Foreclosure is Preferred Choice for Banks to Quiet Title

February 21st, 2010

In the Page entitled “Foreclosure Profits Deter Loan Mod” last week I suggested three possible motivators for banks to foreclose in preference to short sale or loan modification.  Then I went to a seminar by attorney Michael T. Pines and another light bulb lit up brightly.  Given the muddled situation with respect to rights and interests in loans that have undergone the securitization process, foreclosure is the quickest way to clean up the mess and consolidate profits with clear title to the asset underlying the mountain of paperwork.  After all, the home is the only thing of real value in all this.  In addition, the trail back to ill begotten profits that were pocketed during the course of previous loan cycling is erased and there’s a clear slate for renewed pillaging of the home when it gets back into the marketplace.

Bank Profits – One West $1.6B

February 21st, 2010

One West Bank recorded a profit last year of $1.6 billion [see LA Times Business 02/20/2010].  The FDIC stands to lose $11 billion.  This one year of profits was more than OWB paid to buy predecessor Indy Mac from the FDIC in March of 2009.   OWB’s feeding frenzy is being fueled by rampant foreclosures and turning loan modifications into a farce.  Your personal experience by way of comment would help document.

Loan Modifications Jump. Is This Progress?

February 18th, 2010

The stated goal of the Home Affordable Mortgage Program is to modify 3 to 4 million mortgages by 2012.  At a pace above 110,000 per month, nearly double last month, it could be that the program is on track by number of mortgages.  But in dollar terms, $2.2 billion allegedly saved by homeowners doesn’t compute.  Over what period of time?  Total funding is $75 billion, so where, when and how is that money being spent?

Why do Banks Prefer Foreclosure?

February 16th, 2010

A video appeared February 8, 2010 by a group called “Think Big, Work Small”.   The subject matter of the video is a case history of borrowers  who, by virtue of a series of agreements between One West Bank and the FDIC that were entered into when the failed IndyMac Bank was taken over by OWB last year, completed a short sale that resulted in an estimated 34% profit for OWB.  To add insult to injury, the borrowers had to sign a promissory note to OWB for an additional $75,000.  I studied the situation and wrote an article summarizing the highlights (see companion Page on this blog “Foreclosure Profits Beat Loan Mod”.  It does appear that the loss sharing arrangement between FDIC and OWB facilitates quick, easy and virtually guaranteed profit maximization by foreclosure.  What do you think?

NY Court Cancels Indy Mac Loan Due to Misconduct

January 17th, 2010

ABC video  newsclip.

Long Island Attorney Craig D. Robins knows the inside story and has an excellent blog feature describing what happened [see the Long Island Bankruptcy Blog]

Full Text of Judge Spinner’s opinion appears on Living Lies – Garfield Continuum.

Another Long Island native, John Myers, has written an article appearing on the Associated Content web page giving highlights of the trial and explaining why the Judge found Indy Mac to be “…repugnant, shocking and repulsive”.  [“Score One for the Consumer:  Judge Void’s Long Island Couple’s Mortgage!”]

CAVEAT:  New York is a step ahead of California.  They have a procedure that requires lenders to mediate directly with borrowers before completing a foreclosure.  See my California Legislative Update.

Americans Favor Urgent Tough Action on Global Warming

December 27th, 2009

[polldaddy poll=2435902]Richard Worthington, younger brother of Michael Worthington, attended the global climate conference in Copenhagen as Professor of Political Science specialized in science and technology at Pomona College. In this article, Rick is interviewed by BBC Journalist Daniel Grossman for background on two polls, World Wide Views and Pew Center, that were taken to measure public concern about global warming. It is encouraging that when given time to think, US respondents were 90% in favor of urgent, tough action.  Due to the importance of this issue, and given the likelihood that it will intersect with environmental law, not to mention the advantage of regular access to Rick for updates, it will be followed as a special interest topic on this web page.

Loan Modification Fees Cannot be Paid in Advance in California

November 29th, 2009

The most recent legislative enactment in California designed to stem the rising tide of fraud in loan modifications may have been an over reaction.   There has been a prohibition on attorneys charging fees in advance.  How are borrowers supposed to get the help they need to extract performance from obstinate lenders?
See new Page entitled “Loan Modification Suggestions” for more information.

Early Planning Guides for Loan Modification and Bankruptcy

November 15th, 2009

What you should know during loan modification and before you file for bankruptcy – follow these steps:

(1)  Collect your financial information.  What is your income and expense?  What are your assets and liabilities?

(2)  Consider the alternatives.  Get a free attorney consultation (widely available).  If you’re a homeowner, determine whether loan modification is feasible, or whether other measures are necessary.

(3)  If bankrtupcy is the only choice, familiarize yourself with the various types.  Chapter 7 to eliminate debts, Chapter 13 to pay all or part of your debts over time (often used to enable you to keep your home) and when Chapter 11 is required.

(4)  Develop a plan with an event timeline.

Avoid Bankruptcy – Prepare Ahead of Time

November 15th, 2009

Are you struggling through financial problems and no comprehensive plan of action to deal with them?  With the recession dragging on and unemployment persistently growing, large numbers of people are reacting to financial predicaments as they arise, with short term solutions.  Loan modification proceedings can become a major diversion that ultimately fails to fully resolve a steadily deteriorating situation.  The most effective moves to avoid bankruptcy must often be made six months to a year before reaching a crisis, and/or during the loan modification period.  You are welcome to post a comment or go to the Interactive Law Center and receive an early consultation.  Also see our Pages entitled “Bankruptcy Checklist” and “Special Capabilities Required of Attorneys for Bankrtupcy Work”.

Suffering Job Stress in California?

November 2nd, 2009

The work place is an environment where major potential exists for stress to develop.  Fortunately,  in California the employee does have a right to file a workers’ compensation claim for psychiatric injury, subject to special limitations described in the article on this blog entitled “California Job Stress”

If you feel like you’re getting squeezed out of your job, feel free to comment, or contact us via our web site –  the Interactive Law Center.  The section dedicated to the California workers’ compensation is found under “Legal Services”.