What Homeowners Must Know About Reinstating their Mortgage Loan

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Once you fall behind on your mortgage, the amount you’re behind is called the arrears.

In the past, we have discussed how you may have loan modification options available to you that let you stay in your home and resume making mortgage payments without having to pay your arrears all at once.

But sometimes homeowners would rather pay their arrears, get current on their mortgage loan and resume making their regular mortgage payments.

This is called reinstating your loan. Reinstating your loan means you pay the entire amount you’re behind (arrears) plus all related fees (such as interest and late fees) to bring your loan current. After you reinstate, your loan will appear as paid to date in the lender’s records and you will resume making your original mortgage payments.

If you have fallen behind on your mortgage payments and want to reinstate your loan, your first step is to determine whether the lender has initiated the foreclosure process.

Reinstating before the foreclosure process has started

If you’re not in the foreclosure process yet, you want to cure the default on the loan. You need to ask your lender to give you a reinstatement quote. This document can be issued 30 days in advance of your payment date. For example, on May 1 you can order a reinstatement quote good through June 1 so you know how much will be due in 30 days.

If you pay the amount listed on the reinstatement quote, the default will be cured and you can resume making regular mortgage payments. The lender will then be unable to start foreclosure.

Make sure you pay the full amount listed on the reinstatement quote

Simply adding up missed mortgage payments and sending that amount may not be the actual amount due. Based on the terms you signed in your original note, the lender may add late fees for missed payments. If you don’t pull a reinstatement quote and send only what you believe is owed, the lender may deem this a partial payment. They will likely keep the partial payment but refuse to show the loan as fully up to date. This could lead to foreclosure.

Don’t accept any verbal reinstatement payoff amount, whether on the phone or in person. Make the lender give you the quote in writing. Verbal reinstatement amounts may be inaccurate and they may change. They are also impossible to verify later. If you send payment based on a verbal quote, the lender could change their mind and you would have no way to prove what they originally told you.

Reinstating after the foreclosure process has started

If you have fallen behind on your mortgage payments and want to pay your arrears but your loan has entered the foreclosure process, rather than talk to your lender, work with the Trustee. The Trustee is the party who issued your Notice of Trustee’s Sale (NOTS). Their contact information should be listed in the NOTS.

Once a lender starts foreclosure and hires a Trustee, the Trustee is in charge of the foreclosure. They are responsible for documenting and holding all reinstatement amounts and quotes.

Things to know and things you should do:

  • Legal fees paid to the Trustee by the lender may be added to your total reinstatement amount. So, if you decide to reinstate the loan you may see additional legal fees added to the total amount due.
  • Make sure you receive your reinstatement quote directly from the Trustee, not the lender. At this point in the process, to ensure that you’re making a full payment, the Trustee is the only one who has that number.
  • Make the request in writing. Include your name, loan number, and Trustee Sale number found on your NOTS. Write “Please send me a reinstatement quote good through (Date) at (my contact information).”
  • Fax the request to the fax number provided on the NOTS and to your lender. Call the Trustee to make sure they received the fax and continue to follow up until they send you the quote.
  • In the state of Washington, you’re allowed to reinstate your loan up to 11 days before your foreclosure sale date. If you believe reinstatement is the right move for you, make sure you request the quote and gather the funds so you can send payment before that 11-day mark.
  • Ask your Trustee how they would like to receive payment. Most Trustees want a cashier’s check made out to the Trustee but payment processes are different for each Trustee. Have this conversation with them before you make payment.

How does reinstatement affect foreclosure?

If you fully reinstate before the 11-day deadline, the Trustee will cancel the foreclosure of your home and withdraw from the case.

You will resume making monthly mortgage payments outlined in your original loan.

You have to track your foreclosure date to make sure the sale actually is canceled. Get written confirmation from the Trustee that they have canceled the sale.

Are the fees attached to the reinstatement quotes negotiable?

Sometimes. It is important to review all late fees and attorney’s fees attached to the reinstatement quote. Some Trustees and Lenders will take advantage of a reinstatement situation by tacking on fees in excess of work performed. There is little regulation on these fees, so it is important to review the fees carefully.

If you see something that looks excessive, request a full accounting of each fee. The Trustee should be able to provide you a breakdown of how they arrived at the reported fees. Request a breakdown for excessive late fees sent by the lender to make sure they only reflect legal late fees for missed mortgage payments.

Are there any exceptions to the 11-day requirement to reinstate?

If you believe that you may be able to reinstate your loan, but not before the 11-day deadline, reach out to the Trustee and tell them your situation.

If you can prove that you fully intend to reinstate and have the ability to do so, the Trustee or lender may provide you more time in order to reinstate the loan. Reinstatement is generally good for lenders. They want you to pay them back and get current. Many times, lenders agree to postpone foreclosure in order to allow you to reinstate, but you have to demonstrate your ability to reinstate in a persuasive way.

We recommend putting together a package including:

  1. signed and dated letter stating that you intend to reinstate the loan
    • Include how you plan to come up with the funds
    • Give a date for when you’ll have the funds
    • Ask for a foreclosure postponement of a certain time (e.g. 15 days, 30 days, etc.). Asking for a general, indefinite postponement likely won’t work.
    • Do everything you can to indicate that you are serious about wanting to reinstate
  2. Proof of funding: Demonstrate how you will come up with the funds. For example, if the funds are in a retirement account, send the retirement fund statement showing that the money is there. If you are borrowing the money, have the people you’re borrowing from sign and notarize a letter stating that they will be lending you money. Include the amount borrowed and the source.

Fax the package to the lender and the Trustee. Call to make sure they received the fax. While you’re on the phone, find out who is looking at your request and see if you can email them directly. It is not enough to simply fax the package, you have to push both the lender and the Trustee to pay attention to your request.

Is a partial payment ever acceptable?

It may be an option for you to offer a partial payment of the full reinstatement amount in order to get a postponement that will give you time to gather the full funds. Lenders may agree to take a portion of money in exchange for foreclosure postponement.

Be careful with this option. Unless you are absolutely, 100% certain you will be able to fully reinstate, you shouldn’t send money or you may lose it. Never send money without an agreement in writing that the lender will postpone in exchange for a lump sum received.

Because you’re in default, the lender will keep the money you paid regardless of whether you’re able to fully reinstate. Don’t do this unless you know will be able to come up with the rest of the money.

Modification options instead of reinstatement

If you’re barely making it through the month in your current financial situation, reinstating the loan may not be the best solution for you. If the reasons why you defaulted are still part of your life, it may be better for you to pursue an alternative like a loan modification or a short sale so you can get to a more affordable housing situation.

Some homeowners think reinstatement is the only way to stay in their home. That’s not always true.

Don’t spend thousands of dollars to get current on a loan you may not be able to maintain. Call us to learn about all your options to tailor the best plan to fit your situation.

If you think you want to reinstate, keep it as your last option. After all, you can reinstate all the way up until 11 days before the foreclosure sale. Other options may allow you to stay in your home and avoid having to pay a large lump sum.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

 

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What Homeowners Must Know After they Have Been Sued in a Bankruptcy Adversary Proceeding

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This post will be helpful to the Debtor when defending against a creditor’s/trustee’s objection to your discharge or the filing of a Complaint for Nondischargeability based upon fraud/conversion; however, this post may also assist the Debtor in bringing an adversary proceeding should one be necessary.

Introduction

An adversary proceeding is a lawsuit brought within your bankruptcy. This lawsuit normally centers around whether a particular debt or all of your debts are dischargeable (or forgiven) through the act of your filing bankruptcy. These lawsuits usually focus around some alleged improper act on your part, including fraud, misrepresentation, or your failure to abide by the Bankruptcy Code and accompanying Rules.

You are now at the point of the adversary process where you have received, by mail or by personal service, the complaint filed by your creditor which asks the Court to decide whether or not that particular obligation should be part of your bankruptcy discharge or an objection to your overall discharge should be granted.

This section of the adversary proceeding packet is to inform you of what your obligations are in order to prepare for a trial. Note that there are references to the bankruptcy rules: Local Rules of Bankruptcy Practice = LR; Federal Rules of Bankruptcy Procedure = Fed.R.Bankr.P. You may also find both types of Rules at the county law library or you may access the Local Rules at the court’s website http://www.uscourts.gov. You should take a look at these rules if you have any questions about the information given in this section.

Step 1: Answer

After you receive a complaint, you must file an answer with the clerk of the Bankruptcy Court within 30 days after issuance of the summons. (Fed.R.Bankr.P. 7012) You must provide a copy of that answer to the creditor’s attorney.

Step 2: Pre-Trial Conference

Note that the cover sheet you receive from the Court will set forth a pre-trial conference date in the lower right-hand corner of the Summons. You must attend that hearing. At that time, the Court will set parameters for trial. The Court may also discuss with the parties whether or not any settlement is possible. Prior to this pre-trial conference with the Court, and within thirty (30) days after you have answered the complaint, you are required to meet with the attorney for the creditor to discuss how discovery will be conducted in the case. After you have had this discussion and no later than fourteen (14) days after the meeting with the attorney, the parties are required to submit a discovery plan. (Fed.R.Bankr.P. 7016 and LR 7016) This plan is a form which the creditor’s counsel will have and will be filled out by both parties. The form will then be submitted to the Court and the Court will then approve, disapprove or modify the discovery plan and enter any other orders that may be appropriate.

Step 3: Discovery

After you have gone through the preparation of the discovery plan and have had it approved by the Court, you will then conduct your discovery. Local Rule 7026 will provide you with information as to what the parties may or may not do during the discovery process. You may also want to look at Local Rules 7026 through and including 7036 and Fed.R.Bankr.P. 7026 through and including 7036 which gives further information regarding some of the discovery tools or requirements.

Step 4: Motions

You may find that throughout the time frame prior to trial that motions are being filed. Motions may be filed by either party. If you are served with a motion in your adversary proceeding, please be advised that you are required to file your opposition or response with the Court and serve your response to the creditor’s attorney not more than fifteen (15) days after you have received the motion and, in no event, not later than five (5) business days prior to the date set for the hearing on the motion. (Fed.R.Bankr.P. 9013 and Local Rule 9014) Make sure that you provide counsel with a copy of your response.

When you get to Court, you are basically going to supplement what is in your opposition or your motion so the Court can make a well-informed analysis of the situation and then deliver an appropriate decision. Please note that when you are in front of the Court, your time is limited. Generally, a motion is limited to approximately five minutes for both sides. It is the feeling of all judges in our district that if all motions and oppositions are well-drafted and timely filed, there is no reason to spend lengthy periods with oral argument. Therefore, you will be expected to come in to court, make a brief presentation and then sit down.

Step 5: Trial

After you have completed all discovery and all motions, you will then be at the point where the parties are ready to proceed with trial. Your trial date will be assigned to you at the pre-trial conference and the Court will generally schedule the trial within 60 and 120 days depending upon the nature of the matter being tried.

Approximately two weeks prior to the trial, you are required to file with the Court a trial statement, a list of witnesses, and a list of exhibits. You must also exchange these documents with the attorney for the creditor. If you and the attorney for the creditor can agree on what the basic issues in trial are going to be, the trial statement may be filed jointly. In other words, one statement will represent the facts and information for both sides to the Court.

The day before the trial, the parties will mark all the exhibits and any supplemental information that needs to be added to the trial statements. Although you are not required to agree with the attorney for the creditor as to what exhibits may be introduced into evidence, it is strongly encouraged that the parties try to agree to all exhibits to be placed before the Court in an effort to have an economical and efficient adjudication of the case.

Certain documents have been included in this packet so that you will have the ability to understand what needs to be filed with the Court prior to trial. However, it is strongly recommended that you access the court’s website at http://www.uscourts.gov and download a copy of the Local Rules. These will prove very useful to you through the course of the adversary proceeding. You may also wish to check with the county law library for a copy of the Local Rules.

All bankruptcy judges are willing to set up a time to discuss whether or not the case may be settled. Many times, having an impartial third party listening to the problems will allow negotiations to flow freely and hopefully obviate the need for the trial. If a settlement conference is set up, it will not be the judge in front of whom this matter will be heard, so you need not fear that you will be prejudiced in any way if this matter is not settled.

COURTROOM ETIQUETTE BETWEEN THE COURT AND THE PARTIES

1.  Don’t take the argument personally (no personal slurs against the other party.)

2. Advocacy does not mean we cannot be civil and communicate with the other side.

3. Adversary proceedings are intended to be negotiated if possible.

4. If you cannot resolve the matter and proceed to trial, remember the following:

a. Dress Appropriately- Nice attire such as a suit or slacks is acceptable. Please no hats, shorts, thongs, tank tops, etc.

b. Your statements should be addressed to the court and not to the other side- The only time you should speak to opposing counsel is during breaks or with the Court’s permission after requesting a break.

a. Do not interrupt the other side or the judge when they are speaking.

b. Remember to follow the rules as explained in the attached documents regarding the filing of your trial statement, list of exhibits, witnesses, etc.

DEALING WITH THE LAW

1. Understand your responsibilities and respond accordingly. You are held to the same standard as an attorney when presenting your case and arguing the legal issues. You may need to educate yourself on the law at issue by visiting the law library and reading the Bankruptcy Code and cases dealing with those sections of the code involving your case.

2. Sanctions – Remember that if you act disrespectful to the Court or opposing attorney, or if you lie in your court pleadings or under oath at trial, the Court has the power to sanction you by either assessing a fee or ruling for the opposing party.

3. If you have any questions regarding your responsibilities, call the other side’s attorney they will answer procedural questions, but cannot assist you with your legal argument.

4. Know the Local Rules – you can obtain a copy by accessing the court’s website at http://www.uscourts.gov You may also be able to obtain the rules from the county law library or from opposing counsel.

 When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

What Homeowners Must Know About Fake Mass Joinder & Other Lawsuits

Fake Mass Joinder & Other Lawsuits

“You’re eligible to join our lawsuit”

On average, complaints that allege some type of attorney involvement have produced greater losses per homeowner than all other complaints. While attorneys can be involved in any type of foreclosure rescue fraud, they are uniquely capable of tricking homeowners into believing they can get involved in fake mass joinder or other lawsuit against a lender. The lawsuit schemes can prove to be even more painful for homeowners because they often involve two parts: first a fee for a “forensic audit” to see if the homeowner is eligible to join the suit, then another fee to join the suit.

Most promise very impressive results, like the homeowner who was told she could “join a class action lawsuit against her lender. Once this was settled she was guaranteed $75,000.” The final selling point for many of these lawsuits is the assurances made to homeowners that nothing can happen to their homes as long as they are part of the suit. Some attorneys advise homeowners to stop paying their mortgage and instead pay monthly retainer fees to them. Month after month, homeowners pay the fee, believing the attorney is fighting for them. In the worst cases, the homeowner doesn’t realize the attorney is actually providing no service at all until a foreclosure notice arrives.

One senior citizen from Williamstown, New Jersey, was contacted by a group of attorneys who guaranteed him a loan modification for just over four thousand dollars. After they allegedly reviewed his documents and made “headway” with the bank regarding a loan modification, they informed him that he was eligible to join a lawsuit against his lender. The suit included over twenty thousand homeowners and they assured him that the lender would settle. At that point the homeowner began making monthly retainer payments of just over a thousand dollars, for eleven months, for a suit that never happened. On top of all of that, the attorneys advised him to stop making his mortgage payments.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

What Homeowners in Foreclosure Must Know About TRO and Injunction

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Very few people fully appreciate the powerful and flexible remedy offered by an injunction. Injunctions are extraordinary, both in terms of their timing and their effectiveness. Certain injunctions are issued with a rapidity otherwise unknown in the American legal system. Injunctions frequently have consequences so sweeping that they effectively shut down operating businesses or otherwise affect dramatically the rights of the parties involved in an irreversible manner – even when the requested injunction is refused. Two illustrative examples of the power of injunctions which have recently been seared into the American consciousness are the injunction against further ballot counting in Florida following the 2001 presidential election and the injunction ordering Napster, the Internet music swapping service, to cease and desist from operating.

Simply put, injunction proceedings are high stakes poker. If a party plays its first hand wrong, the game may be over before another hand is dealt. This article will explore the remedies available in an injunction proceeding, the timing implications involved in either seeking or defending an injunction, and the particular hallmarks incident to various kinds of injunctions.

The Remedies Available Through An Injunction

The only limitation on remedies available through an injunction is the creativity of counsel or of the judge hearing the case. Generally speaking, there are two kinds of relief available through an injunction: prohibitory and mandatory. A prohibitory injunction is the most common form of injunction, and directs a party to refrain from acting in a certain manner. Examples of a prohibitory injunction are cease and desist orders (entered against Napster), or an order stopping a bulldozer prior to the razing of an historic building. Injunctions can also be mandatory, however, in which case the court directs a party to take affirmative action. Examples of this kind of injunction were seen in the school integration and busing cases prevalent several decades ago. Whether prohibitory or mandatory, the only limit on the power of the trial judge (other than the role of appeals courts) is that the remedy selected be reasonably suited to abate the threatened harm and that the court be in a position to enforce its own order and assess a party’s compliance.

The Timing Implications Involved In Seeking Or Defending An Injunction

Similar to the type of remedy, courts and parties have significant flexibility regarding timing, so long as the party seeking an injunction is not guilty of unreasonable delay in requesting the court’s assistance. What constitutes “unreasonable” delay will vary from case to case. There are three kinds of injunction requests, which vary by the timing of the request. The first is called an ex parte injunction (also sometimes popularly known as a temporary restraining order, or TRO. The technical name for such an injunction in the Pennsylvania Rules of Civil Procedure is “special relief”). The other two kinds of injunctions are preliminary injunctions and permanent injunctions.

Ex Parte Injunctions

Ex parte injunctions are appropriate only when the threatened harm is so immediate and so severe that even giving the other party notice of the application for the injunction and an opportunity to be heard in opposition is not practical. Ex parte literally means one-sided. A party seeking the entry of an ex parte order (without the involvement of or even notification to the other party most directly affected) has an exceedingly heavy burden in convincing a judge the emergency warrants such extreme action. By definition, there will not be even minimal due process afforded to the affected party; therefore, the courts’ rules require certain safeguards to protect it. For example, in state court in Pennsylvania, an interim order granted on an ex parte basis may not remain in effect for more than five days without the commencement of a hearing. Furthermore, the party seeking such an injunction also has the obligation to post a monetary bond which the judge deems sufficient to compensate the affected party if it is later determined that the ex parte injunction should not have been granted.

During an ex parte injunction hearing, there is frequently no actual hearing. Although a judge is free to insist upon a full evidentiary presentation, he or she usually permits these applications to be presented in chambers. The presentation of such an application represents one of the only instances in our legal system where one party’s attorney has the opportunity to sit down with the judge and render an entirely one-sided version of the matter before the court. Although the lawyer is acting as an advocate for his client, he or she must be scrupulously honest and avoid exaggerating the circumstances. Engaging in any form of overreach throughout this onesided process can have disastrous effects on both counsel and client, once the adversely-affected party is represented and has an opportunity to tell its side of the story. For obvious reasons, judges react very poorly to being sandbagged.

There is no requirement that a party seeking injunctive relief make a request for ex parte relief. Instead, because judges are very reluctant to grant such requests, and given the heavy burden involved in all actions for injunctions, it’s wise for a client not to risk its credibility before the court by asking for ex parte injunctive relief unless it is truly necessary. Counsel will advise requesting ex parte relief only where circumstances are very favorable.

Preliminary Injunctions

A preliminary injunction represents the most common form of injunctive relief requested. A preliminary injunction differs from an ex parte injunction in that the affected party is given notice that the application has been filed and has an opportunity to appear and be heard at a formal hearing where both parties may present evidence. Unlike ex parte injunction practice, a preliminary injunction almost always involves an evidentiary presentation in open court. Although not a full-blown trial, these hearings are critically important and set the stage for any litigation to come. In many cases, these hearings – and the judge’s reaction to them – constitute the entirety of the litigation.

More often than not, preliminary injunction hearings are conducted without the benefit of a significant amount of time to prepare and without the benefit of discovery, through which documents and testimony from the other side and its witnesses can be obtained prior to the hearing. Therefore, unless the party seeking the injunction is certain it fully understands the case and is completely prepared to present its case at hearing, it is a good idea to attempt to secure a court order to allow for limited discovery in preparation for the hearing to be conducted on an expedited basis, sometimes the very day before the hearing.

At the hearing, the party seeking the injunction has the burden of convincing the judge of a number of things. (Injunction requests are presented to a judge sitting without a jury. Therefore, the more counsel knows about the judge, including his or her political and ideological leanings, the better). Among the elements which must be proven by the party seeking the injunction are: (1) it has no adequate remedy other than an injunction (such as money damages); (2) truly irreparable harm will occur in the absence of an injunction; (3) it is more likely than not that the moving party will prevail on the underlying merits when the matter ultimately goes to trial; (4) the benefit to the party seeking the injunction outweighs the burden of the party opposed to the injunction; and (5) the moving party’s right to the relief sought is clear.

Although these are somewhat flexible – even vague – standards, the judge must be satisfied that all of these elements have been satisfactorily proven prior to granting an injunction. Needless to say, it is easier for the defendant to argue that one or more of these five elements has not been satisfactorily proven than it is for the moving party’s lawyer to argue that all five have been proven. The law sets such exacting standards because the consequences of an injunction can be so dramatic.

The Role of the Injunction Bond

The purpose of the injunction bond is to protect the party against whom the injunction has been entered in the event it is later determined that the injunction should not have been granted. Assuming the judge is persuaded by the proof at the hearing and is willing to grant an injunction, a determination as to the appropriate amount for the injunction bond must be made. The party seeking the injunction will predictably argue that its proof has been so strong that only a nominal bond should be required. Conversely, the adversary will argue that only a significant bond will be adequate to protect his or her client. The judge must balance these competing arguments. Particularly in the event that the judge had any reservation regarding the strength of the moving party’s case, the setting of the bond is another manner in which he or she may protect the interests of the party to be enjoined. There are circumstances where the bond is so sizable that the moving party, which has successfully demonstrated its entitlement to an injunction, will not or cannot satisfy the bonding requirement. In such a case the injunction will not become effective: No bond, no injunction. Thus, it is possible that a party can lose on the merits at the hearing, but never actually be enjoined due to its adversary’s failure to post the required bond.

The Role of the Appellate Court

Most court orders are not subject to an appeal until the case is over in all respects. Orders affecting injunctions, however, are exceptions to this rule. A party dissatisfied with a judge’s decision regarding an injunction – whether that decision grants, denies, modifies, dissolves or otherwise affects an injunction – has an immediate right to appeal that judge’s ruling in both the state or the federal court systems. However, although an appeal is available, it will usually prove extremely difficult to overturn the trial judge’s decision because of the manner in which appellate courts review decisions concerning injunctions. Furthermore, in all but the rarest of occasions, the injunction will remain in place throughout the appeal process, which can itself be lengthy.

Essentially, the court system recognizes that decisions involving injunctions are necessarily made in a somewhat subjective manner and are also made under sometimes severe time constraints. Appellate courts therefore defer to trial judges’ findings and generally believe that the judge who heard the evidence first-hand is in the best position to evaluate the case. As a result, the standard on appeal is very narrow: The trial judge’s decision will be upheld if there is any evidence in the record to support the decision. It doesn’t matter whether the appellate judges would have reached the same decision or not. The thinking is that the trial court should exercise its discretion in the first instance and, if there is more than one plausible interpretation of the evidence, the trial court’s acceptance of any particular interpretation cannot be an abuse of that discretion.

Permanent Injunctions

There is no requirement that a party seeking permanent injunctive relief first request either ex parte or preliminary relief. A permanent injunction may be sought as part of the full trial on the merits in an action, regardless of the outcome of prior proceedings in the case. In reality, however, many injunction cases do not proceed this far because, as previously indicated, the earlier proceedings (the granting or refusal of an ex parte or preliminary injunction) frequently alter the landscape so significantly that further proceedings are never pursued.

Sometimes, however, a permanent injunction is sought following previous proceedings. A permanent injunction may be sought, for example, where a party has been dissatisfied with the outcome of a preliminary injunction proceeding, but remains adamant about securing its rights. With the chances of a successful appeal so low, either the winner or the loser at the preliminary injunction level may elect to press on with discovery and attempt to convince the trial judge to change his or her decision after hearing all of the evidence. (Naturally, the judge’s first impression is always hard to overcome.) As with any order affecting an injunction, a dissatisfied party may appeal from any order entered in consideration of a request for permanent injunction. With a fully developed trial record, the appellate court will be somewhat less deferential to the trial court’s conclusion, yet a successful appeal remains difficult.

Injunctions are particularly powerful and flexible tools, which can have dramatic consequences to the parties involved. Homeowners can use injunction to delay moving out of the property while wrongful foreclosure Appeal is pending. A Homeowner seeking an injunction or attempting to defend against one should be well versed how these procedures works, if you are litigating Pro Se, or Secure counsel familiar with the intricacies of injunction practice.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

What Pro Se Homeowners Must Know About Appellate Issues and Record on Appeal

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Trying cases is one of the most exciting things a litigator does during his or her career but it is also certainly one of the most stressful.

While over 90% of the cases never make it to trial before settlement, if your case is one of the 10% or less that made it to trial, as a Pro Se litigator, there are few things to bear in mind.

A study conducted few years back shows that About 97 percent of civil cases are settled or dismissed without a trial. The number tried in court fell from 22,451 in 1992 to 11,908 in 2001, according to the study. Plaintiffs won 55 percent of the cases and received $4.4 billion in damages.

Homeowners litigating their wrongful foreclosure cases Pro Se are not Attorneys by profession, however, this post is designed to help Homeowners perfect and win their wrongful foreclosure Appeals.

Your case on appeal can be greatly improved by focusing on potential appellate issues and the record on appeal from the start of a case until the finish.

While in the trenches during trial, many litigators understandably focus all of their energies on winning the case at hand. But a good litigator knows that trial is often not the last say in the outcome of a case. The final outcome often rests at the appellate level, where a successful trial outcome can be affirmed, reversed, or something in between. The likelihood of success many times hinges on the substance of the record on appeal. The below discusses a variety of issues that Pro Se trial litigators should keep in mind as they prepare and present their case so they position themselves in the best possible way for any appeals that follow.

Prepare Your Appellate Record From The Moment Your Case Begins

Perhaps one of the biggest misconceptions regarding preserving an adequate record on appeal is when a Pro Se litigant should start considering what should be in the record. In short, the answer is from the moment the complaint is filed. At that time, Pro Se Litigants should begin to think carefully about the elements of each asserted cause of action, potential defenses and their required elements, and the burden of proof for each. Every pleading should be drafted carefully to ensure that no arguments are waived in the event they are needed for an appeal. For instance, a complaint should allege with specificity all the factual and legal elements necessary to sustain a claim, while an answer should include any and all applicable affirmative defenses to avoid waiver. See, e.g., Travellers Int’l, A.G. v. Trans World Airlines, 41 F.3d 1570, 1580 (2d Cir. 1994) (“The general rule in federal courts is that a failure to plead an affirmative defense results in a waiver.”).

Likewise, if you file a motion to dismiss, ensure that the motion contains all the
necessary evidence that both a trial court and appellate court would need to find in your favor.

Of particular importance in federal court practice is the pre-trial order. Under Federal
Rule of Civil Procedure 16, the pre-trial order establishes the boundaries of trial. See Elvis Presley Enterprises, Inc. v. Capece, 141 F.3d 188, 206 (5th Cir.1998) (“It is a well-settled rule that a joint pre-trial order signed by both parties supersedes all pleadings and governs the issues and evidence to be presented at trial.”). If the pre-trial order does not contain the pertinent claims, defenses or arguments that you wish to present at trial, you are likely also going to be out of luck on appeal.

Later on in the case, as the factual record becomes more fully developed, consider
whether amending or supplementing the pleadings or other court submissions are necessary to make the record as accurate as possible. Most states follow the federal practice of allowing liberal amendments. However, these can be contested, particularly late in the process, closer to trial. While appellate review is often for abuse of discretion, formulating a strong motion in favor of or in opposition to an amendment can preserve the issue.

What to Keep in Mind as Your Case Proceeds

As the case develops, consider whether the elements you need to prove your case are
sufficiently reflected in the information you obtain during discovery. If not, determine whether there are ways to obtain the information you need well before trial starts. By the time trial arrives, it may be too late to supplement the record to get before the trial judge and the appellate court what you need to win your case. In that regard, anything you have in writing that gets submitted to the court may very well end up being part of the record on review, so make sure it is accurate and understandable. Incomprehensible or incomplete submissions can muddy your appellate record and damage a successful appellate proceeding. In the same vein, make sure
anything presented to the court prior to trial that you want to be part of the record is transcribed.

Otherwise, there will be an insufficient record on appeal. This is particularly so when it comes to discovery disputes. Although they are common in present day litigation, judges hate discovery disputes. To preserve discovery issues for appeal, be sure to get a ruling, and make sure it is reflected in writing. Moreover, carefully review every pre-trial court order or other judicial communication, including court minutes, to ensure accuracy. Attempting to make corrections during the appellate process may not be possible.

Another significant area for appellate issues is the failure to timely identify experts. This is subject to an abuse of discretion standard of review, so it is important that one builds a record on the issue, particularly regarding any prejudice suffered by the untimely disclosure.

After Discovery Closes – The Motion in Limine

Once discovery has closed, consider carefully any motions in limine you may want to
make. Although motions in limine are not strictly necessary, they are helpful in identifying evidentiary issues for the judge and litigant and increase the chances of a substantive objection, sidebar, and ruling when the issue arises at trial. One potential pitfall – some jurisdictions require a party to renew an objection at trial after a motion in limine has been denied, so make sure to do so if necessary. See, e.g., State ex. Rel Missouri Highway and Transp. Com’n v. Vitt, 785 S.W.2d 708, 711 (Mo. Ct. App. E.D. 1990) (“A motion in limine preserves nothing for review. Following denial of a motion in limine, a party must object at trial to preserve for appellate review the point at issue.”) (internal citation omitted). Also, if the Court delivers its ruling on a motion in limine orally, make sure it is transcribed properly by the court reporter.
Leave no doubt that you have raised (and obtained a ruling on) an issue.

Now the Trial – What to Keep in Mind

Above all else, when in doubt, object. Objections should be immediate and specifically describe the basis for the objection so the record is clear. Make the argument to win –
every objection should be more than just reciting labels, and should provide sufficient information for the trial judge to decide the issue. The goal is not to be coy with the trial judge and hope for a lucky break, but to be prepared to make an argument to win the issue at trial or, alternatively, on appeal. In addition, if you are the party proffering the evidence, make sure the proffer is on the record and that you expressly state why the evidence is being offered. This may require pressing on the judge to get the full objection on the record. If you fail to do so, you risk the appellate court not reviewing the claim on appeal. See, e.g., National Bank of Andover v. Kansas Bankers Sur. Co., 290 Kan. 247, 274-75 (2010) (observing “purpose of a proffer is to make an adequate record of the evidence to be introduced … [and] preserves the issue for appeal and provides the appellate court an adequate record to review when determining whether the trial court erred in excluding the evidence.”). Also, always be careful of waiving any issues for appeal by agreeing to a judge’s proposed compromise on evidentiary issues.

An important but often overlooked consideration is the courtroom layout and dynamics. Well-thought and timely objections will be for naught if they are not transcribed. Sometimes the courtroom layout can make record preservation difficult. For example, if objections are made at sidebar conferences where the court reporter is not present, those objections may not make their way into the appellate record or be dependent on the after the fact recollections of others. See, e.g., Ohio App. R. 9(c) (describing procedures for preparing statement of evidence where transcript of proceedings is unavailable and providing trial court with final authority for settlement and approval). This should be avoided whenever possible.

Beyond objections, make sure all the evidence you need for your appeal is properly admitted by the trial court before the close of your case. All exhibits that were used at trial should be formally moved into evidence if there is any doubt as to whether they will be needed on appeal. If you had previously moved for summary judgment and lost, make sure you take the necessary steps at trial to preserve those summary judgment issues, especially in jurisdictions that do not allow interlocutory appeals.

Another important aspect of the trial is the jury instructions. Jury instructions should always be complete. Remember that the instructions you propose can be denied without error if any aspect of them is not accurate, so break them into small bites so that the judge can at least accept some parts. Specifically object to any jury instructions as necessary before the jury begins its deliberations. See, e.g., Fed. R. Civ. P. 51(c). Failure to do so will waive the right to have the instruction considered on appeal. See, e.g., ChooseCo, LLC v. Lean Forward Media, LLC, 364 Fed. Appx. 670, 672 (2d Cir. 2010) (finding that defendant’s objection to jury instructions and verdict form during jury deliberations did not comply with Fed. R. Civ. P. 51(c) and noting that the “[f]ailure to object to a jury instruction or the form of an interrogatory prior to the jury retiring results in a waiver of that objection.”).

Additionally, when you lodge your objections, make sure you explain why the jury charge is in error since general objections are insufficient. See, e.g., Victory Outreach Center v. Meslo, 281 Fed. Appx. 136, 139 (3d Cir. 2008) (holding that general objection to the court’s jury instructions and proposed alternative instructions, “were insufficient to preserve on appeal all potential challenges to the instructions” and were not in compliance with Fed. R. Civ. P. 51(c)(1)). If possible, have a set of written objections to the other side’s jury charges, and get the judge to rule on that, since judges like to hold such conferences off the record.

Also, do not overlook the verdict form. Know that when you agree to a particular form (general or special), that will mean that you are probably taking certain risks and waiving certain arguments one way or the other. Give this thought, and make sure that you know the rules of your jurisdiction on verdict forms so you can object if necessary. See, e.g., Palm Bay Intern., Inc. v. Marchesi Di Barolo S.P.A., 796 F.Supp. 2d 396, 409 (E.D.N.Y. 2011) (objection to verdict sheet should be made before jury retires); Saridakis v. South Broward Hosp. Dist., 2010 WL 2274955, at *8 (S.D. Fla. 2010) (noting that Federal Rule of Civil Procedure 51(c)(2)(B) states that an objection is timely if “a party objects promptly after learning that the instruction or request will be … given or refused” and that the Eleventh Circuit “require[s] a party to object to a … jury verdict form prior to jury deliberations” or the party “waives its right to raise the issue on appeal.”). (internal quotations and citation omitted).

Finally, pay careful attention to the closing argument. This can be an area where winning at trial by convincing a jury may be at odds with preserving the issue on appeal. On the flip side, many litigators are loath to interrupt a closing argument to object. If you need to object to preserve an issue, do so.

Post-Judgment – Final Things to Consider

First, determine whether certain arguments must be made post-judgment to preserve those arguments for appeal. Some arguments (such as those attacking the sufficiency of the evidence) must be made at that time or they are waived. See, e.g., Webster v. Bass Enterprises Production Co., 114 Fed.Appx. 604, 605 (5th Cir. 2004) (holding that failure to challenge back pay award in post-judgment motion waived the issue on appeal absent exceptional circumstances that did not exist). Written motions post-judgment should include all relevant references to trial transcripts and evidence to make as complete and clean a factual record as possible.

Second, when the appellate record is being compiled, carefully double check the record to ensure its accuracy. Many times the trial court clerk or court reporter accidentally omits portions of the record. If this is not caught and corrected in a timely manner, you may be stuck with a bad record. Most jurisdictions have procedures in place for supplementing and correcting the record but understand them well in advance so there is adequate time to address any discrepancies before the appellate briefing is due.

Conclusion

Too often even seasoned trial lawyers get tripped up on appeal by not having an orderly and complete record. As a Pro Se litigator, you must never lose sight of the factual and legal issues in a case and what an appellate court will need to consider in making the desired determinations. As demonstrated above, a winning record requires thought at all stages of the litigation, not just when the notice of appeal is filed. With proper preparation, attention to detail, and forethought, one can ensure that the proper record on appeal is never in doubt.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

 

How Homeowners Can Avoid Foreclosure Rescue Fraud Scams

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The most devastating foreclosure rescue fraud scams are those that not only promise a modification, but also trick homeowners into believing the lender has agreed to the terms. The party then instructs the homeowner to pay the “new” modified mortgage payments to them, and they will forward the payment to the lender. In reality, the third party takes the payments and the money never reaches the lender. Homeowners are often blindsided by foreclosure notices after many months of believing they are paying the “new” payments to the lender. The scammers often use copies of government logos and have names that are similar to real government programs.

“Your modification is approved! Send us your new payments”
Operation asserts the homeowner has been approved for a modification then steals the homeowner’s “new” mortgage payments.

In one heartbreaking example, a woman from Lindenhurst, New York, received a flyer in the mail in early 2013 with the header “NOTICE OF HUD RELIEF.” Believing the flyer came from the government, she called the number on the flyer, and explained that she had tried working with her lender, but had no success. The third party told her that the lender was not being cooperative because they really just wanted to foreclose on her.

After sending the third party personal financial information, the homeowner quickly received a call back with some good news: they told her she was qualified for “HAMP through Making Home Affordable.” The homeowner was told she now had a mortgage that was a thousand dollars less than her current one, but this was a lie. Then the party told her there was one other thing she had to do before paying the new mortgage payment – pay a “reinstatement fee” of $6,000 that her lender required. Believing it was the final hurdle to reach relief, she sent in the $6,000. Then in March, April and May 2013, she made her new “trial payments” to the third party. They encouraged the homeowner to let them know when she sent the check so they could contact her lender with a tracking number.

Each month the homeowner received a “Mortgage Coupon” with what appeared to be various government logos on it, including the Making Home Affordable and Treasury logos. The homeowner stayed in close contact with the third party, diligently sending the checks.

In May 2013, the homeowner received a call from her lender, telling her she owed almost $30,000. She explained that she had received a loan modification and had already paid the reinstatement fee along with three mortgage payments. The lender representative told the homeowner that she may have gotten caught in a scam. Frantically, the homeowner called her main contact at the operation to which she had been sending her checks. The phone number was disconnected.
After losing almost $12,000, the homeowner is now facing foreclosure.

STATE LAWS

Ensure that Homeowners Are Covered Under State Laws Targeting Foreclosure Rescue Fraud: Many states have passed new laws to address foreclosure rescue scamming. However, some of these laws defined “homeowners” that the law was designed to protect too narrowly. For example, some state laws limit coverage to homeowners who are in default or foreclosure, and fail to reach many homeowners who are defrauded seeking to refinance their mortgage or are seeking mortgage relief because loss of job or unexpected medical costs. It is therefore important that state laws targeting foreclosure rescue fraud define homeowners broadly to cover fraud at any stage of the process.

As the foreclosure crisis grew, foreclosure rescue fraud – scams designed to capitalize on homeowners facing foreclosure by extracting thousands of dollars in exchange for empty promises of assistance – exploded and increased the pain of these homeowners. The proliferation of this type of fraud is not surprising. Homeowners with financial difficulties desperately need to find help to keep their homes and are vulnerable to scam artists posing as loan modification specialists, for example. Scam operators blanket television, radio, newspapers, and the internet with advertisements in English and Spanish, and also rely on street flyers, signs, billboards, and direct mail solicitation.

This saturation marketing, often filled with lies and exaggerations, plays on the trust of distressed homeowners. Scammers use high-pressure sales tactics and false guarantees of success to attract homeowners and to extract large upfront cash payments from homeowners, and then typically do little or no work to obtain the relief promised, essentially abandoning these homeowners. The homeowners not only lose the money they paid to the scam operation, but fall deeper into default and lose valuable time that could have been spent negotiating directly with their mortgage servicer or by going to free a HUD-approved housing counseling agency with true expertise in assisting homeowners in trying to save their homes.

As the foreclosure crisis was peaking, these scams replaced predatory lending as a major problem in the housing finance industry and scams resulted in what was known as the “second wave” of the foreclosure crisis. Indeed, many predatory lending operations morphed into foreclosure rescue scam entities.

“We volunteer all our hours with no payment.”

Alleged “Non-profits” Referring Homeowners to “Law Groups”

Attorney involvement in scams is growing and appears to be an effective means of ensnaring victims, but some homeowners still approach attorneys with skepticism. Attorneys, or someone pretending to be affiliated with an attorney, attempt to ease this skepticism by involving a “non-profit.” Anyone involved in preventing foreclosure or foreclosure rescue fraud knows the best resource for homeowners is a FREE, HUD – approved housing counseling agency.

The problem is that not every organization who claims to fit that description actually does. Some “non-profits” operate as lead generation agencies, gaining the trust of vulnerable homeowners. A search for “.org” in the Database produces over 1400 complaint hits. Homeowners meet with these “non-profits” and things appear to be in order. They aren’t asking for any money, the people seem very nice, and they begin to look over various mortgage documents, free of charge. Providing what appears to be a free service, the “non-profit” can make the homeowner feel at ease and also invested in the process. Once the homeowner is invested, the next level of the scam begins.

One homeowner from Rosedale, New York, began working with one of these “non-profits” in early 2013. She had received a flyer in the mail with the headline, “Economic Stimulus Mortgage Notification” that read, in part: “You are hereby notified that the property at (her address) has been pre-selected for a special program by the Government Insured Institutions. In addition, this property is pre-qualified for an Economic Advantage Payment or Principal Reduction Program, designed to bring your house payments current for less than you owe or your principle balance down. There are no restrictions on equity, credit ratings, or mortgage delinquencies.” The flyer said to contact “Your National non-profit representative” because this is the “last attempt to assist you with your financial situation.”

The homeowner was in need of a modification, so she called the “non-profit” listed on the top of the flyer. After working with the “non-profit” for a while, they told her that they did “all that they could,” and she needed to talk to “(Name withheld) Law Group.” This “Law Group” advertised that they “fight the bank.” They assured her that nothing could happen to her home as long as they were defending her, saying “(her lender) will not take her case until 2016,” giving her some much needed breathing room. After paying four thousand dollars to the “Law Group” and following weeks of empty promises, she was blindsided by a letter telling her that her mortgage was put into foreclosure just a few months after she began working with the “non-profit.”

To keep skeptical homeowners on the hook, the “non-profit” will stay involved throughout the process, assuring the vulnerable homeowner everything is fine. The “Law Group” extracts numerous fees from the homeowner, often saying, “the bank can’t do anything as long as we represent you.” Often in the end, the “non-profit” was started by the same attorney (or non-attorney) who started the “Law Group.” The homeowner loses thousands of dollars and is left wondering, if a “non-profit” will scam them, is there anyone they can trust?

“You’re eligible to join our lawsuit”
Fake Mass Joinder & Other Lawsuits

On average, complaints that allege some type of attorney involvement have produced greater losses per homeowner than all other complaints. While attorneys can be involved in any type of foreclosure rescue fraud, they are uniquely capable of tricking homeowners into believing they can get involved in fake mass joinder or other lawsuit against a lender. The lawsuit schemes can prove to be even more painful for homeowners because they often involve two parts: first a fee for a “forensic audit” to see if the homeowner is eligible to join the suit, then another fee to join the suit. Most promise very impressive results, like the homeowner who was told she could “join a class action lawsuit against her lender. Once this was settled she was guaranteed $75,000.”

The final selling point for many of these lawsuits is the assurances made to homeowners that nothing can happen to their homes as long as they are part of the suit. Some attorneys advise homeowners to stop paying their mortgage and instead pay monthly retainer fees to them. Month after month, homeowners pay the fee, believing the attorney is fighting for them. In the worst cases, the homeowner doesn’t realize the attorney is actually providing no service at all until a foreclosure notice arrives.

One senior citizen from Williamstown, New Jersey, was contacted by a group of attorneys who guaranteed him a loan modification for just over four thousand dollars. After they allegedly reviewed his documents and made “headway” with the bank regarding a loan modification, they informed him that he was eligible to join a lawsuit against his lender. The suit included over twenty thousand homeowners and they assured him that the lender would settle. At that point the homeowner began making monthly retainer payments of just over a thousand dollars, for eleven months, for a suit that never happened. On top of all of that, the attorneys advised him to stop making his mortgage payments.

Attorneys Engaged in Foreclosure Rescue Fraud
Results in Higher Homeowner Losses

These “Law Groups” or “Law Networks” claim to include hundreds of lawyers from around the country and claim that they will connect homeowners to lawyers in their home state.

The Domino Effect of Foreclosure Rescue Fraud

The average dollar figure a homeowner loses in Attorney involved Scam is around $3600, and $2850 on non-Attorney Scams. This dollar figure does not take into account the potential domino effect of foreclosure and homelessness these foreclosure rescue scams can have.

Homeowners may lose over $3,200 in cash payments to a scammer, but then can end up losing hundreds of thousands of dollars more because their homes fall into foreclosure as a direct result of the scam.

At Reno Nevada Foreclosure Prevention Event: One story was particularly memorable.

It involved a homeowner named Bill, and his Dad. After the Lawyers’ Committee’s presentation, Bill’s father, who is in his 80’s, came to the Lawyers’ Committee’s table and asked that we speak to his son, who has medical issues and has difficulty walking. Bill opened his rolling filing cabinet, where he kept his mortgage documents meticulously categorized, and pulled out a large stack of papers from the section labeled “Name Withheld Law Center.”

Bill described his experience as follows: Towards the end of 2009, he received a flyer in the mail with the subject line, “RE: Obama Administration’s Homeowner Affordability and Stability Plan.” This “Modification PROGRAM” said he may be eligible for the “Governmental Economic Stimulus Act of 2009.” The flyer contained Bill’s name, address, and exact loan amount. There was a place for him provide his email address and phone number so the group responsible for the flyer could contact him.

After receiving the flyer, Bill began talking to the “Name Withheld Law Center” associated with it. He pulled out the contract that was sent to him, which contained a recognized attorney’s name because several state Attorneys General had obtained cease and desist orders against that attorney. The attorney doesn’t appear to have ever been licensed in Nevada, and while he had been licensed in California, his license was suspended in early 2013 for misconduct in three loan modification cases.

Bill paid just under two thousand dollars for a loan modification that he never received.

Bill’s Dad sat behind him and watched closely as Bill spoke about his experience with the “Name Withheld Law Group,” and about his life in general. Bill’s Dad’s eyes would well up from time to time.

This story is so moving because it accurately describes the effects of the foreclosure crisis and foreclosure rescue frauds on struggling homeowners. The vast majority of people looking for help to modify their mortgages don’t have an exploding rate mortgage. They, like Bill, have a normal 30 year fixed mortgage that they could afford pre-recession. Bill bought his home for around $280,000 in 2005, putting down a full 20%, which now is worth somewhere between $130,000 and $160,000. When he bought the home, like many Americans, he couldn’t foresee the worst recession since the Great Depression and the simultaneous housing collapse.

These homeowners became prime targets for foreclosure rescue scammers, having been blindsided by the recession and believing the guarantees of success by those who promised to save their homes.

Military Scams

Fake Military Discounts in Foreclosure Rescue Fraud

“We have a discount for military members & their families”

With more than three years of data in the Database – including over thirty-eight thousand complaints and over eighty-four million dollars in total reported losses – sadly there is no shortage of disturbing stories. From the dying cancer patient who was scammed out of thousands of dollars while he was trying to make sure his widow could afford the mortgage when he was gone, to the single woman who took in her sister’s four children after she passed away who was scammed into believing she was part of a fake lawsuit, then threatened by the same attorneys who scammed her after she complained. One type of troubling scam appearing over the past few years is the “Military Discount” targeted to active military service members and their families.

One man, a senior citizen from Fort Worth, Texas, had hit a rough patch when he was solicited by a third party. At that point, he was one month behind on his mortgage payments and was working hard to keep up. The company guaranteed him a loan modification for $1,600. He was hesitant to pay so much money when he was already struggling to stay current on his mortgage. Sensing his hesitation with the original price, the third party asked if he, or anyone in his family, was currently serving the country. After he explained that his daughter was currently serving the country in Iraq, the third party thanked him for his daughter’s service and told him that he was eligible for a military discount of $300. Lowering the price just enough to make it bearable for him, he paid the fee. Months went by with no results and no refund. The damage was not done there. The company advised him that he needed to stop making his mortgage payments in order to get the loan modification, so he did. He went from being just one month behind on his mortgage when he started working with this operation, to his home being sold in foreclosure.

State laws targeting foreclosure rescue fraud should define covered homeowners broadly, as those who seek foreclosure relief services can easily be defrauded before an actual foreclosure or mortgage payment default, thereby excluding them from the coverage of otherwise applicable consumer protection laws. Homeowners who are not yet in foreclosure and who have not fallen behind on mortgage payments should be encompassed in laws regulating third-party services in this area.

Some state and federal laws prohibiting foreclosure rescue fraud directly or indirectly (including through prohibitions on deceptive business practices) are only enforceable by government entities.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

 

How Home Buyers Can Remove Late Payments from their Credit Reports

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If you’ve had a credit report for more than a few years, chances are you’ve been hit with a late payment or two. They are very common because there are so many ways for them to happen. Maybe you were forgetful with 1 of the 12 bills you have to pay every month. Or, you might be short on cash for a month or two. Sometimes, bypassed due dates can simply happen by mistake.

Late payments can be very frustrating, especially when it’s the result of some temporary bad luck or a silly oversight. These pesky line items can affect your credit score for a long time. The negative impact on your score does diminish over time, but it will continue to be a blemish on your credit report for seven long years after the reported delinquency.

Fortunately, just as there are several ways to add a delinquency, there are also several ways to remove them. In this article, I will discuss a number of methods that may help you remove a late payment form your credit report.

What if there’s been a mistake?

If you think you have a delinquency that’s been misreported due to identity theft or because something was just misreported, you should attempt to negotiate with the creditor first. They will usually correct any errors quickly and then notify the credit bureaus once you contact them and present your evidence.

The first thing you should do is call the creditor, especially if it’s just a simple clerical error. That’s typically something they’ll recognize right away, and might even be able to fix the error on the spot without needing any documentation.

If the problem is something more sinister, like identity theft, it may become a more tedious process. They may require copies of your identification, police reports, sworn affidavits, or other documents related to the case. The Federal Trade Commission has a helpful Identity Theft Recovery Plan on their website.

If the creditor is not legitimate, out of business, or not able to cooperate for some reason, you can always go directly to the credit bureaus. In this case, it’s best to send them a dispute letter along with any supporting documents you think they’ll need.

If you aren’t sure what to send, you can call them first and ask. When you send the dispute letter, be sure to send it via certified mail. It may be a quick and easy process or it might take a bit longer, but once the issue is resolved, you could see an improvement in your credit score in a matter of weeks.

How can I dispute a legitimate late payment?

The Fair Credit Reporting Act (FCRA) gives you the right to dispute items on your credit report in order to protect yourself from unseemly creditors and overwhelmed credit bureaus. When you’re faced with a legitimate late payment, the key is to look for anything that might be wrong with the the entry reported on your credit report. Examples:

Misspelled word(s)
Incorrect date(s)
Anything you can possibly find.

If you hit a wall here, try to find something that might be wrong. You may want to focus on creditors who are no longer in business or have been acquired by another company. Try to find something questionable to dispute. The idea here is to find a creditor that may have a hard time validating the late payment when the credit bureaus request supporting documentation as required by your dispute.

Once you’ve found your error(s) or suspected error(s), you need to send a credit dispute letter to each of the credit bureaus reporting the erroneous information. Credit dispute letters can be a sent either by mail or online. In your letter, you should identify the error in question, and ask for the entire entry to be removed from your credit report.

Once the credit bureau receives your claim, the item you flagged for review gets labelled as “in dispute” on your credit report. Over the next 30 days, the bureau is required to investigate your claim and notify you of their findings.

If your dispute is successful, the entry might actually be removed from your credit report. Depending on the creditor and the severity of the error, this may not have a high chance of succeeding, but I’m one who always advocates for giving it a try. The worst that could happen is that the delinquency stays on your report the full seven years, so why not try?

If they find that your dispute is unwarranted because the reported information is verified and determined to be accurate, they will simply remove the “in dispute” label and no further action will be taken. If they are able to confirm the problem you identify, or if they fail to verify or validate the information that’s being reported, they are required to remove the disputed item from your record.

While it’s certainly possible to dispute something online or even over the phone, it’s always a good idea to use certified mail and retain receipts in order to document what you sent and when you sent it. This will help you hold the bureau to the 30-day timeline required by law.

What is a “Goodwill” adjustment?

A goodwill adjustment is when a creditor agrees to remove a late payment from your credit report as a show of “goodwill.” It’s usually awarded in response to a request supported by one or more mitigating factors that contributed to the late payment.

Goodwill adjustments can be tricky, because creditors are required to report everything accurately. It may be argued that removing a late payment that was actually late could be construed as false reporting, but that’s not necessarily the case.

If the creditor decides to “believe you” when you tell them the check was sent in plenty of time, but must have gotten lost in the mail, they certainly have the right to determine that it wasn’t really a “late” payment as much as it was a “mishandled” payment.

Some excuses for having a late payment are going to be more convincing than others. However, it’s always worth a try – there isn’t a true downside other than a small investment of time and/or resources. The upside, however, is significant – it can add several points to your credit score.

The best way to ask for a goodwill adjustment is to send a goodwill letter to the creditor. The most important thing to remember when writing a goodwill letter is that YOU are ultimately responsible for the late payment. Take a conciliatory tone, and explain the circumstances with an emotional plea. Let them know you learned from it, and it won’t happen again.

A goodwill letter is more likely to work if you are asking them to remove a “first offense” late payment. If it’s the latest in a long-established history of late payments, it’s going to be much tougher to yield a positive result.

How can I negotiate to have a late payment removed?

Some creditors might be more open to “reassessing” the circumstances surrounding your dispute or plea for a goodwill adjustment if you offer them some kind of incentive to take such action. The incentives can be wide-ranging, and would depend on your specific situation.

If you have a late payment in one of the first few months with a new creditor, you might be able to make a compelling case by offering to set up automatic payments. As a new client with a late payment right out of the gate, they might decide to jump at the opportunity to set up automatic payments.

If you suddenly came into some money through a large bonus or an inheritance, and you have a late payment on a long-standing account with a large monthly balance, you might consider offering to pay down a large portion or even the full amount of the outstanding debt in exchange for their agreement to remove the late payment.

Not all creditors will agree to these kinds of negotiations, but if you can think strategically about what might get them interested in “making a deal,” it could be an option worth pursuing.

Can I get some help with this?

Some of the methods I covered are quick and easy, but some of them require a fair amount of time and effort. If it starts to feel like your situation calls for more than what you are personally capable of handling, you may want to consider procuring the services of a quality credit repair company.

A good credit repair company can help you with any of these options, because they have experts that handle these issues each and every day. I’ve used credit repair companies to remove late payments from my report, and I found them to be extremely helpful and well worth the cost.

There are several ways to attempt to remove late payments from your credit report, and It’s ultimately up to you to develop your plan and make it happen. It’s always a worthwhile endeavor, regardless of how it all shakes out.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

How Homeowners Can Remove Public Records From Their Credit Reports

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Public records can impact your credit score in a variety of ways. In the world of credit reporting, public records can include bankruptcy, judgments, liens, lawsuits, and foreclosures. Anything that might be considered a legal liability is a matter of public record, and will usually show up on your credit report.

Public records can be tough to remove from your credit report, but it can be done. It’s usually not as simple as removing a late payment or a credit inquiry, because when you are dealing with public records, courts are always involved.

Courts are required to keep certain types kinds of records archived online at the Public Access to Court Electronic Records (PACER). You won’t find records protected by privacy laws (criminal records, medical records, etc.), but you will find anything relating to a financial matter that was settled by a court. Unfortunately, those records nearly always find their way to the credit bureaus.

When you set out to try to remove a public record form your credit report, you can approach it one of two ways.

  1. You can attempt to get the public record expunged at the court of record, which is not going to be an easy battle.
  2. Or, you can attempt to remove the entry from your credit reports.

While it may be easier (but certainly not easy) to get your way with the credit bureaus, it’s important to remember that even if you are successful, the records will remain at the court. The three primary public records that you will contend with on your credit reports are bankruptcy, civil judgments, and tax liens.

How can I remove a bankruptcy from my credit report?

If you have a bogus bankruptcy on your report, you need to contact the court and ask them for a written statement that verifies you did not have a bankruptcy on file. If the court does have a bankruptcy on file, you will need to work with them to resolve the issue, usually by providing identification and other records to prove something went wrong somewhere.

Once you get everything you need from the court, send it with copies of your identification and, of course, your dispute letter via certified mail to each of the major credit bureaus. It will usually take a few weeks for the changes to be recorded on your credit reports, as long as everything you sent checks out.

If you have a legitimate bankruptcy on your credit report, it will be much more difficult to remove the bankruptcy before the required 7-year reporting period after filing a Chapter 13 bankruptcy, or 10 years for a Chapter 7 bankruptcy.

The first thing you should do is look for any kind of inaccuracies in the way your bankruptcy is being reported. Even if it’s just a wrong date or an incorrect dollar amount. If you find something that looks like a mistake, or even something that looks like it could be a mistake, seize on it as an opportunity. Send a dispute letter and ask them to correct the mistake and remove the bankruptcy. The hope is that one of these steps will expose some kind of problem or technicality that occurred during the process and will ultimately be grounds for removal.

If you’re looking at 7-10 years with a tainted credit report anyway, why not give it shot? If it seems like too much work for such a small chance of success, you might want to consult with a bankruptcy attorney or credit repair company to assess your situation and see if they can help you better your chances.

How can I remove a civil judgment from my credit report?

Experian has a clear explanation regarding civil judgments on their website. If a judgment is accurate, it cannot be removed and will remain on the report for at least seven years. The key thing to focus on with that explanation is the word “accurate.”

You should dispute any type of judgment, again trying to find any grounds possible on which to argue your case. If you dispute an unsatisfied judgment and your dispute is rejected, you should do whatever you can to get the judgment converted to “satisfied,” even if it means borrowing money to do so.

Unsatisfied judgments are especially damaging to your credit report, because they make it clear to would-be lenders that you still owe a balance on an outstanding debt. Furthermore, unsatisfied judgments can accrue interest at unforgiving rates over time. Even if they come off your credit report seven years after filing, they can reappear on your report as a “refiled” judgment until the debt is finally paid.

Satisfied judgments are less damaging than unsatisfied judgments for obvious reasons, but they still stay on your credit report for seven years after filing. Vacated judgments are usually pretty easy. Dispute them and send proof they were vacated, and they should come off your report usually within 30 days.

How can I remove a tax lien from my credit report?

When state, local, or Federal tax agency places a tax lien when you fail to pay your tax debt on time, they are essentially filing a legal claim against your property. Your property can include your home, your cars, your valuables, any business interests you might have – even your bank accounts and investments.

As long as they remain unpaid, tax liens can stay on your credit report indefinitely. While it’s possible the credit bureaus may remove an unpaid tax lien after a period of ten years, there is no guarantee that will still be the case ten years from now. The best thing to do if you have an unpaid tax lien is pay it in full as soon as possible.

There are programs in place designed to help taxpayers begin the process of repairing their credit faster than they can with most other types of delinquencies. The IRS, for instance, has a program that will allow you to request a withdrawal of the public notice of a lien.

To apply for an IRS withdrawal, you need to fill out a Form 12277, Application for the Withdrawal of Filed Form 668, Notice of Federal Tax Lien. The form can be used for paid and unpaid tax liens, but it’s important to remember that if you are successful in getting an unpaid lien withdrawn from public notice, you are still required repay the outstanding debt that will remain on file at the courthouse.

There are certain criteria that you must agree to and/or qualify for in order to be eligible for an IRS withdrawal. It’s important to make sure you specify that you want all three credit bureaus to be notified when you complete the Form 12277.

These programs make sense for both the citizen and the tax authority. The hardline provisions related to tax liens in the Fair Credit Reporting Act, are designed to be a deterrent, not a punishment. The government wants your money. Despite how it may feel when you get hit with a lien, they are not seeking to punish you to the point that it’s impossible for you to pay them anymore.

When completing the Form 12277, you will be required to provide a reason for the withdrawal request. You may want to consider telling them that the lien is hurting your credit score, which is causing you financial hardship due to higher interest rates on existing credit balances, which in turn are hindering your ability to pay future taxes. This will incentivize them to give you a break because they’ll see it as a worthwhile investment of their time. Again, even though it may feel like they want you to suffer, the reality is they just want their “fair” share of your money.

What happens if my attempts at removal are not successful?

If you’ve exhausted all options with a public record entry on your credit report, and it just doesn’t look like you’re going to succeed, there are things you can do to improve your credit score. The first thing to do is develop a financial strategy to prevent any future judgment or any other types of delinquencies on your credit report.

You can cut expenses like cable, data plans, dining out, and other non-essentials. You can seek to increase revenue by taking on overtime or a second job. Anything you can do to get your revenue and expenses into a healthy balance will help you in the run.

It’s OK to borrow money within reason, since lenders want to see successful borrowing history. But you should avoid taking on loans that can hurt you if you run into temporary financial trouble like a lost job or medical emergency.

Make sure you make all your loan payments and credit card payments on time, and again, you need to do whatever it takes to satisfy any unpaid judgments or tax liens.

If it starts to feel overwhelming, you might want to consult with a reputable credit repair company, tax attorney or bankruptcy attorney. When it comes to public records, it often makes sense to leave the legal and technical challenges to the experts who have devoted a lifetime to solving these kinds of problems. You can think of it as an investment in your financial future, and it can help you avoid even more stumbling blocks down the road.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

How Homeowners in Foreclosure Can Quickly Improve their Credit Score

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When homeowners find themselves in an unfortunate situations like recent foreclosures, there are few things that can help a homeowner get back on track to purchase a New Home, and one of those things is Improved Credit Score.

A good credit score can give you a lot of freedom. A bad credit score can be prohibitive in more ways than one, making it harder to get loans with reasonable interest rates, or even to get a loan to begin with.

So, what is a good credit score?

According to Value Penguin, a credit score of 720 or more is considered excellent, 660 to 719 is good, 620 to 659 is poor, and anything under 620 is bad. In 2015, the average FICO credit score in America reached an all-time high of 695.

There are several different scoring models out there, and the average FICO score will vary based on age and location, but most will fall between 660 and 720.

So this article is going to discuss why your credit score is important, and give you eight ways you can improve your credit score quickly (potentially within 30 days).

Why is Your Credit Score So Important?

There are many reasons why your credit score is important.

Many landlords will check your credit report before renting to you. They want to make sure you can and will pay your bills on time, so a poor credit score could influence your ability to find a place to live.

Your credit score also affects how much you pay in home and auto insurance, and even whether or not you are approved for a cell phone plan.

Most importantly, your credit score determines the cost of your future purchases. A good credit score gets lower rates on loans and credit cards, resulting in lower overall costs.

To put this into perspective, someone who has a credit score of 650 and gets a 30-year $400,000 mortgage loan is likely to pay over $70,000 more in interest than someone who gets the same loan, but has a credit score of 750.

As you can see, you can save A LOT of money by maintaining a good credit score.

Top 8 Ways: How to Improve Your Credit Score

1. Pay your bills on time.

This may seem like a no-brainer, but 35% of your credit score is determined by your ability to pay your bills on time. Even a payment that is a few days late can significantly impact your credit score.

If you have missed one or more payments, that’s OK. By consistently paying your bills on time after your late or missed payments your score should start to improve, but it may take a few months before you see results.

2. Raise your credit limit.

By raising your credit limit you are decreasing your credit utilization rate. That is, as long as you don’t adjust you’re spending habits accordingly.

Then you would just end up at the same credit utilization rate and owing more.

To put this into perspective, if you have maxed out a $2000 credit card, and you call the creditor and get approved for a credit limit increase to $4000, you instantly cut your credit utilization rate in half.

You should see results in an improved FICO score within a month or two with this method.

3. Use different types of credit.

Using different types of credit like personal loans from credit unions and installment loans for things like furniture, in addition to maintaining a credit card or two, shows your ability to pay your bills and manage the different types of credit.

Once you successfully pay these loans off, making all the payments on time, the credit reporting agencies will see you as a good borrower and your score will increase.

4. Dispute discrepancies and errors.

You should examine everything in your credit report, particularly focusing on accounts that show late payments or unpaid bills. If you find any information to be inaccurate, you can report the inaccuracies on line through Experian, TransUnion, and Equifax.

Additionally, you may consider contacting a credit repair company like Lexington Law for their assistance in repairing your credit.

The reporting agency will open an investigation if they find your claims to be substantiated, and things should be resolved in one or two months.

You are entitled by law to one free credit report each year. You can request your free annual credit report from the major reporting agencies at AnnualCreditReport.com.

5. Strategically open credit accounts.

Opening too many accounts in a short amount of time can have a negative impact on your credit score.

When you apply for credit, a hard inquiry is made on your credit report, which will dock your credit score a few points. So, the more times you apply for credit the more points that will be docked from your credit score.

If you have one or two accounts with low credit limits and haven’t opened any new accounts within the last six months, opening a new credit card account can improve your score.

This works because by opening a new credit account you are increasing your overall credit limit, which if you don’t increase your spending habits, decreases your credit utilization rate. You could also achieve this by contacting your current credit providers and requesting a credit increase.

It cannot be stressed enough to spend only what you can afford to pay every month.

6. Pay your bills twice a month.

Most creditors only report balances to credit bureaus once a month. Even if you pay your card off each month, if you are running up large balances, it could appear like your overusing your credit.

For example, if you use a rewards card to pay for everything and max it out or close too every month. Even though you pay your bill in full, when the credit reporting agency sends in their monthly report it will look like your utilizing most of your credit, which will decrease your score.

You can counter this glitch in the system by splitting up your credit card payments, and paying on your balances at least twice per month to keep your running balance down. If you make a large purchase and have the cash, you should pay it off immediately.

7. Become an authorized user.

In order to become and authorized user, you need to have someone who manages their money very well and is willing to add you onto their credit account and issue a card in your name.

Obviously this person will need to care about you and trust you a whole lot to add you to their credit account. You should have no intention of using this credit card and should be asking this favor of someone only to improve your credit score.

Once you are an authorized user, the account will show up on your credit report as well as the credit utilization rate and all the on-time payments associated with the account. As a result your credit score will increase.

8. Reduce the amount you owe.

Ultimately the best thing you can do to increase your credit score is to reduce the amount you owe.

The amount you owe determines 30% of your credit score, but with financial discipline it can be easier to reduce the amount you owe than clean up a late and missed payment history.

By paying on time, twice per month, and decreasing the amount you owe, you can control the factors that collectively make up 65% of your score.

So by diligently focusing and committing to reducing the amount you owe and paying bills on time, you will dramatically improve your score.

Conclusion

It is important to understand that the quickest you will see an increase in your credit score may be a few months.

You can easily ruin your credit score within a year’s period, and it will take even longer than that to repair the damages of irresponsible credit usage. It is a lot easier and less stressful to maintain a good credit score, than it is to fix one.

The best advice is to not spend more than you can afford and to pay all of your bills on time. In the event that you lose employment and cannot pay, many creditors will work with you until you find new employment.

You have choices and the ability to improve your credit score, no matter how bad your score is. All you have to do is take action.

Do you have any tips on how to improve your credit score quickly? If so, please leave them in the comment section below.

When Homeowner’s good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at https://fightforeclosure.net/foreclosure-defense-package/ “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Unjust Enrichment, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: https://fightforeclosure.net/foreclosure-defense-package/

What Homeowners Must Know About the Residential Mortgage Lending Market

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Introduction and Background

Residential mortgage lenders have long been required to disclose to their borrowers (i) the cost of credit to the consumer and (ii) the cost to the consumer of closing the loan transaction. These regulatory disclosure requirements arise from two statutes – the Real Estate Settlement Procedures Act of 1974 (RESPA) and the Truth In Lending Act (TILA). The regulations were designed to protect consumers by disclosing to them the costs of a mortgage loan (TILA) and the cost of closing a loan transaction (RESPA). These disclosures have in the past been enforced by multiple federal agencies (the Federal Reserve Board, Housing and Urban Development, the Office of Thrift Supervision, the Federal Trade Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the National Credit Union Administration) and provided to consumers on multiple forms with sometimes overlapping information (the Truth in Lending disclosures, the Good Faith Estimate, and the HUD-1 Settlement Statement).

The Dodd Frank Act and CFPB

In 2010, the Dodd Frank Wall Street Reform and Consumer Protection Act (the Dodd Frank Act) created the Consumer Financial Protection Bureau (CFPB), consolidated the consumer protection functions of the above-federal agencies in the CFPB, transferred rulemaking authority under the statutes to the CFPB, and amended section 4(a) of RESPA and section 105(b) of TILA requiring CFPB to issue an integrated disclosure rule, including the disclosure requirements under TILA and sections 4 and 5 of RESPA. The purpose of the integration was to streamline the process and ensure that the disclosures are easy to read and comprehend so that consumers can “understand the costs, benefits, and risks” associated with mortgage loan transactions, in light of the “facts and circumstances.” 12 U.S.C. 5532(a).

The TRID Rule

The CFPB issued a propose rule in July, 2012. The final TILA-RESPA integrated disclosure (TRID) rule was published in late 2013, amended in February, 2015, and went into effect on October 3, 2015. More than simply streamlining the existing process, the TRID rule replaced the entire disclosure structure, changing the form, timing, and content of the disclosures.

Scope – The TRID rule applies to most closed-end consumer mortgages, but not to home equity loans, reverse mortgages, or mortgages secured by anything other than real property (dwellings, mobile homes, etc). It does not apply to lenders who make five or less mortgage loans a year. It does, however, apply to most construction loans that are closed-end consumer credit transactions secured by real property, but not to those that are open-end or commercial loans.

Forms – The TRID rule replaced the forms that had been used for closing mortgage loans with two new, mandatory forms. The Loan Estimate or H-24 form (attached as Exhibit 1) replaces the former Good Faith Estimate and the early TILA disclosure form. The Closing Disclosure or H-25 form (attached as Exhibit 2) replaces the HUD-1 Settlement Statement and the final TILA disclosure form.

Content – Among other information, the three page Loan Estimate must contain (i) the loan terms, (ii) the projected payments, (iii) the itemized loan costs, (iv) any adjustable payments or interest rates, (v) the closing costs, and (vi) the amount of cash to close. If actual amounts are not available, lenders must estimate. Among other information, the Closing Disclosure must contain (i) loan terms, (ii) projected payments, (iii) loan costs, (iv) closing costs, (v) cash to close, and (vi) adjustable payments and adjustable rates as applicable. The required forms are rigid and require the disclosure of this information in a detailed and precise format.

Timing – The TRID rule requires a creditor (or mortgage broker) to deliver (in person, mail or email) a Loan Estimate (together with a copy of the CFPB’s Home Loan Toolkit booklet) within three business days of receipt of a consumer’s loan application and no later than seven business days before consummation of the transaction. A loan application consists of six pieces of information from the consumer: (i) name, (ii) income, (iii) social security number, (iv) property address, (v) estimated value of property, and (vi) amount of mortgage loan sought. 12 C.F.R. §1026.2 (a) (3)(ii). After receiving an application, a creditor may not ask for any additional information or impose any fees (other than a reasonable fee needed to obtain the consumer’s credit score) until it has delivered the Loan Estimate.

The TRID rule also requires a creditor (or settlement agent) to deliver (in person, mail or email) a Closing Disclosure to the consumer no later than three business days before the consummation of the loan transaction. The Closing Disclosure must contain the actual terms of the loan and actual cost of the transaction. Creditors are required to act in good faith and use due diligence in obtaining this information. Although creditors may rely on third-parties such as settlement agents for the information disclosed on the Loan Estimate and Closing Disclosure, the TRID rule makes creditors ultimately responsible for the accuracy of that information.

Tolerance and Redisclosure – If a charge ultimately imposed on the consumer is equal to or less than the amount disclosed on the Loan Estimate, it is generally deemed to be in good faith. If a charge ultimately imposed on the consumer is greater than the amount disclosed on the Loan Estimate, the disclosure is generally deemed not in good faith, subject to certain tolerance limitations. For example, there is zero tolerance for (i) any fee paid to the creditor, broker, or affiliate, and (ii) any fee paid to a third-party if the creditor did not allow the consumer to shop for the service. Creditors may charge more than the amount disclosed on the Loan Estimate for third-party service fees as long as the charge is not paid to an affiliate of the creditor, the consumer had is permitted to shop for the service, and the increase does not exceed 10 percent of the sum of all such third-party fees. Finally, creditors may charge an amount in excess of the amount disclosed on the Loan Estimate, without any limitation, for amounts relating to (i) prepaid interest, (ii) property insurance premiums, (iii) escrow amounts, (iv) third-party service providers selected by the consumer and not on the creditor’s list of providers or services not required by the creditor, (iv) and transfer taxes.1 If the fees and charges imposed on the consumer at closing exceed the fees and charges disclosed on the Loan Estimate, subject to the tolerance levels, the creditor is required to refund the consumer within 60 days of consummation of the loan.

If the information disclosed on the Closing Disclosure changes prior to closing, the creditor is required to provide a corrected Closing Disclosure. An additional three-day waiting period is required with a corrected Closing Disclosure if there is an increase in the interest rate of more than 1/8 of a percent for fixed rate loans or 1/4 of a percent for adjustable rate loans, a change in loan product, or a prepayment penalty is added to the loan. For all other changes, the corrected Closing Disclosure must be provided prior to consummation. If a change to a fee occurs after consummation, then a corrected Closing Disclosure must be delivered to the consumer within 30 calendar days of receiving information of the change. If a clerical error is identified, then a corrected Closing Disclosure must be delivered to the consumer within 60 calendar days of consummation.

Impact on Relationships Between Lenders and Vendors

The TRID rule is detailed and highly technical and the CFPB has published very little official guidance as to the interpretation of the rule. As a result, the various members of the industry are interpreting the rule widely differently and applying it with the according lack of uniformity. An example of the kinds of disagreement arising is the issue of whether the final numbers can be massaged in order to avoid re-disclosure and delivery of a new Closing Disclosure at closing or after. This has led to significant conflicts between creditors and settlement agents as to what the TRID rule requires. Some have described it as a “battle field” with settlement agent’s following creditor’s varying instructions but documenting “everything.”

Impact on Secondary Mortgage Market

The implementation of the TRID rule has also apparently begun to cause delays in closing consumer mortgage loan transactions, with closing times up month over month and year over year since October. Loan originators are also reporting decreases in earnings and attributing some of that decrease to implementation of the TRID rule. Moreover, Moody’s has reported that, because some third-party due diligence companies have been strictly applying their own interpretations of the TRID rule in reviewing loan transactions for “technical” violations (i.e., inconsistent spelling conventions and failure to include a hyphen), these firms have found that up to 90% of reviewed loan transactions did not fully comply with the TRID rule requirements. The fact that most of these compliance issues appear to be technical and non- material has not dampened concerns.

MBA Letter

Indeed, these concerns were set forth by President and CEO of the Mortgage Bankers Association David Stevens in a letter to CFPB Director Richard Codray on December 21, 2015 (letter attached as Exhibit 3). In the letter, Stevens identified the problem, proposed a possible interim solution, and asked for ongoing guidance. The problem, according to Stevens, is that certain due diligence companies have adopted an “extremely conservative interpretation” of the TRID rule, resulting in up to a 90% non-compliance rate. This could put loan originators in the position of being unable to move loans to the secondary market or having to sell them at substantial discounts, and could ultimately lead to significant liquidity problems. It is also unknown how the government sponsored entities (GSEs) will interpret the TRID rule, and whether they too will adopt such conservative interpretations and ultimately demand loans be repurchased and seek indemnification for the lack of technical compliance. Stevens proposed written clarification on a lender’s ability to correct a variety of these technical errors, but also noted a significant need for ongoing guidance and additional written clarifications.

CFPB’s Response

On December 29, 2015, Director Cordray responded to Stevens’s letter, reassuring him that the “first few months” of examinations would be corrective, not punitive, and focused on whether creditors have made “good faith efforts to come into compliance with the rule.” Cordray also noted the GSEs have indicated that they do not intend to exercise repurchase or indemnification remedies where good faith efforts to comply are present.2Cordray also addressed the ability to issue a corrected closing disclosure in order to correct “certain non- numerical clerical errors” or “as a component of curing any violations of the monetary tolerance limits, if they exist.” Interestingly, in this context Cordray raised the issue of liability for statutory and class action damages, noting that “consistent with existing . . . TILA principles, liability for statutory and class action damages would be assessed with reference to the final closing disclosure issued, not to the loan estimate, meaning that a corrected closing disclosure could, in many cases, forestall any such private liability.”

Cordray went on to say that, despite the fact that TRID integrates the disclosures in TILA and RESPA, it did not change the “prior, fundamental principles of liability” under either statute and as a result that:

(i) there is no general assignee liability unless the violation is apparent on the face of the disclosure documents and the assignment is voluntary. 15 U.S.C. §1641(e).

(ii) By statute, TILA limits statutory damages for mortgage disclosures, in both individual and class actions to failure to provide a closed-set of disclosures. 15 U.S.C. §1640(a).

(iii) Formatting errors and the like are unlikely to give rise to private liability unless the formatting interferes with the clear and conspicuous disclosure of one of the TILA disclosures listed as giving rise to statutory and class action damages in 15 U.S.C. §1640(a).

(iv) The listed disclosures in 15 U.S.C. §1640(a) that give rise to statutory and class action damages do not include either the RESPA disclosures or the new Dodd-Frank Act disclosures, including the Total Cash to Close and Total Interest Percentage.

Cordray concluded his letter by noting that “the risk of private liability to investors is negligible for good-faith formatting errors and the like” and that “if investors were to reject loans on the basis of formatting and other minor errors . . . they would be rejecting loans for reasons unrelated to potential liability” associated with the disclosures required by the TRID rule.

While the promise of a good faith implementation period and the assurance that TRID does not expand TILA liability to RESPA disclosures offers some comfort to creditors, Cordray’s letter is not a compliance bulletin or supervisory memo, was not published in the Federal Register, and does not appear to be an official interpretation of the TRID rule that would bind the CFPB or any court. Moreover, his comments focus primarily on statutory damages and do not take into consideration potential liability for actual damages and, importantly, attorney’s fees.

Potential Areas of Liability

Despite these assurances, creditors still must concern themselves with potential liability for TRID violations. The following is list of the main sources of potential liability for TRID violations.

Regulatory (CFPB) – The CFPB has the ability investigate potential violations via its authority to issue civil investigative demands, a form of administrative subpoena. 12 U.C.C. §5562(c). Upon a determination of a violation, the CFPB can issues cease-and-desist orders, require creditors to adopt compliance and governance procedures, and order restitution and civil penalty damages. CFPB may impose penalties ranging from $5,000 per day to $1 million per day for knowing
violations.

(A) First tier – For any violation of a law, rule, or final order or condition imposed in writing by the Bureau, a civil penalty may not exceed $5,000 for each day during which such violation or failure to pay continues.

(B) Second tier – Notwithstanding paragraph (A), for any person that recklessly engages in a violation of a Federal consumer financial law, a civil penalty may not exceed $25,000 for each day during which such violation continues.

(C) Third tier – Notwithstanding subparagraphs (A) and (B), for any person that knowingly violates a Federal consumer financial law, a civil penalty may not exceed $1,000,000 for each day during which such violation continues.

12 U.S.C. § 5565(c)(2).

Other Governmental Liability – Creditors could also face potential additional claims pursuant to the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA).

Consumer Actions – While statutory damages may be limited under TILA to $4,000 in individual suits and the lesser of 1% of company value or $1 million in class actions, that does not account for potential liability for actual damages and attorney’s fees.

Contractual Liability – Absent a specific contractual carve out for technical violations of TRID, originating lenders and creditors may also face potential liability for violation of contractual representations that the loans they are selling were originated “in compliance with law.”

Conclusion

The problem with the TRID rule is that, like the legendary metal bed of the Attic bandit Procrustes, it is a one size fits all regulation and industry participants are going to get stretched or lopped in the process of attempting to fit every transaction into the regulation’s apparently inflexible requirements. Time may well bring additional CFPB guidance, either in the form of the CFPB’s formal, binding interpretations of the rule or in the form of regulatory decisions. Such guidance may then give industry participants a better understanding of how to make and close mortgage loans and avoid liability in process. In the meantime, we can expect further delays, disagreements, and, ultimately, enforcement and litigation.

1 There had been disagreement on whether transfer taxes (property taxes, HOA dues, condominium or cooperative fees) were subject to tolerances or not. On February 10, 2016, in a rare instance, the CFPB issued an amendment to the supplementary information to the TRID rule to correct a “typographical error” and clarify this issue, amending a sentence that had read that these charges “are subject to tolerances” to read that such charges “are not subject to tolerances” (emphasis added).

2 In fact, Fannie Mae and Freddie Mac both issued similar letters on October 6, 2015 advising that “until further notice” they would “not conduct routine post-purchase loan file reviews for technical compliance with TRID,” as long as creditors are using the correct forms and exercising good faith efforts to comply with the rule. In these letters, the GSEs further agreed not to “exercise contractual remedies, including repurchase” for non-compliance except where the required form is not used or if a practice impairs enforcement of the loan or creates assignee liability and a court, regulator, or other body determines that the practice violates TRID. Similarly, the Federal Housing Administration issued a letter that “expires” April 16, 2016, agreeing “not to include technical TRID compliance as an element of its routine quality control reviews,” but noting that it does expect creditors to use the required forms and use good faith efforts to comply with TRID.

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