January 31, 2009

Yan Has Stumped The Experts

Filed under: Debt Settlement

Hi! Paul,

I read the book, managed to get lower interest rate on some of my credit cards, my income is a lot less now, I am tired of paying minumum, or close the account and pay off in five years, I don’t have any money left.

I heard if I can borrow money from friends and negotiated with bank, the debt can cut to 60%, but I don’t have any friends like that, that will be about 17000, any suggestion, any company, firm can loan me money to pay off my credit card debts, and I will make payments to the new co.?

But I do not want to be controled, do not want them to pay my bills and charge me fees every time plus monthly fee, I heard too much story, those debt cosultant co. charge too much, please help


Florida Foreclosure Defense Attorney

Dear Paul-

Do you know any “angel” lawyers like the angel lawyer in Jacksonville, FL, who could help me and my husband with avoiding foreclosure in SW florida (Cape Coral).  I am trying to get a loan modification with Countrywide and everything seems up in the air.  I am so tired.  Me and my husband have work right now and a loan modification would really help us get back on track. 

From everything I read in the news, it seems very few are getting the help they need and neither are we.  Countrywide is not providing any information to us at this point and we started this process in mid December after missing three payments.  Now we are 6 months behind and they say it could be until March before they make a decision!  This is really scary. They say it is taking so long because they are short handed but they indicate that would not stop foreclosure even though our loan is in active processing of a modification review. I asked if they needed more paperwork or anything else.  Nothing… 

Please recommend an angel for us in our neck of the woods.  We have already tried free loan counseling with the recommended counselors of Hope organization on FHA’s website.  The counselors recommended that it would be best to do what we are doing for now with regard to modifying  and to contact them if it does not go through.  There is no game plan…..just a wait and see. I feel like all our eggs are in one basket.

God Bless You and Thank you!


Teresa (more…)

Breath Inside The House – The Qualified Written Request

This is kind of a broad question so I apologize.  Here is my problem: 

I have owned my own (small) publishing company for 25 years.  The paper I print is sustained solely by the advertising I sell.  Last year business dropped off dramatically.  I refinanced to keep all my payments current thinking it was a temporary situation (it has happened before) but things never bounced back. 

From September to December of 08 I didn’t sell a thing and had to call it quits.  Now I have, and haven’t since September had any income. 

My husband has a decent job but lives in another state (he is a pilot without enough seniority to be based in California) therefore he has an apartment in Phoenix.  My salary has always paid for everything here. he pays for the insurance (car, health, life) he has a little left over to throw my way once in awhile if i ask. 

I have gone back to school to get a degree in computer graphics and should be done by the end of summer or next fall.  I would like my mortgage company to somehow give me a pass for a year (loan reduction) then I will go back to fulfilling my obligation as agreed. 

They won’t budge or help at all, we are now 2 months past due.  Over the last year we have been cutting back in an effort to survive, we have no heat, many days you can see your breath inside the house, our trash can got repossessed (yeah can you believe they do that!) anyway my point is we are not living high on the hog by anyone’s standards. 

I have a first and a second totaling $400,000 all on traditional loans, no weird ARMs and my house is now valued at $180,000.  Can I do a value reduction?  I keep hearing about this.

Susan (more…)

January 30, 2009

First Union v. Wilson

Filed under: TILA

Here’s a nice way to defend foreclosure and a great example of the power of the TILA.

  1. First Union files foreclosure against Wilson.
  2. Wilson rescinds mortgage loan under the TILA.
  3. Judge agrees and orders First Union to release security interest.
  4. First Union doesn’t release security interest timely.
  5. Judge says borrowers don’t have to tender.
  6. First Union appeals.
  7. Appeals Court agrees that borrowers don’t have to tender.
  8. Nice!

First Union National Bank v. Wilson, No. 89284 (Ohio Ct. App. Dec 13, 2007)

Fraudulent Foreclosure Consultants

Filed under: Foreclosure

Attorney General Lori Swanson Expands Litigation Against Fraudulent Foreclosure Consultants And Issues Warning To Minnesota Homeowners In Mortgage Trouble To Seek Reputable Help And Steer Clear Of Scam Artists

Minnesota Legislators and Attorney General also propose legislation to tighten laws and stop new breed of mortgage modification companies that prey on homeowners in trouble

Attorney General Lori Swanson today filed lawsuits against two so-called mortgage “foreclosure consultants” alleging that they targeted homeowners facing foreclosure with illegal up-front fees and empty promises to save their homes. The lawsuits are against IMC Financial Services, LLC (“IMC”) and American Financial Corp. d/b/a National Foreclosure Counseling Services (“NFC”), both with offices in Florida. The lawsuits allege that both companies unlawfully charged up-front fees as high as $1,850 and failed to deliver promised services to save the homes from foreclosure. Today’s lawsuits bring to twelve the number of bogus foreclosure consultants sued by the Attorney General in the last year.

“These foreclosure consultants exchanged the hard-earned money of desperate homeowners for empty promises. Nobody should ever pay money in advance to a company promising to save their home from foreclosure,” Swanson said.

Foreclosure consultants typically represent that they will save a homeowner’s home from foreclosure by negotiating or modifying the terms of the homeowner’s existing mortgage. A 2004 Minnesota law bars “foreclosure consultants” from charging any compensation until after the foreclosure consultant has “fully performed each and every service the foreclosure consultant contracted to perform or represented he or she would perform.”

The Attorney General also expressed concern about a new breed of company that operates like a foreclosure consultant in promising to negotiate or modify the terms of the homeowner’s existing mortgage, but instead targets homeowners who may be struggling financially but are not yet in default or foreclosure. Swanson and state legislators proposed legislation designed to close loopholes in existing state law regulating foreclosure consultants and to prohibit so-called mortgage modification companies from soliciting up-front fees and then failing to deliver the promised services.

“These companies are very creative in finding a number of ways to capitalize on the foreclosure crisis and skirt existing law. We need to further tighten the laws on the books to provide the maximum level of protection to struggling homeowners in this rocky economy,” Swanson said.

“People in foreclosure are frequent targets for scams and fraud. The Legislature made great inroads in 2004 when we passed legislation to regulate so-called mortgage foreclosure consultants, and now we need to close the loopholes as these companies constantly find new and unfair ways to peddle their services,” said Representative Joe Mullery (Minneapolis), chair of the Civil Justice Committee.

Added State Senator Lisa Fobbe (Zimmerman): “The foreclosure crisis is hurting homeowners in all parts of the state. We should do everything possible to stop companies that seek to take unfair advantage of desperate homeowners in this troubled economy.”

State Senator Kevin Dahle (Northfield) also added: “I have met with far too many teary eyed constituents who have lost their home to foreclosure. It is a daunting and emotional experience, and we should tighten protections for these folks where we can.”

The Attorney General issued these suggestions for consumers struggling to pay their mortgage:

  • Take immediate action to contact the lender if you are having trouble paying a loan. The lender may be willing to work out a repayment plan, loan modification, forbearance, reinstatement, etc. Don’t wait to contact the lender, as delays may jeopardize your options.
  • Contact a reputable mortgage counselor. Borrowers may find legitimate counselors by contacting the Minnesota Housing Finance Agency (“MHFA”) or the U.S. Department of Housing and Urban Development (“HUD”).
  • Never pay money in advance to a “foreclosure consultant.” Minnesota law bans foreclosure consultants from collecting a fee until after they deliver their services. Swanson also suggested that homeowners not pay money in advance to companies promising to modify or negotiate terms of existing mortgages where the homeowner is struggling financially but not yet in default.

Today’s lawsuit against IMC was filed in Hennepin County District Court, and the lawsuit against NFC was filed in Ramsey County District Court. Both lawsuits seek injunctive relief, civil penalties, and restitution for homeowners. NFC has been sued by the Attorneys General of Colorado and Illinois.

Swanson noted that in November, her office proposed a “homeowner-lender mediation act” under which lenders would offer homeowners an opportunity to mediate a loan default before a foreclosure could occur. Representative Mullery is a co-author of that bill. Mullery and Swanson said the bill would help prevent unnecessary foreclosures and reduce the market for bogus foreclosure consultants. The bill is being introduced in the Minnesota Senate today by Senator Linda Scheid and others, and in the House today by Representative Debra Hilstrom, Representative Joe Mullery, and others.

Homeowners who feel they have been taken advantage of by a mortgage foreclosure consultant may file a complaint with the Attorney General’s Office by calling 1-800-657-3787 or 651-296-3353. Consumers also may download a Consumer Complaint Form from the Attorney General’s website at ag.state.mn.us and returning the completed form to: 1400 Bremer Tower, 445 Minnesota Street, St. Paul, MN 55101-2131

Source – Minnesota Attorney General Press Release

Florida Fight For A Loan Mod!

Hi Paul–

First thank you very much for the seminar info!

I received foreclosure summons from lender’s attorney on 1/21/09.  Requested loan modification from lender.  Sent them payroll stubs & hardship letter.  Also sent copy of hardship to clerk of circuit court & plaintiff’s attorney on 1/27/09.

I told lender I could make three of my five late payments this week.  However, I have recently heard that once the foreclosure process has begun, I can’t stop it even if I make these payments.  Needless to say I don’t want to lose $3000 in payments if it’s not going to put a hold on proceedings.

I could save that money to find another place to live if I have to  give up my home.  The only way I will send payments now is if lender will guarantee in writing that the foreclosure process will stop.  Is this reasonable to request?

I’m not sure what my next course of action should be if lender refuses to committ to my request.  Do you have any suggestions for me?

Thank you so much.

Sherrye (more…)

Who’s Behind The Loan Mod?

Filed under: Loan Modification,RESPA




TIM (more…)

Foreclosure Backlog

Filed under: Foreclosure

Talking about Foreclosure, You have suggested to call a HUD program. I have called everyday this week and still no call back, I spoke to a young woman and she took my name and # and said that someone would get to me shortly(by end of day) that was Monday and still nothing it is Thur evening. So what would be my next choice?

Lou (more…)

January 29, 2009

No Guidelines, No Pricing

Filed under: Miscellaneous

Hi Paul, I hope this message finds you well. I was wondering if you offer text link advertising on Broken Credit. If so, could you please contact me with your guidelines and pricing, if available?

Thanks. I hope to hear from you soon.

Crystal (more…)

January 28, 2009

Kendra’s Debt Settlement

Filed under: Debt Settlement

Hi Paul,

All of my bills have finally caught up with me.  I do not want to file bankruptcy but have spoke to several credit card companys about doing a settlement. 

Here’s the thing, I am current as of right now, but my husband was paying them.  He is now refusing to pay since his name is not on the account. 

I truly have no extra income to pay.  My mom has offered to give me a gift of $12000, but this will only pay about 50% of my credit card debt. 

When I spoke to the credit card companys they stated I must be past due for them to even discuss with me and if they decide to take a settlement, they will send me a 1099 for the differnce and show the remaining as a settlement on my credit report, but they are going to continue to report the amount of debt I couldn’t pay.

I thought if I did a settelement, they would report as paid settlement with a zero balance. 

Can you tell me the correct way of reporting? 

Thank you.

Kendra (more…)

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