homeowner the right to cancel the entire loan transaction up to three years after closing and obtain refund of nearly all payments made. To qualify, the loan must have been used to refinance the homeowner’s primary residence.
Mr. Doucet recommends all homeowners facing foreclosure do a few things to protect themselves:
1. Keep all loan closing documents together and in one secure place.
2. Store all correspondence from the lender, especially letters claiming the loan is in default.
3. Maintain a detailed call log of all conversations with anyone about the loan.
4. Do not assume the company foreclosing is the true owner of the loan.
5. Contact an attorney as soon as possible, especially if your loan is a refinance nearing its 3-year anniversary.
Rather than continue in the mortgage industry after his business closed, Doucet looked towards changing careers. He started law school in 2007 and worked as a freelance mortgage consultant to attorneys nationwide until his recent graduation from Capital University Law School, magna cum laude. In 2008, he published a book about defending foreclosure called, 23 Legal Defenses to Foreclosure: How to Beat the Bank, and published a second book in 2009 that integrated changes to the Truth in Lending Act. He held a foreclosure audit training seminar in Washington, D.C. for a team of attorneys, and regularly communicates with foreclosure defense attorneys nationwide who practice in foreclosure defense.
Troy Doucet practices in foreclosure defense and consumer litigation in the Columbus, Ohio region and can be reached at (614) 944-5219.
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Posted On: Columbus, OH November 20, 2010
Filed under Truth In Lending Act Foreclosure by
November 22, 2011
Curtis Greco, Author and Economic Policy Analyst, continues to push the media envelope in his quest to offer solutions for addressing several critical economic policy issues. High on The Imperfect Messenger Foundation’s OnPoint Topics is the collapsing Residential Real Estate Markets and the Oppressive Mortgage Burden that fuels its failure. In a recent interview, Greco is quoted as saying: “Let’s be quite clear, there is no escaping the fact that if the goal is to preserve both the Housing Market AND the Mortgage Debt then there is no solution; there is no way to accomplish both at the same time. To believe so would also then suggest that one can stay dry in a monsoon by stepping between drops of rain!” Without question, The Imperfect Messenger Foundation strongly encourages the Administration and Congress to look at Greco’s suggestions. Second only to Job Creation Capabilities, a stable Residential Housing Market is an absolute necessity.
As Curtis Greco’s followers continue swell and along with his growing media presence, America is awakening to a an entirely new brand of commentary. Victor Sills, who follows Greco through Twitter, says: “He’s truly remarkable, he doesn’t simply pay lip-service to a news topic, he actually talks solutions, viable make-sense solutions. I particularly like being able to pick up his on-air interviews. It’s great that a growing number of radio stations from all over the country are streaming his interviews live. The call-ins are great too, I’ve never heard him duck a question; he hits them head-on. The one I heard the other day on fixing the Mortgage mess was absolutely brilliant. I hope someone in Congress heard it.”
Greco’s most recent article, Restoring the U.S. Housing & Mortgage Markets, tackles the subject in his customary comprehensive approach and for anyone looking to gain an in-depth perspective on the issues and solutions, we heartily recommend the piece. As Bill Galston, a senior fellow at the Brookings Institution and a former Clinton administration official, mirrors Greco’s position in his recent statement: “The impact of foreclosures is visceral and outsized, rippling far beyond one household….Entire neighborhoods see what’s going on and the visibility contributes to the psychology of continued economic troubles.”
In a recent On-Air visit with Jim Sandell, Host of 11 O’Clock Live on KDAZ Radio, Curtis hit the cause of the problem by stating: “There exists and anatomically incorrect component that is common to all Government Induced Failures and one whose cause is so surprisingly pure and simple it stings the mind that so few people and so-called experts seem willing to grasp their core flaw. It is both the reason for the crisis and the very reason why it remains unresolvable and one might summarize the core flaw in this way: Failure is assured when there is no Risk of Loss attached to Performance Failure!” The result of which, as Karl E. Case, co-founder of the Case-Shiller Home-Price Index, recently remarked, “Housing; it’s not the American dream, it’s the nightmare.”
Greco went on to say that, “At this point what should be clear to any party of concerned interest is that the Vested Interests attached to the Mortgage and Banking Structure of this Nation are not at all interested in preserving the American Household. It is not so much that they are decidedly adverse to the idea however it is more so that they are more interested and consequently supremely dedicated to preserving the Financial System.” Richard K. Green, director of the University of Southern California’s Lusk Center for Real Estate, appears to resolve to a similar conclusion as well; “The only way we get out from under as a country is if people have equity again.”
Greco’s articles can be seen with regularity in various publications however feel free to source and view each of his commentaries online at The Imperfect Messenger Foundations website.
The Blind-Vision Series: We Hold These Truths, Value Given, Value Received and Valor in Prosperity 2nd Edition are Available Now online and through your local bookseller!
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Curtis C. Greco, Author & Founder of The Imperfect Messenger Foundation is a provocative and engaging speaker and writer covering a variety of topics including “kinetic behavioral dynamics” and socio-political, economic and corporal philosophies. Combining his commitment to life-long study, his formal education, 13 years in public accounting and 20 years in real estate portfolio management, development, financial and economic analysis; he brings a broad and seasoned knowledge base in dynamic and captivating form.
“Man must be Free for Independence to be at Liberty to be expressed!” C. Greco
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Posted On: Santa Rosa, Ca. September 21, 2011
Filed under Real Party In Interest Foreclosure by
Delays, hidden costs can mean big trouble for buyers
RP Funding, a direct lender known for advising consumers to shop for a mortgage has some more advice that can save consumers money, time and trouble when buying a home: shop for a title company.
Because of recent abuses in the title industry, RP Funding is launching an educational campaign to help home buyers learn how to save money, headaches and time by choosing a good title company.
“Unfortunately, we’re seeing a lot of abuses in the title industry now,” said Robert Palmer, President of RP Funding. “Just as some consumers are taken advantage of by mortgage companies, some are being taken advantage of by title companies and foreclosure law firms.”
Those abuses can cost home buyers as much as ,500 in fees and other unjustified costs or throw their schedule into a tailspin. Palmer says that’s especially true for people buying REO properties.
“Banks typically pick the title company, and unfortunately, some banks are picking companies that are giving them something in return,” said Palmer. “That ‘something’ ends up costing consumers money. Often the buyer doesn’t find out until the day before closing.”
Closing problems cause nightmares for buyers
For some buyers, trying to close on their dream home becomes a nightmare. The problems include:
- Lost or late paperwork
- Last-minute fees
- Illegal signatures on documents
One Florida law firm has paid million to settle a slew of foreclosure fraud charges, which include forging some documents, while “robo-signing” others without reviewing them. In another case, lenders cut ties with what was once the largest foreclosure law firm in the state because of allegations of flawed paperwork, which left thousands of transactions in limbo.
A title policy for a 0,000 home costs about 5. While this fee is usually paid for by the seller giving them control to select the title company. According to Palmer the solution is simple “Buyers should offer to pay for the title policy and protect themselves from poor customer service, closing delays and thousands of dollars in inflated fees. Who wouldn’t pay 5 to save ,500?” RP Funding has seen consumers overcharged by just that amount, up to ,500 by companies piling on closing fees- usually at the last minute.
How buyers can protect themselves
RP Funding urges buyers to protect themselves – pick and pay for your own closing agent.
“The seller, or the bank in an REO sale, typically chooses the closing agent, but it doesn’t have to be that way,” said Palmer. “We strongly urge people to shop for a reputable title company, just as they would shop for the best realtor or the best mortgage loan for their situation.”
As part of its continuing campaign to help consumers protect themselves and save money when buying a home, RP Funding has identified numerous title companies in Florida who do offer discounts of up to ,000 for buyers who take the initiative, pay for the title policy and make their own choice. All it takes is a bit of shopping around to discover this type of savings.
“Only about 2% of buyers shop for their title company,” said Palmer. “You’re much better off shopping around to find a title company that will save you money and put your interests first – not the interest of some big bank. The peace of mind and other savings more than offsets the cost of the title policy.”
To learn more about RP funding go to RPFunding.com or call 407-802-3344.
On the web:
Title insurance fraud put under the microscope
Baltimore Co. title company owner pleads guilty to wire fraud
About RP Funding: RP Funding is a licensed Florida Mortgage Lender with offices in Maitland, Florida. As a direct lender, RP Funding underwrites, closes and funds its own loans in order to offer customers the best rates and highest level of service. Unlike banks and mortgage brokers, RP Funding offers “wholesale” mortgage rates directly to consumers to save them money. The only fee that RP Funding customers pay is when they choose to buy down to a lower interest rate through a rate discount cost. For more information, please visit http://www.rpfunding.com/.
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Posted On: Orlando, FL October 26, 2011
Filed under Mortgage Servicing Abuse by
Predatory Lending, Mortgage Fraud,Real Estate,Foreclosure,Subprime,FBI,FDIC,Bailout, Judicial Injustice,Value inflated 136%, BB&T Bank,loan, congress, Judicial Injustice, Adjustable Rate,News,CNN, Mortgage
Filed under Predatory Lending Foreclosure by
Facing foreclosure? Info at www.consumerwarningnetwork.com may help. Your goal is to make certain the institution suing you is, in fact, the owner of the note. There is only one original note for your mortgage that has your signature on it. This is the document that proves you owe the debt.
Filed under Produce The Note Foreclosure by
January 3, 2008
You can stop bankers, creditors and debt collectors from foreclosing and taking your home and property. There are typically numerous violations of the law in mortgage agreements closings and pre mortgage settlement activities. Don’t let the mortgage company get away with taking your home when you may have thousands of dollars due you in refunds and damages because of the mortgage company’s and debt collector’s mistakes and wrong doings.
You can stop foreclosure fast with our stop foreclosure solutions. Foreclosure help may be only a click or a phone call away, so let us help you stop foreclosure today yourself or with an attorney/lawyer! Click Here! Get your stop foreclosure help today!
Help To Stop Foreclosure Assistance
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January 1, 2008
If there are violations in your mortgage agreement you can force the lender to re-write your mortgage agreement and this time to your benefit and not the mortgage company’s benefit. When your mortgage is re-written it may include a significantly reduced principle and interest rate because of awards and refunds you are due as a result of the damages you receive because of the bank violations of the law in your situation. Get some Help To Stop Foreclosure Today!
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Foreclosure AssistanceThe amount of foreclosure homes on the real estate market is on the increase today! Yet, you don’t need to let your home join the foreclosure home statistics. Let’s Talk about it. Click Here to Chat about getting help for your Mortgage being Re-written when stopping foreclosure.
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