Archive | October, 2010

Bank Of America foreclosure fraud

17 Oct

The Devastating Report On Bank Of America That Everyone Is Talking About

Posted by Foreclosure Fraud on October 17, 2010 · 3 Comments 

Full report below, but first some background…

First from Business Insider…

Here’s That Devastating Report On Bank Of America That Everyone Is Talking About Today

Editors note: This was originally published yesterday, but continues to get plenty of attention today, and was just referenced by David Fasber on CNBC. Without further ado...

Earlier, we wrote about Felix Salmon’s contention that there’s a new mortgage fraud scandal that has the potential to dwarf Goldman’s ABACUS dealings. In this fraud scenario, banks took advantage of their information advantage and sold CDOs with mortgages they knew to be bad without clear representation to investors.

In August, Manal Mehta and Branch Hill Capital put together a presentation targeting Bank of America’s potential exposure to this mortgage fraud, as well as other problems in the mortgage market.

The presentation comes to a pretty damning conclusion: Bank of America’s exposure could nearly halve its share price.

Read more: http://www.businessinsider.com/bank-of-america-mortgage-report-2010-10#ixzz12dvMtRAf

Then we have the spin zone…

CNBC

Sorry Folks, The Put-Back Apocalypse Ain’t Gonna Happen

You should probably be a buyer of Bank of America right now.

But Bank of America’s recent decline—down almost 10% this week—is driven by fears that the bank could be hit with huge liabilities for faulty mortgage pools. And I’m pretty sure that is not going to happen.

Why not?

Because the politicians will not let the financial stability of the largest bank in the nation be threatened by contractual rights. Not when there’s an easy fix available that won’t cost taxpayers a dime.

Here’s what is going to happen: Congress will pass a law called something like “The Financial Modernization and Stability Act of 2010” that will retroactively grant mortgage pools the rights in the underlying mortgages that people are worried about. All the screwed up paperwork, lost notes, unassigned security interests will be forgiven by a legislative act.

There’s a big difference between the financial crisis of 2008 and the new crisis. In 2008, banks were destabilized by the growing realization that they were over-exposed to the real estate market. Huge portions of their balance sheets were committed to mortgage-linked investments that were no longer generating the expected revenues or producing losses. That was a problem of economics that could only be solved by recapitalizing banks or letting some of the biggest banks in the U.S. fail.

The put-back crisis is not driven by economics. It is driven by legal rights. And there’s simply zero probability that the politicians in Washington are going to let Bank of America or Citigroup or JP Morgan Chase fail because of a legal issue.

So here’s what I expect will happen. The lame duck session of Congress will pass a bill that essentially papers over the misdeeds of the banks that originated mortgage securities. Every member of Congress and every Senator who has been voted out of office will cast a vote for the bill. And the President will sign it.

You can check out the rest of this along with comments here…

If the latter is what comes to be, am I terrified on what the repercussions will bring…

There will be no rule of law left in America.

If wall street does not have follow the law, why should main street?

We are in critical times here folks…

Oh, and one more thing.

How do you defraud the investor without defrauding the borrower?

They were both sold an empty box…

documents to look for to prepare for a bankruptcy filing

16 Oct

California Bankruptcy Statistics

As Southern Californians deal with the fallout from the mortgage crisis, many homeowners and families have found themselves saddled with debt they cannot afford. As a result of this unfortunate situation, individuals are increasingly turning to bankruptcy to get their financial lives back on track. A majority of individuals file a Chapter 7 bankruptcy to help wipe out most, if not all, of their unsecured debts, including credit card bills, medical bills and judgments. For those individuals who do not qualify for a Chapter 7 bankruptcy, a Chapter 13 bankruptcy is beneficial where the debtor has significant property and/or wants to eliminate a second mortgage on the residence.

At the McCandless Law Firm, we are committed to providing personalized service and our team of professionals will help you obtain a fresh start for you and your family. Contact us today to arrange a free office consultation. Documents to Collect Before filing, the following documents will be necessary to complete your bankruptcy petition:

1. Copy of each debtor’s social security card and bring original with you to your hearing

2. Copy of each debtor’s drivers’ license and bring original with you to the hearing

3. Documentation of any wage garnishments, wage assignments or other legal actions, including lawsuits

4. Copy of recent real estate appraisal, if any

5. Copy of most recent real estate tax bill

6. Pay stubs for each debtor for prior 6 months

7. Documentation of other income i.e. child support, social security, pension, disability, unemployment for prior 6 months

8. Copies of federal and state tax returns complete with all schedules including W-2’s for the prior 4 years

9. Copies of checking account, savings account, and money market account bank statements complete with copies of canceled checks for the prior 6 months (you will be asked to supplement this at a later date)

10. Copy of any life insurance policies except ones through employment including a statement regarding the current cash value

11. Copy of most recent brokerage account statement

12. Copy of most recent individual retirement account statement

13. Copy of most recent pension/retirement account statement

14. Copy of most recent 401K, 401B or 401E account statement

15. Copy of any contract for deed in which you are a buyer or seller

16. Copy of divorce decrees and/or domestic support obligation orders (child support or alimony)

Creditor laws and the fair debt collection practices act fdcpa

16 Oct

Creditor Laws

While creditors must follow specific laws when it comes to collecting on debts, creditors often resort to unscrupulous collection practices which violate the Fair Debt Collection Act and risk being fined, or sued, depending upon the severity of the violation by attempting to take advantage of consumers who are ignorant when it comes to debt collection practices.

Fair Debt Collection Practices
Creditors must follow fair debt collection practices if attempting to collect on a debt. There are several laws in place governing creditor communication, including:

• Creditors cannot call and harass you throughout the day.  One phone call per day is allowed, provided that they actually speak with you.
• Creditors cannot misrepresent themselves to be a lawyer, police or other governmental entity.
• Creditors cannot threaten, harass, or annoy you.  They may not use profanity or threaten to sue you, garnish your wages or take other actions that they do not really plan to take.
• Creditors cannot call at inconvenient times, or contact you by telephone after you have requested that they stop calling.

Automatic Stay Violations

If you have filed for bankruptcy protection, creditors cannot attempt to collect on a debt for as long as the automatic stay is in place. Creditors that violate the automatic stay may be subject to legal action, and monetary damages. An automatic stay goes into place as soon as your paperwork is accepted by the bankruptcy court.  If you are contacted by creditors after they have been informed of your bankruptcy, you may be able to pursue the creditors in court.

Bankruptcy Discharge Violations

If a debt is listed as discharged on your bankruptcy filing and a creditor still attempts to collect on the debt, you may be entitled to damages. Speak with a reputable San Bernardino County Bankruptcy Attorney and get the representation that you need in this case.

Even though creditors have a right to collect the debts they are owed, they have to collect them within the boundaries of the law.  Fair debt collection practices were put into place to protect consumers like you, and you may have the right to seek damages if creditors employ abusive collection techniques. Contact us to speak to an experienced bankruptcy attorney if you have contacted in violation of the Fair Debt Collection Practices Act, and get the legal representation you need to recover damages and prevent further abuse.

Debtor Laws and complete disclosure in Bankruptcy petition

16 Oct

Once you have decided to file for bankruptcy, you must be truthful about your financial situation in order to take advantage of bankruptcy protections.  While this does not pose a problem for a majority of individuals, it is often unwise for a debtor undergoing a bankruptcy to seek to secrete or hide assets.

When you file bankruptcy, expect that the trustee will perform a thorough investigation of your assets and your financial transactions for a year or more prior to the bankruptcy.  If the trustee determines that you have sold or given away valuable items before filing for bankruptcy protection, this can cause your case to be dismissed.  If this happens, you will have to re-file and may not benefit from the protection afforded by the automatic stay which means that creditors will be free to pursue their collection attempts.  Additionally, debtors who attempt to hide assets may be guilty of fraud, accordingly, it is important to disclose any and all financial activities in your initial petition.

Despite innocent intentions, certain actions may require that you to have to wait in order to file for bankruptcy in order to avoid dismissal.  If you have recently sold or given away valuable property, you may have to wait for a year before you file, which is why it is important that you speak with a reputable bankruptcy attorney if you are considering filing for bankruptcy.  The McCandless Law Firm offers legal advice for anyone who may be considering filing for bankruptcy, contact us today to set up a free, no-obligation case evaluation.

What is Causing All of These Bankruptcy Filings?

16 Oct

There are several common causes which lead to filing for bankruptcy.  These included, but are not limited to the following:

1. Lawsuits/Garnishments

Nobody wants to be sued and brought to judgment.  Nobody wants to have 10%-25% of their hard earned wages deducted from their pay.  In many cases, the taking of 10%-25% of one’s wages leads to the inability of that person to pay his rent, utilities or auto payment.  Just the thought of the employer potentially having to garnish wages leads many to panic.  Debtors do not want their employers or co-workers knowing of their financial troubles.

2. Auto Repossessions

Imagine waking one morning, heading out the door to work, only to find that your car is not where you parked it.  Sure you were a little late on the auto payment, but you thought the finance company would wait for you to get current on your own.  Auto lenders will do whatever it takes to get you financed, regardless of whether you are actually capable of affording the car.  They realize that if you can’t pay the installment, they can take back their vehicle and re-sell it before it fully depreciates.  They do this through the use of auto auctions where the vehicle sells for substantially less than what is owed.  This leads to a deficiency amount which the lender seeks to recover from the debtor, you.  Talk about insult to injury, the debtor first loses possession of the vehicle and then gets sued for the outstanding deficiency balance.  Who wants to pay for something that they no longer have?

3. Unpaid Medicals

With more and more Americans going without medical insurance (45.8 million, per the U.S. Census Bureau press release dated 8/30/05), they risk losing whatever they have earned throughout their lifetime should a major medical problem occur.  Most claim that they can’t afford to carry medical insurance.  In reality, they can’t afford not to.  The rising cost of health care could significantly deplete one’s savings should a serious illness or injury occur.  Even those with co-payment coverages are having a difficult time meeting their burden of the bill.

4. High Interest Loans

There have always been high interest personal loans from many sources.  In recent times, the advent of the payday loan has surfaced.  These loans have exorbitant interest, which is often carried over to extend the loan.  People who cannot survive until their next payday are giving up a huge portion of their paycheck to get the money in advance.  This dangerous cycle leads to further borrowing with less and less money actually going into the worker’s pocket.

6. Foreclosures

The pride and joy of being a homeowner can be easily tempered by the hard work and cost of maintaining the home.  Calling the landlord to make repairs is not an option; you are your own landlord.  When the water is not flowing to the main sewer, you have no option, but to make the repairs.  Additionally, the mortgage needs to be timely paid no matter what your special circumstance may be.  Real estate taxes and homeowner’s insurance are also required to be paid regularly or you face a foreclosure suit.  Changes in employment, health, income and marital status can lead to one’s failure to make timely payments.  Many take second mortgages or lines of credit which simply create an additional, financial burden on the homeowner.  When faced with the reality that they cannot afford the home, debtors can vacate the home and extinguish any mortgage liability through  bankruptcy.

7. Overzealous Lending

How many credit card applications have you received in the mail this year?  If you are like many Americans, the applications continue to appear regularly.  Have you received convenience checks or offers for additional lines of credit?  If so, you may have taken advantage of the use of the credit without any feasible way of repaying the debt.  Many people are receiving pre-approved credit applications when they are in fact, not credit worthy.  The credit card lenders point fault at the debtors for accepting the credit without the means to repay it.  It seems more logical to fault lenders who do not undertake to check the credit worthiness of particular debtors.

8. Consumer Overspending

Many people see what they want, acquire it, and decide later how they will pay for it.  People want to possess the latest clothing, jewelry, electronics, etc.  Most stores now offer the ability to take the product home through the use of store credit cards or outside financing.  You may even get a modest percentage discount off the purchase price if you open or use the store charge card.  Many people charge their groceries, restaurant and transportation expenses believing that if they just make the minimum payments everything will be alright.

Discharge Violations and damages for violation of the stay

16 Oct

Discharge Violations

Once your bankruptcy has been discharged, debts listed in your petition will be discharged.  While you will not have to repay these debts and creditors will not be able to contact you and demand payment, some creditors continue to pursue discharged debt. This is a violation of bankruptcy discharge laws, and you may be entitled to monetary damages. It is crucial that your bankruptcy petition was complete to make certain that all dischargeable debt was included in your filing.

If debts that have been properly discharged, demands for payment are rare but if this does happen to you, rest assured that our team of professionals will seek justice for you in court and recover any damages that you may be owed as a result of the creditor’s violations.  Proper legal representation is essential in order for you to take advantage of the full protection that the law provides.  If you have concerns about a bankruptcy discharge violation, contact us Southern California (909)890-9192 in Northern California(925)957-9797 as we can help answer your questions and give you the information you need to make an informed choice about your particular situation.

Fresh start and asset protection thru Bankruptcy

16 Oct

Asset Protection

While many clients are excited to get a fresh financial start through bankruptcy, the McCandless Law Firm understands the apprehension and fear of losing one’s assets. Whether it is your home, vehicle or prized personal possessions, implementing a solution for your debts does not mean that you have to lose the things your family values most. Our team of professionals will provide you with the information necessary to protect your assets and advise which exemptions may be available.

Asset Protection

While bankruptcy laws are federal statutes, the court will look to state exemptions to determine which assets you can protect from creditors.

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