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FAQ on Texas AG Demand Letter to Mortgage Servicers to Halt Foreclosure Activity

admin — Wed, 06 Oct 2010 21:40:03 +0000

The following FAQ is a reprint of the FAQ provided to Texas Realtors and on the affect to various types of foreclosure related transactions such as REO sale, Short Sales, Evictions and Foreclosures.

>>>>> TAR – FAQForeclosureMoratorium100610

Much of this remains to be seen but it is worth reading and noting possible issues that may arise.

- The Bank Slayer

List of Lenders targeted by Texas Attorney General

admin — Wed, 06 Oct 2010 21:33:31 +0000

The following is the list of mortgage servicers (lenders) that have been initially targeted by Texas Attorney General Greg Abbot’s office for possible foreclosure fraud.

If your loan is in a foreclosure status or you have been wrongfully foreclosed within the last four years please seek assistance immediately.

- The Bank Slayer

Last updated 11 a.m. 10/6/2010
FAQ: Texas AG action against banks with foreclosed properties
What is the Texas Attorney General doing regarding foreclosures?
Texas Attorney General Greg Abbott has sent a demand letter to 30 mortgage banking and servicing
institutions asking that these institutions immediately “suspend all foreclosures, all sales of properties
previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties”
until these institutions have taken eight specific steps to rectify possible past errors in mortgage
documents.
Read the AG’s demand letter
See the list of banks
What is a demand letter?
A demand letter is a tool lawyers use to ask someone to do something. The demand letter by itself does
not have the force and effect of law. A demand letter typically will describe possible future legal action
against the recipient of the letter if the recipient does not take certain actions. In this case, Texas Attorney
General Abbott has noted possible violation by these banking institutions of the Texas Deceptive Trade
Practices Act, the Texas Debt Collection Act, the Texas Penal Code, the Texas Property Code, the Texas
Government Code, and the Texas Constitution.
How will the banks respond?
We don’t know how individual banks will respond to the demand letter. Anecdotally, we’ve been told that
some banks had already halted foreclosures due to concerns about the accuracy of documents and the
integrity of the loan servicing and administration of the foreclosure process. The Houston Chronicle
reported on Oct. 6 that some banks will not honor the AG’s request.
How will the demand letter affect current transactions?
If an institution chooses not to respond to or honor the demand letter, then the transaction should proceed
as if no demand letter had been sent.
If an institution chooses to respond to the demand letter, then the transaction could be affected in various
ways:
Foreclosures: Institutions that honor the AG’s request will likely postpone foreclosures that have
already been posted and will likely not post additional foreclosures until the dispute has been
resolved.
Foreclosed properties that are listed for sale: Institutions that honor the AG’s request will likely
not enter into a sales contract for a listed foreclosure until the dispute has been resolved.
Foreclosed properties that are under contract for sale: Institutions that honor the AG’s request
may delay closing a sales contract for a listed foreclosure under contract until the dispute has been
resolved.
Short sales: Institutions that honor the AG’s request may choose to delay closing on a pending
short-sale transaction until the dispute has been resolved.
Evictions of persons residing in previously foreclosed upon properties: Institutions that honor
the AG’s request will likely not evict previous homeowners who continue to live in the foreclosed
house until the dispute has been resolved. The institutions could, however, attempt to convince the
occupant to leave the property by offering cash for keys.
Commercial vs. residential properties: The demand letter makes no distinction between
commercial and residential properties.
What does the demand letter mean regarding Texas REALTOR® liability?
The demand letter should have no effect on Texas REALTOR® liability for individual transactions. The
REALTOR® remains an agent of and fiduciary to the REALTOR®’s client. The demand letter does not
change this relationship.

Mortgage Banks ignore Texas Attorney General, foreclose at will

admin — Wed, 06 Oct 2010 14:32:52 +0000

Looks like the banks collectively thumbed their noses at the Texas Attorneys General Office and marched forward with foreclosures yesterday, except for GMAC/Ally. The Houston Chronicle caption reads…

“Foreclosure sales go forward as Texas AG pushes moratorium“

But here at BustMyBank we predict that the banks’ excrement is about to make physical contact with an electric powered oscillating air device.

Below are comments we received from the Texas Association of REALTORS® Legal Department.

To: Texas REALTORS®

From: Texas Association of REALTORS® Legal Department

RE: Texas Attorney General halts foreclosures and sales of foreclosed properties

The Texas Attorney General’s office has halted all foreclosures, all sales of properties previously foreclosed upon, and all evictions of persons residing in previously foreclosed upon properties, until mortgage companies have completed a review of their processes, including whether employees or agents “robosigned” affidavits and other documents recorded in Texas.

The AG suspension notices were sent to 30 mortgage-loan servicers doing business in Texas.

Further, here is a copy of the letter sent to Bank of America.

Texas AG letter to Bank of America on foreclosure halts

Seems pretty clear to me that BofA is going to be in a heap of trouble with any foreclosures wrongfully prosecuted. Seems to me that those folks facing evictions have a little more time to work things out. Semms to me that if you are trying to buy a foreclosure you may want to cool your heels and definitely do some title examination.

If you have been foreclosed upon and suspect something was not done properly then contact us immediately.

9 out of 10 foreclosures we analyze have document issues such as: fraduelent assignments, “missing” links in the chain of title, fabricated ownership claims, and/or the foreclosure mill attorney signing documents making themselves the trustee, seller’s authority, purchasing bank’s agent, and overall uber-agent all rolled into one.

It seems VERY likely that there are THOUSANDS of foreclosures that are in violation of many of the statutes and laws put into place to protect homeowners.

Does this mean that no one deserves to be foreclosed upon for not paying their bills? No it doesn’t. What it means is that there is a right way for a creditor to claim what is his and there is a wrong way and experience tells us that the banks are enriching themselves at the expensive of the downtrodden and down on their luck. The guy paying his mortgage and those families paying taxes are getting the shaft from “the too big to fail” banks who have sucked up our taxes dollars and now are “too big to play by the rules” when it comes to stealing someone’s homestead.

Don’t let the banks roll over you. Stand up for your rights.

- The Bank Slayer

1 in 10 familes is in danger of foreclosure

admin — Fri, 27 Aug 2010 18:43:16 +0000

Look around you. Does your neighbor, friend, co-worker or family member have a mortgage? How about ten folks on your street?

The Mortgage Bankers Association is reporting that 1 in 10 American households with a mortgage is at risk of losing its home, and the foreclosure crisis could worsen if jobs remain scarce.

The housing market is struggling even as mortgage rates fell to the lowest level in decades for the ninth time in 10 weeks.

Don’t just stand around without helping. If you or someone you know is struggling with a mortgage payment due to job loss, medical conditions, divorce or just a bad loan please give them our info.

We can restructure their loan even if they can’t qualify for a refinance.

- The Bank Slayer

1 in 10 U.S. households at risk of losing their homes

By ALAN ZIBEL and CHRISTOPHER S. RUGABER Associated Press

WASHINGTON — One in 10 American households with a mortgage is at risk of losing its home, and the foreclosure crisis could worsen if jobs remain scarce.

About 9.9 percent of homeowners had missed at least one mortgage payment as of June 30, the Mortgage Bankers Association said on Thursday. That number, adjusted for seasonal factors, was barely down from a record-high of more than 10 percent as of April 30.

The Labor Department said requests for unemployment benefits fell sharply last week. The drop in first-time claims to a seasonally adjusted 473,000 was the first decline in a month and a hopeful sign after a raft of dismal economic reports.

Still, unemployment claims remain much higher than they would be in a healthy economy. Employers are reluctant to hire as economic growth appears to be slowing.

The number of Americans who are missing payments and falling into foreclosure has followed the upward trend in unemployment. The jobless rate has remained near double digits all year.

“Ultimately, the housing story, whether it is delinquencies, homes sales or housing starts, is an employment story,” Jay Brinkmann, the Mortgage Bankers Association’s top economist, said in a statement. “Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers.”

More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to foreclosure listing service RealtyTrac Inc. Economists expect the number of foreclosures to grow well into next year.

Besides forcing people from their homes, foreclosures and distressed home sales have pressured home values and crippled the broader housing industry. They have made it difficult for homebuilders to compete with the depressed prices and discouraged potential sellers from putting homes on the market.

The housing market is struggling even as mortgage rates fell to the lowest level in decades for the ninth time in 10 weeks. Mortgage buyer Freddie Mac said the average rate for a 30-year fixed loan fell to 4.36 percent this week.

Rates have fallen since the spring as investors, spooked by a slowing economy, shifted money into the safety of Treasury bonds. That has lowered the yields on long-term Treasurys. Mortgage rates tend to track those yields.

The economy has grown for four straight quarters. But the pace has slowed from a 5 percent annual rate in last year’s fourth quarter to 3.7 percent in the January-to-March period. It has weakened even further in the past several months.

Many economists expect the government Friday to revise lower its growth estimate for the April-to-June quarter to below 2 percent. That’s weak in normal times and even more worrisome after a steep recession.

The drop in unemployment claims comes after a steep rise the previous three weeks that sent claims to their highest level in nine months. Even with last week’s decline, the four-week average, a less volatile measure, rose to 486,750, the most since November 2009.

Jobless claims fell steadily last year as the economy began expanding, dropping from a peak of 651,000 in March 2009 to about 460,000 at the start of this year. After fluctuating around that level for most of this year, claims started climbing again last month.

In a healthy economy, claims generally fall below 400,000.

The report is mildly encouraging but should be treated with caution, said Doug Porter, an economist at BMO Capital Markets, because the weekly claims report is highly volatile.

The total unemployment benefit rolls climbed steeply, as more people join extended unemployment aid programs that were renewed last month by Congress. During the recession, Congress added up to 73 weeks of emergency aid on top of the 26 weeks typically provided by the states.

All told, about 10.1 million people were receiving unemployment checks in the week ended Aug. 7, the latest data available. That’s up about 260,000 from the previous week.

The extended program lapsed in June, throwing nearly 2 million people off the rolls. But since Congress renewed the program, the total benefit rolls have increased by 2.2 million, according to Dan Greenhaus, chief economic strategist at Miller Tabak.

That suggests “that there is little if any meaningful hiring throughout the economy,” Greenhaus wrote in a note to clients.

Forensic Mortgage Loan Audit Scams: A New Twist on Foreclosure Rescue Fraud says FTC

BankSlayer — Mon, 07 Jun 2010 20:54:02 +0000

The latest foreclosure rescue scam to exploit homeowners is a forensic mortgage loan audit says the FTC. They should have said MAY BE a scam. What the FTC doesn’t tell you is that it is only a scam if there is no value to the audit. A good audit will analyze your loan not just for a few mathematical errors but give guidance to the best method of attack to resolve mortgage related issues.

What do I mean? Simply that finding an error is only valuable if you know what law or statute provides a remedy. On top of that a lawyer will need to examine the remedy to see if is is specifically applicable. A good audits is invaluable to proper mortgage or foreclosure defense assistance. Before paying for something that you have no idea of the value or even what the finished product looks like is very risky. At a minimum an “auditor” should be able to provide you with:

An example of an actual audit.
A rock solid BBB record.
Proof of filed legal cases leveraging results of an audit.

Absent these three items, go looking for a different auditor.

- The Bank Slayer

Forensic Mortgage Loan Audit Scams: A New Twist on Foreclosure Rescue Fraud

Fraudulent foreclosure “rescue” professionals use half-truths and outright lies to sell services that promise relief to homeowners in distress. According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, the latest foreclosure rescue scam to exploit financially strapped homeowners pitches forensic mortgage loan audits.

In exchange for an upfront fee of several hundred dollars, so-called forensic loan auditors, mortgage loan auditors, or foreclosure prevention auditors backed by forensic attorneys offer to review your mortgage loan documents to determine whether your lender complied with state and federal mortgage lending laws. The “auditors” say you can use the audit report to avoid foreclosure, accelerate the loan modification process, reduce your loan principal, or even cancel your loan.

Nothing could be further from the truth. According to the FTC and its law enforcement partners:

there is no evidence that forensic loan audits will help you get a loan modification or any other foreclosure relief, even if they’re conducted by a licensed, legitimate and trained auditor, mortgage professional or lawyer.
some federal laws allow you to sue your lender based on errors in your loan documents. But even if you sue and win, your lender is not required to modify your loan simply to make your payments more affordable.
if you cancel your loan, you will lose your home and you will have to return the money you borrowed to your lender.

If you are in default on your mortgage or facing foreclosure, you may be targeted by a foreclosure rescue scam. The FTC wants you to know how to recognize the telltale signs and report them. If you are faced with foreclosure, the FTC says legitimate options are available to help you save your home.

Spotting a Scam

If you’re looking for foreclosure prevention help, avoid any business that:

guarantees to stop the foreclosure process – no matter what your circumstances are
instructs you not to contact your lender, lawyer or credit or housing counselor
collects a fee before providing any services accepts payment only by cashier’s check or wire transfer
encourages you to lease your home so you can buy it back over time
recommends that you make your mortgage payments directly to it, rather than your lender
urges you to transfer your property deed or title to it
offers to buy your house for cash at a fixed price that is inappropriate for the housing market
pressures you to sign papers you haven’t had a chance to read thoroughly or that you don’t understand.

Finding Legitimate Help

Housing experts say that when you’re behind on your mortgage payments, maintaining communication with your lender is the most important thing you can do. Contact your lender or servicer immediately if you’re having trouble paying your mortgage or you have received a foreclosure notice. You may be able to negotiate a new repayment schedule.

Call 1-888-995-HOPE for free personalized advice from housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD). This national hotline – open 24/7 – is operated by the Homeownership Preservation Foundation, a nonprofit member of the HOPE NOW Alliance of mortgage industry members and HUD-certified counseling agencies. For free guidance online, visit www.hopenow.com. For free information on the President’s plan to help homeowners, visit www.makinghomeaffordable.gov.

To learn more about home mortgages and other credit-related issues, visit www.ftc.gov/ MoneyMatters. This site offers short, practical tips, videos, and links to reliable sources on a variety of topics from credit repair, debt collection, job hunting and job scams to vehicle repossession, managing mortgage payments and avoiding foreclosure rescue scams.

Reporting Fraud

If you think you’ve been dealing with a foreclosure fraudster, contact:

Federal Trade Commission – www.ftc.gov
Your state Attorney General – www.naag.org
Your local Better Business Bureau – www.bbb.org

The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. Watch a new video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Second wave of foreclosures looming

BankSlayer — Thu, 19 Nov 2009 17:49:11 +0000

As reported by Stephanie Armour in USA Today, the next wave is poised to roll in, potentially undermining housing recovery efforts as more homes add to the glut of inventory and drive down prices.

These homes largely represent loans that are delinquent but have not yet resulted in foreclosure sales.

About 7 million properties are destined to go into foreclosure, according to a September study by Amherst Securities Group, compared with 1.27 million properties in early 2005.

“There is a lot of foreclosed property in the pipeline that will hit the market and depress prices,” says Mark Zandi at Moody’s Economy.com. Foreclosed homes often sell at prices below those on the market and can therefore drag down overall home values.

Jumana Bauwens, a spokeswoman at Bank of America, says the bank is projecting an increase in foreclosures in part because customers will not be qualifying for existing loan-modification programs.

There is often a long lag time between a borrower going delinquent and the bank taking the home. Here’s why:

•Moratoriums. New state laws imposing short-term moratoriums have slowed the timeline from delinquency to foreclosure.

•Overwhelmed lenders. Banks dealing with a surge in refinancing, mortgage modifications and defaults are overwhelmed with demand, so it can take longer to initiate a foreclosure sale.

•Modifications. Many loans now are first examined to see if they might qualify for a modification. This drags out the timeline and means it is taking longer for homes to go into foreclosure.

•Asset write-downs. Banks may in part be waiting to liquidate homes through foreclosure because they don’t want to write down the value of the asset. Lenders can keep homes on the books at a higher value until they are sold at foreclosure.

If you are looking to short sell your home make sure:

Your REALTOR and/or Loss Mitigation Company knows exactly how to “sell” your short sale to the bank using: BPOs, appraisals, insurance repair estimates, letters of declining value, mortgage audits and REO comp matrixes.
You leverage State or Federal laws to back your lender/bank into a corner to force their hand and tell you exactly what they will take for your house.
If necessary, put your lender/bank over a barrel with a with highly focused lawsuit.

- The Bank Slayer

Free mortgage audit for Veterans!

BankSlayer — Wed, 11 Nov 2009 13:37:15 +0000

In honor of Veterans Day and all our military members have done for this great country will are providing all Veterans with a free mortgage audit today.

A mortgage audit is a forensic analysis of your Loan Application, the Good Faith Estimate, the Truth in Lending Statement, Note, Deed of Trust, HUD-1 closing statement and other documents to determine if there were errors or misrepresentations in the lending process. Even a simple error in the APR or failure to meet the statutory date requirements can yield the leverage needed to win a mortgage rescission, a reduction in principal for a loan modification or add firepower to a short sale.

Even if you are current on your mortgage but wonder if you were the victim of predatory lending or if you have an adjustable rate mortgage which you want the bank to convert to a better fixed rate plan a mortgage audit is the start point for any battle plan.

Call our office at 713-595-8200 today and take advantage of the valuable and free offer for veterans.

- The Bank Slayer

Can a Retro Appraisal Save the Day?

Homeowners Hero — Mon, 02 Nov 2009 16:58:48 +0000

So-called “retro appraisals” are the latest tool at the disposal of lawyers looking to fight off foreclosure and obtain a favorable loan modification or a short sale for their clients.

“The theory is that the financing was based upon a questionable appraisal which the lender approved without proper oversight,” a RetroAppraisals.com release said. “Mortgage brokers, real estate agents, and lenders had close contact with appraisers and most appraisal order forms had a line item that asked for the borrower or their agent to write down the value that was needed from the appraiser.”

When Lender’s counsel moves for Summary Judgment, introduction of a Historical Revised Real Estate Appraisal could cause Judges to take a hard look at any Holder in Due Course protection sought by the lender. An obvious reason is a higher court review of the irrefutable factual information contained in the appraisal, could cause such an opinion to be overturned.

Such Historical Review might be able to be used to allege collusion, collaboration, civil theft, and fraud in the inducement and common law fraud. The aforementioned can be a springboard for an attorney’s affirmative defenses and counterclaim for damages – depending upon the state’s rules of civil procedure and the attorney’s experience and creativity.

Steven Greene, co-founder of Retro Appraisals LLC, said in most cases, a look back at the facts using a retro appraisal puts just enough pressure on the bank or lender and their representatives to find solutions rather than face the consequences of their previous actions.

At Home Solution Counselors we completely agree. In fact, we build a historical view of the value for every case where the Audit shows fishy values. Bottom line is that a solid audit is critical to success in building a winning cases.

- The Bank Slayer