Nationwide Loan Services
Why is a RESPA or TILA audit worthless ?
* According to NLS the audits are based on the APR and disclosures tied to the cost of financing the loan. If the loan is calculated using false income figures as evidenced by the form 1008 the entire set of disclosure documents are rendered incorrect.
What should I look for in my loan file?
· Tough question...even for an attorney.
So where do I start?
· Ask around. Find a loan examiner with underwriting experience. Ask a lender what they will look for today (versus last year) for qualifying a borrower.
What are the most critical documents to review?
· The final 1003 form or application and the form 1008 transmittal.
Why?
· It's funny, but almost every file we see at NLS is absent the final 1003 application and the form 1008 transmittal.
Why is it funny to you?
· A RESPA Audit cannot be of value if the 1003 is wrong and the 1008 is incorrect. If both are wrong you cannot audit any other disclosure documents where they all are wrong. So what are you auditing?
Really? Why is that?
· The 1008 is the lead disclosure document and the 1003 is a federal document that prohibits any type of fraud. Every document we see from a borrower is from the signing of the loan. Those loan docs are considered final documents. But the final 1003 application and 1008 transmittal are the most important documents to an underwriter or examiner. Yet, they are always missing from the borrower's loan file.
What is the significance for these documents?
· First, a lender will argue equitable distribution of consideration and mutual consent at the time of funding. Both parties signed the documents and both received ample consideration under a fraudulent set of terms and conditions.
· Second, the fraud many refer to at signing actually takes place behind the scene long after the loan is signed.
I understand but still, what is the real significance of the two items you claim I am missing?
· You did sign the loan documents and you are the maker of the note. The motivation to sign the documents was in exchange for the funds used to purchase or refinance the home you’re in.
And your point?
· The final 1003 may be different than the one you’re presented at closing. And the 1008 is a carefully crafted documented used solely to sell loans into the secondary market. In other words, the final 1003 and 1008 must sing out their song in perfect harmony to allow a loan to be sold later.
So, if the presumption of equitable distribution is true....what’s the difference?
· It's not necessarily true, that is the rule of equitable distribution. But a lazy lawyer and clueless judge will opt for the arguments and use the rule to fast-forward a decision for their fair haired client or victim defendant, the lender.
And?
· You must differentiate the fraud from consensual error’s and mutual culpability Try to further evidence the efforts by the lender to perpetrate fraud that are far beyond closing and long after your endorsement of the loan documents and settlement!
Okay, got it. What’s next?
msoliman@borrowerhotline.com
www.foreclosureinfosearch.com
Informational only. Some material assumed by permission. Post comments in accordance with ethical web protocol www.borrowerhotline.com
August 2, 2009
Why a RESPA or TILA audit is worthless
Why is a RESPA or TILA audit worthless?
* According to Nationwide Loan Services
Why a RESPA or TILA audit worthless
What should I look for in my loan file?
· Tough question...even for an attorney.
So where do I start?
· Ask around. Find a loan examiner with underwriting experience. Ask a lender what they will look for today (versus last year) for qualifying a borrower.
What are the most critical documents to review?
· The final 1003 form or application and the form 1008 transmittal.
Why?
· It's funny, but almost every file we see at NLS is absent the final 1003 application and the form 1008 transmittal.
Why is it funny to you?
· A RESPA Audit cannot be of value if the 1003 is wrong and the 1008 is incorrect. If both are wrong you cannot audit any other disclosure documents where they all are wrong. So what are you auditing?
Really? Why is that?
· The 1008 is the lead disclosure document and the 1003 is a federal document that prohibits any type of fraud. Every document we see from a borrower is from the signing of the loan. Those loan docs are considered final documents. But the final 1003 application and 1008 transmittal are the most important documents to an underwriter or examiner. Yet, they are always missing from the borrower's loan file.
What is the significance for these documents?
· First, a lender will argue equitable distribution of consideration and mutual consent at the time of funding. Both parties signed the documents and both received ample consideration under a fraudulent set of terms and conditions.
· Second, the fraud many refer to at signing actually takes place behind the scene long after the loan is signed.
I understand but still, what is the real significance of the two items you claim I am missing?
· You did sign the loan documents and you are the maker of the note. The motivation to sign the documents was in exchange for the funds used to purchase or refinance the home you’re in.
And your point?
· The final 1003 may be different than the one you’re presented at closing. And the 1008 is a carefully crafted documented used solely to sell loans into the secondary market. In other words, the final 1003 and 1008 must sing out their song in perfect harmony to allow a loan to be sold later.
So, if the presumption of equitable distribution is true....what’s the difference?
· It's not necessarily true, that is the rule of equitable distribution. But a lazy lawyer and clueless judge will opt for the arguments and use the rule to fast-forward a decision for their fair haired client or victim defendant, the lender.
And?
· You must differentiate the fraud from consensual error’s and mutual culpability Try to further evidence the efforts by the lender to perpetrate fraud that are far beyond closing and long after your endorsement of the loan documents and settlement!
Okay, got it. What’s next?
msoliman@borrowerhotline.com
www.foreclosureinfosearch.com
Informational only. Some material assumed by permission. Post comments in accordance with ethical web protocol www.borrowerhotline.com
* According to Nationwide Loan Services
Why a RESPA or TILA audit worthless
What should I look for in my loan file?
· Tough question...even for an attorney.
So where do I start?
· Ask around. Find a loan examiner with underwriting experience. Ask a lender what they will look for today (versus last year) for qualifying a borrower.
What are the most critical documents to review?
· The final 1003 form or application and the form 1008 transmittal.
Why?
· It's funny, but almost every file we see at NLS is absent the final 1003 application and the form 1008 transmittal.
Why is it funny to you?
· A RESPA Audit cannot be of value if the 1003 is wrong and the 1008 is incorrect. If both are wrong you cannot audit any other disclosure documents where they all are wrong. So what are you auditing?
Really? Why is that?
· The 1008 is the lead disclosure document and the 1003 is a federal document that prohibits any type of fraud. Every document we see from a borrower is from the signing of the loan. Those loan docs are considered final documents. But the final 1003 application and 1008 transmittal are the most important documents to an underwriter or examiner. Yet, they are always missing from the borrower's loan file.
What is the significance for these documents?
· First, a lender will argue equitable distribution of consideration and mutual consent at the time of funding. Both parties signed the documents and both received ample consideration under a fraudulent set of terms and conditions.
· Second, the fraud many refer to at signing actually takes place behind the scene long after the loan is signed.
I understand but still, what is the real significance of the two items you claim I am missing?
· You did sign the loan documents and you are the maker of the note. The motivation to sign the documents was in exchange for the funds used to purchase or refinance the home you’re in.
And your point?
· The final 1003 may be different than the one you’re presented at closing. And the 1008 is a carefully crafted documented used solely to sell loans into the secondary market. In other words, the final 1003 and 1008 must sing out their song in perfect harmony to allow a loan to be sold later.
So, if the presumption of equitable distribution is true....what’s the difference?
· It's not necessarily true, that is the rule of equitable distribution. But a lazy lawyer and clueless judge will opt for the arguments and use the rule to fast-forward a decision for their fair haired client or victim defendant, the lender.
And?
· You must differentiate the fraud from consensual error’s and mutual culpability Try to further evidence the efforts by the lender to perpetrate fraud that are far beyond closing and long after your endorsement of the loan documents and settlement!
Okay, got it. What’s next?
msoliman@borrowerhotline.com
www.foreclosureinfosearch.com
Informational only. Some material assumed by permission. Post comments in accordance with ethical web protocol www.borrowerhotline.com
Why a RESPA or TILA audit maybe worthless
Why is a RESPA or TILA audit worthless ?
* Stated Income or SISA loans are typically calculated using the wrong income and assets. The amount needed to qualify is usually over inflated. NLS is certain that no one disclosure based on APR can be correct without the proper income included.
Therein lies the biggest problem for the lender, its successors and assigns. Nearly every disclosure is wrong.
What should I look for in my loan file?
· Tough question...even for an attorney.
So where do I start?
· Ask around. Find a loan examiner with underwriting experience. Ask a lender what they will look for today (versus last year) for qualifying a borrower.
What are the most critical documents to review?
· The final 1003 form or application and the form 1008 transmittal.
Why?
· It's funny, but almost every file we see at NLS is absent the final 1003 application and the form 1008 transmittal.
Why is it funny to you?
· A RESPA Audit cannot be of value if the 1003 is wrong and the 1008 is incorrect. If both are wrong you cannot audit any other disclosure documents where they all are wrong. So what are you auditing?
Really? Why is that?
· The 1008 is the lead disclosure document and the 1003 is a federal document that prohibits any type of fraud. Every document we see from a borrower is from the signing of the loan. Those loan docs are considered final documents. But the final 1003 application and 1008 transmittal are the most important documents to an underwriter or examiner. Yet, they are always missing from the borrower's loan file.
What is the significance for these documents?
· First, a lender will argue equitable distribution of consideration and mutual consent at the time of funding. Both parties signed the documents and both received ample consideration under a fraudulent set of terms and conditions.
· Second, the fraud many refer to at signing actually takes place behind the scene long after the loan is signed.
I understand but still, what is the real significance of the two items you claim I am missing?
· You did sign the loan documents and you are the maker of the note. The motivation to sign the documents was in exchange for the funds used to purchase or refinance the home you’re in.
And your point?
· The final 1003 may be different than the one you’re presented at closing. And the 1008 is a carefully crafted documented used solely to sell loans into the secondary market. In other words, the final 1003 and 1008 must sing out their song in perfect harmony to allow a loan to be sold later.
So, if the presumption of equitable distribution is true....what’s the difference?
· It's not necessarily true, that is the rule of equitable distribution. But a lazy lawyer and clueless judge will opt for the arguments and use the rule to fast-forward a decision for their fair haired client or victim defendant, the lender.
And?
· You must differentiate the fraud from consensual error’s and mutual culpability Try to further evidence the efforts by the lender to perpetrate fraud that are far beyond closing and long after your endorsement of the loan documents and settlement!
Okay, got it. What’s next?
msoliman@borrowerhotline.com
www.foreclosureinfosearch.com
Informational only. Some material assumed by permission. Post comments in accordance with ethical web protocol www.borrowerhotline.com
* Stated Income or SISA loans are typically calculated using the wrong income and assets. The amount needed to qualify is usually over inflated. NLS is certain that no one disclosure based on APR can be correct without the proper income included.
Therein lies the biggest problem for the lender, its successors and assigns. Nearly every disclosure is wrong.
What should I look for in my loan file?
· Tough question...even for an attorney.
So where do I start?
· Ask around. Find a loan examiner with underwriting experience. Ask a lender what they will look for today (versus last year) for qualifying a borrower.
What are the most critical documents to review?
· The final 1003 form or application and the form 1008 transmittal.
Why?
· It's funny, but almost every file we see at NLS is absent the final 1003 application and the form 1008 transmittal.
Why is it funny to you?
· A RESPA Audit cannot be of value if the 1003 is wrong and the 1008 is incorrect. If both are wrong you cannot audit any other disclosure documents where they all are wrong. So what are you auditing?
Really? Why is that?
· The 1008 is the lead disclosure document and the 1003 is a federal document that prohibits any type of fraud. Every document we see from a borrower is from the signing of the loan. Those loan docs are considered final documents. But the final 1003 application and 1008 transmittal are the most important documents to an underwriter or examiner. Yet, they are always missing from the borrower's loan file.
What is the significance for these documents?
· First, a lender will argue equitable distribution of consideration and mutual consent at the time of funding. Both parties signed the documents and both received ample consideration under a fraudulent set of terms and conditions.
· Second, the fraud many refer to at signing actually takes place behind the scene long after the loan is signed.
I understand but still, what is the real significance of the two items you claim I am missing?
· You did sign the loan documents and you are the maker of the note. The motivation to sign the documents was in exchange for the funds used to purchase or refinance the home you’re in.
And your point?
· The final 1003 may be different than the one you’re presented at closing. And the 1008 is a carefully crafted documented used solely to sell loans into the secondary market. In other words, the final 1003 and 1008 must sing out their song in perfect harmony to allow a loan to be sold later.
So, if the presumption of equitable distribution is true....what’s the difference?
· It's not necessarily true, that is the rule of equitable distribution. But a lazy lawyer and clueless judge will opt for the arguments and use the rule to fast-forward a decision for their fair haired client or victim defendant, the lender.
And?
· You must differentiate the fraud from consensual error’s and mutual culpability Try to further evidence the efforts by the lender to perpetrate fraud that are far beyond closing and long after your endorsement of the loan documents and settlement!
Okay, got it. What’s next?
msoliman@borrowerhotline.com
www.foreclosureinfosearch.com
Informational only. Some material assumed by permission. Post comments in accordance with ethical web protocol www.borrowerhotline.com
January 16, 2009
Taking Back Your Home in Foreclosure
Foreclosure is crippling and devastating to the people who suffer through it. The lender under normal circumstances makes a borrower a loan. The borrower is subject now to the obligation. Borrower signed the documents and lender provided the money.
So why in the world would anyone feel sorry for a grown adult who cannot pay their bills. Life happens to us everyday and that's a fact. But what happens when hardship is not part of the affordability issue. In other words, the borrower who may have the ability to borrower from family and friends is at at disadvantage. They may have taken on a second job and found away to make other ends meet. So now they want to do the right things an get back on track with their mortgage lender.
First problem we see is people don't not know who the lender is anymore Even till the last day of foreclosure most borrowers will not know who to contact. They don't know why the voice they are talking with and who answers the phone in the lenders name is so full of broker promises.
We know why....and the answers we have allow consumers to fight back.
"Take our home but at least give us a chance to fight back."
So why in the world would anyone feel sorry for a grown adult who cannot pay their bills. Life happens to us everyday and that's a fact. But what happens when hardship is not part of the affordability issue. In other words, the borrower who may have the ability to borrower from family and friends is at at disadvantage. They may have taken on a second job and found away to make other ends meet. So now they want to do the right things an get back on track with their mortgage lender.
First problem we see is people don't not know who the lender is anymore Even till the last day of foreclosure most borrowers will not know who to contact. They don't know why the voice they are talking with and who answers the phone in the lenders name is so full of broker promises.
We know why....and the answers we have allow consumers to fight back.
"Take our home but at least give us a chance to fight back."
January 7, 2009
WHY MORTGAGE SECURTIZATION DOES NOT WORK
Press Release Nationwide Loan Services/ www.borrowerhotline.com
Rescission time for Homeowners
November 10th 2008 Regulatory criteria from HUD and compliance with the SEC are two very distinct and different sets of regulations that are at Odds. The newest theory is great news for homeowners struggling who need something other than government promises that are yet to be seen. The recent discovery focuses on the wide gap and distance separating Wall Street and Main Street. Therein is the logical argument for some of lenders whom remain unwilling to capitulate to borrower demands for relief in lieu of foreclosure.
According to recent score cards being tallied by house and senate members, nothing is happening with regards to the national mortgage aid plan. The news of an exact cause for the meltdown is timely given nothing is anticipated to be resolved until President-elect Barack Obama takes office on Jan. 20 next year. The president elect will then pick up the pieces while pursuing policies for administering the rescue program that are likely to be more closely aligned with his Democratic allies in Congress.
Random predatory lending over recent years may or may have not have occurred by accident or malice. Nor is there evidence the meltdown was caused by complete disregard for federal regulatory guidelines such as the Real Estate Settlement and Procedures Act. What is important to law makers and the private sector is how Wall Street fits in to the workout and why lenders are not necessarily where a homeowner will find the appropriate elixir.
Either way, consumers expect a sincere effort from the lender of record where the struggle continues to remain in one’s home. That is where the problem exists from most homeowners, according to Maher Soliman, an industry analyst and expert in the field. Experts are entitled to testify at trial because of their special knowledge in a particular field. This entitles him or her to offer opinion on the meaning of facts versus non-expert witnesses who are only permitted to testify about facts they observed and not their opinions about these facts.
According to Soliman, “I changed my views and no longer see the problem as solely due to collective recklessness and unwarranted lender predatory acts”. This news arrives after many legislatures’ grow concerned and are feeling hopeless while their constituency of homeowner’s come to grips with the high level of lender inertia and institutional apathy towards the problem.
The SEC is very specific in accordance with each offering and what roles the parties play in securitizing these loans. The level of detail and scrutiny under SEC guidelines is strict, though it varies from one loan servicing “pool” agreement to another. See the securities filing with the SEC - Periodic Distribution Reports by Asset-Backed Issuers, Form 10-D, 424B5 Registrations Prospectus -- Rule 424(b)(5)
That being said, their need to remain compliant with regards to shareholders and SEC disclosures requirements is a reason why securities sponsors are focused on other things rather than the regulatory protections offered under RESPA and TILA. RESPA protects consumers and requires that borrowers receive disclosures at various times. Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices and describe business relationships between settlement service providers.
Mortgages are bought and sold on
Wall Street all the time and that is nothing new
The borrower’s we talk to do not even know who their lender is therefore have no idea they have a disclosure problem. According to Soliman, “loan servicing agents often cannot even tell you who the lender of record is and that is a disclosure violation should the borrower ask the question”. The loans are assigned on a regular basis away from one party to the next. Therein is another problem with regards to trustee’s where multiple transfers occur in difficult times due to bankruptcy of the original lender and or borrower delinquency and foreclosure.
An immediate failure to assign any interest or disclose of such has no bearing on Wall Street but is a violation of federal housing laws. They are not in compliance due to Mortgage Electronic Registry Systems (MERS) and that’s just the tip of the iceberg as for your conflict.
Another problem exit’s where the trustees and beneficiary of record are working against the borrower with complete avoidance of the repurchase provisions show in the SEC master serving and filing documents. A UCC filing requirement under Rule 9 does not allow for a bilateral contract to compromise a third party unrelated to the contract.
Trustees and “beny” must record intervening assignments before the fact and properly disclose its transfer upon evidencing a recording. Therefore all conveyances from MERS will potentially fail and are voidable under a court ruling. Most non-agency securities sponsors show the lender at close is an undisclosed bank and the guarantor on the loan. The guarantor and the sponsors have no interest in the loans pending the mandate to repurchase the loan.
They cannot allow servicers to represent the lender where they only share a name or otherwise you have collusion. Improper disclosure issues are what allow a consumer to file suit for a rescission. With little effort NLS claims it can show the lender is not the beneficiary of record or the lender as many think. This revelation now brings into play the unlawfulness of a combination or affiliated business arrangement. RESPA regulatory requirements apply to transactions that may involve a loan on residential real estate. That is according to Jonathan A. Goodman, attorney for Frascona, Joiner, Goodman and Greenstein, P.C., Boulder, Colorado. The lawyer’s web site states it as follows “RESPA generally prohibits payment of referral fees, unearned fees or kickbacks, as well as the splitting or sharing of fees or charges made or received for providing "real estate settlement services."
SEC Vs. HUD
What this all comes down to is the mortgage backed securities structure used in a private placement violates a borrower rights under the loan master servicing and pooling agreements. It’s actually a consumer advantage for arguments sake disguised as a regulatory nightmare. But in the detail and legalese that looks like it was written in written in Greek is valuable substance for attorneys to make a case for relief under the threat of a lawsuit seeking to cancel their loan.
Again, what is important to know is the quagmire known as the mortgage mess consists of a card game with poker players who are highly exposed. These public companies, investment bankers and high net worth private investors are “dealing” and “wagering” under the watchful eye of the SEC. Soliman uses this example to point out the following
“now try to imagine high stakes game of poker being under strict rules of the players . . .no cheating! The players are the SEC and local town authority is the HUD. . . In other words the game is wrongful but none the less, played by the rules and behind the city's back!
All of this is something the government can’t get a handle on or does not want to become involved in. NLS is an authority on the subject of wrongful foreclosure and has received growing press coverage by national news organizations (Newsweek, CNN and MSNBC) over the internet.
It’s harder now to convince people of their rights with all the internet sites fighting for business in this new economy called stop foreclosure now, according to Soliman. NLS was warning of the coming meltdown and doing this work long before the market collapsed and was viewed then as a hardliner and critic dangerous to Mortgage Banking.
According to Soliman, “borrower loans that are in default or that are going into foreclosure continue without a fight. Borrowers need to get up top speed and realize that these loans can be rescinded”.
NLS staff offers 25 years in the biz and have served as industry analysts, bulk loan traders and purchase and sale underwriters on Wall Street. NLS have helped attorneys as expert witnesses and their clients on wrongful foreclosure matters for years. Their involvement includes many larger high profile cases such (particpating or study close up) of the SEC case for the AARP Vs Lehman Brothers; Pinn Fund USA Vs Government and cases such as CitiFinancial Corp which settled for $300 million after purchasing Associates and after only one year.
This Web site is specifically designed to review foreclosures and lender malpractice cases. NLS Nationwide Loan Services is a mortgage foreclosure legal research advisor to counsel.
You can file your claim with NLS who will opine and reccomend to counsel the merit for seeking a rescission. They also can provide an attorney to work with you.
Maher Soliman
Borrower Hotline
Rescission time for Homeowners
November 10th 2008 Regulatory criteria from HUD and compliance with the SEC are two very distinct and different sets of regulations that are at Odds. The newest theory is great news for homeowners struggling who need something other than government promises that are yet to be seen. The recent discovery focuses on the wide gap and distance separating Wall Street and Main Street. Therein is the logical argument for some of lenders whom remain unwilling to capitulate to borrower demands for relief in lieu of foreclosure.
According to recent score cards being tallied by house and senate members, nothing is happening with regards to the national mortgage aid plan. The news of an exact cause for the meltdown is timely given nothing is anticipated to be resolved until President-elect Barack Obama takes office on Jan. 20 next year. The president elect will then pick up the pieces while pursuing policies for administering the rescue program that are likely to be more closely aligned with his Democratic allies in Congress.
Random predatory lending over recent years may or may have not have occurred by accident or malice. Nor is there evidence the meltdown was caused by complete disregard for federal regulatory guidelines such as the Real Estate Settlement and Procedures Act. What is important to law makers and the private sector is how Wall Street fits in to the workout and why lenders are not necessarily where a homeowner will find the appropriate elixir.
Either way, consumers expect a sincere effort from the lender of record where the struggle continues to remain in one’s home. That is where the problem exists from most homeowners, according to Maher Soliman, an industry analyst and expert in the field. Experts are entitled to testify at trial because of their special knowledge in a particular field. This entitles him or her to offer opinion on the meaning of facts versus non-expert witnesses who are only permitted to testify about facts they observed and not their opinions about these facts.
According to Soliman, “I changed my views and no longer see the problem as solely due to collective recklessness and unwarranted lender predatory acts”. This news arrives after many legislatures’ grow concerned and are feeling hopeless while their constituency of homeowner’s come to grips with the high level of lender inertia and institutional apathy towards the problem.
The SEC is very specific in accordance with each offering and what roles the parties play in securitizing these loans. The level of detail and scrutiny under SEC guidelines is strict, though it varies from one loan servicing “pool” agreement to another. See the securities filing with the SEC - Periodic Distribution Reports by Asset-Backed Issuers, Form 10-D, 424B5 Registrations Prospectus -- Rule 424(b)(5)
That being said, their need to remain compliant with regards to shareholders and SEC disclosures requirements is a reason why securities sponsors are focused on other things rather than the regulatory protections offered under RESPA and TILA. RESPA protects consumers and requires that borrowers receive disclosures at various times. Some disclosures spell out the costs associated with the settlement, outline lender servicing and escrow account practices and describe business relationships between settlement service providers.
Mortgages are bought and sold on
Wall Street all the time and that is nothing new
The borrower’s we talk to do not even know who their lender is therefore have no idea they have a disclosure problem. According to Soliman, “loan servicing agents often cannot even tell you who the lender of record is and that is a disclosure violation should the borrower ask the question”. The loans are assigned on a regular basis away from one party to the next. Therein is another problem with regards to trustee’s where multiple transfers occur in difficult times due to bankruptcy of the original lender and or borrower delinquency and foreclosure.
An immediate failure to assign any interest or disclose of such has no bearing on Wall Street but is a violation of federal housing laws. They are not in compliance due to Mortgage Electronic Registry Systems (MERS) and that’s just the tip of the iceberg as for your conflict.
Another problem exit’s where the trustees and beneficiary of record are working against the borrower with complete avoidance of the repurchase provisions show in the SEC master serving and filing documents. A UCC filing requirement under Rule 9 does not allow for a bilateral contract to compromise a third party unrelated to the contract.
Trustees and “beny” must record intervening assignments before the fact and properly disclose its transfer upon evidencing a recording. Therefore all conveyances from MERS will potentially fail and are voidable under a court ruling. Most non-agency securities sponsors show the lender at close is an undisclosed bank and the guarantor on the loan. The guarantor and the sponsors have no interest in the loans pending the mandate to repurchase the loan.
They cannot allow servicers to represent the lender where they only share a name or otherwise you have collusion. Improper disclosure issues are what allow a consumer to file suit for a rescission. With little effort NLS claims it can show the lender is not the beneficiary of record or the lender as many think. This revelation now brings into play the unlawfulness of a combination or affiliated business arrangement. RESPA regulatory requirements apply to transactions that may involve a loan on residential real estate. That is according to Jonathan A. Goodman, attorney for Frascona, Joiner, Goodman and Greenstein, P.C., Boulder, Colorado. The lawyer’s web site states it as follows “RESPA generally prohibits payment of referral fees, unearned fees or kickbacks, as well as the splitting or sharing of fees or charges made or received for providing "real estate settlement services."
SEC Vs. HUD
What this all comes down to is the mortgage backed securities structure used in a private placement violates a borrower rights under the loan master servicing and pooling agreements. It’s actually a consumer advantage for arguments sake disguised as a regulatory nightmare. But in the detail and legalese that looks like it was written in written in Greek is valuable substance for attorneys to make a case for relief under the threat of a lawsuit seeking to cancel their loan.
Again, what is important to know is the quagmire known as the mortgage mess consists of a card game with poker players who are highly exposed. These public companies, investment bankers and high net worth private investors are “dealing” and “wagering” under the watchful eye of the SEC. Soliman uses this example to point out the following
“now try to imagine high stakes game of poker being under strict rules of the players . . .no cheating! The players are the SEC and local town authority is the HUD. . . In other words the game is wrongful but none the less, played by the rules and behind the city's back!
All of this is something the government can’t get a handle on or does not want to become involved in. NLS is an authority on the subject of wrongful foreclosure and has received growing press coverage by national news organizations (Newsweek, CNN and MSNBC) over the internet.
It’s harder now to convince people of their rights with all the internet sites fighting for business in this new economy called stop foreclosure now, according to Soliman. NLS was warning of the coming meltdown and doing this work long before the market collapsed and was viewed then as a hardliner and critic dangerous to Mortgage Banking.
According to Soliman, “borrower loans that are in default or that are going into foreclosure continue without a fight. Borrowers need to get up top speed and realize that these loans can be rescinded”.
NLS staff offers 25 years in the biz and have served as industry analysts, bulk loan traders and purchase and sale underwriters on Wall Street. NLS have helped attorneys as expert witnesses and their clients on wrongful foreclosure matters for years. Their involvement includes many larger high profile cases such (particpating or study close up) of the SEC case for the AARP Vs Lehman Brothers; Pinn Fund USA Vs Government and cases such as CitiFinancial Corp which settled for $300 million after purchasing Associates and after only one year.
This Web site is specifically designed to review foreclosures and lender malpractice cases. NLS Nationwide Loan Services is a mortgage foreclosure legal research advisor to counsel.
You can file your claim with NLS who will opine and reccomend to counsel the merit for seeking a rescission. They also can provide an attorney to work with you.
Maher Soliman
Borrower Hotline
mortgagee, trustee, beneficiary
2923.5. (a) (1) A mortgagee, trustee, beneficiary, or authorized
agent may not file a notice of default pursuant to Section 2924 until
30 days after contact is made as required by paragraph (2) or 30
days after satisfying the due diligence requirements as described in
subdivision (g).
agent may not file a notice of default pursuant to Section 2924 until
30 days after contact is made as required by paragraph (2) or 30
days after satisfying the due diligence requirements as described in
subdivision (g).
Expert Attorney Limited Engagement Assistance
EXPERT-CLIENT FEE AGREEMENT
NATIONWIDE LOAN SERVICING (Expert) and ___________________________ (.Client.) hereby agrees that Expert will provide expert services to Client on the terms set forth below.
1. CONDITIONS. This Agreement will not take effect, and Expert will have no obligation to provide expert services, until Client returns a signed copy of this Agreement and pays the initial deposit called for under Paragraph 4.
2. SCOPE OF SERVICES. Client hires Expert to provide expert services in the following matter:________________________________________________[Describe matter]. Expert will provide those expert services reasonably required to will not represent Client. Expert will take reasonable steps to keep Client informed of progress and to respond to Client’s inquiries. If a court action is filed, Expert will assist Client through trial and post trial motions. This Agreement does not cover will not representation on appeal or in execution proceedings after judgment. Separate arrangements must be agreed to for those services. Services in any matter not described above will require a separate written agreement.
3. CLIENT’S DUTIES. Client agrees to be truthful with Expert, to cooperate, to keep Expert informed of any information or developments which may come to Clients attention, to abide by this Agreement, to pay Expert’s bills on time, and to keep Expert advised of Client’s address, telephone number and whereabouts. Client will assist Expert in providing necessary information and documents and will appear when necessary at proceedings.
4. DEPOSIT. Client agrees to pay Expert an initial deposit of $________ by ________________. The hourly charges will be charged against the deposit. The initial deposit, as well as any future deposit, will be held in a trust account. Client authorizes Expert to use that fund to pay the fees and other charges as they are incurred. Payments from the fund will be made upon remittance to client of a billing statement. Client acknowledges that the deposit is not an estimate of total fees and costs, but merely an advance for security. Whenever the deposit is exhausted, Expert reserves the right to demand further deposits, each up to a maximum of $____________ before a trial or arbitration date is set. Once a trial or arbitration date is set, Client shall pay all sums then owing and deposit the Experts fees estimated to be incurred in preparing for and completing the trial or arbitration, as well as the jury fees or arbitration fees, expert witness fees and other costs likely to be assessed. Those sums may exceed the maximum deposit. Client agrees to pay all deposits after the initial deposit within _____ days of Experts demand. Unless otherwise agreed in writing, any unused deposit at the conclusion of Experts services will be refunded.
5. EXPERT FEES AND BILLING PRACTICES. Client agrees to pay by the hour at Expert’s prevailing rates for all time spent on Client’s matter by Expert’s expert personnel. Current hourly rates for expert personnel are as follows:
Senior Expert partners /hour
Expert Partners /hour
Associates /hour
Para Legal /hour
Law clerks /hour
The rates on this schedule are subject to change on 30 days. Written notice to Client. If Client declines to pay increased rates, Expert will have the right to withdraw as Expert for Client. The time charged will include the time Expert spends on telephone calls relating to Clients matter, including calls with Client, witnesses, opposing counsel or court personnel. The expert personnel assigned to Clients matter may confer among themselves about the matter, as required and appropriate. When they do confer, each person will charge for the time expended, as long as the work done is reasonably necessary and not duplicative. Likewise, if more than one of the expert personnel attends a meeting, court hearing or other proceeding, each will charge for the time spent. Expert will charge for waiting time in court and elsewhere and for travel time, both local and out of town. Time is charged in minimum units of one-tenth (. 1) of an hour.
The following have higher minimum charges:
Telephone calls:
Letters:
Other:
6. COSTS AND OTHER CHARGES.
(a) Expert will incur various costs and expenses in performing expert services under this Agreement. Client agrees to pay for all costs, disbursements and expenses in addition to the hourly fees. The costs and expenses commonly include, service of process charges, filing fees, court and deposition reporters' fees, jury fees, notary fees, deposition costs, long distance telephone charges, messenger and other delivery fees, postage, photocopying and other reproduction costs, travel costs including parking, mileage, transportation, meals and hotel costs, investigation expenses, consultants' fees, expert witness, professional, mediator, arbitrator and/or special master fees and other similar items. Except for the items listed below, all costs and expenses will be charged at Expert's cost. In-office photocopying: /page Facsimile charges: /page Mileage: /mile
Other:
(b) Out of town travel. Client agrees to pay transportation, meals, lodging and all other costs of any necessary out-of-town travel by Expert’s personnel. Client will also be charged the hourly rates for the time expert personnel spend traveling.
(c) Experts, Consultants and Investigators. To aid in the preparation or presentation of Client’s case, it may become necessary to hire expert witnesses, consultants or investigators. Client agrees to pay such fees and charges. Expert will select any expert witnesses, consultants or investigators to be hired, and Client will be informed of persons chosen and their charges. Additionally, Client understands that if the matter proceeds to court action or arbitration, Client may be required to pay fees and/or costs to other parties in the action. Any such payment will be entirely the responsibility of Client.
7. BILLING STATEMENTS. Expert will send Client periodic statements for fees and costs incurred. Each statement will be payable within ________ days of its mailing date. Client may request a statement at intervals of no less than 30 days. If Client so requests, Expert will provide one within 10 days. The statements shall include the amount, rate, basis of calculation or other method of determination of the fees and costs, which costs will be clearly identified by item and amount.
8. LIEN. Client hereby grants Expert a lien on any and all claims or causes of action that are the subject of the will not representation under this Agreement. The lien will be for any sums owing to Expert at the conclusion of services performed. The lien will attach to any recovery Client may obtain, whether by arbitration award, judgment, settlement or otherwise. The effect of such a lien is that Expert may be able to compel payment of fees and costs from any such funds recovered on behalf of Client even if Expert has been discharged before the end of the case. Because a lien may affect Clients property rights, Client may seek the advice of an independent lawyer of Clients choice before agreeing to such a lien. By initialing this paragraph, Client will not represent s and agrees that Client has had a reasonable opportunity to consult such an independent lawyer and whether or not Client has chosen to consult such an independent lawyer. Client agrees that Expert will have a lien as specified above.
______ (Client Initial Here) ______ (Expert Initial Here)
9. DISCHARGE ANDWITHDRAWAL. Client may discharge Expert at any time. Expert may withdraw with Clients consent or for good cause. Good cause includes Client’s breach of this Agreement, refusal to cooperate or to follow Experts advice on a material matter or any fact or circumstance that would render Experts continuing will not representation unlawful or unethical. When Experts services conclude, all unpaid charges will immediately become due and payable. After services conclude, Expert will, upon Clients request, deliver Clients file and property in Experts possession unless subject to the lien provided in Paragraph 8 above, whether or not Client has paid for all services.
10. DISCLAIMER OF GUARANTEE AND ESTIMATES. Nothing in this Agreement and nothing in Experts statements to Client will be construed as a promise or guarantee about the outcome of the matter. Expert makes no such promises or guarantees. Expert’s comments about the outcome of the matter are expressions of opinion only. Any estimate of fees given by Expert shall not be a guarantee. Actual fees may vary from estimates given.
11. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties. No other agreement, statement, or promise made on or before the effective date of this Agreement will be binding on the properties.
12. SEVERABILITY IN EVENT OF PARTIAL INVALIDITY. If any provision of this Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect.
13. MODIFICATION BY SUBSEQUENT AGREEMENT. This Agreement may be modified by subsequent agreement of the parties only by an instrument in writing signed by both of them, or an oral agreement only to the extent that the parties carry it out.
14. EFFECTIVE DATE. This Agreement will govern all expert services performed by Expert on behalf of Client commencing with the date Expert first performed services. The date at the beginning of this Agreement is for reference only. Even if this Agreement does not take effect, Client will be obligated to pay Expert the reasonable value of any services Expert may have performed for Client.
THE PARTIES HAVE READ AND UNDERSTOOD THE FOREGOING TERMS ANDAGREE TO THEM AS OF THE DATE EXPERT FIRST PROVIDED SERVICES. IFMORE THAN ONE CLIENT SIGNS BELOW, EACH AGREES TO BE LIABLE, JOINTLYAND SEVERALLY, FOR ALL OBLIGATIONS UNDER THIS AGREEMENT. CLIENTSHALL RECEIVE A FULLY EXECUTED DUPLICATE OF THIS AGREEMENT.
DATED: _________________________
_________________________________
(Client)
Address:__________________________
_________________________________
Telephone:________________________
DATED: _________________________
Nationwide Loan Servicing
By:______________________________
Brenda Michelson
Partner
NATIONWIDE LOAN SERVICING (Expert) and ___________________________ (.Client.) hereby agrees that Expert will provide expert services to Client on the terms set forth below.
1. CONDITIONS. This Agreement will not take effect, and Expert will have no obligation to provide expert services, until Client returns a signed copy of this Agreement and pays the initial deposit called for under Paragraph 4.
2. SCOPE OF SERVICES. Client hires Expert to provide expert services in the following matter:________________________________________________[Describe matter]. Expert will provide those expert services reasonably required to will not represent Client. Expert will take reasonable steps to keep Client informed of progress and to respond to Client’s inquiries. If a court action is filed, Expert will assist Client through trial and post trial motions. This Agreement does not cover will not representation on appeal or in execution proceedings after judgment. Separate arrangements must be agreed to for those services. Services in any matter not described above will require a separate written agreement.
3. CLIENT’S DUTIES. Client agrees to be truthful with Expert, to cooperate, to keep Expert informed of any information or developments which may come to Clients attention, to abide by this Agreement, to pay Expert’s bills on time, and to keep Expert advised of Client’s address, telephone number and whereabouts. Client will assist Expert in providing necessary information and documents and will appear when necessary at proceedings.
4. DEPOSIT. Client agrees to pay Expert an initial deposit of $________ by ________________. The hourly charges will be charged against the deposit. The initial deposit, as well as any future deposit, will be held in a trust account. Client authorizes Expert to use that fund to pay the fees and other charges as they are incurred. Payments from the fund will be made upon remittance to client of a billing statement. Client acknowledges that the deposit is not an estimate of total fees and costs, but merely an advance for security. Whenever the deposit is exhausted, Expert reserves the right to demand further deposits, each up to a maximum of $____________ before a trial or arbitration date is set. Once a trial or arbitration date is set, Client shall pay all sums then owing and deposit the Experts fees estimated to be incurred in preparing for and completing the trial or arbitration, as well as the jury fees or arbitration fees, expert witness fees and other costs likely to be assessed. Those sums may exceed the maximum deposit. Client agrees to pay all deposits after the initial deposit within _____ days of Experts demand. Unless otherwise agreed in writing, any unused deposit at the conclusion of Experts services will be refunded.
5. EXPERT FEES AND BILLING PRACTICES. Client agrees to pay by the hour at Expert’s prevailing rates for all time spent on Client’s matter by Expert’s expert personnel. Current hourly rates for expert personnel are as follows:
Senior Expert partners /hour
Expert Partners /hour
Associates /hour
Para Legal /hour
Law clerks /hour
The rates on this schedule are subject to change on 30 days. Written notice to Client. If Client declines to pay increased rates, Expert will have the right to withdraw as Expert for Client. The time charged will include the time Expert spends on telephone calls relating to Clients matter, including calls with Client, witnesses, opposing counsel or court personnel. The expert personnel assigned to Clients matter may confer among themselves about the matter, as required and appropriate. When they do confer, each person will charge for the time expended, as long as the work done is reasonably necessary and not duplicative. Likewise, if more than one of the expert personnel attends a meeting, court hearing or other proceeding, each will charge for the time spent. Expert will charge for waiting time in court and elsewhere and for travel time, both local and out of town. Time is charged in minimum units of one-tenth (. 1) of an hour.
The following have higher minimum charges:
Telephone calls:
Letters:
Other:
6. COSTS AND OTHER CHARGES.
(a) Expert will incur various costs and expenses in performing expert services under this Agreement. Client agrees to pay for all costs, disbursements and expenses in addition to the hourly fees. The costs and expenses commonly include, service of process charges, filing fees, court and deposition reporters' fees, jury fees, notary fees, deposition costs, long distance telephone charges, messenger and other delivery fees, postage, photocopying and other reproduction costs, travel costs including parking, mileage, transportation, meals and hotel costs, investigation expenses, consultants' fees, expert witness, professional, mediator, arbitrator and/or special master fees and other similar items. Except for the items listed below, all costs and expenses will be charged at Expert's cost. In-office photocopying: /page Facsimile charges: /page Mileage: /mile
Other:
(b) Out of town travel. Client agrees to pay transportation, meals, lodging and all other costs of any necessary out-of-town travel by Expert’s personnel. Client will also be charged the hourly rates for the time expert personnel spend traveling.
(c) Experts, Consultants and Investigators. To aid in the preparation or presentation of Client’s case, it may become necessary to hire expert witnesses, consultants or investigators. Client agrees to pay such fees and charges. Expert will select any expert witnesses, consultants or investigators to be hired, and Client will be informed of persons chosen and their charges. Additionally, Client understands that if the matter proceeds to court action or arbitration, Client may be required to pay fees and/or costs to other parties in the action. Any such payment will be entirely the responsibility of Client.
7. BILLING STATEMENTS. Expert will send Client periodic statements for fees and costs incurred. Each statement will be payable within ________ days of its mailing date. Client may request a statement at intervals of no less than 30 days. If Client so requests, Expert will provide one within 10 days. The statements shall include the amount, rate, basis of calculation or other method of determination of the fees and costs, which costs will be clearly identified by item and amount.
8. LIEN. Client hereby grants Expert a lien on any and all claims or causes of action that are the subject of the will not representation under this Agreement. The lien will be for any sums owing to Expert at the conclusion of services performed. The lien will attach to any recovery Client may obtain, whether by arbitration award, judgment, settlement or otherwise. The effect of such a lien is that Expert may be able to compel payment of fees and costs from any such funds recovered on behalf of Client even if Expert has been discharged before the end of the case. Because a lien may affect Clients property rights, Client may seek the advice of an independent lawyer of Clients choice before agreeing to such a lien. By initialing this paragraph, Client will not represent s and agrees that Client has had a reasonable opportunity to consult such an independent lawyer and whether or not Client has chosen to consult such an independent lawyer. Client agrees that Expert will have a lien as specified above.
______ (Client Initial Here) ______ (Expert Initial Here)
9. DISCHARGE ANDWITHDRAWAL. Client may discharge Expert at any time. Expert may withdraw with Clients consent or for good cause. Good cause includes Client’s breach of this Agreement, refusal to cooperate or to follow Experts advice on a material matter or any fact or circumstance that would render Experts continuing will not representation unlawful or unethical. When Experts services conclude, all unpaid charges will immediately become due and payable. After services conclude, Expert will, upon Clients request, deliver Clients file and property in Experts possession unless subject to the lien provided in Paragraph 8 above, whether or not Client has paid for all services.
10. DISCLAIMER OF GUARANTEE AND ESTIMATES. Nothing in this Agreement and nothing in Experts statements to Client will be construed as a promise or guarantee about the outcome of the matter. Expert makes no such promises or guarantees. Expert’s comments about the outcome of the matter are expressions of opinion only. Any estimate of fees given by Expert shall not be a guarantee. Actual fees may vary from estimates given.
11. ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties. No other agreement, statement, or promise made on or before the effective date of this Agreement will be binding on the properties.
12. SEVERABILITY IN EVENT OF PARTIAL INVALIDITY. If any provision of this Agreement is held in whole or in part to be unenforceable for any reason, the remainder of that provision and of the entire Agreement will be severable and remain in effect.
13. MODIFICATION BY SUBSEQUENT AGREEMENT. This Agreement may be modified by subsequent agreement of the parties only by an instrument in writing signed by both of them, or an oral agreement only to the extent that the parties carry it out.
14. EFFECTIVE DATE. This Agreement will govern all expert services performed by Expert on behalf of Client commencing with the date Expert first performed services. The date at the beginning of this Agreement is for reference only. Even if this Agreement does not take effect, Client will be obligated to pay Expert the reasonable value of any services Expert may have performed for Client.
THE PARTIES HAVE READ AND UNDERSTOOD THE FOREGOING TERMS ANDAGREE TO THEM AS OF THE DATE EXPERT FIRST PROVIDED SERVICES. IFMORE THAN ONE CLIENT SIGNS BELOW, EACH AGREES TO BE LIABLE, JOINTLYAND SEVERALLY, FOR ALL OBLIGATIONS UNDER THIS AGREEMENT. CLIENTSHALL RECEIVE A FULLY EXECUTED DUPLICATE OF THIS AGREEMENT.
DATED: _________________________
_________________________________
(Client)
Address:__________________________
_________________________________
Telephone:________________________
DATED: _________________________
Nationwide Loan Servicing
By:______________________________
Brenda Michelson
Partner
Reviewing SEC Filings: Freemont
Mortgage Loan Sale and Assignment Agreement
(filed as an exhibit to Form 8-K on 2006-07-14)
On March 7, 2007 Fremont General Corporation ("FGC"), its wholly-owned industrial bank, Fremont Investment & Loan and Fremont General Credit Corporation, a wholly-owned subsidiary of FGC, have consented to the terms of a Cease and Desist Order issued by the Federal Deposit Insurance Corporation without admitting to the allegations contained in such order. The order calls, among other things, for the FGC to make a variety of changes in its sub-prime residential loan origination business and also calls for certain changes in its commercial real estate lending business.
The registrant knows of no other material pending legal proceedings involving the Trust and all parties related to such Trust, other than routine litigation incidental to the duties of those respective parties.
Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions.
Information required by Item 1119 was provided previously in a prospectus timely filed pursuant to Rule 424 promulgated under the Securities Act of 1933, under the same Central Index Key (CIK) code as this annual report on Form 10-K. No material changes to such information have occurred since the initial Rule 424 filing.
Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria.
The assessment of compliance for Wilshire Credit Corporation (“Wilshire”) has disclosed the following material noncompliance with servicing criterion 1122(d)(4)(iv), applicable to Wilshire during the year ended December 31, 2006.
On one of the forty-five loan payoffs selected for testing, Wilshire calculated the prepayment charge in accordance with the related mortgage note, but transposed the numbers when entering the charge into its system, resulting in an overcharge to the borrower. Such assessment further states that this error has been corrected and the overcharge has been refunded to the borrower.
(filed as an exhibit to Form 8-K on 2006-07-14)
On March 7, 2007 Fremont General Corporation ("FGC"), its wholly-owned industrial bank, Fremont Investment & Loan and Fremont General Credit Corporation, a wholly-owned subsidiary of FGC, have consented to the terms of a Cease and Desist Order issued by the Federal Deposit Insurance Corporation without admitting to the allegations contained in such order. The order calls, among other things, for the FGC to make a variety of changes in its sub-prime residential loan origination business and also calls for certain changes in its commercial real estate lending business.
The registrant knows of no other material pending legal proceedings involving the Trust and all parties related to such Trust, other than routine litigation incidental to the duties of those respective parties.
Item 1119 of Regulation AB. Affiliations and Certain Relationships and Related Transactions.
Information required by Item 1119 was provided previously in a prospectus timely filed pursuant to Rule 424 promulgated under the Securities Act of 1933, under the same Central Index Key (CIK) code as this annual report on Form 10-K. No material changes to such information have occurred since the initial Rule 424 filing.
Item 1122 of Regulation AB. Compliance with Applicable Servicing Criteria.
The assessment of compliance for Wilshire Credit Corporation (“Wilshire”) has disclosed the following material noncompliance with servicing criterion 1122(d)(4)(iv), applicable to Wilshire during the year ended December 31, 2006.
On one of the forty-five loan payoffs selected for testing, Wilshire calculated the prepayment charge in accordance with the related mortgage note, but transposed the numbers when entering the charge into its system, resulting in an overcharge to the borrower. Such assessment further states that this error has been corrected and the overcharge has been refunded to the borrower.
foreclosure notices filed against California homeowners
Foreclosures
The number of foreclosure notices filed against California homeowners has reached its highest level in more than fifteen years. According to real estate information service DataQuick Information Systems, lending institutions sent homeowners 81,550 default notices in the last quarter of 2007, up 12.4 percent from the previous quarter and up 114.6 percent from fourth-quarter 2006.
In the past, most people who lost their homes to foreclose did so because they were unemployed or suffered unexpected medical expenses caused by a catastrophic illness. But the subprime mortgage crisis has changed all that, according to John Taylor, president of the National Community Reinvestment Coalition. Seven out of ten people foreclosing on their homes are healthy and gainfully employed; they simply cannot afford to make their monthly payments.
The only way to stop foreclosure is to declare Bankruptcy. 11 USC 1301-1330. Foreclosure can be stayed if you are a member of the armed services under the Servicemembers Civil Relief Act (SCRA) (formerly Soldiers and Sailors Civil Relief Act (SSCRA) (50 App. U.S.C. 501-596)).
In California 99% of foreclosures are non-judicial, that is, there is no need for the mortgage company to go to court to recover from a borrower when the borrower does not pay their debt in accordance with the mortgage agreement. In these cases there is a "power of sale" clause in the deed of trust or mortgage that pre-authorizes the sale of the property to pay off the balance of the loan when the loan is in default. If the deed of trust or mortgage contains a power of sale clause that specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure must conform to California Civil Code sec. 2920-2924:
The Trustee must record a "Notice of Default" (NOD) in the county where the property is located. Recording the NOD commences the three-month "reinstatement period" in which the borrower may cure the default by paying all delinquent payments and late charges, plus Trustees' fees and expenses
The Trustee must mail the borrower a copy of the NOD within 10 days of recording it.
After the three-month reinstatement period the Trustee can schedule a sale if:
The Trustee publishes a "Notice of Trustee's Sale" (NOTS) in a newspaper of general circulation in the county where the property is located. The NOTS must be published once a week for three consecutive weeks over a 20-day period.
Twenty days before the sale the NOTS must be mailed via registered or certified mail to the borrower.
Fourteen days before the sale the NOTS must be recorded in the county recorder's office.
The NOTS must be posted for at least 20 days in at least one public place in the city or judicial district or county of the sale.
The NOTS must be posted for at least 20 days in a conspicuous place on the property, on the front door if the property is a single-family residence.
Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption.
Judicial foreclosure is used when no power of sale is present in the mortgage or deed of trust. The lender must file a lawsuit and obtain a court order to foreclose. Lenders using judicial foreclosure may seek a deficiency judgment, that is, if the borrower owes more than the house is worth the lender may obtain a judgment for the difference between the amount owed and the selling price of the house. Under certain circumstances, the borrower may have up to one year after the property is auctioned to redeem the property, that is, to reclaim the property after paying the total amount of the mortgage plus costs and fees.
Because of the public nature of foreclosures, anyone can access foreclosure listings. Armed with the owner's name and address, scammers can take advantage of a desperate owner. To encourage fair dealing in the rendition of foreclosure services, the California Legislature enacted the Mortgage Foreclosure Consultants Act, Civil Code 2945, which requires that foreclosure consultant service agreements be in writing, permits the rescission of such contracts, and prohibits representations that tend to mislead. Be on the lookout for these common foreclosure scams:
A party offers to buy your home, then lets you rent it back. It sounds good at first, but you're losing your property, and your new landlord can now legally kick you out of your home with little notice.
Scams involve paying large sums of money to some sort of "foreclosure prevention service." These services usually offer counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don't do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free.
Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don't understand. Don't sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization listed below:
HOPE 24 Hour HotLine1-888-995-HOPEHomeownership Preservation Foundation, an independent nonprofit that provides HUD-approved counselors dedicated to helping homeowners.http://www.995hope.org/
State of California Consumer Home Mortgage Informationhttp://www.yourhome.ca.gov/mortgage-help.shtml
Local Housing Counseling Agencies
Home Loan Counseling Center of Sacramento 2003 Howe Avenue, Suite 100Sacramento, CA 95825(916) 646-2005
NeighborWorks HomeOwnership Center 2400 Alhambra BoulevardSacramento, CA 95817(916) 452-5356, ext. 229
ByDesign Financial Solutions4636 Watt Avenue, 2nd FloorNorth Highlands, CA 95660(800) 750-2227
Senior Legal Hotline - Legal Services of Northern California444 North Third Street, Suite 312Sacramento, CA 95814(916) 551-2140
Acorn Housing Corp.4433 Florin Road #830Sacramento, CA 95823(916) 451-9659
Sacramento Mutual Housing Association3451 Fifth AvenueSacramento, CA 95817(916) 453-8400, ext. 43
Other Web Resources
U.S. Department of Housing and Urban Development Links:
Avoiding Foreclosure(En Espanol)
How To Avoid Foreclosure Brochure (pdf)
Help For Homeowners Facing The Loss Of Their Home(En Espanol)
Veterans Administration Link:(VA) - Trouble Making Payments
Freddie Mac (FHLMC) Link:What if You Cannot Pay Your Mortgage? (En Espanol)
The number of foreclosure notices filed against California homeowners has reached its highest level in more than fifteen years. According to real estate information service DataQuick Information Systems, lending institutions sent homeowners 81,550 default notices in the last quarter of 2007, up 12.4 percent from the previous quarter and up 114.6 percent from fourth-quarter 2006.
In the past, most people who lost their homes to foreclose did so because they were unemployed or suffered unexpected medical expenses caused by a catastrophic illness. But the subprime mortgage crisis has changed all that, according to John Taylor, president of the National Community Reinvestment Coalition. Seven out of ten people foreclosing on their homes are healthy and gainfully employed; they simply cannot afford to make their monthly payments.
The only way to stop foreclosure is to declare Bankruptcy. 11 USC 1301-1330. Foreclosure can be stayed if you are a member of the armed services under the Servicemembers Civil Relief Act (SCRA) (formerly Soldiers and Sailors Civil Relief Act (SSCRA) (50 App. U.S.C. 501-596)).
In California 99% of foreclosures are non-judicial, that is, there is no need for the mortgage company to go to court to recover from a borrower when the borrower does not pay their debt in accordance with the mortgage agreement. In these cases there is a "power of sale" clause in the deed of trust or mortgage that pre-authorizes the sale of the property to pay off the balance of the loan when the loan is in default. If the deed of trust or mortgage contains a power of sale clause that specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure must conform to California Civil Code sec. 2920-2924:
The Trustee must record a "Notice of Default" (NOD) in the county where the property is located. Recording the NOD commences the three-month "reinstatement period" in which the borrower may cure the default by paying all delinquent payments and late charges, plus Trustees' fees and expenses
The Trustee must mail the borrower a copy of the NOD within 10 days of recording it.
After the three-month reinstatement period the Trustee can schedule a sale if:
The Trustee publishes a "Notice of Trustee's Sale" (NOTS) in a newspaper of general circulation in the county where the property is located. The NOTS must be published once a week for three consecutive weeks over a 20-day period.
Twenty days before the sale the NOTS must be mailed via registered or certified mail to the borrower.
Fourteen days before the sale the NOTS must be recorded in the county recorder's office.
The NOTS must be posted for at least 20 days in at least one public place in the city or judicial district or county of the sale.
The NOTS must be posted for at least 20 days in a conspicuous place on the property, on the front door if the property is a single-family residence.
Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption.
Judicial foreclosure is used when no power of sale is present in the mortgage or deed of trust. The lender must file a lawsuit and obtain a court order to foreclose. Lenders using judicial foreclosure may seek a deficiency judgment, that is, if the borrower owes more than the house is worth the lender may obtain a judgment for the difference between the amount owed and the selling price of the house. Under certain circumstances, the borrower may have up to one year after the property is auctioned to redeem the property, that is, to reclaim the property after paying the total amount of the mortgage plus costs and fees.
Because of the public nature of foreclosures, anyone can access foreclosure listings. Armed with the owner's name and address, scammers can take advantage of a desperate owner. To encourage fair dealing in the rendition of foreclosure services, the California Legislature enacted the Mortgage Foreclosure Consultants Act, Civil Code 2945, which requires that foreclosure consultant service agreements be in writing, permits the rescission of such contracts, and prohibits representations that tend to mislead. Be on the lookout for these common foreclosure scams:
A party offers to buy your home, then lets you rent it back. It sounds good at first, but you're losing your property, and your new landlord can now legally kick you out of your home with little notice.
Scams involve paying large sums of money to some sort of "foreclosure prevention service." These services usually offer counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don't do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free.
Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don't understand. Don't sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization listed below:
HOPE 24 Hour HotLine1-888-995-HOPEHomeownership Preservation Foundation, an independent nonprofit that provides HUD-approved counselors dedicated to helping homeowners.http://www.995hope.org/
State of California Consumer Home Mortgage Informationhttp://www.yourhome.ca.gov/mortgage-help.shtml
Local Housing Counseling Agencies
Home Loan Counseling Center of Sacramento 2003 Howe Avenue, Suite 100Sacramento, CA 95825(916) 646-2005
NeighborWorks HomeOwnership Center 2400 Alhambra BoulevardSacramento, CA 95817(916) 452-5356, ext. 229
ByDesign Financial Solutions4636 Watt Avenue, 2nd FloorNorth Highlands, CA 95660(800) 750-2227
Senior Legal Hotline - Legal Services of Northern California444 North Third Street, Suite 312Sacramento, CA 95814(916) 551-2140
Acorn Housing Corp.4433 Florin Road #830Sacramento, CA 95823(916) 451-9659
Sacramento Mutual Housing Association3451 Fifth AvenueSacramento, CA 95817(916) 453-8400, ext. 43
Other Web Resources
U.S. Department of Housing and Urban Development Links:
Avoiding Foreclosure(En Espanol)
How To Avoid Foreclosure Brochure (pdf)
Help For Homeowners Facing The Loss Of Their Home(En Espanol)
Veterans Administration Link:(VA) - Trouble Making Payments
Freddie Mac (FHLMC) Link:What if You Cannot Pay Your Mortgage? (En Espanol)
October 19, 2008
Newsweek Samulson: Storyline Comments
MSoliman / www.borrowerhotline.com/ Los Angeles, Calif / 10/19/2008 We're probably already in recession? According to Newsweek published report / Samulson
Retail sales dropped 1.2 percent. Housing collapse is really a banking disaster, soaring commodity prices, i.e. Higher oil prices, earnings a question mark for last quarter, unemployment will raise short term, overvalues equities and economic situation here and abroad will continues to impact stocks and market confidence. Now the word is Consumption spending will no doubt drop according to recent figures. Maher Soliman, analyst for consumer homeowner website said "Samuelson is gratuitous in sugar coating the dilemma". We will see certainly see lower spending figures posted for third quarter. "Soliman said” it's concerning from a comparison viewpoint to the reality of a 1930's depression era economic. A new deal type program might require a tax base for bail out something in line with a socialist government. Does capitalism work or is a highly unregulated government approach to the markets and economy sustainable? MSolman borrowerhotline.com
Retail sales dropped 1.2 percent. Housing collapse is really a banking disaster, soaring commodity prices, i.e. Higher oil prices, earnings a question mark for last quarter, unemployment will raise short term, overvalues equities and economic situation here and abroad will continues to impact stocks and market confidence. Now the word is Consumption spending will no doubt drop according to recent figures. Maher Soliman, analyst for consumer homeowner website said "Samuelson is gratuitous in sugar coating the dilemma". We will see certainly see lower spending figures posted for third quarter. "Soliman said” it's concerning from a comparison viewpoint to the reality of a 1930's depression era economic. A new deal type program might require a tax base for bail out something in line with a socialist government. Does capitalism work or is a highly unregulated government approach to the markets and economy sustainable? MSolman borrowerhotline.com
July 10, 2008
Subprime California Mortgage Loan Meltdown
MORTGAGE INDUSTRY - 2008
An Experts Perspective
Homeowners across the country are finding themselves in varying economic hardship situations ranging from a minor annoyance to severe financial ruin (causing obvious mental and physical fatigue). This site is an attempt to accomplish something that has failed to date to gain the attention of others who should be concerned.
It's anything but amusing for a mortgage "expert" who provides foreclosure testimony for matters related to the recent meltdown. The reference is in accordance with copyrighting and gobbling up domains for resale, swapping foreclosure links for internet traffic and using news headings to attract readers like "Sub-prime Disaster" , "The Charles Manson of Lending" and "Mortgage Loan Meltdown". Maher Soliman
But, first my inner feelings of insecurity and genuine need for admission into a group with others. The designation of "expert" is very uncomfortable for me and something conjecture tells me that none of us (Expert Witnesses) ever really get accustomed to carrying around.
Example: George is an engineer, or at a car wash when they are calling out Dr Smith's Car and at posh restaurant when your hear "table for Sir Elton" or talk on Sunday about Fr. Jim's sermon. I hear things like, "Hey , Mr. Expert" , or "are experts experienced" and "let me introduce you to Steve , he's a court appointed genius"..."I mean expert".
I think you get it, so I'll spare you from the daily struggle and inner search for recognition and appropriate identification. It's something all expert's suffer from to some degree. But you will agree that your career choice over time and achievements working in a specific sector and field qualifies you to a greater (or lesser) extent to testify in a court of law.Maher Soliman
It's funny to consider that in the aftermath of a trial it's not experience or what the expert will contribute to the matter that is key to prevailing. It's sometimes discouraging to believe, it's not what you know and offer but how the information will be argued in court that counts I've come to see things clearer now as I reflect after spending years and long hours and working late into the night on mortgage related fraud cases.
So I can tell you with confidence, it's not always what you know or volume of what you provide that will substantiate an argument. Rather it's how counsel can often times use the information we provide to completely confuse things and show the courts the likelihood for a decision while not trying to rationalize the facts.It's like you want to establish a critical volume of facts before your court date and whereby the objective is to demonstrate how the facts, based on verifiable empirical methods and applications, have little or no bearing on the matter at hand. By the way, I am referring here to my experience's where it was I who provided substance to the legal team and the introduction of logic and explanations are what allowed our team to add to the confusion and to prevail!
In my opinion - - smart, not brilliant, but smart! Listen, don't try to understand. Anyway, if you don't I assure you, one day you will!
I offer a broad spectrum of lending experiences and whole loan secondary trading profile that includes experience working as an analyst and non agency loan servicing professional. Can't say if I am really the best or the beast that's out there for hire. But I will tell you this, I have seen a lot in the last 25 years spent on the job and while working in sub prime. That includes Countrywide, Bear Sterns, G MAC, SAXON, BofA, etc....Maher Soliman...
Mortgage Meltdown Maher Soliman
Mortgage Patti-melt, Mortgage Loan Malfunction, Mortgage massacre, Mortgage Moron's, Mortgage Manischewitz ....Mortgage whatever you call it. This is serious and not meant to be a joke! The matter is not about the onslaught of web sites seeking to spread the word (and attract consultation work and easy money from fees) . Therein lies a problem with new "broker demon" turned "foreclosure evangelist" sector of business; but certainly not the same problem that concerns local, state and federal government .
The collapse of the mortgage capital markets particularly the non agency sectors is a bigger problem for those who own securities and those who "owe" their homes. Even the folks who live free and clear have a clam (try Friday's for the best fried claims).
It is not solely a problem for those homeowners unlucky enough to get caught in the tail end of the refinance mess. The homeowner losing their place of domicile, especially those who lack the resources to remedy their situation, are a sad statement on the economy. But their also proving to be fast learners as they near foreclosure and become more confident, savvy and astute.
Mortgage bankers are springing up with business as usual and that problem is huge.... perhaps monumental.
And finally, the attorneys. Lawyers are showing up and jumping into the game at a very late time. However, it would shock the law community and others to tell you how serious the demand is for qualified legal representation. A legal vacuum does exist and need for educated and resourceful counsel lacks where needed to meet this crisis head on. There is so much to learn and a lot more you should know if you are a homeowner.
Want some good news? My take is the homeowner in foreclosure is being thrown into the meltdown from a position of strength and not weakness. The problem is the lack of understanding for what to do with respect to taking action. That does not include the crippling fear factor effect foreclosure and servicer' have on homeowners and who are helping to confuse the matter. It is the prospect of enduring the unknown while faced with a draconian system for counting down the time of execution, the execution of a trustees sale.
As for the realization of losing ones home, I fear that most foreclosure victims lack desire or confidence needed to sustain the effort and fight to settle with their lender servicer.
This is all an educated observation coming from someone who knows first hand what happens on the inside during a down cycle. But trust me, this a down cycle like never seen before and likely ever again! As we go on I will bring you up to speed on some unique legal perspectives and expert facts that will cause you to wonder and say "how could it be!
NEXT UP !
Homeowners is distress need to understand what really has bearing on the likelihood for prevailing in a foreclosure situation.
An Experts Perspective
Homeowners across the country are finding themselves in varying economic hardship situations ranging from a minor annoyance to severe financial ruin (causing obvious mental and physical fatigue). This site is an attempt to accomplish something that has failed to date to gain the attention of others who should be concerned.
It's anything but amusing for a mortgage "expert" who provides foreclosure testimony for matters related to the recent meltdown. The reference is in accordance with copyrighting and gobbling up domains for resale, swapping foreclosure links for internet traffic and using news headings to attract readers like "Sub-prime Disaster" , "The Charles Manson of Lending" and "Mortgage Loan Meltdown". Maher Soliman
But, first my inner feelings of insecurity and genuine need for admission into a group with others. The designation of "expert" is very uncomfortable for me and something conjecture tells me that none of us (Expert Witnesses) ever really get accustomed to carrying around.
Example: George is an engineer, or at a car wash when they are calling out Dr Smith's Car and at posh restaurant when your hear "table for Sir Elton" or talk on Sunday about Fr. Jim's sermon. I hear things like, "Hey , Mr. Expert" , or "are experts experienced" and "let me introduce you to Steve , he's a court appointed genius"..."I mean expert".
I think you get it, so I'll spare you from the daily struggle and inner search for recognition and appropriate identification. It's something all expert's suffer from to some degree. But you will agree that your career choice over time and achievements working in a specific sector and field qualifies you to a greater (or lesser) extent to testify in a court of law.Maher Soliman
It's funny to consider that in the aftermath of a trial it's not experience or what the expert will contribute to the matter that is key to prevailing. It's sometimes discouraging to believe, it's not what you know and offer but how the information will be argued in court that counts I've come to see things clearer now as I reflect after spending years and long hours and working late into the night on mortgage related fraud cases.
So I can tell you with confidence, it's not always what you know or volume of what you provide that will substantiate an argument. Rather it's how counsel can often times use the information we provide to completely confuse things and show the courts the likelihood for a decision while not trying to rationalize the facts.It's like you want to establish a critical volume of facts before your court date and whereby the objective is to demonstrate how the facts, based on verifiable empirical methods and applications, have little or no bearing on the matter at hand. By the way, I am referring here to my experience's where it was I who provided substance to the legal team and the introduction of logic and explanations are what allowed our team to add to the confusion and to prevail!
In my opinion - - smart, not brilliant, but smart! Listen, don't try to understand. Anyway, if you don't I assure you, one day you will!
I offer a broad spectrum of lending experiences and whole loan secondary trading profile that includes experience working as an analyst and non agency loan servicing professional. Can't say if I am really the best or the beast that's out there for hire. But I will tell you this, I have seen a lot in the last 25 years spent on the job and while working in sub prime. That includes Countrywide, Bear Sterns, G MAC, SAXON, BofA, etc....Maher Soliman...
Mortgage Meltdown Maher Soliman
Mortgage Patti-melt, Mortgage Loan Malfunction, Mortgage massacre, Mortgage Moron's, Mortgage Manischewitz ....Mortgage whatever you call it. This is serious and not meant to be a joke! The matter is not about the onslaught of web sites seeking to spread the word (and attract consultation work and easy money from fees) . Therein lies a problem with new "broker demon" turned "foreclosure evangelist" sector of business; but certainly not the same problem that concerns local, state and federal government .
The collapse of the mortgage capital markets particularly the non agency sectors is a bigger problem for those who own securities and those who "owe" their homes. Even the folks who live free and clear have a clam (try Friday's for the best fried claims).
It is not solely a problem for those homeowners unlucky enough to get caught in the tail end of the refinance mess. The homeowner losing their place of domicile, especially those who lack the resources to remedy their situation, are a sad statement on the economy. But their also proving to be fast learners as they near foreclosure and become more confident, savvy and astute.
Mortgage bankers are springing up with business as usual and that problem is huge.... perhaps monumental.
And finally, the attorneys. Lawyers are showing up and jumping into the game at a very late time. However, it would shock the law community and others to tell you how serious the demand is for qualified legal representation. A legal vacuum does exist and need for educated and resourceful counsel lacks where needed to meet this crisis head on. There is so much to learn and a lot more you should know if you are a homeowner.
Want some good news? My take is the homeowner in foreclosure is being thrown into the meltdown from a position of strength and not weakness. The problem is the lack of understanding for what to do with respect to taking action. That does not include the crippling fear factor effect foreclosure and servicer' have on homeowners and who are helping to confuse the matter. It is the prospect of enduring the unknown while faced with a draconian system for counting down the time of execution, the execution of a trustees sale.
As for the realization of losing ones home, I fear that most foreclosure victims lack desire or confidence needed to sustain the effort and fight to settle with their lender servicer.
This is all an educated observation coming from someone who knows first hand what happens on the inside during a down cycle. But trust me, this a down cycle like never seen before and likely ever again! As we go on I will bring you up to speed on some unique legal perspectives and expert facts that will cause you to wonder and say "how could it be!
NEXT UP !
Homeowners is distress need to understand what really has bearing on the likelihood for prevailing in a foreclosure situation.
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