Mortgage Meltdown: Foreclosure Defense: Reply to Ohay

We are working hard at getting this more organized, but at the moment, the answers to several questions you have are in the postings here going back a couple of months.

Here is a fact you can “bank” on: most lawyers, accountants and loss mitigators don’t have a clue how to give you the upper hand in these conflicts.

Here is another one: the banks want you to come up with a workable plan to avoid foreclosure.

First thing to remember is that with very few exceptions, most people who solicit your business frankly know nothing or too little to help you and they are following protocols that are basically written by the financial institutions to lead you down a blind alley. It really is not very smart of them because they are encouraging substandard services for people in trouble with loans.

At this point I can tell you with absolute certainty that what the banks want is to avoid taking the house back, with all the responsibilities of protecting it from vandalism, paying the utilities, and paying maintenance to keep the house in good condition in accordance with the expectations and rules of the homeowner association etc.

What you describe probably will require the services of an attorney especially if you are on schedule for sale. But otherwise not yet. The people at http://www.repairyourloan.com have specialized expertise and consist of people who are actual auditors of financial institutions. They are not cheap and there is money out of pocket — BUT I strongly recommend that you use them, because they can and do settle cases favorably by finding various deficiencies in the loan documents and conflicts between what you signed up for and the actual loan documents and settlement statements. Sometimes this results in substantial refunds or modifications of the loans. The important thing is that the work they do is a lot less expensive than having an attorney do it and is an absolute prerequisite to defending your position legally.

NOTE: I HAVE NO DIRECT OR INDIRECT RELATIONSHIP WITH THE PEOPLE AT REPAIRYOURLOAN WHICH WILL RESULT IN ANY COMPENSATION, REBATE, KICKBACK OR OTHER REMUNERATION (PAID OR ACCEPTED) TO ME OR MY AFFILIATES. MY RECOMMENDATION IS SOLELY MY OPINION AND NOT A GUARANTEE OF SUCCESS. 

That said, the things you want to keep in mind is that a proper defense is really a good offense.

  • By using the TILA audit as a springboard and combining it with challenges to the authority of the lender or trustee to proceed, together with an attack on the lender as having participatipng in a scheme to defraud you as to the value of the property you bought and the terms of the loan, you have an excellent chance, procedurally and substantively, to push the lender/trustee back to the wall and demand terms. 
  • The terms of settlement might include a refund of all interest paid, points paid, and modiifcation of the loans. 

Your situation is a little different in that you purhcased multiple dwellings and the inference will immediately arise that you are speculator.

  • This in turn puts you at the botttom of the “hardship” pile and is least likely to get you results unless you can demonstrate that you have enough legal ammunition to hurt them. 
  • Every case in which someone challenges the lender on the fundamentals of the deal is a giant threat to them. 
  • Everyone knows that the prices were inflated and everyone knows that the loans were underwritten even when there was no capacity to repay them, because the underwriter knew the lender was selling the loans to an aggregator. 
  • The natural market force of risk aversion, which has always been the check and balance on bad loans, was avoided because the lender took the deal off their balance sheet within hours after you signed the deal. Their only interest was to get you to sign the deal. 
  • They had no interest in whether you could or would repay the loan. 
  • They were making their money by serving as as conduit for money generated by sale of collateralized mortgage obligations under false pretenses to unsuspecting investors who were relying upon false ratings — just like you were relying upon false appraisals (from appraisers who might be insured) and false assurance from the lender (who might also be carrying an errors and omissions insurance policy).
  • Like all borrowers, you were relying upon a belief that they were all acting responsibly and in accordance with law — i.e.., that the lender was your fiduciary (trustee) and had an obligation to protect you — an obligation they completely ignored.

So my long winded answer, is that in my opinion you can trust http://www.repairyourloan.com to do the work properly and give you an advantage that will make it easier to recover your losses and maybe even come out ahead. 

3 Responses

  1. Great post!! I just have to copy it, I have written a blog about foreclosure and bankruptcy, please come visit my site when u have time ^_^

  2. […] We are working hard at getting this more organized, but at the moment, the answers to several questions you have are in the postings here going back a couple of months. Here is a fact you can “bank” on: most lawyers, accountants and loss mitigators don’t have a clue how to give you the upper hand in these conflicts. Here is another one: the banks want you to come up with a workable plan to avoid foreclosure. First thing to remember is that with very few exceptions, most people who solicit more… […]

  3. Thanks a lot for your prompt repsonse ! i will certainly consder using their help.

    at this point i am very worried about defficieny judgements after the houses go to foreclosure. Where can i find information about 1) how often the lenders pursue it, 2) which states allow it, 3) what are my defences against these ?

    i heard from one too many people i talked to that “in this market, its very unlikely the lenders will pursue defficiency as they are burried with too many cases”. How true is this ?

    appreciate your time and advice

Leave a Reply

%d bloggers like this: