Beware Loan Mod Scams - FTC Files Complaint Against Firms

On February 2, 2011, in the U.S. Dist. Ct. S.D. of Florida, Miami, an FTC complaint was filed against U.S. Mortgage Funding Inc., Debt Remedy Partners Inc., Lower My Debts.com LLC, and principals John Incandela, Jr., Jamen Lachs, and David Mahler for misleading consumers that they were affiliated with or approved by consumers’ lenders. Consumers were advised not to contact their lenders and to stop making mortgage payments because doing so would demonstrate hardship and the need for a mortgage modification.

The defendants listed had targeted financially distressed consumers by using direct mail, the internet and telemarketing. They would falsely promise loan modifications to make consumers’ mortgages more affordable, even boldly promising to fully refund their money if they failed.

For their “help,” consumers were being charged up to $2,600 for these services, with half of the fee being required upfront. The defendants also claimed a 100% success rate—which should have been the first red flag for consumers. Very few companies or organizations have a 100% success rate for anything, much less something as complicated and as a loan modification.

According to the Mortgage Assistance Relief Services rule recently issued by the FTC, providers of mortgage foreclosure rescue and loan modification services are banned from collecting fees until homeowners receive a written offer from their lender or servicer that they decide is acceptable. Because the defendants’ ads predated the rule, the FTC could not allege any violations of that rule in this particular complaint filing.

New Definition of Service Animal

March 15, 2011 - new legislation takes affect as to the defnition of a service animal under the Department of Justice’s Americans with Disabilities Act (ADA) regulations.


The new regulations now define "service animal" as a dog that has been individually trained to do work or perform tasks for the benefit of an individual with a disability. The rule states that other animals, whether wild or domestic, do not qualify as service animals. Dogs that are not trained to perform tasks that mitigate the effects of a disability, including dogs that are used purely for emotional support, are no longer considered to be service animals. The final rule also clarifies that individuals with mental disabilities who use service animals that are trained to perform a specific task are protected by the ADA. For more information about the new regulatory provisions regarding service animals, please visit the ADA's website.

http://mpetersesq.com/animal.html

PETITION TO PROTECT SEEING EYE DOGS

Most people are unaware of the risk dog guides and their owners encounter each day. There is no way for a person who is blind and depends on a dog guide to know that a dangerous dog who has been chained to a light pole along a sidewalk might attack a dog guide as it passes. Nor to protect a guide dog from dangerous dogs who are unleashed.

Existing laws must be consistently enforced for the fair and safe treatment of people who are blind and their dog guides.

An attack by an unrestrained dog should be a criminal offense, charged to its owner.

You can send an email directly to New York Senator Charles J. Fuschillo Jr. by clicking here to his website page.

Please send an email directly to New York Assembly Member Philip M. Boyle -- You can copy and paste the following and modify as you see appropriate:

      An attack by an unrestrained dog on a guide dog should be a criminal offense - charged to the attacking dog's owner.

     We need this law -- We need to strengthen state legislation to provide greater protection for people and their dog guides against attacks by other dogs.

     PLEASE give your full support to such a legislative initiative.

     Thank you.

New Federal Site Launches - Consumer Financial Protection

I received an email from the City Bar this afternoon announcing the launch of a new web site which is "open" for suggestions as to how you as a consumer can be protected regarding your financial situation.  As I looked into it, they are seeking postings with "humor" -- which I found just down right depressing to read.

The national banks are running roughshod over consumers, and this website funded by our taxes it appears, is looking for humor on the subject.

The press release states: 

In July 2010, Congress created a new federal agency to protect American

consumers. The Consumer Financial Protection Bureau will be a cop on the
beat, working to make consumer financial markets work better for
American families. As the first new consumer agency of the 21st century,
we can communicate directly with the people we serve.

And they are looking for humor....or a "tweet" or a U-Tube Video....as they write, "Most of all, be real

about what matters to you. "   Here is the link for suggestions where you can post as you like...

This month - Wells Fargo holding free loan modification decisions in Brooklyn, NY

January 25 & 26, 2011 - in Brooklyn - Wells Fargo represents that homeowners seeking loan modifications can meet with representatives and get immediate decisions.

Please call 1800-405-8067 for further information.

Homeowner Beats Bank of America In Small Claims Court

On January 4, 2011, the Huffington Post's Arthur Delany reported a homeowner who was successful in bringing Bank of America into California's Small Claim Court and being awarded $7,595 after the Bank denied him a loan modification.


Dave Graham, the homeowner told the Huff Post, "It was a good victory for me and I think for homeowners around the country."  This author agrees.

What is supposed to be a three month trial, the bank dragged on for 18 months - an all too common occurrence; at which point the Bank informed the homeowner that he did not qualify for a loan modification and the Bank demanded immediate payment of approximately $7,000 (the difference between the normal mortgage payment and the modified trial payments), or the Bank would foreclose on the property.


Graham was successful in bringing his case into the Small Claims Court.  The Bank states that they will appeal - something they can do in California.  Let's see what happens....

Mortgage Foreclosures - Access to Justice in Lending Act

On October 20, Governor Paterson signed into law the "Access to Justice in Lending Act", Chapter 550 of the Laws of 2010, which adds new Section 282 ("Mortgagor's right to recover attorneys' fees in actions or proceedings arising out of foreclosures of residential property)" to the Real Property Law.

The Assembly Bill is posted at the following link.

New Law Allows Homeowners to Recoup Legal Fees in Foreclosure Cases

[Reprinted from the New York Times]

By JOHN ELIGON

Published: October 21, 2010

A new state law signed in Albany this week will allow homeowners who win foreclosure proceedings to have the lender pay their lawyers’ fees.

Supporters say the law balances what they see as the long unfair practice of lenders writing provisions in mortgage contracts that allow them to collect lawyers’ fees from homeowners when the lender successfully forecloses. Some also say that the new law may give homeowners a better chance in court because they will more easily be able to get representation.

The law comes at a time when big banks are coming under increasing scrutiny for lax handling of mortgage documents.

“We have thousands of foreclosures in New York State where homeowners” have valid defenses, said Assemblyman Rory I. Lancman, a Democrat of Queens who co-sponsored the bill. “But they are unable to assert those defenses because they don’t have a lawyer.”

In some other types of litigation, like employment or civil rights, lawyers’ fees have long been awarded to the winning party, Mr. Lancman said. But foreclosure litigation has been an exception.

“There’s been a major problem as this foreclosure crisis has exploded in getting representation for people who need counsel,” said Andrew Scherer, the former president of Legal Services NYC, an agency that provides counsel to people who cannot afford lawyers in civil cases.

“This is going to provide a pretty reasonable incentive for private attorneys to take on these cases,” Mr. Scherer added.

In general, homeowners are considered to have won foreclosure proceedings when they are able to get a judgment from the court allowing them to keep their homes. With recent revelations that banks have cut corners in documenting mortgages during the boom, lawyers say, chances are better than ever to raise legitimate defenses to get a bank’s foreclosure action thrown out.

Even in cases in which a settlement is reached, Mr. Lancman said, lenders may be more willing to negotiate the lawyers’ fees, knowing that they may have to pay those fees if they lose a judgment.

Michael J. Wrubel, a Florida lawyer who represents homeowners, said he did not believe the new law would substantially tip the scale in favor of homeowners.

New York Changes Rules for Filing Foreclosures

New York State instituted new requirements for filing foreclosure
documents effective immediately to stem a wave of foreclosures that were
not documented properly, The Wall Street Journal reported Wednesday in
its online edition. Foreclosure claims must now reportedly have a lawyer
file an affirmation that reasonable steps have been take to verify the
accuracy of the information in the documents.

"We cannot allow the courts in New York State to stand by idly and be
party to what we now know is a deeply flawed process, especially when
that process involves basic human needs-such as a family home-during
this period of economic crisis," said New York State Chief Judge
Jonathan Lippman, according to the Journal.


The marketwatch article links here.
http://www.marketwatch.com/story/ny-changes-rules-for-filing-foreclosures-wsj-2010-10-20

This is the link to the press release from the Unified Court System of New York.
http://www.nycourts.gov/press/pr2010_12.shtml

To Foreclose or Not to Foreclose

Well, as if its NEWS - the big banks have finally confessed that perhaps some technicalities have been overlooked in their foreclosure process.  Putting it mildly.  Yes errors were made and continue to be made.  I am amazed that anything gets accomplished at all at a bank.