August 27, 2008

Mortgage Paid by Credit Cards

Filed under: Credit Cards,Short Sale

Hi Paul,

My husband and I hought this home with a THIRD party last year. At first all three were on loan and title. After a while he decided to move, and we agreed to take on the entire payment. He signed over the title to us. NOW, we can no longer afford the payments, my son is disabled and we are never going to be able to afford this home . My husband and I both have 780 FICO. The current loan is 6% 30 year fixed. There is no modification that can solve this. As the market declines we are unable to sell the home. It has been on the market for 6 months, and has shown quite often, but not anywhere near an offer. My realtor is a short sale specialist and thinks he can reduce the price and find a buyer. We are current on payments, but putting 500 a month on credit cards to make it.

If we short sale it… I am told I must be behind on payments before Countrywide will even think about allowing it. And they will go after John, our third party first.

If we foreclose…. we had an 80/10/10 laon. So there is a first and a second. So, Counrtywide. or whoever owns the loan will go after us for the second. And we will wind up BK.

So maybe we should just foreclose and go Bankrupt. The Attourney thinks we will meet the means test for chapter 7. It’s just we don’t have any other debt problems, just this house.

DO you think the lender will allow my short sale? WIth John and current payments?

If not, what else are my options?

Julia (more…)

FDIC Funds

Filed under: Foreclosure

Bank RunsFederal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported.

The borrowing could be needed to cover short-term cash-flow pressures caused by reimbursing depositors immediately after the failure of a bank, the paper said.

The borrowed money would be repaid once the assets of that failed bank are sold.

“I would not rule out the possibility that at some point we may need to tap into (short-term) lines of credit with the Treasury for working capital, not to cover our losses,” Chairman Sheila Bair said in an interview with the paper.

Source – Reuters

Don’t Forget one year ago’s: Bank Run Fun

Where will we be next year?

August 26, 2008

Collectors Impersonating Law Enforcement Officers

Filed under: Collections

Attorney General Darrell McGraw took the extraordinary step today of warning the public about a band of scam artists making threats to consumers who allegedly obtained Internet payday loans in West Virginia and across the nation. The consumers they threaten never obtained a loan at all or paid it off years ago.

Internet payday loans are short-term loans or cash advances, usually for 14 days, made over the Internet via interactive web sites and secured by an agreement authorizing debits of the loan and all fees owed from the consumer’s checking account. These loans typically charge interest rates ranging from 600-800 APR and are unlawful in West Virginia.

The scam artists, who speak English with a foreign accent, call themselves “U.S. National Bank,” “Federal Investigation Bureau,” “United Legal Processing” and numerous other phony names. They refuse to disclose real names and addresses and are believed to be operating “off the grid” from homes, automobiles, or from off shore locations or foreign countries, including India. Since the scammers have kept themselves purposely well hidden, thus far no law enforcement agencies have succeeded in locating or shutting them down.

The scammers typically pose as law enforcement officers, investigators, lawyers, and bankers and threaten consumers that they will be arrested for “bank fraud” or other fictitious crimes unless money is wired immediately. They simultaneously scare and confuse consumers by using meaningless legalese gobbledygook phrases such as, “We are downloading warrants against you” or “We are filing an affidavit against you.” Consumers who don’t immediately fall for the scam are warned, “Only God can help you now.”

The scammers almost always call consumers at work several times a day, and tell their supervisors, “Your employee has committed fraud and is about to be arrested.” Such threats have proven unsettling even to the most savvy consumers and employers who suspect the calls are fraudulent.

Attorney General McGraw stated, “Ordinarily my office protects consumers from fraudulent activities by seeking injunctions in court. But legal action cannot be taken until the scam artists can be located. Even then, it is unlikely that the persons behind the fraudulent calls and extortionist threats would obey a court order. In this case, the consumer’s best defense is to be armed with the knowledge of the scam so that all demands for money can be resisted, despite the false but scarey threats of arrest.”

McGraw added, “Because the fraudsters make a special point of calling consumers repeatedly at work, employers must understand that the consumers are innocent victims of a criminal enterprise and cannot stop the calls from coming. I also wish to assure the citizens of West Virginia that my office will continue to do everything possible to locate and shut down the outlaw debt collectors.”

More information about this fraudulent debt collection scheme is available at the Attorney General’s website, Any consumers who have been threatened by these persons or wish to file a complaint about another consumer matter may do so by calling the Consumer Protection Hot Line, 1-800-368-8808, or by obtaining a complaint form from the Attorney General’s web site.

Source – West Virginia Attorney General

Email Scams

Filed under: Identity Theft

Barr.Rick Chase

We wish to notify you again that you were listed as a beneficiary to the total sum of Four million Six hundred thousand British Pounds Sterling in the intent of the deceased (names now withheld since this is our second letter to you). We contacted you because you bear the surname identity and therefore can present you as the beneficiary to the inheritance since there is no written will.Our legal services aim to provide our private clients with a complete service.

We are happy to prepare wills, set-up and administer Trusts, carry out the administration of estates and prepare and administer powers of attorney.All the papers will be processed in your acceptance. In your acceptance of this deal, we request that you kindly forward your letter of acceptance, your current telephone and fax numbers and a forwarding address to enable us file necessary documents at our High court probate division for the release of this sum of money.
Yours faithfully,

Barr. Rick Chase

Threatening To Arrest My Daughter

Filed under: FDCPA

At 18 my daughter was trying to buy a car through a tote the note (Texas). There was so much wrong with it she gave it back. Now they are going to sue her and threatened to put her in jail is this possible? Can the sheriff serve her on her job? Can they put her in jail? She was 18 at the time now she is 27.

Dee (more…)

August 25, 2008

Columbia Recovery v. Menchaca

Filed under: Judgment

“Moreover, plaintiff has not produced any proofs whatsoever as to when the debt was purportedly incurred, the signature of the person who opened the account or who incurred the debt. Nor has plaintiff demonstrated that defendant was ever given notice of the past due debt. In other words, plaintiff has presented no proofs that defendant is the actual debtor beyond its bare allegations in the complaint.”

Columbia Recovery Corp. v. Nancy Menchaca [No. A-6403-06T1, N.J. Super.]

It Can Pop On There At Any Time, Regardless

Hello Paul,

My husband and I were living in a home that my father owned. Mortgage, title everything was in his name. My husband and I both lost our jobs and were no longer able to afford payments.

We did what we could to keep the payments current in order to avoid wrecking his credit, while we had the home on the market. But after a while, we couldnt keep up. So, after sitting on the market for over 9 mos, we got an offer, but by then, it was already in foreclosure. The lender didnt get to the short sale package in time, and it went to auction 1/2/2008.

My Dad ran his credit last week and the foreclosure is not there. The account shows a few lates, but nothing of a foreclosure. Is this normal? Its been over 7 mos since we moved out.

Im just wondering if the Lender has a time limit on reporting the info, or can it pop on there at any time, regardless?


Attorney Help Thee

Filed under: Loan Modification

I have been working with Chase Home Finance since March of this yr. for a loan motification, I had a adjustable rate loan, well fell benind 2mths. still trying to make payments. I cant not get any information from them on wheter we have been approved or not, We have done everything they have asked us to do, each time I call I have to talk to someone else never the same person.

At one point in July, someone told us that we were approved and papers were mailed out for us to sign(notorized) and mailed back by 8/15 with good faith money. Ok, well my husband works out of state so he took a week off to come home to be there to sign papers, they never came!

Called and then was told that i didnt know what I was talking about and that the papers were not even ok’d and now we are 4mths behind and forclosure is in process.

I am so confused, should I get a attorney  to get this settled?

Velda (more…)

No Mention of the Deficiency?

Filed under: Short Sale

Hi Paul,

My lender has finally approved a “Short Sale,” however they will put in writing that they will not be filing a deficiency judgment against me for the difference.  They have verbally said they will not be to my broker.

Should I be concerned or accept them on their word.  I have already dicussed the tax ramifications and my accountant said I will be fine.  I have a second/HELOC that was taken out at the time of purchase which was utilized as the additional 10% of downpayment so I wouldn’t have PMI.

Any advice/suggestions would be appreciated.

Thank you,
Florida (more…)

Successful Short Sale

Filed under: Short Sale

We recently were given a loan modification.  However, due to family medical circumstances we can not afford the payment.  We are now doing a short sale.  We have never been late on our payments; we have one late payment due to the loan modification.  The short sale will be done without any late payments.

How will this show on the credit report? Will we have to wait 2 yrs before we can purchase a new home?

Tammy (more…)

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