Since the real estate market crash of late 2007 and 2008, California has been the leader in legislation designed to protect homeowners and regulate the loan modification practice. Unfortunately for many California homeowners, legislative relief arrived too late and their houses were lost to foreclosure, victims of California’s rapid non-judicial foreclosure process. In addition, many homeowners lost money paying for assistance that was either fraudulent or inadequate to prevent a foreclosure. Over the past few years, however, legislative measures have served to shape California mortgage relief into what it is today. In short, there has never been a better time to resolve a troubled mortgage here in the Golden State.

During the peak of the mortgage industry, Southern California had the highest concentration of mortgage and mortgage related service companies in the nation. In 2007, it seemed like everyone I knew was somehow involved in the mortgage industry. Within a matter of months, mortgage broker shops began to fold, and underwriters, processors, title officers and administrative staff were looking for work. I recall a Sunday classified section of the San Diego Union-Tribune in November of 2007 that was no more than 3 pages of low wage jobs. Like a dried up mining town, the San Diego job market seemed to disappear when the mortgage industry crashed.

This meltdown and the subsequent mortgage crisis left two things in California; a giant mortgage mess that needed to be cleaned up, and a huge pool of labor that created it. It was quite natural that “loan modification” became the catchphrase of the day and that mortgage brokers and underwriters were drawn to the business. After all, it was a natural fit for their skill sets, and the brokers even had books of potential clients to contact. Yep, the people they had written mortgage loans for!

“Loan Modification” and “Home Rescue” companies popped up by the hundreds in California. Some with the altruistic mission of helping people in need, others out for a quick buck in the “next best thing” and a few fraudsters looking to take advantage of desperation. Regardless, it was an industry on the rise and the need for legislative regulation was obvious.

In 2009, the California Senate passed Senate Bill 94 (SB94). It was signed into law in October of 2008, and sent the industry scrambling. The controversial law sought to protect homeowners by driving out individuals and organizations who were unable to produce results for homeowner, by banning any upfront fees for “loan modification” services, even by attorneys. It spelled out “phases” of work required to be completed prior to any fees being collected, and gave the state’s Attorney General a loose reign in monitoring and regulating service providers.

The results were mixed. The Bill drove out the fraudsters, quick buck artists and the faint of heart pretty quickly. Unfortunately, it also drove out many attorneys and “loan modification” companies who were competent to perform the services and had the best of intentions. After a few years, the industry normalized as service providers conformed to legislative and regulatory requirements and lenders developed clearer program requirements and procedures.

All the while, however, lenders held the upper hand. Though banks faced some setbacks with the “MERS” legal issues and subsequent “robo-signing” scandal, lenders were still smugly confident, since most courts had minimized the weight of RESPA and TILA violations present in the majority of mortgages, and lender participation in any mortgage relief programs was voluntary. Most of the major lenders became notorious for “losing” paperwork, giving homeowners the runaround, and some downright deceptive practices like “dual-tracking”. In the “dual-tracking” process, lenders led a homeowner to believe that they were working on a loan modification while simultaneously moving forward with the foreclosure process. Well, this process in now illegal in some states, most notably California.

The California Homeowner Bill of Rights (HBOR) became law on January 1, 2013, and completely turned the tables in favor of homeowners. In the first Quarter of 2013, many credible sources report 70-80% declines in California foreclosures. The Bill thoroughly holds lenders and servicers accountable for every detail of the foreclosure process, so much so that it may become the pivotal chapter in ending the California foreclosure crisis. The penalties are so severe that lenders are aggressively seeking foreclosure alternatives in California. “We have never seen loan modification offers like what we are seeing today”, said Mortgage Relief Project’s Mike Amos. “Principal reductions used to be rare, whereas we pretty much expect them whenever appropriate. In addition, some borrowers have such egregious HBOR causes of action, that pursuing individual litigation finally makes sense. Some of these folks may just walk away with a great mortgage and money in their pockets!”

If you are a California homeowner seeking to resolve a troubled mortgage, there has never been a better time to take action. Most people recommend hiring an experienced foreclosure attorney. Most foreclosure attorneys offer free initial consultations and affordable payment plans, so do your homework, choose an attorney you can trust, and find out what your options are today!

]]> http://mortgagereliefproject.org/2013/04/evolution-loan-modification-foreclosures-california/feed/ 1 http://mortgagereliefproject.org/2013/03/short-sales-deed-in-lieu-foreclosure-agreements-growing-popularity-california/ http://mortgagereliefproject.org/2013/03/short-sales-deed-in-lieu-foreclosure-agreements-growing-popularity-california/#comments Fri, 22 Mar 2013 01:52:34 +0000 project http://mortgagereliefproject.org/?p=17163 Continue reading →]]> By: Michael Powers

Short Sales and Deed-In-Lieu of foreclosure agreements are growing in popularity in California, as lenders and servicers become more aggressive in creating permanent solutions for troubled mortgages in the Golden State. Many are crediting the Homeowners Bill of Rights with the success, as lenders and servicers seem to be avoiding the scrutiny of the new foreclosure process. The Bill allows for stiff penalties for any foreclosures which violate a homeowner’s rights, as proscribed by the new bill. Such offenses include the dual-track foreclosure process, and “verification of documents”, which may be the most pivotal element of the bill.

By now, most people are aware of the robo-signing scandal and the MERS issue. During the mortgage flurry and subsequent sale of mortgages and bundling into Mortgage Backed Securities, some lenders counted on the validity of the MERS system to support a proper chain of title. Well, some courts did not see it that way and many of the documents necessary to foreclose had been disposed of or otherwise lost. Frankly, no one thought they would ever be necessary. Well, when some courts ruled that these documents would be necessary to foreclosure, the banks decided to spend billions of dollars on fraudulently fabricating documents to replace the “missing ” documents. The practice and subsequent scandal was highlighted in a 60 minutes expose on CBS.

The important part to remember is simply that many lenders and servicers do not have “verifiable documents” for many of the mortgages they hold. “This is a big reason that homeowners should have an attorney representing them in negotiations with their lender”, said managing attorney Steve Loizzi, Esq., of Loizzi & Associates, PC. “In many cases, homeowners’ rights have been trampled on. This gives the homeowner leverage that they may not be aware of in negotiations with their lender. If a client has been mistreated during the loan origination process or during the foreclosure process, banks can now face stiff penalties and we know what to look for. In addition, many portfolios will have difficulties getting through the California foreclosure process because they are notorious for missing the proper paperwork and our experience gives us an edge in identifying these portfolios.”

The Homeowner’s Bill of Rights was the brainchild of CA Attorney General Kamala Harris and has been in effect since January 1 of 2013. Harris was also instrumental in the $26 Billion National Mortgage Settlement before working on the Bill for homeowners in her own state. As of March, we are seeing other states follow suit with similar legislation, which will further protect the rights and interests of homeowners across the country. Proponents are hopeful that the sharp decline in foreclosures in California will carry across to other states, as lenders find further incentives to resolve troubled mortgages outside of the costly foreclosure process and expedite the overall recovery of the U.S housing market.

If you are a California homeowner, there has never been a better time to get help with your troubled mortgage. The best way to get the best results is to simply hire a law firm that has extensive experience in mortgage mitigation. Reputable firms offer free consultations and will not take your case unless they think they can really help you.

According to a recent report by RealtyTrac, California foreclosures have dropped nearly 40% from a year ago, ridding the state of its dubious ranking as the highest foreclosure state in the country. This downward trend has been attributed to the “Homeowners Bill of Rights”, which went into effect on January 1st, 2013, and has clearly become a cause for pause for lenders considering a foreclosure.

According to industry insiders, “most Lenders and Servicers have put California foreclosures on hold until they truly have their ducks in a row”, said California mortgage mitigation attorney Brian N. Folland. “For many of the mortgages that were processed during the mortgage boom, especially those mortgages processed through the MERS system, there are no ducks to put in a row, as the necessary paperwork simply does not exist. This has really given consumers the upper hand in many cases, and lenders are more willing to create a meaningful loan modification in order to forego the scrutiny they will have to endure in the foreclosure process. We recently processed a loan modification with a principal reduction of more than $700,000 in central California, and we expect to see more and more of these types of modifications” added Folland.

According to the Homeowner Bill of Rights, lenders attempting a foreclosure with “multiple unverified documents” are subject to civil penalties and enforcement by licensing agencies, including the Department of Corporations, the Department of Real Estate and the Department of Financial Institutions. If you remember the “robo-signing” scandal, it involved lenders fabricating documents that would be necessary for foreclosure, as the original documents had been discarded or otherwise lost.

During the sub-prime mortgage debacle, most mortgages were processed through the MERS system, leading lenders to believe that the system would provide sufficient evidence of a proper chain of ownership of the mortgages. Unfortunately for those lenders, many courts have ruled that the MERS system is not sufficient proof of mortgage ownership, and have instead required the original mortgage paperwork and any subsequent assignments as necessary proof of a lenders legal right to foreclose on a property.

If California were a judicial foreclosure state, then all of the necessary paperwork would have to be presented as evidence in court, and the homeowner would be assured the opportunity to verify the validity of the documents. Unfortunately, California is a non-judicial foreclosure state, where foreclosures are processed by a Trustee. Trustees are often overwhelmed with the huge caseload they face and are not required to protect the interests of a homeowner. Accordingly, many California homeowners facing a foreclosure are hiring an experienced foreclosure defense attorney to protect their rights and interests and scrutinize the paperwork that gives a lender the legal right to foreclosure on their home.

President Obama’s State of the Union speech gave little mention to the housing crisis, as the housing market shows signs of improvement and his HAMP (Home Affordable Modification Program) program begins to wane in popularity. But, did HAMP already serve its purpose? The HAMP guidelines and structure have served as the basis for the creation of broader reaching lender proprietary loan modification programs which are the dominant solution for troubled mortgages today. In the beginning of the mortgage crisis, lenders and servicers were scrambling for solutions, until HAMP provided them with a structure for reformulating home loans which would make them affordable again. From this offering, loan modifications have now evolved into the most effective solutions in the marketplace today.

Recent reports by the Hope Now Alliance show that the number of HAMP loan modifications has declined sharply as lender “in-house” or proprietary programs has become the dominant solution for troubled mortgages. However, critics are quick to point out that these proprietary programs are simply offshoots of the HAMP program with less stringent qualification criteria. In other words, HAMP provided the framework for these other programs which have adapted to meet the needs of more homeowners who would not qualify for assistance under the HAMP guidelines.

Obama did mention that the housing market is crucial to a healthy economy, and pointed to some meaningful figures that the housing market continues to improve. However, he never mentioned his HAMP program, which was designed to stop foreclosures and keep Americans in their homes. Conversely, he did mention cutting some red tape from the HARP (Home Affordable Refinance Program) program in order to allow homeowners that have remained current on their mortgage payments to refinance their mortgages and take advantage of today’s historically low interest rates.

Somewhat controversially, he referred to those Americans who have remained current on their mortgages (a requirement for the HARP program) as “responsible Americans”. There should be no doubt that many American have taken advantage of the mortgage crisis by strategically defaulting on their homes or simply refusing to make their mortgage payments until their lender would offer them a modification. At the extreme end of the spectrum, some homeowners are simply “squatting” in their properties with no intention of resolving their mortgages and taking advantage of living in a home without making any payments until their lender can foreclose on the property. This segment of the population has taken advantage of, and exacerbated the mortgage crisis.

However, this only covers the two extremes. Millions of Americans who never sought to take advantage of the mortgage crisis, but are instead the victims of a recession and troubled economy, are still facing troubled mortgages and foreclosures. These are “responsible” Americans as well, who have simply been unable to keep up with their payments due to a decrease in household income. For many in this category, the Presidents speech left them feeling forgotten. Regardless, those homeowners who fit this category should understand that they are the most likely candidates to receive a loan modification, as banks look favorably upon homeowners who have honestly struggled to keep up with their mortgage payments but have been unable to do so due to legitimate hardships.

On a brighter note, while Obama only grazed the housing issue, the main focus of his speech was the creation of jobs and an overall improvement of the American economy. It is safe to say that increasing household incomes would go a long way towards preventing more foreclosures and making homes affordable again.

According to a recent report by the Hope Now Alliance, HAMP loan modifications were down nearly 50% in 2012, as lenders and servicers shift their focus to “in-house” or proprietary loan modification programs. In addition, the report confirmed that 2012 saw less loan modifications than 2011, suggesting that the housing crisis may be showing overall signs of improvement.

Like any other government program, the HAMP modifications must meet specific guidelines. Conversely, proprietary modifications have more flexible guidelines and can be approved on a case by case basis. As a matter of previous procedure, banks would typically first attempt to qualify a homeowner for a HAMP modification, in the hopes of receiving some of the financial incentives offered to lenders and servicers for their participation in HAMP. More recently, however, statistics suggest that lenders are finding the paltry incentives to be outweighed by the creation of a loan modification that will prevent redefaults and subsequent foreclosures.

“Many of the HAMP modifications just did not make long term sense. In some instances, a HAMP modification would come back with a higher payment! Banks are more interested in creating a modification that makes sense and will last”, said California mortgage mitigation attorney Brian N. Folland. “We have seen a huge shift into more realistic loan modifications, as lenders aggressively attempt to clean up this mortgage mess. We are also seeing a huge spike in the frequency and amounts of principal reductions, suggesting a true correction of the housing bubble. In California specifically, lenders have also become leery of the CA Homeowner’s Bill of Rights. This gives us more leverage in our negotiations with lenders and has increased the frequency and magnitude of our successes in representing homeowners and making sure they get a fair shake. This is why having an attorney representing you is so important in mortgage negotiations”, added Folland.

The report also showed a 14% increase in short sales from 2011, further suggesting that lenders and servicers are aggressively pursuing lasting solutions. With nearly 1.9 million foreclosure starts in 2012, nearly 1.3 million homeowners reached a permanent solution via loan modification or foreclosure alternatives (short sales and deeds-in-lieu of foreclosure).

Unfortunately, the report did not measure the percentage of gross delinquencies or litigations in 2012, leaving its readers to wonder what the 2013 foreclosure landscape might look like. In California, for example, recent consumer protection legislation suggests that litigations could very well escalate in 2013, as lender practices such as the “dual-track” foreclosure process have now been declared illegal. This measure will prevent lenders from proceeding with the foreclosure process while a homeowner is being considered for a modification or other foreclosure alternative.

]]> http://mortgagereliefproject.org/2013/02/hope-report-shows-shift-favoring-homeowners/feed/ 0 http://mortgagereliefproject.org/2012/12/homeowners-consumer-center-endorses-arnold-n-goodman-attorney-law/ http://mortgagereliefproject.org/2012/12/homeowners-consumer-center-endorses-arnold-n-goodman-attorney-law/#comments Tue, 04 Dec 2012 03:29:25 +0000 project http://mortgagereliefproject.org/?p=10887 Continue reading →]]> The Homeowners Consumer Center has endorsed the Goodman law firm for any US homeowner seeking assistance with a loan modification, mortgage workout, foreclosure defense, pre-foreclosure related issues, or mortgage servicing problems, and the group considers the endorsement a big deal for millions of struggling US homeowners. The group says, “The Goodman law firm consistently achieves significant results for homeowners seeking legal help with their mortgage, with a foreclosure, a mortgage workout, or with mortgage loan modifications throughout the US.”

Schedule a FREE Attorney Consultation!

The Homeowners Consumer says, “If a homeowner has verifiable income, if the homeowner qualifies for one of the MHA income/expense hardships, if the homeowner has received a mortgage default notification, if the homeowner is facing a foreclosure, or if the homeowner wants to negotiate better terms for their mortgage, there is a very good chance that Arnold N. Goodman, Attorney at Law, can assist them. Hundreds of thousands of US homeowners qualify for a loan modification-take advantage of this.” For more information about the nationwide services being offered by Arnold N Goodman, Attorney at Law, please call 1-877 297-1177.

The Homeowners Consumer Center is one of the best branded homeowner advocates in the United States, and the group is endorsing the Goodman law firm as the go to law firm for homeowners in any state, who are seeking a loan modification, pre-foreclosure defense, foreclosure defense, or a mortgage workout. The Goodman law firm also assists homeowners facing loan servicing nightmares. The Homeowners Consumer Center says, “Tragically, millions of individuals, or families struggling to save their homes try to fix a significant problem with their bank, or loan servicing company on their own, as opposed to having a very capable law firm do it for them-we think the mistake is fatal for most homeowners-with the result being a foreclosure.” The Homeowners Consumer Center has endorsed Arnold N. Goodman, Attorney at Law, because this law firm frequently produces significant results for homeowners seeking relief under one of the federal MHA loan modification, foreclosure defense, or mortgage workout programs nationwide. For more information homeowners wishing a loan modification, or dealing with a possible foreclosure, mortgage default, or loan servicing issues are urged to contact the Goodman Law Firm at 1 (877) 297-1177. http://HomeownersConsumerCenter.Com

Important Notice from the Homeowners Consumer Center: “If any US homeowner is seeking a loan modification many banks are telling homeowners to quote stop making your mortgage payments. We say that is insanity. Do not stop making your mortgage payments without first consulting a law firm, and we recommend the Goodman law firm.” http://HomeownersConsumerCenter.Com

The Homeowners Consumer Center has endorsed the Law Firm of Arnold N. Goodman, Attorney at Law for their legal capabilities for homeowners in all 50 states, who are need the following types of assistance:

Loan Modifications-Congress has given US bank’s billions for loan modifications. The Homeowners Consumer Center says, “Homeowners in all states should call the Goodman law firm, if they want more information about a loan modification, provided they are still making payments on their loan. Hundreds of thousands of current homeowners qualify for these programs.”

Foreclosure Defense

The homeowner has received a default notice from their mortgage lender, and they do not respond in a proper manner.

The homeowner’s loan servicing company has misapplied mortgage payments, and the homeowner is now being shown to be late on their mortgage. This might include misapplied reserve payments for taxes, insurance, or a change in loan servicing companies.

Mortgage Modifications and Foreclosure Alternatives.

The Homeowners Consumer Center says, “The attorneys of Arnold N. Goodman, Attorney at Law, are a nationwide team of attorneys that offer comprehensive mortgage representation for homeowners seeking a loan modification, foreclosure defense, or a mortgage workout by way of the federal MHA or In-house programs. Their representation includes local of counsel attorneys, nationwide. Arnold N. Goodman, Attorney at Law and its nationwide network of attorneys will represent you in court, mediation hearings, and or during the entire mortgage renegotiation process.” The Homeowners Consumer Center is urging homeowners seeking a loan modification, foreclosure defense, or a mortgage workout to utilize the unequaled talents of the Arnold N. Goodman, Attorney at Law in all US states. For more information please contact the Arnold N. Goodman, Attorney at Law, at 1 (877) 297-1177.

Schedule a FREE Attorney Consultation!

]]> http://mortgagereliefproject.org/2012/12/homeowners-consumer-center-endorses-arnold-n-goodman-attorney-law/feed/ 0 http://mortgagereliefproject.org/2012/11/bank-america-paying-steer-homeowners-foreclosure-defense-attorneys/ http://mortgagereliefproject.org/2012/11/bank-america-paying-steer-homeowners-foreclosure-defense-attorneys/#comments Thu, 01 Nov 2012 20:27:48 +0000 project http://mortgagereliefproject.org/?p=8951 Continue reading →]]> If Bank of America is paying money to steer homeowners away from foreclosure defense attorneys, they must believe that there is some value in doing so. To the consumer seeking assistance with a foreclosure or distressed mortgage, this should be a clear signal that YOU SHOULD consult an attorney regarding a troubled mortgage. These days, there are plenty of legitimate law firms that offer free consultations to distressed homeowners, so what do you have to lose?

So, how do we know that Bank of America is paying good money to steer homeowners away from foreclosure defense attorneys? Well, when you search the internet using a search engine like Google or Bing/Yahoo, the first few listings at the top of the page are “paid” advertising. That is, companies bid for their ads to appear in those top positions in order to increase traffic to their websites and promote their business. So, why does Bank of America often appear in the top position when I search for “foreclosure defense attorneys” on Google?

Industry insider Mike Amos, CEO of Mortgage Relief Project, chuckled at the question. “That is exactly why we recommend that consumers hire experienced attorneys when trying to prevent a foreclosure or obtain a loan modification or other mortgage workout”, said Amos. “What Bank of America and other banks don’t want you to know is that many homeowners have legitimate legal defenses that attorneys can raise regarding the loan’s origination, proper transfer of title, etc. These defenses can end up costing the bank more money in legal fees and extend the foreclosure process, especially in judicial foreclosure states. In New Jersey, one such judicial foreclosure state, some estimates show the average time to foreclosure on a home being nearly three years. The banks figure if they can get their hands on a homeowner and offer them something attractive, they will save money in the long run. What homeowners should understand is that banks only make offers that are financially beneficial to them. When you add an attorney on your side, a bank must change their cost analysis and would probably be amenable to more liberal offers.”

Recently, California has taken the lead in consumer protection for distressed homeowners by enacting legislation which forces banks to address any RESPA, TILA, or other violations in the origination of the loan, prior to being able to proceed with a foreclosure. The same piece of legislation also seeks to prohibit the “dual-track” system, a common practice in which lenders lead homeowners into believing that they are being considered for a loan modification while simultaneously moving forward with the foreclosure process. “We are expecting that most other states with follow suit”, added Amos. “All these laws do is hold lenders accountable for their actions and make sure that homeowners are getting a fair shake.”

Bank of America is currently leading the nation amongst large banks for their efforts to combat the mortgage crisis. In the past year, B of A has committed billions of dollars to helping struggling homeowners. In many cases, they have sent unsolicited offers for principal reductions to homeowners in some of the hardest hit areas like CA. While these gestures should be applauded, let us not forget the first rule of negotiation; never accept the first offer! “If B of A is willing to reduce your balance by 20,000 without you even asking, imagine what they might reduce it to if you had an attorney representing you…”, retorted Amos.

If you’re looking for some change from the Federal government regarding the foreclosure crisis, you can find it in the GOP’s offerings. The big question is, at what price and who will it benefit? If you are a struggling homeowner, the plans of the Romney camp should scare you. If you are a wealthy landlord seeking to acquire more properties, the Romney plan should look pretty inviting.

As the Obama plan (HAMP, et al) sees new incentives and a broader scope since its June revisions, the GOP offers quite a different solution to the housing crisis. Though the subject was only grazed by both Vice Presidential candidates, it was apparent that Biden supports the current plans of the Obama administration, including its greater reach and increased incentives, particularly for principal reductions.

Conversely, it was clear that the Romney plan is entirely different and would seek to end the crisis quickly by eliminating protections for consumers currently facing foreclosure, which are currently causing delays in the foreclosure process. The Romney camp would seek to eliminate barriers to the foreclosure process and allow banks to move more swiftly through the foreclosure process. The idea simply being that the housing market would at least see a “bottom” much sooner. Critics were quick to warn that such a flood of inventory would most certainly cause a value decline in the housing market as supplies grow.

Regardless of political orientation, most Americans are simply looking for solutions. In a political race where the struggling U.S. economy has taken center stage, many onlookers find it strange that the housing crisis has received so little attention. “The housing crisis is a key component of the overall economic woes of the U.S.”, said Mortgage Relief Project’s Mike Amos. “We believe that there is more than one path to recovery and that the true problem is the bipartisan gridlock of Washington and their inability to enlist the cooperation of the banks in fixing the problem. From years of experience in the trenches of foreclosure defense, I believe that the missing element is principal reductions.

President Obama included a “principal forbearance” component in the HAMP program which was completely ignored by the banks. When banks foreclose, they will have to resell the property at the current market value. Why not skip the costly foreclosure process and keep people in their homes with payments they can afford? There is no better loan modification than a principal reduction, so the ‘principal forbearance’ is fair.”

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