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Be careful who you let work on your Option Arm Loan – Loan Mod Scams Continue post SB94
Posted by: | CommentsAN UPDATE ON CALIFORNIA LOAN MODIFICATION SCAMS AND SB 94 – CONSUMERS MUST REMAIN ALERT AND VIGILANT
Well the last year has been pretty crazy in the loan modification business. We have seen lots of companies being shut down by the California Department of Real Estate and California State bar (ex. brokers, attorneys, “attorney-backed” and “attorney-based” law centers and fictional “law groups” etc.) who were found out as being nothing more than scams, shams, and ripoff artists.
Some of the reasons these companies were the subject of cease and desist (or desist and refrain) letters is the following:
-They held themselves out as loan modification specialists and loan modification experts when in fact they had no special skill, training, experience, or track record.
-They took advance fees without the proper advance fee agreement that received a letter of non-objection from the DRE.
-They collected advance fees but failed to properly place funds in a Client trust account.
-They failed to properly provide verified accountings as required by the California Department of Real Estate.
-They failed to have all of the loan modification advertising approved by the DRE.
-They took files that were in notice of default (this applies to the non-attorneys) in violation of the Foreclosure Consultant Law.
-The committed other acts of outright fraud, misrepresentation, deceit and false advertising.
-In the case of Loan Modification Attorneys they may have illegally partnered with non-attorneys (such as brokers and foreclosure consultants) that would not only tout the attorneys services – taking the form of an illegal runner or capper – but also illegally splitting what could be construed as a legal fee, and engaging in other shady conduct that violates an attorneys code of ethics.
In addition, Post SB94, some entities accepted an advance fee in violation of SB94 which prohibits both attorneys, brokers, and foreclosure consultants from accepting any type of advance fee for loan modification or foreclosure forbearance work.
- They failed to provide refunds when their contracts stated they would, or where verbal representations of 100% money back guarantee were given.
Yes, there were a whole lot of callous and cavalier people/companies raking homeowners over the coals for their own personal gain, and without any morals or scruples. I guess you could say there were a bunch of Bernie Madoff’s in the loan modification business.
From what we could tell, the Attorney loan mod scammers often were either the “newbie” Attorneys who had no clue what was going on and didn’t care (and may have had a hard time finding legal jobs in the tough economic climate following law school) and/or 20 or 30 year attorneys who could care less whether or not the State bar stripped their license to practice law (I think some of these attorney violators were racking up so much money, and trying to ship it off-shore for their retirement purposes). In fact, we heard one Southern California Attorney, who was disbarred for his loan modification shennanigans, had over 1,700 loan files that he had charged over $6,000 a piece to help modify their loans (yes, that is about 11 million dollars). This information was relayed to our office by the Federal Trade Commission (FTC) who helped stopped the attorneys scam, and put the joker out of business.
QUIET TITLE ACTIONS IN CALIFORNIA – A BASIC OVERVIEW
The following is general legal information and is not to be construed as legal advice or a substitute for legal advice. The information below many not be complete, accurate, or up-to-date as law can, and does frequently change. For specific questions about your quiet title case, contact a real estate or foreclosure defense attorney to review the facts of your case.
Steve Vondran, Esq. practices Real Estate, Foreclosure Defense & Bankruptcy Law in Phoenix, Arizona, and California where he is licensed to practice law. He can be reached atsteve@vondranlaw.com or (877) 276-5084.
CALIFORNIA QUIET TITLE LAW – A GENERAL OVERVIEW
The statutory provisions for Quiet Title in California can be found in the California Code of Civil Procedure Sections 760.10-760.060. A Quiet Title action is basically a legal action that seeks to “quiet title” to property where adverse claims are made against the property. For example, where a lender wrongfully forecloses on a property and claims the property as their own, but the homeowner challenges this.
Here is the California Quiet Title Statutory Law (there are also cases interpreting these quiet title provisions). Bolded and italics material are provided by me:
760.010. As used in this chapter:
(a) “Claim” includes a legal or equitable right, title, estate, lien, or interest in property or cloud upon title.
(b) “Property” includes real property, and to the extent
applicable, personal property.
760.020. (a) An action may be brought under this chapter to establish title against adverse claims to real or personal property or any interest therein.
(b) An action may be brought under this chapter by parties to an agreement entered into pursuant to Section 6307 or 6357 of the Public Resources Code to confirm the validity of the agreement.
(c) Nothing in this section shall be construed to limit the right of members of the public to bring or participate in actions challenging the validity of agreements entered into pursuant to Section 6307 or 6357 of the Public Resources Code.
It has been a while since we showcased the MOD SCAMMER of the MONTH. But we have a new one for you. Mr. Jason Adelman who resides in the State of Nevada and works for a company calledCreative Day Concepts. Guy coaches a little league team in Nevada area. We have contacted his little league district to put them on notice of their potential liability in having this low-life handing around.
Jason Adelmann is the CLASSIC LOAN MODIFICATION SCAMMER. Warning to NEVADA and CALIFORNIA HOMEOWNERS – he wants your money and cares less about compliance with state laws dealing with loan modification. Jason Adelman, we are hereby calling you out.
Once my office caught up with this loan modification ripoff artsist he came clean and admitted his wrongdoing. In fact, he stated he had no idea what the California Laws for loan modification are and he was hoping that his attorney “partner” would back him and would have compliance issues dealt with. One problem, when I asked him who his “attorney-backed” Nevada Attorney was, he went limp and silent. He was afraid to speak because he knew he got his hand caught in the non-compliance cookie jar. In fact, it is doubtful he has a lawyer backing him. Probably part of his loan mod scam.
After a conversation or two he agreed he was in the wrong and promised to correct his errant ways and pay back my California loan modification client. Here is the loan mod scam agreement he promised to sign.
MUTUAL RELEASE AND SETTLEMENT AGREEMENT
RE: Mr. XXXXXXXXXX Plaintiff v. Creative Day Concepts, Mr. Jason Adelman (“Settling Defendants”)
WHEREAS, Mr. XXXXXXXXXXXX (hereinafter referred to as “Plaintiff”), have asserted a claim against Creative Day Concepts, Mr. Jason Adelman and any other related entity including his “attorney-backed” partner who shall remain nameless (hereinafter “Settling Defendants”) in regard to loan modification services. Plaintiff and Settling Defendants Collectively may be referred to as “the Parties.”
WHEREAS, Settling Defendants deny any liability in connection with the alleged claims; and warrant that no legal action is currently pending against the Plaintiff;
WHEREAS, for valuable consideration the Parties to this Agreement wish to reach a full and final settlement of all matters and causes of action arising out of the facts, complaints, and claims between the Parties;
CALIFORNIA FINANCIAL ELDER ABUSE: A FEW IDEAS FROM THE OPTION ARM FORECLOSURE TOOLBOX
Posted by: | CommentsPREDATORY LENDING MEETS ELDER ABUSE: ARE LENDERS PERMITTED TO FORECLOSE ON PREDATORY OPTION ARM LOANS AND OTHER COMPLICATED FINANCIAL PRODICTS IN THE STATE OF CALIFORNIA?
The following article discusses general legal information on the topic of elder abuse and foreclosure defense. This article contains general legal information and not specific legal advice. In addition, the article, cases, and analysis may not be complete and comprehensive or up-to-date. Steve Vondran, Esq. is licensed to practice law in California and Arizona. He practices law in the area of Real Estate, Bankruptcy, and Foreclosure Defense. He can be reached at steve@vondranlaw.com.
INTRODUCTION TO ELDER ABUSE AND PREDATORY LENDING
The elderly population (over 65 years of age) is one of the fastest growing segments of society. Medical science is helping people live longer, more productive lives. However, it is fairly common knowledge that as each of us grow older, whether we like it or not, we lose some of our mental and physical capacities.
In the context of mortgage loans, it may mean that elderly persons become less able to comprehend sophisticated financial products such as Option Arm Loans (pay options ARM / “pick-a-pay loans) and Reverse Mortgages and other adjustable rate mortgage and interest-only loan products that differ from the traditional 30 year fixed rate mortgage most California homeowners grew up on.
The California Attorney General’s Office has issued a guide for “financial elder abuse.” In this guide, (which you can find at the Attorney General website), they state:
“Financial elder abuse is the theft of money or property from an elder….it can be as simple as taking money from a wallet and as complex as manipulating a victim into turning over property to an abuser.”
The publication goes on to state: “This form of abuse can be devastating because an elder victim’s life savings can disappear in the blink of an eye, leaving them unable to provide for their needs and afraid of what an uncertain tomorrow will bring.”
The guide discusses “recognizing the warning signs” and states: “while financial elder abuse can take many forms, the most widespread abuses include telemarketing fraud, identity theft, predatory lending, and home improvement and estate planning scams.” Telemarketing fraud could come in the form of dealing with a loan broker over the telephone who attempts to coerce an elderly homeowner into believing a certain type of loan (ex. An Option Arm Loan) is the best for the homeowner (when in fact the borrower has no ability to repay a loan that builds negative amortization and which is likely to “recast” in the near future), or falsely trumping up a homeowners income in order to ensure a loan is funded and the broker is paid.
WELCOME TO OPTION ARM LAWYER, FORECLOSURE DEFENSE BLOG!
Posted by: | CommentsOUR GOAL HERE IS TO PROVIDE YOU GENERAL LEGAL INFORMATION, TIPS, STRATEGIES, AND INSIGHTS THAT MAY HELP YOU SAVE YOUR HOME OR INVESTMENT PROPERTY FROM FORELOSURE. SOME TOPICS THAT WILL BE DISCUSSED ON THIS WEBSITE ARE AS FOLLOWS:
- Truth In Lending Law including rescission rights
- Bankruptcy with a focus on Chapter 7 and Chapter 13
- Forensic Loan Audits
- Predatoy Lending
- Mortgage Litigation
- Foreclosure Timelines
- Tenants Rights facing foreclosure of subject property
- Seeking injunctions to stop foreclosure of your property
- Lis Pendens
- Quiet Title
- RESPA law
- Option Arm Loans
- Subprime Slime Loans
- Produce the Note issues
- Rescinding Loans through bnkruptcy
- Unlawful Detainer Timelines
- SB 94 issues
- Commercial loan modification
- Residential Loan Modification
- Deficieny Judgments
- Trial Plan Modifications
- Real Estate lawsuits
- Loan Modification Scams
- Real Estate and Foreclosure Cases
- DRE broker issues includijg DRE audits
- Advance Fee and Foreclosure Consultant Issues
- More
If you have special requests for topics you would like us to cover please do not hesitate to email us at steve@vondranlaw.com Please keep in mind any posts you make to this wwebsite are NOT private and can be read by anyone, so please do not submit confidential information. In addition, submitting information to us or posting information on this website does NOT create an Attorney-Client relationship. Only signing a retainer can do that. All information provided on this website is of general legal nature only and is not intended to be construed as lgal advice or a substitute for legal advice. For specific questions about your case or your property, please contact a foreclosure defense lawyer or bankruptcy attorney. Articles may be missing certain information, and the law may not be complete, current, or up-to-date. Please conduct your own reasearch and do not rely on information contained on this website. Steve Vondran, Attorney is licensed to practice law only in the States of California and Arizona and only seeks to solicit and serve Clients in these two states. This blog can be construed as an advertisement and communication pursuat to state bare rules. All articles are copyright to the law offices of Steve Vondran, P.C. All rights reserved.
(1) are there are grounds for an injunction (wrongful foreclosure / failure to follow foreclosure laws / truth in lending rescission grounds with ability to tender) See our website at www.rescindmyloan.net for more information on truth in Lendin Rescisssion cases;
(2) Are there grounds for a preadtory lending lawsuit? (ex. predatory lending claims against a brooker who may have been insured at the time of the transaction). For example, if a broker made over $20,000 by steering a homeowner into a worse loan than they qualfied for – given their credit scores and ability to repay – this may result in a breach of fiduciary duty and provide grounds for a lawsuit for money damages. Note that this may not stop your foreclosure sale;
(3) Did your loan servicer fail to respond to a qualified writen request or debt validaton letter?;
(4) has the lender or loan servicer failed to identify the true holder or benefiaicy of the loan following a proper request for such? Can someone tell why it has become a secret in America who you owe your money to, or who you would have to contact if you wanted to pay off your mortgage in full and ensure the proper party received the money? See our website at www.producehthenoteattorney.com for more information about the “produce the note” foreclosure defense theory;
(5) Do you have a truly predatory lending case that is worthy of presenting to a judge and/or jury who are hearing thousands of these types of cases? See our website at www.optionarmlawyer.com for more information.
(6) Did the lender or loan servicer breach a trial plan agreement or final modification agreement? See our website at www.trialplanfraud.com for more information.
(7) Are there better options if a loan modification cannot be achieved such as filing for bankruptcy, pursuing a short-sale or seeking deed-in-lieu of foreclosure? See www.BKAttorneys.net for more information about filing for Bankruptcy protection in California or Arizona.
These are just a few considerations. For specific questions about your case contact a foreclosure defense lawyer at (877) 276-5074.
If you are considering bankruptcy rather than litigating your option arm loan
Posted by: | CommentsWhen you are considering filing for bankruptcy in the Greater Phoenix Arizona region (Phoenix, Scottsdale, Tempe, Mesa, etc.), you will likely be filing your case in the United States Bankruptcy Court for the District of Arizona.
The address for the United States Bankruptcy Court for the District of Arizona is 230 N. First Ave, Suite 101, Phoenix, AZ 85003. The general telephone numbers are 602-682-4000 / 800-556-9230.
To find your bankruptcy filing office in Arizona use this tool: http://www.azb.uscourts.gov/ZipTool.aspx.
Here is a link to common forms and publications that may assist you in filing for bankruptcy in Phoenix Arizona with or without a Phoenix bankruptcy Lawyer http://www.azb.uscourts.gov/default.aspx?PID=73.
Here are some Arizona bankruptcy links of interest that may assist you in understanding the bankruptcy process in Phoenix, Arizona: http://www.azb.uscourts.gov/default.aspx?PID=9.
More good information about filing for bankruptcy in and around Phoenix Arizona can be found at www.BKAttorneyS.Net
KEYOWRDS: PHOENIX BANKRUPTCY ATTORNEY / PHOENIX BANKRUPTCY LAWYER / SCOTTSDALE BANKRUPTCY LAWYER / SCOTTSDALE BANKRUPTCY ATTORNEY /FOUNTAIN HILLS BANKRUPTCY LAWYER /FOUNTAIN HILLS BANKRUPTCY ATTORNEY /CREDITORS HEARING / AUTOMATIC STAY / ADVERSARY PROCEEDING / LIEN STRIP
MORE FORECLOSURE INFORMATION CAN BE FOUND AT WWW.FORECLOSUREDEFENSERESOURCECENTER.COM: This website is provided by the Law Offices of Steven C. Vondran, P.C., as a general information website that seeks to educate California and Arizona Homeowners (we are only licensed to practice laws in these two states, and only seek to solicit clients in these two states).
Foreclosure Defense Topics we will cover include: Truth in Lending (in many cases your most powerful weapon to stop foreclosure), Forensic Loan Audits, Predatory Loans and Potential Causes of Action, Lis Pendens, Deficiency Judgments, Trial Plan Modifications, and more.
TRUTH IN LENDING / OPTION ARM LOANS – REASONS TO FIGHT!
Posted by: | CommentsSome people have asked me, why are you passionate about foreclosure defense and helping Arizona homeowners? One of the answers I like to give is the following:
OUR MISSION: “WE ARE FIGHTING FOR “TRUTH IN LENDING” (a strange concept, i know!):
(1) WE ARE FIGHTING FOR TRUE AND ACCURATE DISCLOSURE OF A LOAN PRODUCT, ITS NATURE, AND TERMS (TELL PEOPLE THE TRUTH ABOUT THE LOANS THEY ARE LOCKING INTO). GIVE THEM THE CHARMS BOOKLET AND CALIFORNIA ARM DISCLOSURES
(2) WE ARE FIGHTING FOR TRUE AND FAIR DISCLOSURE OF THE PRICE-TAG FOR THE LOAN (APR AND FINANCE CHARGES THAT ARE TRUE AND ACCURATE). ACCURATE TRUTH IN LENDING STATEMENTS
(3) WE ARE FIGHTING FOR FAIR AND ACCURATE DISCLOSURE OF THE RIGHT TO CANCEL THE LOAN WHEN APPLICABLE (GIVE PEOPLE THEIR REQUIRED COPIES AND GIVE TRUE DATES UPON WHICH LOANS CAN BE RESCINDED)
(4) WE ARE FIGHITNG FOR FAIR AND HONEST UNDERWRITING THAT IS BASED UPON A CLIENTS TRUE ABILITY TO REPAY A LOAN (WHICH MAY MEAN VERIFYING INCOME AND TELLING SOME PEOPLE THEY DON’T QUALIFY) AND TRUE AND ACURATE APPRAISAL OF PROPERTY THAT SUPPORTS THE UNDERWRITING.
(5) WE ARE FIGHTING FOR FULL DISLCOSURE OF THE HOLDER OF THE LOAN (INVESTOR) AND PROOF AS TO WHO OWNS THE RIGHT TO BE PAID, AND THE RIGHT TO FORECLOSE, AND WHO MUST BY LAW CONTACT CALIFORNIA HOMEOWNERS TO DISCUSS LOAN MODIFICATIONS AND ASSESS BORROWER FINANCES.
(6) WE ARE FIGHTING FOR FULLFULL AND FAIR ACCOUNTING FOR PAYMENTS, LATE FEES, ESCROW CHARGES, AND OTHER CHARGES IN THE LOAN SERVICER’S BACK-ROOM. ANSWER THOSE QWR’S ON TIME, AND IN UNDERSTANDABLE DETAIL. STOP REPORTING NEGATIVE CREDIT DURING THIS PERIOD.
(7) WE ARE FIGHTING FOR HONESTY AND “TRUTH IN TRIAL PLANS” – IF HOMEOWNERS DON’T QUALIFY FOR A MORTGAGE RESTRUCTING / LOAN MODIFICATION, DON’T SEND THEM A TRIAL PLAN THAT LEADS THEM TO BELEIVE THEY DO. IN ADDITION, BE TRUTHFUL ABOUT THE PRECISE TERMS OF THE LOAN MODFIICATIONS (DISCLOSE THE TERMS CLEARLY) AND HONOR YOUR TRIAL PLAN AGREEMENTS.
ITS TIME THE LENDERS OPEN THE BOOKS AND SHOW US WHERE THE BAIL-OUT MONEY HAS GONE. WE NEED SOME TRANSPARENCY. WE NEED SOME ACCOUNTABILITY TO SHOW WHAT HAS BEEN DONE WITH TAX-PAYER MONEY. WAS YOUR LOAN ALREADY PAID OFF VIA THE BAILOUT, AND NOW THEY WANT TO COLLECT MORE MONEY FROM YOU FROM A LOAN THAT MAY HAVE BEEN ALREADY PAID? IF YOUR LOAN WAS SECURITIZED INTO A “LOAN POOL” IS THERE ANY CHANCE YOUR ENTIRE POOL OF LOAN WAS BAILED OUT AND PAID OFF? IF SO, DOES THAT MEAN THEY STILL GET TO COLLECT FROM YOU AS WELL? WHAT IS THAT? ISN’T THAT A WINDFALL……..UNJUST ENRICHMENT?
Trying to Leverage Loan Modifications against the Assignee of the loan (who will undoubtedly argue they are not liable for any predatory lending violations committed by the loan originator) as they are a “Holder in Due Course.”
By Steve Vondran, Esq. who is practicing Real Estate, Bankruptcy, and Foreclosure Defense in Arizona and California where he is licensed to practice law. He also holds a real estate broker’s license in both states as well. Prior to becoming an attorney, Mr. Vondran also was a mortgage loan officer which has given him insight into the current financial crises. He can be reached at steve@vondranlaw.com or (877) 276-5084. The following is general legal information only, and is not to be construed as legal advice, or a substitute for legal advice. The following information may not be updated or accurate, and is simply provided as general information and things to think about if you are facing foreclosure in California or Arizona. For specific questions, please contact a foreclosure defense attorney on your area. Please do not post confidential information on my blogs and do not send us confidential information in emails as we cannot guarantee the confidentiality of such. No attorney-client relationship is formed until a retainer agreement is signed.
One of the key things we must figure out as foreclosure defense lawyers is whether or not your loan was “sold-off on the secondary market” and/or “securitized” and sold to investors on wall street (ex. hedge funds, pension funds, foreign investors, insurance companies, etc.).
Common Scenario: Your sub-prime ARM was originated by Countrywide. Countrywide then sells the loan to Wells Fargo and Wells Fargo works either holds the note, and/or sells it off to an investment banker to securitize the loan. Countrywide, as loan originator, knowing it was going to sell off your loan, may not have cared much about any predatory lending issues such as:
(1) Ability to afford the payment after the loan adjusts (ex. option ARM loans / pick-a-pay); See our website discussing Option ARMS / Pick-a-Pay Loans atwww.OptionArmLawyer.com
(2) Inflated appraisals that helped get the loan funded;
