tag:blogger.com,1999:blog-58953794987457262322024-03-13T00:30:05.510-07:00The Truth re Loan Modification, Bankruptcy & Foreclosure in CaliforniaNothing contained herein should be construed as legal advice. The opinions expressed here are only opinions and are likely not to be applicable to your circumstances. Please contact us for your free consultation so that we may fully analyze your situation and help you find your personalized financial recovery plan.Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.comBlogger97125tag:blogger.com,1999:blog-5895379498745726232.post-68525591349524899172013-12-20T11:17:00.000-08:002013-12-20T11:17:28.320-08:00Carrying Debt vs. Bankruptcy.... Would you rather save your behind or save your face?<div class="separator" style="clear: both; text-align: center;">
<a href="http://p.feedblitz.com/t2.asp?/148914/17917886/4660241/www.bankruptcylawnetwork.com/the-true-cost-of-just-paying-the-credit-card-minimum/" style="color: #1155cc; margin-left: 1em; margin-right: 1em;" target="_blank" title="Permanent link to The True Cost Of Just Paying The Credit Card Minimum"><br /></a></div>
<h2 style="background-color: white; clear: left; color: #4a6279; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 19.200000762939453px; line-height: 16.899999618530273px;">
BANKRUPTCY STIGMA</h2>
<a href="http://www.blogger.com/blogger.g?blogID=5895379498745726232" name="141a181d45f26e56_0" style="background-color: white; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 12.800000190734863px; line-height: 16.899999618530273px;"></a><span style="background-color: white; color: #3f4a50; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 12.800000190734863px; line-height: 16.899999618530273px;"></span><br />
<div style="background-color: white; color: #3f4a50; font-family: 'Trebuchet MS', Arial, Helvetica, sans-serif; font-size: 12.800000190734863px; line-height: 16.899999618530273px;">
<div style="line-height: 1.3em; margin-bottom: 1em;">
</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Bankruptcy can seem so scary or humiliating that lots of folks resolve to just keep paying the minimums on their debts.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
You know what it feels like to have more bills than you can pay. You don’t know how bankruptcy will affect you.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
It seems easier to stay the course, pay the minimums, and plod along.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
It may be sort of comfortable, and knowable, but it may be a <a href="http://p.feedblitz.com/t2.asp?/148914/17917886/4660241/www.bankruptcylawnetwork.com/mbna-ira-financial-choices-personal-responsibility/" style="color: #1155cc;" target="_blank" title="Financial choices and personal responsibility"> life sentence</a> of being in debt.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
You won’t get ahead, for sure, but you don’t have to face the uncomfortable fact that you can’t really ever pay off your debts.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
On the surface, it seems like a rational choice.</div>
<ul style="line-height: 1.3em;">
<li style="line-height: 1.3em; margin-left: 15px;">It’s allowed by the terms of the credit card agreement.</li>
<li style="line-height: 1.3em; margin-left: 15px;">It saves you from looking at the big picture of your finances.</li>
<li style="line-height: 1.3em; margin-left: 15px;">You still have plastic in your wallet.</li>
</ul>
<div style="line-height: 1.3em; margin-bottom: 1em;">
But what’s the real and total cost to you of paying forever?</div>
<h2 style="clear: left; color: #4a6279; font-size: 19.200000762939453px;">
The non monetary cost</h2>
<div style="line-height: 1.3em; margin-bottom: 1em;">
If you decide to live with overwhelming debt you’ll encounter costs that don’t appear on your balance sheet.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Being in debt is stressful.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
One of the old surveys measuring stress listed financial problems as a major cause of stress, along with death in the family, divorce, birth of a child, and serious illness. Having a mortgage of more than $150,000 was deemed to be a serious source of stress. These days, I regularly deal with Californians whose mortgage debt is $500,000 to $900,000. By that definition, everyone I see is stressed.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Health professionals have long cataloged the bodily consequences of stress. It is not just something you live with and tough it out. It shortens life as well as detracts from the quality of life. I <a href="http://p.feedblitz.com/t2.asp?/148914/17917886/4660241/www.consumerledger.com/make-sure-theres-life-after-debt/" style="color: #1155cc;" target="_blank">worry about the life expectancy</a> of some of my clients.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
However, new academic studies have expanded our understanding of stress.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
They found something absolutely new.</div>
<h2 style="clear: left; color: #4a6279; font-size: 19.200000762939453px;">
Stress makes you stupid</h2>
<div style="line-height: 1.3em; margin-bottom: 1em;">
That’s right: <a href="http://p.feedblitz.com/t2.asp?/148914/17917886/4660241/www.heraldandnews.com/news/nation_world/article_f0783e58-112d-11e3-be41-001a4bcf887a.html" style="color: #1155cc;" target="_blank">financial stress <em>causes</em> a loss of IQ.</a></div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
And it’s not that it is the stupid who get into debt. It’s not that getting into debt was necessarily stupid.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
The stress caused by debt reduces your ability to perform intellectually. You make new, bad decisions <em>because</em> of stress.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
The researchers from Harvard tested IQ’s in a controlled setting in a shopping mall in New Jersey and in the field in a farming community in India.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Constant worry about paying bills intrudes on your thinking, and diminishes the mental resources you have to apply to all of life’s decisions.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
In the American lab setting, financially worried subjects lost 13 IQ points. In the field, Indian farmers who got paid just once a year<em> improved their IQ by 25%</em> after the harvest when they had money in their pockets and no immediate money troubles.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Wherever it’s found, stress over money makes you less intellectually capable. No matter how you got into debt, <em>being</em> in debt reduces your ability to make good decisions about anything.</div>
<h2 style="clear: left; color: #4a6279; font-size: 19.200000762939453px;">
Challenging myths</h2>
<div style="line-height: 1.3em; margin-bottom: 1em;">
So, the challenge for those stressed by debt is to make good decisions about the alternatives to being in debt. That can be a tall order when you aren’t thinking well.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Get good information. There’s lots of it here on this site, from highly experienced bankruptcy lawyers.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Good financial counselors can assess whether you have a realistic chance to become debt-free in a reasonable time outside of bankruptcy.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Confront the <a href="http://p.feedblitz.com/t2.asp?/148914/17917886/4660241/www.bankruptcyinbrief.com/bankruptcy_myths/" style="color: #1155cc;" target="_blank">myths about bankruptcy</a>. Many are just that: myths. Fanciful tales unconnected to reality.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Recognize that lots of the “avoid bankruptcy at all costs” hype comes from people who profit by your continuing to pay on impossible debt, or people who want to sell you an alternative solution.</div>
<h2 style="clear: left; color: #4a6279; font-size: 19.200000762939453px;">
Get smart</h2>
<div style="line-height: 1.3em; margin-bottom: 1em;">
A first step is to recognize that your debts may be impairing your thinking.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Get the facts, enlist some help, and consider whether the alternatives to living in debt are viable for you.</div>
<div style="line-height: 1.3em; margin-bottom: 1em;">
Just hunkering down and paying the minimums, and remaining impaired may be stupid.</div>
</div>
Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-77262694702193235002013-12-20T11:13:00.002-08:002013-12-20T11:13:57.608-08:00WRONGFUL FORECLOSURE SUCCESS!!! YOU DON"T HAVE TO FULLY TENDER BALANCE DUE TO CHALLENGE FORECLOSURE<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<b><i><span style="font-family: Arial, sans-serif; font-size: 12pt;">Cheung v. Wells Fargo Bank, N.A.</span></i></b><b><span style="font-family: Arial, sans-serif; font-size: 12pt;">, 2013 Westlaw 6017497 (N.D. Cal.).<u></u><u></u></span></b></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<b><span style="font-family: Arial, sans-serif; font-size: 12pt;">Facts</span></b><span style="font-family: Arial, sans-serif; font-size: 12pt;">: Following a nonjudicial foreclosure, the defaulting borrower brought suit against the foreclosing creditor, claiming that the foreclosure itself had been wrongful because the original lender had improperly transferred the mortgage to a securitization trust after the deadline contained in the securitization agreement itself. As a result, the mortgage was never owned by the party that conducted the foreclosure sale. The creditor moved to dismiss the action on the ground that the borrower had not tendered the balance due.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> <b>Reasoning</b>: Citing <i>Fleming vs. Kagan</i>, 189 Cal.App.2d 791, 11 Cal. Rptr. 737 (1961), the court held that tender is not required when the transaction itself is void due to fraud. Therefore, the wrongful foreclosure cause of action was properly brought. For the same reason, the court held that the mortgagor could seek cancellation of the written instruments, since the title documents themselves were void.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> <b>Author’s Comment</b>: I think that <i>Fleming</i> is distinguishable. In that case, the underlying debt had already been paid off, and there was evidence of fraudulent behavior. Here, the underlying debt was never paid, and there is no evidence that the borrower in this case was defrauded by anyone.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> But the larger issue – the tardy assignment of the mortgage to the trust after the deadline – is terribly troubling because there are thousands of mortgages that fall into the same category. A few other courts have validated the theory that a borrower can challenge a completed foreclosure on the ground that the mortgage securitization trust had no standing to foreclose. See, e.g., <i>Glaski v. Bank of America, N.A.</i>, 218 Cal.App.4th 1079, 160 Cal.Rptr.3d 449 (2013). Surprisingly, the court in <i>Cheung</i> did not cite <i>Glaski</i>, a California state court decision, even though the result in <i>Cheung</i> was purportedly governed by California law.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> For a complete discussion of <i>Glaski</i>, see 2013-32 <i>Comm. Fin. News. NL</i> 66, Commercial Finance Newsletter Borrower May Sue for Wrongful Foreclosure When Assignment of Mortgage to Securitized Trust Occurs After Trust's Closing Date.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: Calibri, sans-serif; font-size: 11pt; margin: 0in 0in 0.0001pt;">
<br /></div>
Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-53915161123176696692013-10-14T10:18:00.003-07:002013-10-14T10:44:56.649-07:00NACA's FREE LOAN MODIFICATION ASSISTANCE..... COMES TO LA!!! October 31 - Nov 4 & Nov. 14-18, 2013<a href="https://www.naca.com/nacaWeb/index_main.aspx"><span style="background-color: #fff2cc; color: black; font-family: Georgia, Times New Roman, serif;">https://www.naca.com/nacaWeb/index_main.aspx</span></a><br />
<span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;"><br />
</span><br />
<div style="font-size: 11px; padding-left: 5px; width: 235px;">
<div style="float: left; width: 112.796875px;">
<a href="https://www.naca.com/nacaWeb/member/keepInform.aspx?language=&formType=campaign&campaignID=R1"><span style="background-color: #fff2cc; color: black; font-family: Georgia, Times New Roman, serif;">ONTARIO</span></a></div>
<div style="float: left; width: 35.25px;">
<a href="http://www.blogger.com/blogger.g?blogID=5895379498745726232"><span style="background-color: #fff2cc; color: black; font-family: Georgia, Times New Roman, serif;">Flyer</span></a></div>
<div style="float: left; width: 86.9375px;">
<span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;">Oct 24-28</span></div>
</div>
<div style="font-size: 11px; padding-left: 5px; width: 235px;">
<div style="float: left; width: 112.796875px;">
<a href="https://www.naca.com/nacaWeb/member/keepInform.aspx?language=&formType=campaign&campaignID=L9"><span style="background-color: #fff2cc; color: black; font-family: Georgia, Times New Roman, serif;">LOS ANGELES</span></a></div>
<div style="float: left; width: 35.25px;">
<a href="http://www.blogger.com/blogger.g?blogID=5895379498745726232"><span style="background-color: #fff2cc; color: black; font-family: Georgia, Times New Roman, serif;">Flyer</span></a></div>
<div style="float: left; width: 86.9375px;">
<span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;">Oct 31-Nov 4</span></div>
</div>
<div style="font-size: 11px; padding-left: 5px; width: 235px;">
<div style="float: left; width: 112.796875px;">
<a href="https://www.naca.com/nacaWeb/member/keepInform.aspx?language=&formType=campaign&campaignID=S4"><span style="background-color: #fff2cc; color: black; font-family: Georgia, Times New Roman, serif;">SACRAMENTO</span></a></div>
<div style="float: left; width: 35.25px;">
<a href="http://www.blogger.com/blogger.g?blogID=5895379498745726232"><span style="background-color: #fff2cc; color: black; font-family: Georgia, Times New Roman, serif;">Flyer</span></a></div>
<div style="float: left; width: 86.9375px;">
<span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;">Nov 7-11</span></div>
</div>
<div style="font-size: 11px; padding-left: 5px; width: 235px;">
<div style="float: left; width: 112.796875px;">
<a href="https://www.naca.com/nacaWeb/member/keepInform.aspx?language=&formType=campaign&campaignID=L8"><span style="background-color: #fff2cc; color: black; font-family: Georgia, Times New Roman, serif;">LOS ANGELES</span></a></div>
<div style="float: left; width: 35.25px;">
<a href="http://www.blogger.com/blogger.g?blogID=5895379498745726232"><span style="background-color: #fff2cc; color: black; font-family: Georgia, Times New Roman, serif;">Flyer</span></a></div>
<div style="float: left; width: 86.9375px;">
<span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;">Nov 14-18</span></div>
</div>
<span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif; font-size: 13px;">The Neighborhood Assistance Corporation of America ("NACA") is a non-profit, community advocacy and homeownership organization. NACA’s primary goal is to build strong, healthy neighborhoods in urban and rural areas nationwide through affordable homeownership. NACA has made the dream of homeownership a reality for thousands of working people by counseling them honestly and effectively, enabling even those with poor credit to purchase a home or refinance a predatory loan with far better terms than those provided even in the prime market. </span><br />
<span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;"><br />
SAVE THESE DATES FOR OCTOBER AND NOVEMBER</span><br />
<span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;"><br style="font-size: 13px;" />
<u style="font-size: 13px;"><b>Investing in working people</b></u><br style="font-size: 13px;" /><span style="font-size: 13px;">The NACA homeownership program is our answer to the huge subprime and predatory lending industry. NACA has conclusively shown that when working people get the benefit of a prime rate loan, they can resolve their financial problems, make their mortgage payments and become prime borrowers. NACA’s track record of helping people who have credit problems become homeowners or refinance out of a predatory loan debunks the myth that high rates and fees are necessary to compensate for their "credit risk." </span><br style="font-size: 13px;" /><br style="font-size: 13px;" /><span style="font-size: 13px;">Started in 1988, NACA has a </span><a href="https://www.naca.com/nacaweb/about_naca/nacaHistory.aspx" style="font-size: 13px;">tremendous track record of successful advocacy</a><span style="font-size: 13px;"> against predatory and discriminatory lenders as well as providing the </span><a href="https://www.naca.com/nacaweb/about_naca/nacaProduct.aspx" style="font-size: 13px;">best mortgage program in America with $10 billion in funding commitments</a><span style="font-size: 13px;">. NACA is the largest housing services organization in the country and is rapidly expanding by growing its existing </span><a href="https://www.naca.com/nacaweb/offices/officeMap.aspx" style="font-size: 13px;">30+ offices</a><span style="font-size: 13px;">, headquartered in Boston, MA, </span><a href="https://www.naca.com/nacaweb/offices/newOfficeRequest.aspx" style="font-size: 13px;">opening many new offices nationwide</a><span style="font-size: 13px;">, and expanding the </span><a href="https://www.naca.com/nacaweb/about_naca/nacaService.aspx" style="font-size: 13px;">services</a><span style="font-size: 13px;"> it offers its membership. NACA’s confrontational community organizing and unprecedented mortgage program have set the national standard for assisting low- and moderate-income people to achieve the dream of homeownership. </span><br style="font-size: 13px;" /><br style="font-size: 13px;" /><u style="font-size: 13px;"><b>NACA – America’s Best Mortgage Program</b></u><br style="font-size: 13px;" /><span style="font-size: 13px;">The incredible NACA mortgage allows NACA Members to purchase or refinance homes with:</span></span><br />
<ul style="font-size: 13px;">
<li><span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;">no down payment,</span></li>
<li><span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;">no closing costs,</span></li>
<li><span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;">no fees,</span></li>
<li><span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;">no requirement for perfect credit,</span></li>
<li><span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;">and at a below-market interest rate.</span></li>
</ul>
<span style="background-color: #fff2cc; font-family: Georgia, Times New Roman, serif;"><br style="font-size: 13px;" /><span style="font-size: 13px;">Everyone gets the same incredible terms, including the below-market interest rate, regardless of their credit score or other factors. NACA also provides </span><a href="https://www.naca.com/nacaweb/about_naca/nacaServiceFree.aspx" style="font-size: 13px;">free, comprehensive housing services</a><span style="font-size: 13px;">. NACA counsels Members into the extraordinary NACA mortgage using character-based lending criteria that takes each Member’s circumstances into account to determine whether they are ready for homeownership and what they can afford. This is in contrast to risk-based pricing where people are often given loans they cannot afford while brokers and others make tremendous fees and profits. </span></span>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-47012921942876430642013-09-27T06:43:00.003-07:002013-10-14T10:25:34.144-07:00"Liking" something on Facebook and being Fired for it..... NOT SO FAST!<div style="border: 0px; font-family: 'Open Sans', Arial, Verdana, Geneva, sans-serif; font-size: 14px; line-height: 21px; margin-bottom: 15px; margin-top: 10px; padding: 0px; vertical-align: baseline;">
<i style="background-color: white;"><span style="border: 0px; font-family: inherit; font-size: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;">"Bland et al. v. Roberts</span>, 2013 U.S. App. LEXIS 19268 (4th Circuit, September 18, 2013), Daniel Ray Carter, Jr., was employed as a deputy sheriff in Hampton, Virginia. During the election season when his boss, Sheriff B.J. Roberts, was running for reelection, Carter (and some of his co-workers) expressed support for Robert's political opponent by "liking" his campaign Facebook page. Upon learning of this, Roberts terminated the employees who had "liked" his opponent's page claiming the terminations were based on budget cuts and disruption of office dynamics."</i></div>
<div style="border: 0px; font-family: 'Open Sans', Arial, Verdana, Geneva, sans-serif; font-size: 14px; line-height: 21px; margin-bottom: 15px; margin-top: 10px; padding: 0px; vertical-align: baseline;">
<span style="background-color: white;">Sheriff Roberts believed that his firing was in retaliation for supporting his boss' rival. Roberts and his co-workers sued stating that they were being fired for expressing their free speech rights under the First Amended. Well the district court did find that "Liking" something on Facebook could be protected speech, but merely liking something didn't make it "protected speech" warranting constitutional protection. Roberts appealed and the 4th Circuit reversed this determination. </span></div>
<div style="border: 0px; font-family: 'Open Sans', Arial, Verdana, Geneva, sans-serif; font-size: 14px; line-height: 21px; margin-bottom: 15px; margin-top: 10px; padding: 0px; vertical-align: baseline;">
<span style="background-color: white;">The Appellate Court held that on a "most basic level, clicking on the 'Like' button literally causes to be published the statement that the user 'likes' something, which is itself a substantive statement," of approval or support. Because this was a political campaign, the "like" button became like a campaign sign in front of a person's front lawn which is purely political speech. This sort of speech has always been protected by the first amendment.</span></div>
<div style="border: 0px; font-family: 'Open Sans', Arial, Verdana, Geneva, sans-serif; font-size: 14px; line-height: 21px; margin-bottom: 15px; margin-top: 10px; padding: 0px; vertical-align: baseline;">
<span style="background-color: white;">The importance of this decision is significant because it creates First Amendment protections for employees who use social media and their use of "likes" and "emoticons." This means employers need to be very careful when investigating or taking disciplinary action against employees who exercise their First Amendment rights in this fashion. If you fired an employee for this sort of use of social medium you could find yourself sued.</span></div>
<div style="border: 0px; font-family: 'Open Sans', Arial, Verdana, Geneva, sans-serif; font-size: 14px; line-height: 21px; margin-bottom: 15px; margin-top: 10px; padding: 0px; vertical-align: baseline;">
<span style="background-color: white;">Good luck out there!</span></div>
<div style="border: 0px; font-family: 'Open Sans', Arial, Verdana, Geneva, sans-serif; font-size: 14px; line-height: 21px; margin-bottom: 15px; margin-top: 10px; padding: 0px; vertical-align: baseline;">
<span style="background-color: white;">PS: I know this doesn't have as much to do with bankruptcy and loan modification. However, I did find it interesting.</span></div>
Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-79985221636337785542012-12-18T15:04:00.001-08:002012-12-18T15:04:05.279-08:00Common Law Fraud as a class action may be the answer to Negative Amortization LoansNote that Dan Schecter from Loyola Law School's commentary.<br />
<br />
<br />
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<b><i><span style="font-family: Arial, sans-serif; font-size: 12pt;">Jordan v. Paul Financial, LLC</span></i></b><b><span style="font-family: Arial, sans-serif; font-size: 12pt;">, 2012 Westlaw 3647759 (N.D. Cal.):<u></u><u></u></span></b></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> <b>Facts</b>: Various residential borrowers executed notes secured by mortgages. Under the terms of the documents, the borrowers were permitted to make very low initial payments. The Truth in Lending Disclosure Statement ("TILDS”) given to each borrower failed to state that if the borrowers made payments pursuant to the payment schedule set out in the documentation, the principal on the loan would increase over time and that the borrowers would lose equity in their homes with each payment, a process sometimes called "negative amortization." After the origination of the transactions, the originating lender would sell the loans to an assignee, pursuant to a pre-existing master purchase agreement.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> Eventually, the borrowers brought a class action against the originating lender and its assignee, claiming that the lender and the assignee had committed fraud by failing to tell the borrowers about the negative amortization. The assignee brought a motion for summary judgment, arguing that the documents were not misleading and that it could not be held liable for the conduct of the originator. The borrowers cross-moved for class certification. <u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> <b>Reasoning</b>: The court denied the assignee's motion for summary judgment:<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px; margin-bottom: 0.0001pt; margin-left: 0.5in; margin-right: 0.5in;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;">[S]imply providing technically accurate disclosure does not excuse the potentially inadequate or misleading character of other disclosures, or lessen the resulting potential for confusion . . . . It is of course possible that a buyer would pay more each month than the schedule provided for in the TILDS, thus avoiding negative amortization. But the Court will not turn a blind eye to the fact that the document at issue here is, as far as the Court can tell, designed to mislead. Nowhere in the TILDS, or the Note for that matter, is there any revelation of the fact that the interest rate is certain to sharply increase after just 30 days. Nor does the TILDS contain any indication that following the payment schedule provided will unquestionably lead to negative amortization . . . . [W]ere one to follow the TILDS payment schedule, after 59 months of payment, the borrower would owe 110% of the original principal.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> The court went on to hold that the assignee could be held liable for "aiding and abetting" the loan originator's fraudulent conduct because the assignee knowingly rendered "substantial assistance" to the originator. The assignee argued that it did not have actual knowledge of the fraud, but the court disagreed:<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px; margin-bottom: 0.0001pt; margin-left: 0.5in; margin-right: 0.5in;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;">[The assignee] argues that in reviewing the loan documents it was simply engaged in typical due diligence. However, . . . [the assignee's] due diligence may well have imparted the knowledge required to establish aiding and abetting.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> Finally, the court held that because the assignee's funding was critical to the loan originator, the assignee could be held liable for having provided "substantial assistance" to the originator:<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px; margin-bottom: 0.0001pt; margin-left: 0.5in; margin-right: 0.5in;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;">[The assignee] was one of [the originator's] major secondary market purchasers, as well as the affiliate to a major warehouse lender. Hundreds of millions of dollars, if not billions, flowed through [the originator] because of [the assignee's] involvement.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> The court went on to certify the class.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<b><span style="font-family: Arial, sans-serif; font-size: 12pt;"> Author’s Comment</span></b><span style="font-family: Arial, sans-serif; font-size: 12pt;">: Note that this is not simply a Truth in Lending Act case; instead, the borrowers (acting as a class) assert that the loan originators committed common law fraud and that the mortgage purchasers are liable as aiders and abettors. Naturally, one's sympathy is with the borrowers, who were undoubtedly defrauded by loan originators who concealed the inevitable negative amortization of these mortgages. But to extend fraud liability to the purchasers on the secondary market would greatly expand the scope of potential defendants, making these "toxic assets" doubly dangerous.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> On one hand, this decision might be worrisome to anyone holding interests in bundles of residential mortgages. On the other hand, though, perhaps this decision can be restricted to its facts: it might only affect assignees with direct contact with the loan originator, rather than those who purchase residential mortgages through intermediaries. In that case, although many large institutions could face fraud liability, tertiary or remote investors in mortgage-backed obligations should not be too concerned.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com1tag:blogger.com,1999:blog-5895379498745726232.post-41036035188011515872012-12-18T14:57:00.001-08:002012-12-18T14:57:17.378-08:00Dear Readers: This is an important case with commentary by <span style="background-color: white; color: #222222; font-family: Arial, sans-serif; font-size: 13.333333969116211px;">Professor Dan Schechter, Loyola School of Law. Note his commentary about how the courts may be angry with the banks for their faux pas, but they are also growing weary of homeowners who are unwilling to pay. Keep this in mind.</span><div>
<span style="color: #222222; font-family: Arial, sans-serif; font-size: x-small;"><br /></span></div>
<div>
<span style="color: #222222; font-family: Arial, sans-serif; font-size: x-small;">Best to you all:</span></div>
<div>
<span style="color: #222222; font-family: Arial, sans-serif; font-size: x-small;"><br /></span></div>
<div>
<span style="color: #222222; font-family: Arial, sans-serif; font-size: x-small;"><br /></span><div>
<br /></div>
<div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<b><i><span style="font-family: Arial, sans-serif; font-size: 12pt;">Shuster vs. BAC Home Loans Servicing, LP, </span></i></b><b><span style="font-family: Arial, sans-serif; font-size: 12pt;">2012 Westlaw – – (Cal.App.):<i><u></u><u></u></i></span></b></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> <b>Facts</b>: Two individuals borrowed $670,000 to purchase a home. The deed of trust named Mortgage Electronic Registration Systems, Inc. ("MERS") as the beneficiary, but the deed of trust failed to name a trustee.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> Four years later, the borrowers defaulted. MERS named a substituted trustee, which recorded a notice of default. Following a nonjudicial foreclosure, the borrowers filed a complaint for quiet title, arguing that the deed of trust was a "mortgage" requiring judicial foreclosure, rather than nonjudicial foreclosure, since it failed to name a trustee. The trial court ruled in favor of the lender, and the appellate court affirmed. <u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> <b>Reasoning</b>: The court noted that although this was an issue of first impression in California, courts in other states have uniformly held that the omission of a trustee does not preclude nonjudicial foreclosure. On appeal, the borrowers argued that a conveyance that fails to name the grantee is void. But the court rejected that argument:<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px; margin-bottom: 0.0001pt; margin-left: 0.5in; margin-right: 0.5in;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;">A grantee is not the same as a trustee. The character of "title" provided by a grant deed differs substantially from that provided by a deed of trust. A grant deed conveys a fee simple title to the grantee for all purposes . . . . In contrast, a trustee under a deed of trust "carries none of the incidents of ownership of the property, other than the right to convey upon default . . . ."<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px; margin-bottom: 0.0001pt; margin-left: 0.5in; margin-right: 0.5in;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> The court went on to hold that the foreclosing party did not have to produce the original promissory note and that the borrowers' failure to tender the balance due stripped them of standing to challenge the foreclosure sale. The court concluded with the following observation:<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px; margin-bottom: 0.0001pt; margin-left: 0.5in; margin-right: 0.5in;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;">We are mindful that foreclosures are a far too frequent occurrence in today's difficult financial times. But the hardship must not become a haven for those who, as here, do not appear to make any good faith effort to resolve the issue but, instead, seek shelter in minor ministerial omissions or speculative acts that neither misled nor prejudiced them.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px; margin-bottom: 0.0001pt; margin-left: 0.5in; margin-right: 0.5in;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> <b>Author’s Comment</b>: This is almost certainly the right result. If the deed of trust had utterly failed to name a beneficiary, that would have been more analogous to a grant deed that names no grantee. But a trustee under a deed of trust is nothing like a grantee under a grant deed. In fact, a trustee under a deed of trust is something less than a true trustee. See <i>Stephens, Partain & Cunningham v. Hollis</i>, 196 Cal.App.3d 948, 955, 955 242 Cal.Rptr. 251, 255 (1987): "Just as a panda is not an ordinary bear, a trustee of a deed of trust is not an ordinary trustee." The <i>Stephens </i>court in footnote 4 speculated: "With luck, this passage will end up as the following headnote in some legal digest: 'Trustee under deed of trust held to be panda bear.'” Although I can't quite fulfill the court's prediction, it seems that a trustee under a deed of trust is an odd creature, one that (in this case) magically arose like a Phoenix from the empty ashes of the blank trust deed.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> Taking a step back, however, one has to ask: how could any lender ever draft and record a deed of trust without naming any trustee? Admittedly, it is very easy to change trustees and to substitute one for another. But it would seem obvious that the transaction should begin with someone nominally occupying that role. The court rescued the transaction from this defect, but it should never have happened in the first place.<u></u><u></u></span></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<br /></div>
<div class="MsoNormal" style="background-color: white; color: #222222; font-family: arial, sans-serif; font-size: 13.333333969116211px;">
<span style="font-family: Arial, sans-serif; font-size: 12pt;"> The court's world-weary observation about borrowers who "seek shelter in minor ministerial omissions" is telling: although the courts are disgusted with the financial industry's shoddy practices, they are also losing patience with borrowers who cannot pay and who simply seek to delay the inevitable.</span></div>
<br /></div>
</div>
Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-73081616984110512332012-08-14T16:41:00.000-07:002012-08-14T16:41:08.562-07:00WAKE UP LA - NACA BACK IN TOWN OCTOBER 5, 2012. TIME TO GET READY!!!!<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtvSLnP8YCPyfTo0V1atR62tP8K2i8ysu5E-APQZ_kueRoaKWi4LtvuHatTThAPNPiv1WIT2VCoX_AkLmrBxg9pZ9tyumiL0SMSyVmuW5AUpcQ0-dcOH_r_w881rETwTgSXMY8itH2IidB/s1600/LA+CONVENTION+CENTER.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtvSLnP8YCPyfTo0V1atR62tP8K2i8ysu5E-APQZ_kueRoaKWi4LtvuHatTThAPNPiv1WIT2VCoX_AkLmrBxg9pZ9tyumiL0SMSyVmuW5AUpcQ0-dcOH_r_w881rETwTgSXMY8itH2IidB/s640/LA+CONVENTION+CENTER.jpg" width="490" /></a></div>
<br />Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-18179961722881262562012-06-03T11:54:00.001-07:002012-06-03T11:54:33.749-07:00The Nails are in the Coffin When it Comes to Wrongful Foreclosure.Dear Readers:<br />
<br />
Resent research has shown that the typical wrongful foreclosure case involving big lenders such as Bank of America, Wells Fargo, Chase, Citibank, Deutche Bank, and Mortgage Electronic Registration Services (aka MERS) have all the rulings going in their favor. It doesn't seem to matter if you pay attorneys $10,000 or more for litigation to stop or enjoin a foreclosure, the courts are ultimately not ruling in our favor. This case embodies every last theory I had in my bag of tricks to go after a wrongful foreclosure case. All wiped out.<br />
<br />
<div class="co_title" style="border: 0px; color: #252525; font-family: georgia, serif; font-size: 18px; line-height: 1.5em; margin: 1em 0px; padding: 0px 0.5em; text-align: center;">
<div class="co_suit" style="border: 0px; font-size: 18px; margin: 0px; padding: 0px;">
<div class="co_partyLine" style="border: 0px; font-size: 18px; margin: 0px; padding: 0px;">
<span style="font-family: Arial, sans-serif; font-size: 15px; line-height: 21px; text-align: left;">HERRERA v. FANNIE MAE (Federal National Mortgage Association) </span></div>
<div class="co_partyLine" style="border: 0px; font-size: 18px; margin: 0px; padding: 0px;">
<div class="co_contentBlock co_docketBlock" style="border: 0px; display: inline; font-family: Arial, sans-serif; font-size: 15px; line-height: 21px; margin: 0px; padding: 0px;">
<span style="border-right-color: rgb(238, 238, 238); border-right-style: solid; border-right-width: 1px; font-family: georgia, serif; margin-right: 10px; padding-right: 10px;">No. E052943.</span></div>
<div class="co_date" style="border: 0px; display: inline; font-size: 15px; line-height: 21px; margin: 0px; padding: 0px;">
May 17, 2012.</div>
</div>
</div>
</div>
<div class="co_contentBlock co_synopsis" style="border: 0px; margin: 1em 0px 0px; padding: 0px; text-align: left;">
<h2 class="co_printHeading" id="co_synopsis" style="border: 0px; color: #252525; font-family: Arial, sans-serif; font-size: 1.125em; line-height: 21px; margin: 1em 0px 0px; padding: 0px;">
<span style="font-size: 15px; line-height: 21px;">Borrowers under deed of trust brought action against Federal National Mortgage Association (Fannie Mae) to set aside the trustee's sale of their home, to void or cancel the trustee's deed upon sale, and for violation of the statute governing assignment of power of sale.</span></h2>
<div style="border: 0px; color: #252525; font-family: Arial, sans-serif; font-size: 15px; line-height: 21px; margin: 0px; padding: 0px;">
<div class="co_paragraph" style="border: 0px; margin: 0px; padding: 0px;">
<div class="co_paragraphText" style="border: 0px; margin: 0px; padding: 0px;">
<span style="line-height: 21px;"><br /></span></div>
<div class="co_paragraphText" style="border: 0px; margin: 0px; padding: 0px;">
<span style="line-height: 21px;">Court of Appeal 4th District Affirmed the trial court's rulings which held that:</span></div>
</div>
</div>
<div class="co_contentBlock co_synopsisHolding" style="border: 0px; color: #252525; font-family: Arial, sans-serif; font-size: 15px; line-height: 21px; margin: 2em 0px 1em; padding: 0px;">
<div class="co_paragraph" style="border: 0px; margin: 0px; padding: 0px;">
<div class="co_paragraphText" style="border: 0px; margin: 0px; padding: 0px;">
1. MERS had authority to assign deed of trust;</div>
</div>
<div class="co_paragraph" style="border: 0px; margin: 0px; padding: 0px;">
<div class="co_paragraphText" style="border: 0px; margin: 0px; padding: 0px;">
2. The assignee of deed of trust had authority to execute substitution of trustee;</div>
</div>
<div class="co_paragraph" style="border: 0px; margin: 0px; padding: 0px;">
<div class="co_paragraphText" style="border: 0px; margin: 0px; padding: 0px;">
3. Civil Code § 2932.5, the statute governing assignment of encumbrancer's power of sale did not apply to power of sale under a deed of trust; and</div>
</div>
<div class="co_paragraph" style="border: 0px; margin: 0px; padding: 0px;">
<div class="co_paragraphText" style="border: 0px; margin: 0px; padding: 0px;">
4. That Fannie Mae was authorized to initiate <span class="co_searchTerm" id="co_term_313" style="background-color: rgb(255, 255, 102) !important; font-weight: bold; margin-left: 0px; padding-left: 0px; top: 0px;">foreclosure</span> before assignment of deed of trust was recorded.</div>
</div>
</div>
<div class="co_paragraph" style="border: 0px; margin: 0px; padding: 0px;">
<div class="co_paragraphText" style="border: 0px; color: #252525; font-family: Arial, sans-serif; font-size: 15px; line-height: 21px; margin: 0px; padding: 0px;">
<span style="color: black; font-family: 'Times New Roman'; font-size: small; line-height: normal; text-align: -webkit-auto;">Readers it is crystal clear. You are going to have to reconcile with your lender or try to get them to give you a loan modification, or get out using short-sale transactions, or simply walk way in foreclosure. NOW more than ever you need the qualify services of the Law offices of R. Grace Rodriguez, to help go over your strategy for dealing with the mortgage nightmare that America's leading lenders handed you to deal with. You must speak with competent bankruptcy attorneys who can help you with all different types of bankruptcies if they are necessary to help you achieve your goal of saving your home. Alternatively you can benefit from our extensive skills in helping you maximize the benefits of surrendering your home and achieving the greatest cost savings, potentially leaving you with the ability to purchase a new home with the savings you have achieved.</span></div>
<div class="co_paragraphText" style="border: 0px; color: #252525; font-family: Arial, sans-serif; font-size: 15px; line-height: 21px; margin: 0px; padding: 0px;">
<span style="color: black; font-family: 'Times New Roman'; font-size: small; line-height: normal; text-align: -webkit-auto;"><br /></span></div>
<div class="co_paragraphText" style="border: 0px; margin: 0px; padding: 0px; text-align: -webkit-auto;">
Call us today for help. The consultation is free!</div>
</div>
</div>
Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com2tag:blogger.com,1999:blog-5895379498745726232.post-57535977830097281732012-05-09T20:01:00.000-07:002012-05-09T20:01:36.897-07:00<br />
<pre>Dear Readers: I was researching Civil Code Sec. 1788.10 </pre>
<pre>known as the ROSENTHAL FAIR DEBT COLLECTION ACT:</pre>
<pre>
</pre>
<pre>No debt collector shall collect or attempt to collect a
consumer debt by means of the following conduct:
(a) The use, or threat of use, of physical force or violence or
any criminal means to cause harm to the person, or the reputation, or
the property of any person;
(b) The threat that the failure to pay a consumer debt will result
in an accusation that the debtor has committed a crime where such
accusation, if made, would be false;
(c) The communication of, or threat to communicate to any person
the fact that a debtor has engaged in conduct, other than the failure
to pay a consumer debt, which the debt collector knows or has reason
to believe will defame the debtor;
(d) The threat to the debtor to sell or assign to another person
the obligation of the debtor to pay a consumer debt, with an
accompanying false representation that the result of such sale or
assignment would be that the debtor would lose any defense to the
consumer debt;
(e) The threat to any person that nonpayment of the consumer debt
may result in the arrest of the debtor or the seizure, garnishment,
attachment or sale of any property or the garnishment or attachment
of wages of the debtor, unless such action is in fact contemplated by
the debt collector and permitted by the law; or
(f) The threat to take any action against the debtor which is
prohibited by this title.</pre>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-70819176191108608562012-02-16T04:19:00.000-08:002012-02-16T04:19:11.069-08:00Wells Fargo Convenes Home Preservation Workshop in Ontario, CaliforniaDear Readers:<br />
<br />
TODAY WELLS FARGO BANK is continuing their home preservation workshop at the Ontario Convention Center. Unfortunately they don't pubically announce these events always in advance. But I heard about it today. SOOOOO<br />
<br />
Gather up the following:<br />
<br />
1. 3 months of Paystubs<br />
2. 6 months of bank statements<br />
3. 2011 tax return if you have it, if not 2010<br />
4. bring any rental agreements you have to prove people inside your house are giving you money to rent a room <br />
if you are doing that.<br />
5. Bring a utility bill so that you can prove you are living at the house.<br />
7. Prepare a hardship letter. TO WHOM IT MAY CONCERN: Explain why you need a loan modification<br />
and what has happened to your income. If someone died who brought income into the house bring the death<br />
certificate. If you got sick bring something to document your illness.<br />
8. If you are self-employed bring 6 months of business bank statements and print out a PROFIT LOSS statement from your accounting software. If you don't have this, make one on an excel spreadsheet.<br />
<br />
With all of this documentation be prepared to show that at the very least if the balance of your loan was stretched out to 40 years at 2 percent, the payment plus taxes and insurance would not be greater than 31 percent of your income. If that is the case you will improve your chances of obtaining a permanent loan modification. <br />
<br />
There is no mystery to loan modification. Loan modification should not cost you thousands of dollars by the real estate fraudsters out there who want to charge you by the month for each month they keep you in your home. That will be my next article.<br />
<br />
So if you have a Wells Fargo Loan.... please go there today if you need help!<br />
<br />
Best to all of<br />
GraceAnonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com1tag:blogger.com,1999:blog-5895379498745726232.post-72280588954632238352011-12-15T11:23:00.000-08:002011-12-15T11:23:02.040-08:00Fair Debt Collection Practices Part I of VIts 7 am on a Sunday morning..... you are lying cozily in your bed when the cell phone next to your pillow starts its annoying ringing and vibration..... Your bleary eyes pick it up to look and its the dreaded unknown 800-NUMBER. You groan with disgust, turn off the phone roll over hoping they won't call back. But they do. Again, and again..... and again.....<br />
<br />
Stay tuned readers as I take you through the myriad of tactics used by Debt Collectors to revive debts which are older than four years old for which they no longer have a right to sue you to recover..... the illegal phone calls threatening arrests, the lies..... the fake lawsuits..... <br />
<br />
Stay tuned to find out legally what they can do and what rights you have to stop harassment so you can answer your phone again!<br />
<br />
Have a great weekend friends......<br />
<br />
RenayAnonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-42254730445722083562011-11-17T14:52:00.000-08:002011-11-17T14:52:13.322-08:00WHERE IS THE ASSIGNMENT!!!!!! (the California Equivalent of WHERE'S THE NOTE?!?!?)Hey gang.... Civil code section 2932.5 Check your Trustee's Deed upon Sale. Who was foreclosing beneficiary? Is there an assignment recorded to that Beneficiary? If not your foreclosure sale might have been VOID!!!!Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-9675400149187564702011-11-03T08:21:00.000-07:002011-11-03T08:33:36.002-07:00SHORT SALE FRAUD - BE C.A.R.-EFUL! in parts published by the California Association of Realtors Legal Department<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b; font-size: 12px;">Dear Readers:</span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b; font-size: 12px;"><br />
</span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b; font-size: 12px;">Right now the economy is so bad that many of you couldn't or even wouldn't want to in a bankruptcy. So dump the house you live in you are contemplating doing a short-sale transaction. There is a right way to do it and a wrong way to do it. If you do it the wrong way, when it comes time to do your bankruptcy (if needed) you could be facing a lawsuit for fraud by your lender. It won't matter that your potentially unscrupulous broker PROMISED you that it was perfectly legal to do what you are doing. If you get busted by your lender, chances are you won't be able to find that broker any more easily than you could find the mortgage broker who may have given you your bad loan. So please read this information so you can educate yourself and help yourself understand when a broker is scamming you. </span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b; font-size: 12px;"><br />
</span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b; font-size: 12px;">For my broker friends, I post this because it is educational to help you understand where the line is between a good short-sale transaction and a bad one. Nothing is worth putting your license at risk. </span></span><br />
<span class="Apple-style-span" style="color: #f6b26b; font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="font-size: 12px;"><br />
</span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b; font-size: 12px;"> Thanks for reading!</span></span><br />
<span class="Apple-style-span" style="font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b; font-size: 12px;"><br />
</span></span><br />
<span class="Apple-style-span" style="color: #f6b26b; font-family: Arial, Helvetica, sans-serif;"><span class="Apple-style-span" style="background-color: black; font-size: 12px;"><br />
</span></span><br />
<div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>Q</strong></span><strong>1. <em>What is short sale fraud?</em></strong></span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A </strong></span> Short sale fraud is a loose term for describing frau<span></span>d, deceit, or trickery in connection with a short sale transaction. As background, a short sale is a sales transaction where: (1) the sales price is less than the seller’s existing mortgage loan balance, other liens, and costs; and (2) the existing creditors agree to a payoff of less than what’s owed. Short sales help homeowners to avoid the stress and stigma of foreclosure. Short sales also help mortgage lenders by avoiding the costs of foreclosure, including the burden of maintaining and reselling properties acquired through the foreclosure process.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>2. <em>What are some examples of short sale scams?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A </strong></span> Like other types of scams, short sale fraud can take many forms. At one end of the spectrum, a short sale scam can be part of large, well-organized fraud ring, and at the other end, it can be one isolated incident.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Examples of short sale fraud include, but are not limited to, the following:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Fraudulent short sale flips (see Questions 9 to 13);</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Short sale negotiator scams (see Questions 14 to 19);</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Short sale package scams (see Questions 20 and 21); and</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Improper payments (see Questions 22 to 25).</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 3. <em>How could a homeowner fall victim to a short sale scam?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A </strong></span> Short sale transactions are highly susceptible to scams. A typical short sale is complicated, difficult, and can drag on for many months. Yet, short sale sellers are often too financially strained to hire experts to advise them on the complicated financial, legal, tax, credit, and other issues raised by their situations. Sellers are also likely to be anxious to finalize their short sales quickly to avoid the possibility of losing their homes through foreclosure. On top of the stress and stigma of a looming foreclosure, short sale sellers may be dealing with other financial and emotional hardships, such as job loss, death of a loved one, divorce, or illness. Given these circumstances, the sellers can easily succumb to a scam artist’s lure of a guaranteed quick fix. As one victim of a foreclosure rescue scam said, “When you’re down and out you’ll believe anything.”</span><br />
<span class="Apple-style-span" style="color: #f6b26b;"><br />
</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 5. <em>Is there an easy way to detect a short sale scam?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A </strong></span> No. Short sale scams may not be easy to detect, but see Questions 6 and 7 for helpful guidelines. Outwardly, scam artists do not act or appear dastardly. On the contrary, the typical scam artists look nice and clean-cut, and they seem kind, helpful, patient, and trustworthy. Their purported companies are likely to appear well-established, reputable, and qualified to do the tasks at hand. The companies may even have names that sound altruistic, such as Community Short Sale Services or Short Sale Advocates. Some outfits may appear to be related to the government, such as administered by or an agency of the government. For instance, a scammer may pretend to offer a short sale under the U.S. Treasury’s Home Affordable Foreclosure Alternatives (HAFA) program, knowing that most people are unfamiliar with the details of this new government-subsidized program.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Scammers come from all walks of life, including, but not limited to, appraisers, accountants, attorneys, bank officers, landlords, tenants, friends, and colleagues. Scam artists may engage in "affinity marketing" tactics to attempt to lure people into their fraudulent schemes. Affinity marketing tactics involve scam artists who are, or pretend to be, members of the same racial, religious, social, or other group as their victims. For example, a scam artist may claim to be in the military, and use military terms and mannerisms, in an attempt to befriend someone in the military. Or a scammer may join a church to gain the trust of other members of that church before attempting to defraud them.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>6. <em>What are the red flags for detecting a short sale scam?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A</strong></span> REALTORS® and their clients contemplating or engaging in short sale transactions should be aware of the different types of scams (see Questions 9 to 25). In addition, they should be wary when dealing with someone who does any of the following:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Makes an offer that sounds too good to be true;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Gives an unqualified promise, such as to obtain short sale approval, stop foreclosure, or other assurances;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Is unconcerned about the sales price, possession of the property, and other significant terms of sale;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Is unconcerned about the short sale seller’s financial situation;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Is involved in a sales transaction where the seller is not the current owner of the property;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Is involved in a sales transaction where a notice of default has been filed against the property;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Is involved in a sales transaction under the Home Equity Sales Contract law (see C.A.R.’s legal article at<a href="http://www.car.org/legal/2008articles/home-equity-sales-contracts/" style="font-weight: bold; text-decoration: none;">http://www.car.org/legal/2008articles/home-equity-sales-contracts/</a>);</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Is involved in a sales transaction where the property owner has purportedly given someone an option to purchase;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Represents that the buyer is an entity (such as a trust or LLC), rather than an individual person;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Creates more than one sales contract for the same property;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Asks for the payment of money upfront before providing any service;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Asks for payment only in the form of cash, cashier’s check, or wire transfer;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Asks for something to be done immediately without delay;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Asks for a power of attorney;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Asks for a transfer of title or an interest in the property outside of escrow;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Asks for signatures on a grant deed or deed of trust;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Asks for signatures without giving a lot of time to review the documents;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Asks for signatures on a document that has lines left blank;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Fails to provide copies of documents signed;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Refuses or fails to provide written confirmation of an oral promise;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Instructs the seller, listing agent, escrow officer, or someone else not to contact the short sale lender;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Instructs a client not to discuss his or her situation with a housing counselor, banker, accountant, attorney, family, friends, or others;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Has an answer for everything; and</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Engages in “shop talk” that sounds glib, but doesn’t in fact make sense.</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>7. <em>What should sellers, buyers, agents, and others do to protect themselves against short sale scams?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A</strong></span> The basic rule is "if it sounds too good to be true, it probably is." In addition to watching out for the red flags in Question 6, affirmative measure to take to protect against scams include, but are not limited to, the following:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Before doing business with someone, check the legitimacy and qualifications of both the individual person and business entity. Check whether the individual person and business entity are properly licensed (see Questions 26 to 38). Ask for references and check out those references. Also check someone's background, credentials, and reputation. Search the Internet and check public records and trade group memberships. Remember, however, that even if someone has the proper credentials or comes highly recommended, the risk of a scam is less, but is not eliminated entirely.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Do not panic. Do not make any rash decisions. It’s precisely when your chips are down that you must keep a clear head.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Before entering into an agreement or arrangement, understand every aspect of what it entails. Read documents carefully and thoroughly before signing. If you do not understand a document or the consequences of a document, seek the advice of an attorney, accountant, or other professional as appropriate. If you do not speak the same language as the person you’re negotiating with, don’t use that person’s interpreter or translator -- bring your own instead.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Do not sign your name to any false statements or documents with spaces left blank, especially if you’re told that signing will be harmless or inconsequential.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Get as much information as you possibly can before making a decision. Ask questions. Conduct as much research and investigation as you can upfront. Look into different options and their financial, legal, tax, and other ramifications. Ask for advice and help from trusted family, friends, and professionals if appropriate.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Always try to stay a step ahead of scam artists. As society comes to know one type of scam, con artists will attempt to catch their victims off guard by devising new schemes. For example, with greater public awareness not to pay upfront for a short sale negotiator’s fee, scam artists may shift to structuring a short sale to include a buyer’s credit to pay the fee.</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"></span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>11. <em>What are the legal problems with a fraudulent short sale flip?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A</strong></span> Depending on the specific circumstances, the legal claims that may be raised a fraudulent short sale flip include, but are not limited to, the following:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Mortgage Fraud: Sellers, buyers, agents, and others who misrepresent or actively conceal a short sale flip may be liable for, among other things, mortgage fraud, common law fraud, misrepresentation, and unlawful business practices. Under federal law, mortgage fraud includes anyone who knowingly makes a false statement for the purpose of influencing a federally-insured mortgage lender or other financial institution as specified (18 U.S.C. § 1014). A violation of federal mortgage fraud law is punishable by 30 years imprisonment, plus a $1 million fine (18 U.S.C. § 1014). For example, concealing the BC transaction from Seller A’s short sale lender or concealing the AB transaction from Buyer C’s mortgage lender may constitute mortgage fraud, among other things.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Breach of contract: Sellers, buyers, and agents who make false statements in lenders’ short sale agreements may be liable for breach of contract. For example, in a lender’s short sale agreement, Seller A may falsely certify that the sales transaction is for fair market value, no other offers have been received, and the seller has no hidden understandings or secret proceeds. Those types of false assertions could be grounds for a breach of contract claim against the seller in a civil lawsuit seeking monetary damages or rescission.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Breach of fiduciary duty: Agents involved in fraudulent short sale flips who fail to exercise due care may be liable to their clients for monetary damages suffered. If, for example, a listing agent both convinces Seller A to sell to Buyer B for $300,000, and facilitates Buyer B’s simultaneous resale to Buyer C for $350,000, the listing agent may have serious difficulty explaining why the seller only deserved the $300,000 Buyer B, not the $350,000 Buyer C procured during the listing agent’s listing period (see also Question 12).</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Licensing Violation: Agents involved in a fraudulent scheme could also face license revocation or other disciplinary action taken by the DRE (Cal. Bus. & Prof. Code §§ 10176 and 10177).</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Other Criminal Violations: In addition to mortgage fraud, illicit short sale flips may expose sellers, buyers, and their agents to other criminal claims, such as perjury (Cal. Penal Code § 118), conspiracy, and aiding and abetting a criminal scheme.</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>13. <em>How do I do a legitimate short sale flip?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A</strong></span> Legitimate short sale flips may be structured in many different ways. Some factors to consider to help ensure that an AB-BC short sale flip passes legal muster through the judicial process include, but are not limited to, the following:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• How close the sales price for the AB transaction is to fair market value.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• How well the property is listed and marketed to find prospective buyers.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether Seller A and Buyer C are well represented by their own real estate agents, attorneys, accountants, and other professionals as appropriate.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the parties negotiated an arms-length transaction.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the different aspects of the transaction, including the profit to be made, are fully disclosed in a meaningful manner to, and approved by, the parties and lenders involved.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• How much time lapses between the close of escrow of the AB transaction and the close of escrow of the BC transaction.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• The extent of repairs, renovations, and improvements that Buyer B makes to the property.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• How much money Buyer B invests to purchase, maintain, repair, renovate, improve, and resell the property.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the profit Buyer B makes is reasonable under the circumstances, including existing housing market conditions.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the parties comply with licensing, agency, RESPA, and other laws.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether compliance with these factors is in writing and well-documented.</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">The above list is an illustrative, not exhaustive list of factors to consider for a legitimate short sale flip. Compliance with all these factors does not guarantee that a short sale flip is legitimate. Similarly, not complying with one or more factor does not necessarily mean, depending on the specific circumstances, that a short sale flip is illegal, as ultimately decided by a judge, jury, arbitrator, or DRE Commissioner.</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><a href="http://www.blogger.com/post-edit.g?blogID=5895379498745726232&postID=967540014918756470" id="B." style="font-weight: bold;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">B. SHORT SALE NEGOTIATOR SCAMS</span></strong></a></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 14. <em>What is a short sale negotiator?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A</strong></span> A short sale negotiator is generally someone who negotiates and facilitates a short payoff with a seller’s mortgage lender. Because short sales often involve very thick short sale packages and frequent attempts to contact the short sale lender, a legitimate short sale negotiator can facilitate and expedite the short sale process. A short sale negotiator can be the listing agent, someone else in the listing office, or someone in another office.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">With full disclosure, among other things, hiring and paying for a short sale negotiator is not an illegal activity. However, certain scam artists impersonate or use short sale negotiators in furtherance of their improper and illegal schemes.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 15. <em> What are some examples of short sale negotiator scams?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A </strong></span>As with any profession, some short sale negotiators are reputable, legitimate, and qualified to negotiate and facilitate short sales, whereas others are not. Scammers may lure homeowners and their agents into their schemes by promising to expedite the short sale process and obtain approval from the short sale lender. What scammers in fact do include putting together and submitting bogus short sale packages to the short sale lenders (see Questions 20 and 21), performing little or no service (see Questions 24 and 25), or engaging in other wrongdoing.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Some scams revolve around the payment of the short sale negotiator’s fee. A seller’s short sale lender may disapprove payment to a third-party short sale negotiator, so the scammer makes a secret agreement for the seller, buyer, agent, or someone else to pay that fee, usually outside of escrow. As one variation of the scheme, the purchase agreement may indicate that the seller will give the buyer a credit, but a secret agreement is made for the buyer to use that credit to surreptitiously pay the short sale negotiator fee.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">For legal claims that may be raised in a fraudulent scheme involving a short sale negotiator, see Question 16.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 16. <em>What are the legal problems with unscrupulous short sale negotiator?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A</strong></span> Depending on the specific circumstances, the legal claims that can be asserted against a short sale negotiator scam include, but are not limited to, the following:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Licensing Violation: Short sale negotiator, short sale facilitators, and other individuals negotiating the short sale with the seller’s lender should generally be licensed by the DRE (see Questions 26 to 33). Furthermore, agents involved in a scam could face license revocation or other disciplinary action taken by the DRE (Cal. Bus. & Prof. Code §§ 10176 and 10177).</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Mortgage Fraud: Sellers, buyers, agents, and others who misrepresent or actively conceal a short sale negotiator fee from a seller’s short sale lender may be liable for, among other things, mortgage fraud, common law fraud, misrepresentation, and unlawful business practices. Under federal law, mortgage fraud broadly includes anyone who knowingly makes a false statement for the purpose of influencing a federally-insured mortgage lender or other financial institution as specified (18 U.S.C. § 1014). A violation of federal mortgage fraud law is punishable by 30 years imprisonment, plus a $1 million fine (18 U.S.C. § 1014). As an example, deliberately waiting until the last minute to insert the short sale negotiator fee into the final HUD-1 Statement may not suffice as a meaningful disclosure to the short sale lender.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Breach of contract: Sellers, buyers, and agents who make false statements about short sale negotiators in the lenders’ short sale agreement may be liable for breach of contract. For example, if a seller certifies in a lender’s short sale agreement that there are no hidden terms, a secret agreement to pay a short sale negotiator may constitute a breach of contract.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Breach of fiduciary duty: A short sale negotiator who creates an agency relationship with a seller or buyer and fails to exercise due care may breach his or her fiduciary duty to do what is in the client’s best interest. Additionally, the listing agent or buyer’s agent in a transaction who fail to exercise due care with respect to a third-party short sale negotiator may also be liable to their clients. For example, a listing brokerage attempting to collect short sale negotiation fees to pad its own pocket with no regard for the seller’s best interest may be in breach of its fiduciary duty to the seller. Also, absent the seller’s consent, a listing agent’s refusal to present a buyer’s offer to the seller unless the buyer agrees to pay the short sale negotiator fee may also constitute a breach of the fiduciary duty the listing agent owes to the seller.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• RESPA Violation (HUD-1 Statement): Omitting from a HUD-1 Statement any short sale negotiator charges paid at settlement by either a buyer or seller may violate the Real Estate Settlement Procedures Act (RESPA) (Appendix A to 24 C.F.R. Part 3500). RESPA generally pertains to transactions of one-to-four residential units with a federally-related mortgage loan (12 U.S.C. § 2602(1)).</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• RESPA Violation (Unearned Fee): Charging or accepting a short sale negotiator fee without performing any actual service may violate RESPA (12 U.S.C. § 2607(b); see also Martinez v. Wells Fargo Home Mortgage, Inc., 598 F.3d 549, 554 (9th Cir. 2010) (holding that RESPA’s prohibition against unearned fees does not extend to overcharges)). RESPA generally pertains to transactions of one-to-four residential units with a federally-related mortgage loan (12 U.S.C. § 2602(1)).</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Other Criminal Violations: Depending on the circumstances, improper short sale negotiator activities may expose sellers, buyers, and their agents to other criminal claims, such as perjury (Cal. Penal Code § 118), conspiracy, and aiding and abetting in a criminal scheme. Additionally, anyone who pays an unlicensed person for performing licensed activities is guilty of a misdemeanor punishable by a $100 fine (Cal. Bus. & Prof. Code § 10138).</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>17. <em>How do I check whether a short sale negotiator is legitimate?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">A Factors to consider to help ensure that a short sale negotiator is legitimate include, but are not limited to, the following:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the negotiator and the negotiator’s employing broker if any are both properly licensed with the DRE or registered and bonded as a foreclosure consultant (see Questions 26 to 38).</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the negotiator is qualified to perform short sale negotiation services.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the negotiator actually performs services to facilitate and expedite the short sale process.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the negotiator’s fee is fully disclosed in a meaningful manner to, and approved by, the parties and lenders involved.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the negotiator’s fee is reasonable, based upon, among other things, the negotiator’s qualifications to conduct short sale negotiations and the fee charged by other negotiators.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the individual paying for the negotiator’s services voluntarily agrees to pay for those services, and is given an opportunity to consult with a real estate agent, attorney, accountant, or other professional as deemed appropriate.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the negotiator does not get paid until after the negotiator fully completes each and every service the negotiator promises to perform.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Whether the negotiator complies with agency laws, RESPA, laws against fraud, and other laws and MLS rules.</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">The above list is an illustrative, not exhaustive list of factors to consider for a legitimate short sale negotiator. Compliance with all these factors does not guarantee that a short sale negotiator is legitimate or qualified. Similarly, not complying with one or more factor does not necessarily mean, depending on the specific circumstances, that a short sale negotiator is a scam artist, as ultimately decided by a judge, jury, arbitrator, or DRE Commissioner.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><br />
</span></span></strong><br />
<strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>20. <em>What is a scam involving a short sale package?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A </strong></span> A short sale package scam generally involves intentional misrepresentations made in a short sale package for the purpose of obtaining a short sale lender’s approval. These misrepresentations may be made in the original short sale package submitted to the lender or in subsequent dealings with the lender. Knowing a short sale lender’s general requirements, a scam artist will manipulate the truth to improve the chances that a short sale package will be approved by the lender and the deal will close escrow.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Some of the improper tactics that may be used include, but are not limited to, misstating the truth, making up stories, concealing pertinent facts, submitting false documents, and forging signatures. More specifically, examples of improper tactics involving short sale packages include, without limitation, the following:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Fabricating a seller hardship and creating bogus supporting documentation, when in fact the seller does not have a hardship that satisfies the short sale lender’s requirements.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Making a sales transaction appear to be an arms-length transaction, such as using a straw buyer (e.g., a relative with a different last name), when in fact the seller is selling the property to a related person in contradiction of the short sale lender’s requirements.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Making a property appear to be owner-occupied to improve the chances of a short sale approval, when in fact the property is being rented out to, and occupied by, a tenant.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Making it appear as if a property has been actively listed for sale in an open market for many months and sold for fair market value, when in fact the sale is a prearranged sale to a straw buyer for a price below fair market value to effectuate the AB sale in an AB-BC short sale flip.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Making it appear as if the property has been sold in good faith to a buyer for fair market value, when in fact the scammer used improper means to ascertain the lowest price the short sale lender would approve and simply wrote that price into the sales contract.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Making it appear to the short sale lender that the sales documents are the sum total of the agreement between the seller, buyer, and others, when in fact other arrangements have been secretly made for money to exchange hands (see also Questions 22 and 23).</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">For a discussion of the legal claims that may be asserted against fraud in short sale packages, see Question 21.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 21. <em>What are the legal problems with fraudulent short sale packages?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">A</span> Illegal or improper tactics used in a short sale package may give rise to a host of legal claims. Most notably, submitting false information in a short sale package to a short sale lender may constitute mortgage fraud. As discussed above, mortgage fraud is broadly defined to include anyone who knowingly makes a false statement for the purpose of influencing a federally-insured mortgage lender or other financial institution as specified (18 U.S.C. § 1014). A violation of federal mortgage fraud law is punishable by 30 years imprisonment, plus a $1 million fine (18 U.S.C. § 1014).</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Depending on the specific circumstances, other legal claims that may be asserted against submitting false information in short sale packages includes, without limitation, breach of contract, common law fraud, RESPA, and perjury. Depending on the extent of a real estate agent’s participation in a scheme, these civil and criminal claims may be raised against the agent, who may also be subject to license revocation or other disciplinary action taken by the DRE.</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><a href="http://www.blogger.com/post-edit.g?blogID=5895379498745726232&postID=967540014918756470" id="D." style="font-weight: bold;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">D. IMPROPER PAYMENTS</span></strong></a></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Short sale scams often involve the improper payment of money, such as undisclosed payments (see Question 22 and 23) and upfront fees (see Questions 24 and 25).</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 22. <em>What is a scam involving undisclosed payments in a short sale transaction?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A</strong></span> An undisclosed payment in a short sale transaction involves the payment of money or other things of value without the knowledge of an interested party, such as the seller’s short sale lender or buyer’s lender. The undisclosed payment is typically paid outside of escrow in an attempt to escape the purview of interested parties.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">One common scenario is when a short sale seller's senior lender authorizes a payment of, for example, $3,000 to extinguish a junior lien, but the junior lender demands that the buyer or someone else pays an additional $9,000 outside of escrow. Concealing this additional payment from the senior lender may constitute mortgage fraud as discussed above (18 U.S.C. § 1014). Furthermore, omitting from the HUD-1 Statement any charges paid at settlement by either a buyer or seller may violate RESPA (Appendix A to 24 C.F.R. Part 3500).</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Another common scenario is when a scam artist uses monetary incentives to lure a seller into participating in a fraudulent scheme. A scam artist may arrange for money to be paid to the seller by the scam artist, buyer, buyer’s agent, listing agent, or someone else. Sometimes the arrangement is simply for the payment of money, whereas other times the payment is presumably for the purchase of the seller’s furniture, for the seller’s moving expenses, or for other reasons. Oftentimes, the payment is made outside of escrow to escape the purview of the short sale lender. Again, this type of undisclosed payment may constitute, among other things, mortgage fraud and a violation of RESPA.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Undisclosed payments may also violate other laws and regulations, and depending on a real estate agent's participation in the scheme, these civil and criminal claims may be raised against the agent, who may also be subject to a breach of fiduciary duty claim, as well as license revocation or other disciplinary action taken by the DRE.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Payments made outside of escrow have other risks and consequences as well. For example, absent the safeguards provided by escrow as a neutral third-party, someone who receives cash outside of escrow could abscond with the money without performing on the sales contract.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 23. <em>Why is it problematic for the buyer of a short sale property to pay cash for the seller’s furniture outside of escrow?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A</strong></span> In a short sale scam situation, funds are paid to the seller outside of escrow to conceal that arrangement from the short sale lender. Oftentimes, a scam artist will urge others into a fraudulent scheme by claiming that a payment for the seller’s furniture or similar arrangement need not be disclose to the short sale lender because it is unrelated to the real estate transaction, when in fact it is related. Additionally, such payment directly contradicts a short sale lender’s requirement, if any, for the seller to certify the absence of any hidden arrangements or receipt of funds. If the short sale lender knew that the buyer had, for example, $5,000 for the seller’s furniture, the lender would likely want that money for itself to lessen its own loss.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>24. <em>What is a short sale scam involving an upfront fee?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A </strong></span> In this type of scam, the scam artist offers to negotiate with the short sale lender or perform other short sale services in exchange for an upfront fee. Also known as phantom help, the scammer will in reality perform little or no service at all and eventually absconds with the money. Whatever services the scam artist does provide, the scam victim typically could have done on his or her own. The victim ends up not only losing the money, but often loses valuable time to make other short sale arrangements before foreclosure.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">To dupe unsuspecting victims out of their money, a phantom help scam artist usually knows exactly what to offer, how to pitch the offer, and what twists to add to lend credibility to the scheme. For example, a scammer posing as a short sale negotiator may guarantee a short sale lender’s approval in two weeks, which may be precisely what a homeowner facing foreclosure wants to hear. To bolster the claim, the scammer may explain that, as a close relative of the loan officer or loss mitigator, the negotiator has special access to an inside track at the bank.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 25. <em>What are the legal problems with an upfront fee in a short sale situation?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A </strong></span> The law generally prohibits anyone who negotiates, attempts to negotiate, arranges, attempts to arrange, or offers to perform a loan modification or other form of mortgage loan forbearance, from claiming or demanding any upfront compensation (Cal. Civil Code § 2944.7(a)). This rule, which is likely to encompass short sale negotiations, pertains to loans secured by one-to-four residential units (Cal. Civil Code § 2944.7(d)). This rule will remain in effect until January 1, 2013 (Cal. Civil Code § 2944.7(e)).</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">The statutory prohibition against upfront fees applies to both real estate licensees and attorneys, among others. Advance fees for real estate licensees are further regulated under Cal. Bus. & Prof. Code § 10026.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><a href="http://www.blogger.com/post-edit.g?blogID=5895379498745726232&postID=967540014918756470" id="III."><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">III. LICENSING GUIDELINES</span></a></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">In the subprime aftermath, legislative authorities have beefed up regulations protecting consumers against unscrupulous practices. Checking someone’s legitimacy and qualifications to conduct short sale activities should include looking up real estate licenses, and foreclosure consultant registrations if applicable.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>32. <em>How do unlicensed scam artists get around the licensing requirements?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><strong style="font-size: 18px;">A</strong> A common tactic used by unlicensed scam artists is to make bogus excuses as to why they do not need a real estate license. Some of the false claims that may be made to justify the lack of a real estate license when conducting short sale negotiation are as follows:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• “I don’t need to be licensed to help the seller negotiate debt forgiveness.”</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• “We have an in-house attorney who will negotiate the short sale” (see Question 35).</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• “We’re merely processing the paperwork.”</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• “I’m negotiating the short sale on my own behalf as the buyer of the property.”</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• “Everyone else is doing it.”</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Another common tactic is for unlicensed individuals to work for a licensed company. For example, let’s say an unscrupulous and unlicensed individual, John Doe, purports to work for Short Sale Advocates, Inc. doing short sale negotiations. If the client asks for licensing information, John Doe would just show the client that Short Sale Advocates, Inc. is properly licensed, and not reveal to the client that John Doe himself is not but should also be licensed to conduct short sale negotiations through Short Sale Advocates, Inc. John Doe may also not reveal to the client that Short Sale Advocates, Inc. is just a shell company that could be here today and gone tomorrow.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 33. <em>What are the penalties for real estate license violations?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><strong style="font-size: 18px;">A</strong> Any person acting as a real estate broker or salesperson without a license is guilty of a crime punishable by six months imprisonment in the county jail, plus a fine up to $20,000 (Cal. Bus. & Prof. Code § 10139). Anyone who pays an unlicensed person for performing real estate licensed activities is guilty of a misdemeanor punishable by a fine up to $100 for each offense (Cal. Bus. & Prof. Code § 10138). Additionally, if a real estate licensee engages in misrepresentations, fraud, dishonest dealings, or improperly pays an unlicensed person, the licensee may be subjected to license revocation or other disciplinary action taken by the DRE (Cal. Bus. & Prof. Code §§ 10138, 10176 and 10177).</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><a href="http://www.blogger.com/post-edit.g?blogID=5895379498745726232&postID=967540014918756470" id="B. Attorneys" style="font-weight: bold;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">B. ATTORNEYS</span></strong></a></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q </span>34. <em>Is an attorney engaged in short sale activities exempt from the real estate licensing requirements?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><strong style="font-size: 18px;">A</strong> It depends. An attorney rendering legal services to a client is exempt from licensing requirements if the attorney is not using or attempting to use the exemption for the purpose of evading the licensing laws (Cal. Bus. & Prof. Code § 10133(a)(3)). Furthermore, when negotiating loans, the attorney exception only applies if all of the following conditions are met:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• The attorney is licensed to practice law in California;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• The attorney renders services in the course of his or her practice as an attorney;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• The attorney is not actively and principally engaged in the business of negotiating loans secured by real property;</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• The attorney’s disbursements are not charges or costs and expenses regulated by or subject to the limitations for Article 7 loans (commencing with Cal. Bus. & Prof. Code § 10240); and</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• The attorney’s fees and disbursements are not shared, directly or indirectly, with the person negotiating the loan or the lender.</span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">(Cal. Bus. & Prof. Code § 10133.1(a)(5).) As an example, a law firm called Short Sale Legal Services could be a group of attorneys properly licensed by the State Bar of California, but if the firm principally engages in short sale negotiations, a DRE license may also be required.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 35. <em>Can someone circumvent the licensing requirements by affiliating or associating with an attorney?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;"><strong>A</strong> </span> No, in most cases. REALTORS® and their clients should be wary of people who claim that their affiliation or association with an attorney enables them to practice real estate without a license.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">One common scenario is someone working for a short sale business enterprise who claims that neither the individual nor the company need to be real estate licensees because they have an in-house attorney or an affiliation with an attorney or law firm for negotiating short sales with the sellers’ lenders. In truth, however, an individual person or short sale business is not exempt from the real estate licensing requirements merely because that person or business is affiliated or associated with an attorney or law firm. Furthermore, attorneys and law firms are not exempt from the real estate licensing requirements unless certain parameters are met (see Question 34). Another common problem with these types of arrangements is, among other things, attorneys and law firms are generally prohibited from “fee splitting” or sharing legal fees with non-attorneys (Cal. Rules of Prof. Conduct Rule 1 320(A)).</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><a href="http://www.blogger.com/post-edit.g?blogID=5895379498745726232&postID=967540014918756470" id="C. Foreclosure" style="font-weight: bold;"><strong>C</strong></a><strong>. FORECLOSURE CONSULTANTS</strong></span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 37. <em>What is a foreclosure consultant?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><strong style="font-size: 18px;">A</strong> A foreclosure consultant is an individual who provides, or offer to provide, foreclosure-related consultation services, such as helping certain homeowners stop or postpone a foreclosure sale, or obtain any forbearance from a lender (Cal. Civil Code § 2945.1(a)). The foreclosure consultant law generally pertains to properties that are owner-occupied with one-to-four residential units and an outstanding notice of default recorded (Cal. Civil Code § 2945.1(f)).</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Foreclosure consultants are strictly regulated under California law. They must be bonded and registered with the California Department of Justice (Cal. Civil Code § 2945.45). They must have written service contracts (Cal. Civil Code § 2945.3). They cannot, among other things, collect an upfront fee, take a power of attorney, or take a lien on real property (Cal. Civil Code § 2945.4).</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Real estate agents are generally exempt from the foreclosure consultant law (Cal. Civil Code § 2945.1(b)(3)).</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">For more information about Foreclosure Consultants, C.A.R. has a legal article entitled Foreclosure Scams and the Foreclosure Consultant Law, available for members at <a href="http://staging.car.org:8080/legal/foreclosure-short-sale-folder/foreclosure-scams/" style="font-weight: bold; text-decoration: none;" title="Foreclosure Scams and the Foreclosure Consultant Law">http://www.car.org/legal/2008articles/foreclosure-scams/</a>.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 38. <em>How do I determine whether a foreclosure consultant is properly registered with the California Department of Justice?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><strong style="font-size: 18px;">A</strong> To check whether a foreclosure consultant is properly registered with the California Department of Justice, look up the person’s name at http://ag.ca.gov/loanmod/index.php.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><a href="http://www.blogger.com/post-edit.g?blogID=5895379498745726232&postID=967540014918756470" id="IV."><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">IV. ADDITIONAL INFORMATION</span></a></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 39. <em>To whom should a short sale scam be reported?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><strong style="font-size: 18px;">A</strong> The following is a list of government enforcement agencies and other organizations for reporting fraud activities. Some of these agencies and organizations are also excellent resources for obtaining more information about short sale fraud.</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Office of the Attorney General</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">California Department of Justice</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Attn. Public Inquiry Unit</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">P. O. Box 944255</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Sacramento, California 94244-2550</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">(916) 322-3360</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">(800) 952-5225 (in California only)</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><a href="http://www.ag.ca.gov/consumers/general.php" style="font-weight: bold; text-decoration: none;" target="_blank">http://ag.ca.gov/consumers/general.php </a>(For filing consumer complaints)</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">California Department of Real Estate</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">P. O. Box 187000</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Sacramento, California 95818-7000</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">(916) 227-0864</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><a href="http://www.dre.ca.gov/cons_complaint.html" style="font-weight: bold; text-decoration: none;" target="_blank">http://www.dre.ca.gov/cons_complaint.html </a>(For filing consumer complaints)</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><a href="http://www.dre.ca.gov/cons_alerts.html" style="font-weight: bold; text-decoration: none;" target="_blank">http://www.dre.ca.gov/cons_alerts.html </a>(Consumer alerts)</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">State Bar of California</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">180 Howard Street</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">San Francisco, California 94105</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">(800) 843-9053 (Attorney Complaint Hotline)</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><a href="http://www.calbar.ca.gov/Attorneys/LawyerRegulation.aspx" style="font-weight: bold; text-decoration: none;" target="_blank">http://www.calbar.ca.gov/Attorneys/LawyerRegulation.aspx </a>(For filing complaint)</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Federal Bureau of Investigation (FBI) Headquarters</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">J. Edgar Hoover Building</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">935 Pennsylvania Avenue, NW</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Washington, D.C. 20535-0001</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">(202) 324-3000</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Or contact your local FBI field office</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><a href="https://tips.fbi.gov/" style="font-weight: bold; text-decoration: none;" target="_blank">https://tips.fbi.gov/</a> (FBI tips and public leads)</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Department of Housing and Urban Development (HUD) Headquarters</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">HUD Office of Inspector General Hotline (GFI)</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">451 7th Street, SW</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Washington, D.C. 20410</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">(800) 347-3735</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Or contact your local HUD field office</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><a href="http://www.hud.gov/offices/oig/hotline/" style="font-weight: bold; text-decoration: none;" target="_blank">http://www.hud.gov/offices/oig/hotline/</a> (Office of Inspector General hotline)</span></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Federal Trade Commission</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Consumer Response Center</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">600 Pennsylvania Avenue, NW</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Washington, D.C. 20580</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">(877) 382-4357</span><br />
<a href="http://www.ftc.gov/ftc/contact.shtm" style="font-weight: bold; text-decoration: none;" target="_blank"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">http://www.ftc.gov/ftc/contact.shtm</span></a></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Better Business Bureau</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">The Council of Better Business Bureaus</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">4200 Wilson Boulevard, Suite 800</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Arlington, Virginia 22203-1838</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">Contact your local bureau</span><br />
<a href="http://www.bbb.org/" style="font-weight: bold; text-decoration: none;" target="_blank"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">http://www.bbb.org/</span></a></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><strong><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><span style="font-size: 18px;">Q</span> 40. <em>Where can I obtain more information about short sale scams?</em></span></strong></div><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><strong style="font-size: 18px;">A</strong> Some of the agencies and organizations listed in Question 39 are good resources of short sale scams. Additional resources are available as follows:</span></div><blockquote dir="ltr" style="font-family: Arial, Helvetica, sans-serif; font-size: 12px; margin-right: 0px;"><span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• DRE’s Consumer Alert: Warning Regarding Residential Short Sales, available at<a href="http://www.dre.ca.gov/pdf_docs/ca/ConsumerAlert_ShortSales.pdf" style="font-weight: bold; text-decoration: none;" target="_blank">http://www.dre.ca.gov/pdf_docs/ca/ConsumerAlert_ShortSales.pdf</a>.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• DRE’s Short Sales – An Overview and Warning to Real Estate Licensees Re: Fraud, and Legal and Ethical Minefields, available at <a href="http://www.dre.ca.gov/pdf_docs/article_shortsales03_2010.pdf" style="font-weight: bold; text-decoration: none;" target="_blank">http://www.dre.ca.gov/pdf_docs/Article_ShortSales03_2010.pdf</a>.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• DRE’s Update to DRE Issued Consumer and Industry Alert(s) Regarding Short Sales Fraud, and Related Issues (September 2010), available at <a href="http://www.dre.ca.gov/pdf_docs/article_shortsales03_2010.pdf" style="font-weight: bold; text-decoration: none;" target="_blank">http://www.dre.ca.gov/pdf_docs/Article_ShortSales03_2010.pdf</a>.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Fannie Mae’s Mortgage Fraud Program, available at <a href="https://www.efanniemae.com/utility/legal/antifraud.jsp" style="font-weight: bold; text-decoration: none;" target="_blank">https://www.efanniemae.com/utility/legal/antifraud.jsp</a>.</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Freddie Mac’s Mortgage Fraud Prevention is at <a href="http://www.freddiemac.com/singlefamily/preventfraud/" style="font-weight: bold; text-decoration: none;" target="_blank">http://www.freddiemac.com/singlefamily/preventfraud/ </a></span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;"><br />
</span><br />
<span class="Apple-style-span" style="background-color: black; color: #f6b26b;">• Freddie Mac’s Emerging Fraud Trends: Short Payoff Fraud available at<a href="http://www.freddiemac.com/singlefamily/news/2010/0412_payoff_fraud.html" style="font-weight: bold; text-decoration: none;" target="_blank">http://www.freddiemac.com/singlefamily/news/2010/0412_payoff_fraud.html</a></span></blockquote><div style="font-family: Arial, Helvetica, sans-serif; font-size: 12px;"><span class="Apple-style-span" style="color: #f6b26b;"><br />
</span></div>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-39666596976846967122011-09-20T20:54:00.000-07:002011-09-20T20:54:29.628-07:00Comptroller of the Currency - Insight into how our Government is TRYING to help us?Remarks By<br />
John Walsh<br />
Acting Comptroller of the Currency<br />
Before<br />
The American Banker Regulatory Symposium<br />
Washington, D.C.<br />
September 19, 2011<br />
<br />
Good afternoon. Thank you, Rob, for that kind introduction, and thank you for inviting<br />
me to participate in this important symposium. Many months ago, when I agreed that the OCC<br />
would participate in this program, I did so with confidence that a new Comptroller of the<br />
Currency would be nominated and confirmed, and I would never have to write a single word to<br />
say to this audience. But the process did not work quite as I anticipated and here I am. <br />
I expected the role of acting Comptroller to be measured in months, but I have now<br />
started my second year – and a challenging and surprisingly controversial year it has been. It is<br />
an interesting experience to pass from anonymity to notoriety overnight. <br />
For all the challenges of my now extended tenure, I do expect to turn over the OCC in<br />
good condition to the next Comptroller. The pending nominee, Tom Curry, is someone with<br />
whom I have had the pleasure of working on the board of the FDIC for the last year, and he<br />
brings long experience in bank supervision to the job. I wish I could assure him that the road<br />
ahead will be smooth and free of bumps, but of course that wouldn’t be true. As an FDIC board<br />
member, he knows full well that we are continuing to work our way through the worst financial<br />
crisis of our lifetime, and a very stubborn economic downturn. And as Comptroller, he will be<br />
1 dealing with these broad challenges as well as the unique set of issues as the chief prudential<br />
regulator of the nation’s largest banks.<br />
Among the issues that will be front and center for the new Comptroller are mortgage<br />
foreclosures and mortgage servicing. Although the OCC is not the only agency addressing these<br />
issues, we do have substantial responsibilities for them. Federally chartered servicers handle<br />
two-thirds of the nation’s mortgage loans, and as you know, we are in the midst of implementing<br />
a set of enforcement actions that are among the most complex and most significant of any that<br />
the OCC has ever initiated. So, I’d like to spend my time today talking about foreclosures and<br />
servicing. I’ll provide an update on where we are with respect to our enforcement actions, and<br />
I’ll offer a glimpse of the future for the servicing business.<br />
It’s hard to overstate the importance of the foreclosure and servicing issues. They are a<br />
major drag on the struggling housing industry, and a well-functioning housing sector is vital to<br />
the health of local communities and our national economy. Recovery in the housing sector<br />
would move us a long way toward achieving a sustained economic recovery, but it’s hard to<br />
imagine the housing sector recovering until we work through the mortgage modification process,<br />
address the large back-log of foreclosures, and restore a fair and functional foreclosure process in<br />
the housing market.<br />
These are matters of particular concern to me as Comptroller because the mortgage<br />
business has always been a big part of the OCC’s portfolio, and it has assumed even greater<br />
importance with the integration of the OTS’s responsibilities for federal thrift supervision into<br />
the OCC. The thrift industry came into being to support home ownership, and while thrifts have<br />
gotten involved in many areas of consumer lending over time, mortgage lending remains their<br />
major focus.<br />
2 The improper practices in foreclosure processing and mortgage servicing that have come<br />
to light have major safety and soundness implications for banks, in addition to their financial<br />
consequences for troubled homeowners and the economy. They have had a very damaging<br />
effect on the reputation of the institutions involved; in fact, on the reputation of the industry as a<br />
whole. Loss of a home through foreclosure is a financial and personal tragedy for a family; and,<br />
the widespread foreclosures taking place can create economic blight for a community. It is<br />
unfortunately true that significant numbers will face the loss of their homes in the current<br />
economic environment, but it must also be true that troubled borrowers can expect to be treated<br />
fairly and afforded every protection provided under the law. I am confident that our enforcement<br />
actions will do just that: ensure that at-risk borrowers get a fair chance to stay in their homes,<br />
while assuring that those who do find themselves in foreclosure receive appropriate protection<br />
and due process under the law.<br />
I am proud of the excellent work done by our staff in these enforcement actions, but if<br />
confidence in the system is to be restored, it is also important that the full extent of the actions<br />
we are taking is well understood by the public. That has not been the case, in part, because this<br />
is a large and complex undertaking that can’t all be completed at once. <br />
When we announced the actions, I said they were intended to fix what was broken,<br />
compensate those who were harmed, and, where appropriate, assess penalties for abuses. We are<br />
doing just that. We have directed servicers to undertake major systems and processing<br />
improvements that will be quite expensive to implement. And servicers must provide restitution<br />
or other forms of remediation to borrowers who have suffered financial harm, with no limit on<br />
total cost. <br />
3 All of this takes time, and the full effect, full cost, and full benefit of remediation will be<br />
known only at the end. Not knowing what all of this will ultimately cost means we haven’t been<br />
able to announce a big dollar figure to capture the severity of our enforcement actions. <br />
Engagement letters and action plans are the critical steps in resolving the foreclosure processing<br />
mess, but they lack the sex appeal of a big dollar settlement or the sound bite that summarizes<br />
the process in a word or two. Since it is not a story that lends itself to easy synopsis, I’d like to<br />
spend a few minutes highlighting its key elements.<br />
First, the scope of the enforcement actions that we took in April is very broad and<br />
comprehensive, and I think that’s been poorly understood. Looking at the details of the<br />
foreclosure review, the enforcement orders tackle a large number of problems that need to be<br />
fixed. While “robo-signing” has become a shorthand for the broken process, these orders go far<br />
beyond just fixing “robo-signing” of documents. They address the entire system of controls that<br />
must be in place to ensure that those practices don’t occur in the first place.<br />
The orders ensure accountability. They were signed by each member of the board of<br />
directors at each of the banks, and each servicer was directed to establish a compliance<br />
committee including at least three of its directors, each of whom is accountable to the OCC and<br />
the Fed for the oversight and implementation of the corrective actions required by our orders. <br />
The scope of compliance responsibilities that this committee is accountable for is extensive, and<br />
failure to deliver effective compliance can carry personal consequence for directors, as well as<br />
for the servicers.<br />
The orders also raise the bar for the oversight and management of third-party service<br />
providers who process loss mitigation applications and foreclosures, and manage acquired<br />
properties, including law firms that provide services and counsel for all of these processes. You<br />
4 can delegate and outsource the work, but you can’t outsource the responsibility for ensuring the<br />
work is carried out in a safe and sound manner. <br />
Because of the complexity of these processes and the amount of detail involved in every<br />
mortgage serviced by these large companies, our orders also require significant enhancement to<br />
the management information systems used by these companies. Of course, reliable MIS is a<br />
basic requirement for doing the business of banking. But the reality is that the rapid<br />
consolidation of the industry meant that very large firms often had multiple systems performing<br />
servicing and loss mitigation functions, and the integration and functionality of these systems did<br />
not always keep pace. That is a criticism, not an excuse, but it is a fair description of how things<br />
evolved that must now be fixed under our enforcement actions.<br />
Improving accountability, third-party oversight, and information systems won’t fix the<br />
problem unless the basic standard of mortgage servicing is reformed. Consequently, we targeted<br />
several aspects of these standards and practices that posed the greatest risk to the process. For<br />
example, we are requiring servicers to establish a single point of contact for borrowers and to<br />
establish procedures to end dual tracking: that is, to ensure foreclosure actions stop when a<br />
borrower is approved for a trial or permanent modification.<br />
All of the steps I’ve described thus far are aimed at ensuring the process works going<br />
forward – the “fixing what’s broken” piece. But for homeowners who ended up in foreclosure,<br />
the critical issue is whether they were financially harmed due to servicer deficiencies, errors or<br />
misrepresentation and, if they were, what kind of restitution should be provided. That is the<br />
most ambitious and complex aspect of our enforcement actions – the independent foreclosure<br />
review.<br />
5 This independent review sets out to identify borrowers who suffered financial injury as a<br />
result of errors, misrepresentations, or other deficiencies in the foreclosure process. The scope of<br />
this review includes any mortgage serviced by these companies on a borrower’s primary<br />
residence that was in any stage of foreclosure between January 1, 2009 and December 31, 2010. <br />
So we are looking not just at those foreclosures that resulted in foreclosures sales, but at<br />
foreclosures that were pending at any point in that period. They could have been cancelled or<br />
still pending, given how long foreclosures take today: nearly four and a half million mortgages<br />
are in that total pool, each with its own special facts and circumstances.<br />
In our initial examination of this problem, we looked at a sample of 200 loans at each of<br />
the 14 institutions – enough to make a judgment about whether enforcement actions were<br />
justified, but not nearly enough to answer all questions. Foreclosure file reviews conducted by<br />
examiners were very labor intensive, and this phase of the process took about three months to<br />
complete. The banking agencies certainly don’t have the examiner and legal resources to expand<br />
our file reviews to identify financial injury or harm in this huge potential population of<br />
foreclosures. So a basic requirement we placed on the servicers at the outset was to devise a<br />
comprehensive process that could provide an independent review of a large number of<br />
foreclosure cases, determine if there was any harm to the borrower, and provide restitution<br />
where appropriate.<br />
We had begun defining an acceptable process even before we issued the enforcement<br />
orders in April: independent consultants and law firms to advise them would have to be hired to<br />
administer the review under our direction; a comprehensive complaint process for borrowers to<br />
submit claims was deemed a critical and necessary component of the foreclosure review; and<br />
sampling was greatly expanded to help catch foreclosure cases with potential for financial injury. <br />
6 These elements are reflected in the engagement letters developed by the independent consultants<br />
and submitted by the servicers. <br />
We have coordinated with the Department of Justice throughout this process, and as you<br />
know, we agreed to delay submission of the action plans by 30 days to allow time for additional<br />
coordination with the states. We continue to work with the Department of Justice and other<br />
federal and state regulators to harmonize new mortgage servicing standards. I continue to<br />
believe that we will be able to harmonize the mortgage servicing requirements in our orders with<br />
those of other regulators if and when they are reached. In fact, I think it is absolutely essential<br />
that we do so.<br />
Since the submission of plans in July, we have been working with the servicers and<br />
independent consultants to refine the plans so that the reviews meet our high expectations. The<br />
independent foreclosure review was the most public and highly anticipated aspect of our orders,<br />
so it was especially important to get it right. For example, we set detailed expectations for the<br />
sampling process. The foreclosure population is being divided into targeted segments to identify<br />
foreclosure cases that have the highest potential for financial injury. In some cases, independent<br />
consultants will be reviewing hundreds of thousands of case files for just one servicer. Sampling<br />
can be an extremely useful tool for identifying errors in a large population, but it is only a<br />
starting point that may require more thorough investigation if issues are identified. <br />
As we explored the best means of ensuring that injured homeowners had the opportunity<br />
to seek relief, it became clear that what was needed was a robust, transparent, and accessible<br />
complaint process that will give borrowers the opportunity to request an independent foreclosure<br />
review. I’m happy to say in the next several weeks you’ll see the roll out of just such a process. <br />
7 Homeowners who faced foreclosure of their primary residence will be able to request a<br />
review of their case if they believe they suffered financial injury as a result of errors,<br />
misrepresentations, or other deficiencies in the foreclosure process between January 1, 2009 and<br />
December 31, 2010. Affected borrowers in this timeframe will be contacted through direct<br />
mailings and other tracing techniques. The independent consultants will also launch a<br />
coordinated advertising campaign to help contact borrowers who cannot be reached through<br />
direct mailings or other means.<br />
Rather than instituting 14 different servicer processes, which would surely be a source of<br />
confusion for homeowners, we insisted that all of the independent consultants use a single claims<br />
processing vendor that will provide common intake forms, a single Web site, and a common<br />
phone number for eligible individuals who want a review of their case. We expect this process<br />
to kick off in the next few weeks. Individuals seeking a review will be able to go to a Web site<br />
and either file a request for review online or ask for a form that can be filled out and submitted<br />
by mail. There will be a toll-free number for individuals who need assistance filing their request<br />
or who want to ask questions about the review.<br />
I know that many who went through foreclosure in recent years emerged pretty jaded by<br />
the confusion and inefficiency of the experience, so I’d like to explain just what they can expect<br />
if they request review of a foreclosure on their primary residence during the review period. First,<br />
their case will be reviewed by an independent consultant to identify financial injury or harm<br />
under the terms of the OCC’s enforcement orders. If the consultant identifies cases of financial<br />
harm, servicers will be required to develop a remediation plan and make appropriate restitution. <br />
Remediation plans are subject to OCC and Federal Reserve approval.<br />
8 Everyone who asks for a review of their case will receive confirmation that the request<br />
has been received, and they may be asked for additional detail and information. While the<br />
reviews are independent, the servicer will provide relevant documentation related to the case and<br />
may be asked to clarify or confirm facts and disclose reasons for decisions made or actions taken<br />
during the process. At the conclusion of the review, which will take several months, a letter will<br />
be provided explaining the outcome, and providing information about restitution where<br />
appropriate.<br />
The nature and severity of any financial injury will be case specific, so remedies could<br />
vary substantially. Remediation and restitution will not be approached as a one-size-fits-all<br />
proposition. It will depend on the facts of the individual case and that requires thorough and<br />
careful consideration, as well as a strong quality control process to ensure each institution is<br />
treating cases of financial harm in a consistent way. <br />
The OCC expects independent consultants to employ a robust quality assurance process,<br />
and our examiners will review and assess this process on a continuing basis. If we find material<br />
issues, we will require prompt corrective action. To ensure consistency, we issued guidance on<br />
financial injury, and instructed the independent consultants to use it. <br />
Our enforcement actions require independent consultants to develop a Foreclosure<br />
Review Report identifying financial injuries with recommendations for remediation. We will<br />
review these reports individually, and we also plan to conduct a horizontal review of the reports<br />
to ensure there are no material inconsistencies. These reports will be used by servicers to<br />
develop and submit the remediation plans required by our orders. <br />
While I wish that there was a faster way to address the problems, provide relief, and<br />
restore the smooth functioning of the housing market, the fact is that this process will take some<br />
9 time to complete. Then there are the other federal enforcement actions and negotiations with<br />
state AGs, private lawsuits over foreclosures and securitizations, and an extensive agenda of<br />
rulemaking in the mortgage area that will further cloud the industry’s outlook for some time to<br />
come.<br />
While it may seem hard to be optimistic in the near term, we are focused on putting the<br />
process right for the long term by establishing uniform national mortgage servicing standards<br />
that apply to all mortgages and protect all borrowers. We have already begun this effort, and are<br />
working with the Fed, the FDIC, the FHFA, and the CFPB on new and comprehensive standards. <br />
In fact, our enforcement actions have already set some of the standards that will be part of an<br />
eventual package, including the ban on dual tracking and the requirement for a single point of<br />
contact. So we are well on the way.<br />
The challenges before us are substantial, but we have taken substantial steps to resolve<br />
them. The path to recovery will be longer than anyone would like, but we are clearing the path<br />
forward and finding ways to settle outstanding issues as quickly as possible so as to restore<br />
confidence in the system and respect the needs of all who have suffered in the process. <br />
Thank you.<br />
10Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-15379563800296658452011-09-08T11:15:00.000-07:002011-09-08T11:15:16.765-07:00Chapter 7 or Chapter 13 Bankruptcy.... What's the Difference?Dear Readers:<br />
<br />
As you know there are two types of bankruptcy which are relevant to most consumer debtors. Those are Chapter 7 which is considered a financial mulligan, start over, start fresh (Yes David you can still keep your House, your Car, your Boat and the Helicopter!). A Chapter 13 is a reorganization.... essentially, you need some time due to get caught up without being penalized. This information is not intended to constitute legal advice, it is purely for entertainment purposes. Always consult with a lawyer who is in your community to know how much of this applies to you!<br />
<br />
With that being said, there are advantages and disadvantages of both Chapter 7 and Chapter 13. Under Chapter 13 the Debtor will make regular payments on a plan to pay all or part of the debts. Under Chapter 7 there is no plan to repay creditors and all debts that are “dischargeable” are simply liquidated. The absence of regular payments is a powerful inducement for many Debtors, which may explain why there are more Chapter 7 cases than Chapter 13 cases. Under Chapter 7 a Debtor will generally lose “non-exempt” property, while under Chapter 13 Debtors are normally able to keep both “exempt” and “non-exempt” property. Of course, this is of no concern if a Debtor has little or no property or only property which is “exempt” - moreover, the exemptions have been liberalized over the years and many Debtors keep property of significant value.<br />
<br />
A Chapter 13 discharge is also broader than a Chapter 7 discharge in that it covers certain types of debts not “dischargeable” under a Chapter 7. However, the 2005 Bankruptcy Law did add several categories of debts that are no longer dischargeable in a Chapter 13. The debts dischargeable in a Chapter 7 are discussed below. All Debts dischargeable under Chapter 7 are also dischargeable under Chapter 13, but several categories of debts can be discharged in a Chapter 13 but not under a Chapter 7 such as debts for willful and malicious injury to property, debts incurred to pay non-dischargeable tax bills and certain debts arising from property settlements in divorce of marital separation cases.<br />
<br />
Secured debts, even when the Debtor is behind on payments, can be handled in a Chapter 13, giving the Debtor additional time to come up with money to save the secured property. Chapter 13 can also be used to protect co-signers, who cannot be protected through a Chapter 7.<br />
<br />
<b>Is it more difficult for someone to file bankruptcy?</b> Under the new law Chapter 7 or Chapter 13 will make it easier for some people to file and harder for others. We discuss many of the advantages and disadvantages below. The new law was a major revision and space does not permit a discussion of all the changes. However, there are some new requirements for credit counseling and debtor education which<br />
will affect almost everybody. The Debtor must file a certificate of completion of credit counseling. Average pre filing counseling typically requires about 90 minutes (actual time may vary). This requirement may be waived in only a limited number of circumstances. A list of the agencies offering such briefing can be found in the Appendix at the end of this document. The Debtor must also prove completion of a financial management course before a discharge is granted. It may be possible to take this course over the telephone and will last at least 2 hours. The new law also requires the filing of the Debtor’s tax return or transcript and some of the Debtor’s pay stubs may have to be filed as well. The Debtor will have to provide proof of identity and certain financial records, if requested.<br />
<br />
<b><u>CHAPTER 7 - DO NOT USE THIS CHAPTER TO STOP A FORECLOSURE SALE!</u></b><br />
<br />
What is Chapter 7? Chapter 7 is the most popular type of bankruptcy. It is a legal proceeding in a special federal court, the United States Bankruptcy Court. At the end of this proceeding, certain debts are said to be discharged. [11 U.S.C. §727]. “Discharged” means, among other things, that the Debtor no longer has to pay the debt. However, not all debts are dischargeable under Chapter 7. Most Chapter 7 cases are “no assets” cases. In a no assets case, none of the assets of the Debtor are used to pay creditors. Assets are unavailable to pay creditors if they are already encumbered by liens at least equal to the value of the asset. An asset is unavailable if it does not become part of the bankruptcy case — many, but not all, pensions may<br />
fall into this category. Also, an asset is unavailable if the Debtor is able to claim it is “exempt”.<br />
<br />
How does Chapter 7 protect Debtors? As soon as a bankruptcy is filed a Debtor is protected by a part of the Bankruptcy Code called the “Automatic Stay”. [11 U.S.C. §362]. YES David, this means that the foreclosure sale cannot go forward provided that you file your bankruptcy BEFORE the sale with enough time to GIVE CREDITOR NOTICE that you have filed. In California this means well before 8:00 a.m. the day of a sale. If you want to make sure your house doesn't go to sale PLEASE FILE THE DAY BEFORE!!!! However, if you use this Chapter 7 to stop the sale, you put yourself at risk of losing your home if you cannot pay back everything you are behind immediately or if you do not get a loan modification!<br />
<br />
This stay functions as an Order or injunction from the Bankruptcy Court and can be enforced by proceedings in the Bankruptcy Court. The stay stops most legal proceedings against the Debtor. The Automatic Stay prohibits almost all attempts to collect debts owed by the Debtor while the bankruptcy is pending. Most Chapter 7 cases will remain pending for three to four months. <br />
<br />
The 2005 Bankruptcy law created some new exceptions to the Automatic Stay, for the most part dealing with serial filers of repeat bankruptcies, and some actions against tenants involved in eviction actions. The law also changed to permit certain actions such as setoffs of tax refunds and withholding of wages to repay loans from retirement funds. Therefore you MUST CONSULT an Attorney, if you are filing another bankruptcy there may be no automatic stay in place. So protect yourself by knowing your rights.<br />
<br />
The Automatic Stay provision is a very important part of the Bankruptcy Code. It can be even more important than the discharge of debts. It will stop harassment by creditors over the phone or by letter. And it can be used to stop, at least temporarily, a foreclosure and give a Debtor more time to come up with a mortgage arrearage. However, this protection is not absolute. For instance, a secured creditor who is found to by the Bankruptcy Court to be inadequately protected can be granted permission to repossess or foreclose on secured property. In most cases the Automatic Stay expires when the debts of the Debtor are discharged. The discharge provisions of the Bankruptcy Code will then generally prohibit almost all attempts to collect debts which have been discharged. However, after the discharge, creditors will be free to pursue debts which have not been discharged and debts which have been reaffirmed.<br />
<br />
<b>Who qualifies for Chapter 7?</b> Any person who resides in the United States, or is domiciled here or who <b>has business or property in the United States can be a Debtor</b> under Chapter 7. [11 U.S.C. §109]. NOTE you DO NOT NEED TO BE A US CITIZEN! A special exception to this rule prohibits some people whose bankruptcy case was involuntarily dismissed in the previous 180 days from refiling. A person who has received a discharge in another Chapter 7 (or Chapter 11) case filed within the preceding 8 years cannot be granted a Chapter 7 discharge. [11 U.S.C. §727(a)(8)]. Also, a Chapter 7 discharge cannot be granted to someone until 6 years after a Chapter 13 discharge.<br />
The 2005 Bankruptcy Law created an additional barrier for some who seek Chapter 7 protection. A presumption of abuse is created unless a Debtor can meet a new means test. This change will not affect most people who wish to file a Chapter 7 case. A “safe harbor” is created if a Debtor’s income is below the statewide median income for the Debtor’s family size. Please check with an attorney to see what your limits may be. <br />
<br />
However, do not despair, even a Debtor with income over the median may still qualify by demonstrating an<br />
inability to repay creditors. In this case, IRS standards for various normal expenses such as food, clothing, personal care, etc. are compared to the Debtor’s income. Deductions of standard amounts from IRS tables are permitted for transportation. Other necessary expenses from the IRS list of necessary expenses may also be deducted. These expenses include costs as child care, alimony, medical/dental care, expenses to avoid being a victim of domestic violence, taxes, or support of elderly and disable family members and various other expenses. Obviously, if your income is over the statewide median, your attorney may have to help you determine if a Chapter 7 filing is feasible.<br />
<br />
<b>Being able to file does not mean it is advisable to file under Chapter 7. </b> A person who has substantial bills that are not dischargeable often will not benefit from Chapter 7. A person who owns substantial assets that would not be exempt may not benefit unless the debt that could be discharged would be substantially in excess of the assets that would be lost. Also, the Court may dismiss the case of someone who could repay a substantial portion of his or her debt within a reasonable time it found the case amounted to an abuse of Chapter 7. There are other instances in which the filing of a Chapter 7 case would not benefit a Debtor. It is important for people to seek competent legal advice before filing a bankruptcy petition.<br />
<br />
<b>How much does it cost to file a Chapter 7 Bankruptcy?</b> The filing fee for a Chapter 7 case is $299. While it is possible for a Debtor to file without the help of an attorney or professional preparer, unassisted “pro se” filings are unusual. Since added requirements of the new Bankruptcy Law mean much more work and responsibility for the lawyer, attorney fees have gone up recently. The amount charged for attorney fees normally reflects the difficulty of the case. Such factors as a large number of creditors, a debtor engaged in business or a unique legal situation requiring additional legal research will normally increase the attorney fee.<br />
<br />
<b>What property will a Debtor lose in a Chapter 7 case? </b> In most Chapter 7 cases, the Debtor does not lose any property. The Debtor is allowed to keep all property that does not become part of the bankruptcy estate or that is exempt. The Debtor’s attorney first divides the property into various classifications such as the Debtor’s homestead, household goods or tools of the Debtor’s trade. The value of property in each classification is then determined. It is sometimes difficult to figure the exemptions a Debtor is entitled to. <br />
<br />
In California there are two sets of exemption codes which basically break down to whether the Debtor has a home with equity or without equity. There are many factors which go into determining which set of California exemptions will apply. Additionally, in some instances California Debtors qualify for using some Federal exemptions. You practically need an attorney to really figure out what can be exempted. If you don't own much, more than likely you won't need an attorney to do a Chapter 7 bankruptcy. If you are contemplating a Chapter 13, I strongly suggest you hire a bankruptcy attorney. All these exemptions all have various limitations and are broad categories often requiring more exact definitions. Ask your lawyer about any property you are concerned about.<br />
<br />
Finally, valuation of property is sometimes a problem. The current value of the property is used, not the value of the time of purchase or at some future date when the Debtor might sell. Also, only the Debtor’s interest in property is valued. If the Debtor owns property along with someone else, only the Debtor’s part is valued. Also, if there is a lien on property the Debtor’s interest in the property is reduced by the amount of the lien. For instance, the Debtor’s interest in a home with a market value of $100,000 and a mortgage of $90,000 is $10,000. If the amount of the lien is greater than the property the Debtor may elect to keep the property but it may be in the Debtor’s interest to give up the property (see the next section).<br />
<br />
<b>Liens and Secured Debts. </b> Secured creditors are those protected by a lien or mortgage against the Debtor’s property (often referred to as the “collateral”). Secured creditors have an interest in a specified item of property in the amount of their lien. A secured creditor will generally be permitted to repossess or foreclose on the secured property unless the Debtor elects to retain the property and reaffirm the debt. If the Debtor reaffirms the debt, the secured creditor will be allowed to retain its rights to the collateral but the Debtor will be permitted to retain the property subject to the terms and conditions of the security agreement. In some cases the amount of the lien will exceed the value of the collateral. In many of these cases the Debtor will want to return the property to the secured creditor and discharge the debt. In some cases a Debtor may<br />
wish to retain collateral even though the amount of the lien exceeds its value. This situation may be somewhat more complicated and Debtors are advised to seek their lawyer’s advice.<br />
<br />
<b>What debts can be discharged in a Chapter 7 case?</b> All debts are discharged unless they are excepted from discharge by a section of the Bankruptcy Code. [11 U.S.C. §523] The major EXCEPTIONS TO DISCHARGE are these:<br />
1. Some Income Taxes. See your attorney to figure out which ones. Old Income taxes may be dischargeable!<br />
2. Debts for money, property or related to the extension, renewal or refinancing if procured through false pretenses, false representations or fraudulent financial statement; included are certain debts for luxury goods or services within 90 days before the bankruptcy was filed or certain cash advances within 70 days before filing; Note that some lenders will go back up to one year asking for you to pay them.<br />
3. Unlisted debts, if the failure to notify the creditor prevented the creditor from filing a claim or objecting to the discharge of the debt.<br />
4. Debts for fraud or embezzlement by a Debtor in a position of trust;<br />
5. Most domestic support obligations (including alimony, spousal maintenance or child support);<br />
6. Debts for willful and malicious injury by the Debtor;<br />
7. Fines, penalties or forfeitures owed to a government;<br />
8. Student loans and educational benefits, unless the debt poses an undue hardship on the Debtor and Debtor’s dependents; This requires a lawsuit to get ride of this debt. IT CAN BE DONE.<br />
9. Debts for death or personal injury caused by the Debtor’s use of a motor vehicle while intoxicated by alcohol, a drug or other intoxicant;<br />
10. Debts which were or could have been listed in a previous bankruptcy and which were not discharged;<br />
11. Certain debts owed to a spouse or ex-spouse arising in a divorce or separation - in these cases the Bankruptcy Court weighs various equities to determine whether the benefits of discharge to the Debtor outweigh the detrimental consequences to the spouse or ex-spouse;<br />
12. Certain fees or assessment connected to membership associations related to the Debtor’s interest in his or her dwelling;<br />
13. Debts incurred to pay non-dischargeable state or local taxes;<br />
14. Federal election law fines and penalties;<br />
15. Property settlements owed to a former spouse or to a child;16. Condo or homeowner’s association fees;<br />
17. Certain fees imposed on prisoners by a court.<br />
18. Loans on pensions; and<br />
19. Certain debts arising from securities violations or wrongful acts of a fiduciary.<br />
<br />
Objections to discharge. In addition to objecting to discharge of a given debt, a creditor may also object to the grant of a discharge to the Debtor. These cases are fairly rare. The most common grounds for objecting to discharge are [11 U.S.C. §727]:<br />
<br />
1. Intentional concealment, transfer or destruction of property by the Debtor;<br />
2. Failure to keep books or financial records;<br />
3. Dishonesty in connection with the bankruptcy;<br />
4. Unexplained loss of assets of the Debtor;<br />
5. Refusal to cooperate, obey court orders or to testify in a bankruptcy proceeding;<br />
6. The Debtor has been involved in prohibited transactions with insiders (persons closely related to the Debtor);<br />
7. A prior discharge was granted to the Debtor in another Chapter 7 case within eight years; and<br />
8. A prior discharge was granted to the Debtor in a Chapter 13 case within six years - but a discharge may be granted if more than 70% of the unsecured claims were paid and the Debtor made a good faith best effort to pay creditors in the Chapter 13 case.<br />
<br />
Moreover, once granted a discharge may be revoked if the Debtor obtained his or her<br />
discharge through fraud and the party requesting revocation was unaware of the fraud prior to the<br />
discharge or if the Debtor fraudulently failed to report the acquisition of property that may have<br />
been part of the bankruptcy estate.<br />
<br />
In Part II of this series of articles, I will tell you more about Chapter 13. Stay tuned!!!Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com2tag:blogger.com,1999:blog-5895379498745726232.post-7646871814230361832011-08-04T15:04:00.001-07:002011-08-04T15:04:52.606-07:00THERE IS NO MISSING NOTE THEORY IN CALIFORNIA!<div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><span id="co_term_1084">California</span> law requires that an action to quiet title include: (1) a description of the property in question; (2) the basis for plaintiff's title; and (3) the adverse claims to plaintiff's title. Cal.Code Civ. Proc. § 761.020; <em style="font-style: italic;">Kelley v. Mortgage Electronic Registration Systems, Inc.,</em> 642 F.Supp.2d 1048, 1057 (N.D.Cal.2009). However, “[u]nder <span id="co_term_1140">California</span> law, a borrower may not quiet title without first paying the outstanding debt on the property.” <em style="font-style: italic;">Roberts v. JP Morgan Chase Bank, N.A.,</em> Nos. 09–CV–01855–LHK, 09–CV–01879, 2011 WL 864949, at *7 (N.D.Cal. Mar.11, 2011) (citing <em style="font-style: italic;">Miller v. Provost,</em> 26 Cal.App.4th 1703, 1707, 33 Cal.Rptr.2d 288 (1994) (“a mortgagor of real property cannot, without paying his debt, quiet his title against the mortgagee”)). Here, Murphy does not allege that she has tendered the outstanding debt or has the ability to do so.</div><div class="co_paragraph" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 1.0em; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Moreover, Murphy's action to quiet title is premised upon the theory that Wells Fargo had no beneficial interest in the Properties at the time of <span id="co_term_1258">foreclosure</span>. However, the judicially-noticed facts outlined above contradict this allegation. World Savings Bank, FSB, and its successors and/or assigns are identified as the “lender” and “beneficiary” in both deeds of trust. RJN Exs. F, L. Wells Fargo is a successor to World Savings Bank, FSB, and thus is a beneficiary.<sup id="co_footnoteReference_B00442025745036_ID0E5EAE" style="bottom: 0.5em; height: 0px; line-height: 1px; padding-bottom: 0px; padding-left: 0.2em; padding-right: 0.2em; padding-top: 0px; position: relative; vertical-align: baseline;">4</sup> It is clear from the notices of default that <span id="co_term_1325">Cal</span>–Western Reconveyance and NDEX West were acting on behalf of Wells Fargo through Wells Fargo's predecessor World Savings Bank.<sup id="co_footnoteReference_B00552025745036_ID0ELFAE" style="bottom: 0.5em; height: 0px; line-height: 1px; padding-bottom: 0px; padding-left: 0.2em; padding-right: 0.2em; padding-top: 0px; position: relative; vertical-align: baseline;">5</sup> Nothing in the FAC establishes that Wells Fargo as the legal beneficiary lacked authority to commence <span id="co_term_1363">foreclosure</span> proceedings through its agents <span id="co_term_1368">Cal</span>–Western Reconveyance and NDEX West. <em style="font-style: italic;">Cf. </em><em style="font-style: italic;">Gomes v. Countrywide Home Loans, Inc.,</em> No. D057005, 2011 WL 566737, at *5 (Cal.App. 4 Dist. Feb.18, 2011) (“MERS is the owner and holder of the note as nominee for the lender, and thus MERS can enforce the note on the lender's behalf.”) (citation omitted). Instead, Murphy's argument is contradicted by the deeds of trust, which grant the express power of sale to the beneficiary in the event of default, stating that the beneficiary may “take action to have the Property sold under applicable law ...” RJN Exs. F, L.</div></div><div class="co_paragraph" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 1.0em; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">A recent decision from the <span id="co_term_1630">California</span> Court of Appeal has addressed this very issue and in turn has solidified the so-called “tender rule” even further, holding that a beneficiary is authorized “to initiate <span id="co_term_1659">foreclosure</span> proceedings and invoke the tender rule against a defaulting borrower, even when the beneficiary is not the holder of the original promissory note.”<input id="co_docMarker_1" type="hidden" /> <em style="font-style: italic;">Ferguson v. Avelo Mortgage, LLC,</em> No. B223447, 2011 WL 2139143, at *5 (Cal.App. 2 Dist. June 1, 2011) (citations omitted). <em style="font-style: italic;">Ferguson</em> made clear that “<span id="co_term_1709">California</span> law ‘does not require possession of the note as a precondition to [nonjudicial] <span id="co_term_1723">foreclosure</span> under a Deed of Trust.’ “ <em style="font-style: italic;">Id.</em> (citing <em style="font-style: italic;">Jensen v. Quality Loan Service Corp.,</em> 702 F.Supp.2d 1183, 1189 (E.D.Cal.2010); <em style="font-style: italic;">Odinma v. Aurora Loan Services,</em> No. C–09–4674 EDL, 2010 WL 1199886, at *4 (N.D.Cal. Mar.23, 2010); <em style="font-style: italic;">Morgera v. Countrywide Home Loans, Inc.,</em> No. 2:09–cv–01476–MCE–GGH, 2010 WL 160348, at *8 (E.D.Cal. Jan.11, 2010).); <em style="font-style: italic;">See also </em><em style="font-style: italic;">Gandrup v. GMAC Mortg.,</em> No. 11–CV–0659–LHK, 2011 WL 703753, at *2 (N.D.Cal. Feb.18, 2011) (“[U]nder <span id="co_term_1808">California</span> law, there is no requirement that the trustee have possession of the physical note before initiating <span id="co_term_1825">foreclosure</span> proceedings.”).</div></div><br />
<br />
<div style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><span style="text-decoration: underline;">Murphy v. Wells Fargo Bank, N.A.</span>, 5:10-CV-05837-JF PSG, 2011 WL 2893069 (N.D. Cal. July 19, 2011)</div></div>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-87063836532201168112011-08-01T15:13:00.001-07:002011-08-01T15:13:58.281-07:00City of Los Angeles Foreclosure Registry<a href="" name="JD_C16A4"></a> <a href="" name="LPTOC4"></a><br />
<h2 class="Article"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">ARTICLE 4<br />
<a href="" name="LPHit2"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />FORECLOSURE<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> REGISTRY PROGRAM</span></h2><b>(Article Added by Ord. No. 181,185, Eff. 7/8/10.)</b><br />
Section<br />
<div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.00.$3.0#JD_164.00.">164.00</a> Title.</div><div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.01.$3.0#JD_164.01.">164.01</a> Intent.</div><div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.02.$3.0#JD_164.02.">164.02</a> Definitions.</div><div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.03.$3.0#JD_164.03.">164.03</a> Recordation of Transfer of Loan and/or Deed of Trust and/or Assignment of Rents.</div><div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.04.$3.0#JD_164.04.">164.04</a> Registration of Properties in <a href="" name="LPHit3"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" />.</div><div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.05.$3.0#JD_164.05.">164.05</a> Maintenance and Enforcement of Maintenance Requirements.</div><div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.06.$3.0#JD_164.06.">164.06</a> Maintenance of Vacant Properties and Enforcement of Vacant Property Maintenance Requirements.</div><div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.07.$3.0#JD_164.07.">164.07</a> Utilities.</div><div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.08.$3.0#JD_164.08.">164.08</a> Violation/Penalty.</div><div class="Analysis"> <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_164.09.$3.0#JD_164.09.">164.09</a> Severability.</div><a href="" name="JD_164.00."></a> <a href="" name="LPTOC4.1"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.00. TITLE.</span></h5> This article shall be known as the City of Los Angeles <a href="" name="LPHit4"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> Registry Program.<br />
<a href="" name="JD_164.01."></a> <a href="" name="LPTOC4.2"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.01. INTENT.</span></h5> It is the intent of the Los Angeles City Council, through the adoption of this chapter, to establish an abandoned residential property registration program as a mechanism to protect residential neighborhoods from becoming blighted through the lack of adequate maintenance and security of abandoned properties as a result of the <a href="" name="LPHit5"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> crisis.<br />
<a href="" name="JD_164.02."></a> <a href="" name="LPTOC4.3"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.02. DEFINITIONS.</span></h5> The following words and phrases, whenever used in this article, shall be construed as defined in this section unless the context within individual section clearly indicates otherwise. Words and phrases not defined here shall be construed as defined in Sections <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A1a390$cid=california$t=document-frame.htm$an=JD_12.03.$3.0#JD_12.03.">12.03</a>, <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A1a390$cid=california$t=document-frame.htm$an=JD_12.20.3.$3.0#JD_12.20.3.">12.20.3</a>, <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A2a032$cid=california$t=document-frame.htm$an=JD_91.8901.$3.0#JD_91.8901.">91.8901</a>, <i>et seq.</i>, and <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A2a032$cid=california$t=document-frame.htm$an=JD_98.0702.$3.0#JD_98.0702.">98.0702</a>, <i>et seq.</i>:<br />
<div class="L2"> A. "<b>Abandoned</b>" means a property that is vacant and is under a Notice of Default and/or Notice of Trustee's Sale, pending tax assessor's lien sale and/or properties that have been the subject of a previous <a href="" name="LPHit6"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> sale in which title was retained by the beneficiary of a deed of trust involved in the <a href="" name="LPHit7"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> and any properties transferred under a deed in lieu of <a href="" name="LPHit8"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> and/or sale.</div><div class="L2"> B. "<b>Assignment of Rents</b>" means an instrument that transfers the beneficial interest under a deed of trust from one lender/entity to another.</div><div class="L2"> C. "<b>Beneficiary</b>" means a lender under a note secured by a deed of trust.</div><div class="L2"> D. "<b>Days</b>" means consecutive calendar days.</div><div class="L2"> E. "<b>Deed of Trust</b>" means an instrument by which title to real estate is transferred to a third party trustee as security for a real estate loan. This definition applies to all deeds of trust regardless of priority.</div><div class="L2"> F. "<b>Deed in Lieu of <a href="" name="LPHit9"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> and/or Sale</b>" means a recorded document that transfers ownership of a property from the trustor upon consent of the beneficiary of the deed of trust.</div><div class="L2"> G. "<b>Default</b>" means the failure to fulfill a contractual obligation, monetary or nonmonetary.</div><div class="L2"> H. "<b><a href="" name="LPHit10"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /></b>" means the process by which a property, placed as security for a real estate loan, is sold at auction to satisfy the debt if the trustor (borrower) defaults.</div><div class="L2"> I. "<b>Local</b>" means within 100 road/driving miles distance of the subject property.</div><div class="L2"> J. "<b>Notice of Default</b>" means a recorded notice that a default has occurred under a deed of trust.</div><div class="L2"> K. "<b>Out of Area</b>" means in excess of 100 road/driving miles distance of the subject property.</div><div class="L2"> L. "<b>Property</b>" means any unimproved or improved residential real property, or portion thereof, situated in the City of Los Angeles and includes the buildings or structures located on the property regardless of condition.</div><div class="L2"> M. "<b>Property in <a href="" name="LPHit11"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /></b>" means any Property upon which a Notice of Default has been issued by a lender, mortgagee, or beneficiary of any deed of trust.</div><div class="L2"> N. "<b>Trustee</b>" means the person, firm or corporation holding a deed of trust on a property.</div><div class="L2"> O. "<b>Trustor</b>" means a borrower under a deed of trust, who deeds property to a trustee as security for the payment of a debt.</div><a href="" name="JD_164.03."></a> <a href="" name="LPTOC4.4"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.03. RECORDATION OF TRANSFER OF LOAN AND/OR DEED OF TRUST AND/OR ASSIGNMENT OF RENTS.</span></h5> Within 10 days of the purchase and/or transfer of a loan and/or deed of trust secured by Property the new beneficiary/trustee shall record, with the Los Angeles County Recorder's Office, an assignment of rents, or similar document, that lists the name of the corporation, and/or individual, the mailing address and contact phone number of the new beneficiary and/or trustee responsible for receiving payments associated with the loan and/or deed of trust.<br />
<a href="" name="JD_164.04."></a> <a href="" name="LPTOC4.5"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.04. REGISTRATION OF PROPERTIES IN <a href="" name="LPHit12"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />FORECLOSURE<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" />.</span></h5> Any beneficiary or trustee, who holds, or has an interest in, a deed of trust on a Property in <a href="" name="LPHit13"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> located within the City of Los Angeles ("City") shall register the Property in <a href="" name="LPHit14"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> with the Housing Department of the City of Los Angeles ("LAHD"). If the beneficiary or trustee issues a Notice of Default after the Effective Date of this Ordinance, they shall register such property with LAHD within thirty days of the issuance of such Notice of Default. If the beneficiary or trustee issues a Notice of Default prior to the Effective Date of this Ordinance, and such Notice of Default has not been rescinded, the beneficiary or trustee shall register the Property in <a href="" name="LPHit15"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> with LAHD within 30 days of the Effective Date of this Ordinance.<br />
The registration requirements of this Ordinance shall be satisfied by providing LAHD with contact information including street address and telephone number for the person or persons directly responsible for the Property in <a href="" name="LPHit16"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" />. If such person or persons are located Out of Area, such person or persons shall also provide the contact information, including street address and phone number for the staff of any applicable property management or property preservation company responsible for the security, maintenance, and marketing of the property. Such person or persons responsible for the property must be empowered to (1) comply with code enforcement orders issued by the City, (2) provide a trespass authorization upon request of local law enforcement authorities if the property is unlawfully occupied, (3) conduct weekly inspections of the Property, (4) accept rental payments from tenants of the property if no management company is otherwise employed for such person.<br />
An annual registration fee in the amount of $155.00 shall be paid to LAHD at the time of registration. The fee and registration shall be valid for the calendar year, or remaining portion of the calendar year, in which the registration was initially required. Subsequent registrations and fees are due January 1st of each year and must be received no later than January 31st of the year due.<br />
The registration shall contain the name of the beneficiary and/or trustee (corporation or individual), the direct street and/or office mailing address of the beneficiary and/or trustee (P.O. boxes are insufficient), a direct contact name and phone number for the beneficiary and/or trustee and, in the case of a corporation or Out of Area beneficiary and/or trustee, the local property management company responsible for the security, maintenance and marketing of the property. Registration fees will not be prorated.<br />
The registration requirements of this section may be satisfied by providing the information required above to the Mortgage Electronic Registration System (MERS). Lenders that register properties with MERS will not be required to pay the registration fee to LAHD.<br />
Any beneficiary or trustee who holds a deed of trust on a Property in <a href="" name="LPHit17"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />Foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> shall perform an inspection of the property that is the security for the deed of trust, upon default by the trustor, prior to recording a Notice of Default with the Los Angeles County Recorder's Office.<br />
If the property is occupied but remains in default it shall be inspected by the beneficiary and/or trustee, or his designee, monthly until the trustor other or party remedies the default.<br />
This section shall also apply to properties that have been the subject of a <a href="" name="LPHit18"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> sale where the title was transferred to the beneficiary of a deed of trust involved in the <a href="" name="LPHit19"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" /> and any properties transferred under a deed in lieu of <a href="" name="LPHit20"></a><img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-on.gif$3.0" />foreclosure<img align="middle" border="0" src="http://www.amlegal.com/nxt/gateway.dll/California/lamc/municipalcode/chapterxvihousingregulations?f=images$fn=doc-hit-off.gif$3.0" />/sale.<br />
Properties subject to this chapter shall remain under the annual registration requirement, security and maintenance standards of this section as long as they remain vacant.<br />
Any person, firm or corporation that has registered a property under this chapter must report any change of information contained in the registration with LAHD within 10 days of the change.<br />
If LAHD determines that the beneficiary and/or trustee has failed to comply with the registry requirements of this section, LAHD shall notify the beneficiary and/or trustee at the last known address as provided in Section <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A30055$cid=california$t=document-frame.htm$an=JD_161.409.$3.0#JD_161.409.">161.409</a> of the failure to comply with this section. If the beneficiary and/or trustee fails to comply with this section within 30 days of LAHD's notification, the beneficiary and/or trustee shall pay a penalty in the amount of $250 per day for each day subsequent to LAHD's notification.<br />
<a href="" name="JD_164.05."></a> <a href="" name="LPTOC4.6"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.05. MAINTENANCE AND ENFORCEMENT OF MAINTENANCE REQUIREMENTS.</span></h5> Properties shall be maintained by the beneficiary/ trustee in accordance with the standards set forth in Section <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A2a032$cid=california$t=document-frame.htm$an=JD_91.8104.$3.0#JD_91.8104.">91.8104</a>.<br />
The provisions of <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A2a032$cid=california$t=document-frame.htm$an=JD_C9A1D89$3.0#JD_C9A1D89">Article 1, Division 89</a> (Section <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A2a032$cid=california$t=document-frame.htm$an=JD_91.8901.$3.0#JD_91.8901.">91.8901</a>, <i>et seq.</i>) and all requirements described therein shall apply to properties subject to this section. Should a property be deemed a nuisance, hazardous, or substandard by the City, the abatement procedures described in <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A2a032$cid=california$t=document-frame.htm$an=JD_C9A1D89$3.0#JD_C9A1D89">Article 1, Division 89</a> may be initiated against beneficiary/trustee by the City.<br />
<a href="" name="JD_164.06."></a> <a href="" name="LPTOC4.7"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.06. MAINTENANCE OF VACANT PROPERTIES AND ENFORCEMENT OF VACANT PROPERTY MAINTENANCE REQUIREMENTS.</span></h5> If a property subject to this section is found to be vacant, the provisions of <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A2a032$cid=california$t=document-frame.htm$an=JD_C9A8D7$3.0#JD_C9A8D7">Article 8, Division 7</a> (Section <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A2a032$cid=california$t=document-frame.htm$an=JD_98.0701.$3.0#JD_98.0701.">98.0701</a>, <i>et seq.</i>), and all maintenance and security requirements described therein, shall apply. Enforcement by the Los Angeles Department of Building and Safety shall be pursuant to the provisions of <a href="http://www.amlegal.com/nxt/gateway.dll?f=id$id=Los%20Angeles%20Municipal%20Code%3Ar%3A2a032$cid=california$t=document-frame.htm$an=JD_C9A8D7$3.0#JD_C9A8D7">Article 8, Division 7</a>.<br />
<a href="" name="JD_164.07."></a> <a href="" name="LPTOC4.8"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.07. UTILITIES.</span></h5> The beneficiary and/or trustee shall ensure that utility services to the property are not terminated if the property is lawfully occupied.<br />
<a href="" name="JD_164.08."></a> <a href="" name="LPTOC4.9"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.08. VIOLATION/PENALTY.</span></h5> Violations of this chapter shall be treated as a strict liability offense regardless of intent. Any person, firm and/or corporation that violates any portion of this section shall be subject to prosecution and/or administrative enforcement under the Los Angeles Municipal Code. Administrative penalties imposed pursuant to this ordinance shall not exceed $100,000 per property.<br />
<a href="" name="JD_164.09."></a> <a href="" name="LPTOC4.10"></a><h5 class="Section"><a href=""><img alt="Bookmark" border="0" height="16" src="http://www.amlegal.com/alp_templates/images/ui-bookmark.gif" width="16" /></a><span style="cursor: pointer;">SEC. 164.09. SEVERABILITY.</span></h5> Should any provision, section, paragraph, sentence or word of this chapter be determined or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this chapter shall remain in full force and effect.Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-2406692461204087832011-07-26T16:26:00.000-07:002011-07-26T16:26:58.534-07:00Its really hard to tell a good lie... A lesson for Loan modification professionals and bankruptcy attorneys alike....Dear Readers:<br />
<br />
The following case is quite instructional. I tell people all of the time, if you file a bankruptcy you better make sure that the figures closely match what you submitted in your loan modification package. Because it does not, you could get caught committing loan fraud or bankruptcy fraud. In the case below, a borrower asked for a loan modification and was required to submit tax returns (or easily could have been that they signed a 4506T). When the Tax Returns did not reflect the amounts stated in the original loan application, the borrower was BUSTED!!!! As I say it is very hard to tell a good lie. The consequences can be devastating. If you are going to apply for loan modification, bankruptcy, shortsale or any other foreclosure relief defense, make sure you hire an attorney who can coordinate all of the facts and figures so that you are not brushing up against potential civil and or criminal liability for mortgage fraud. ITS WORTH to hire an attorney. Many attorneys offer reasonable rates and easy payment plans. Don't short change yourself because you think you can't afford an attorney. You can afford to go to jail even less!!!<br />
<br />
Call us, we are here to help!<br />
<br />
Best regards<br />
R. Grace <br />
<br />
<div class="co_caveatBlock"><div>Not Officially Published</div><div>(Cal. Rules of Court, Rules 8.1105 and 8.1110, 8.1115)</div></div><div class="co_cites">2011 WL 591339</div><div class="co_contentBlock co_editorialNoteBlock"><div>Only the Westlaw citation is currently available.</div></div><div class="co_message">California Rules of Court, rule 8.1115, restricts citation of unpublished opinions in California courts.</div><div class="co_contentBlock co_courtBlock"><div>Court of Appeal, Second District, Division 7, California.</div></div><div class="co_title"><div class="co_suit"><div class="co_partyLine">YOUNG AMERICA MORTGAGE CORP., Defendant and Appellant,</div><div>v.</div><div class="co_partyLine">SUPERIOR COURT of the County of Los Angeles, Respondent,</div><div class="co_partyLine">ING Bank, FSB, a Delaware corporation, Plaintiff, Respondent and Real Party in Interest.</div></div></div><div class="co_docketDate"><div class="co_contentBlock co_docketBlock"><span>No. B219955.</span><span>(Los Angeles County Super. Ct. No. BC398236).</span></div><div class="co_date"><span>Feb. 22, 2011.</span></div></div><div class="co_contentBlock co_actionBlock"><div>APPEAL from a judgment of the Superior Court of Los Angeles County. <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0331041501&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a4de3f4511e08b05fdf15589d8e8">Elizabeth A. White</a>, Judge. Reversed and remanded.</div></div><h2 class="co_attorneyBlockLabel co_printHeading" id="co_attorneysAndLawFirms">Attorneys and Law Firms</h2><div class="co_contentBlock co_attorneyBlock"><div>Russell J. Thomulka, for Defendant and Appellant.</div><div>Hicks Park, <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0140809901&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a4e13f4511e08b05fdf15589d8e8">James B. Hicks</a> and <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0325192901&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a4e23f4511e08b05fdf15589d8e8">Gary W. Park</a>, for Plaintiff and Respondent ING Bank, FSB.</div></div><div class="co_contentBlock co_opinionBlock"><h2 class="co_printHeading" id="co_opinion">Opinion</h2><div class="co_contentBlock x_opinionBlockBody"><div class="co_contentBlock x_opinionLead"><div class="co_contentBlock x_leadAuthorLineBlock"><div class="co_contentBlock x_leadAuthorLine"><a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0246324501&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a4e33f4511e08b05fdf15589d8e8">ZELON</a>, J.</div></div><div class="co_contentBlock x_opinionBody"><div class="co_contentBlock co_section" id="co_anchor_I706057d83f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign2"><span class="co_smallCaps"><strong>INTRODUCTION</strong></span></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_1">*1</span> Appellant Young America Mortgage (YAM), a mortgage broker, submitted a <span class="co_searchTerm" id="co_term_276">loan</span> <span class="co_searchTerm" id="co_term_277">application</span> to Respondent ING Bank on behalf of its client, Jorge Ramon. Several months after the <span class="co_searchTerm" id="co_term_294">loan</span> was approved, ING discovered that the <span class="co_searchTerm" id="co_term_301">application</span> misstated Ramon's monthly salary. Ramon later defaulted on the <span class="co_searchTerm" id="co_term_312">loan</span> and ING sued Ramon and YAM for breach of contract, <span class="co_searchTerm" id="co_term_323">fraud</span> and negligence. ING filed a motion for summary judgment arguing that, by failing to verify Ramon's salary information, YAM had breached the parties' Broker Origination Agreement and committed <span class="co_searchTerm" id="co_term_353">fraud</span>. The trial court granted the motion and entered judgment against YAM.</div></div><div class="co_paragraph"><div class="co_paragraphText">YAM appeals, arguing that: (1) the parties' contract did not require YAM to verify Ramon's income information; (2) ING failed to introduce evidence establishing that it was damaged by YAM's alleged breach of contract, and; (3) there is a triable issue of fact regarding whether YAM knew or should have known that Ramon misstated his salary information in the <span class="co_searchTerm" id="co_term_426">loan</span> <span class="co_searchTerm" id="co_term_427">application</span>. We reverse the trial court's grant of summary judgment, concluding that ING has failed to introduce evidence demonstrating that there is no triable issue of fact regarding any of its claims.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I706057d93f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign2"><span class="co_smallCaps"><strong>FACTUAL AND PROCEDURAL BACKGROUND</strong></span></div><div class="co_headtext co_hAlign1"><strong>A. Events Proceeding ING's Complaint</strong></div><div class="co_paragraph"><div class="co_paragraphText">In 2005, Appellant Young America Mortgage (YAM) and Respondent ING Bank entered into a “Broker Origination Agreement” under which YAM “solicit[ed] prospective Borrowers for residential mortgage <span class="co_searchTerm" id="co_term_499">loans</span>” and ING, “upon approval of the <span class="co_searchTerm" id="co_term_506">application</span>, fund[ed] such <span class="co_searchTerm" id="co_term_510">Loans</span>.” The Agreement included a provision stating that YAM would not “submit a <span class="co_searchTerm" id="co_term_524">Loan</span> <span class="co_searchTerm" id="co_term_525">Application</span> Package where the information contained in the <span class="co_searchTerm" id="co_term_533">application</span> ... is not true, correct and undisputed and does not reflect full, correct and accurate information as the matter represented ...” The Agreement further provided that if any representation regarding a <span class="co_searchTerm" id="co_term_563">loan</span> failed to be true, YAM would “immediately repurchase, on demand, any <span class="co_searchTerm" id="co_term_575">Loan</span> which may be affected by such failure.”</div></div><div class="co_paragraph"><div class="co_paragraphText">In 2007, YAM submitted a <span class="co_searchTerm" id="co_term_589">loan</span> <span class="co_searchTerm" id="co_term_590">application</span> to ING on behalf of Jorge Ramon, who was seeking to refinance a residential mortgage initially provided by Chase Manhattan Mortgage. The <span class="co_searchTerm" id="co_term_614">application</span>, which was signed by Ramon, stated that his monthly salary was $5,761. Ramon later provided YAM an earnings statement that verified the amount of his salary, which YAM then gave to ING.</div></div><div class="co_paragraph"><div class="co_paragraphText">After reviewing Ramon's <span class="co_searchTerm" id="co_term_652">loan</span> <span class="co_searchTerm" id="co_term_653">application</span> and supporting documentation, ING approved a <span class="co_searchTerm" id="co_term_660">loan</span> for $328,500 and paid YAM a broker fee of approximately $8,000. On June 19, 2007, Ramon executed a promissory note agreeing to repay the <span class="co_searchTerm" id="co_term_686">loan</span>, along with a deed of trust that gave ING a first priority security interest in Ramon's property.</div></div><div class="co_paragraph"><div class="co_paragraphText">In February of 2008, Ramon stopped making his required monthly <span class="co_searchTerm" id="co_term_715">loan</span> payments. Several months later, Ramon requested that ING modify the terms of the <span class="co_searchTerm" id="co_term_730">loan</span>. As part of its <span class="co_searchTerm" id="co_term_736">loan</span> modification process, ING obtained copies of Ramon's 2006 and 2007 federal and state tax returns and discovered that his income for that time period was approximately one third the amount stated in his <span class="co_searchTerm" id="co_term_770">loan</span> <span class="co_searchTerm" id="co_term_771">application</span>.</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_2">*2</span> After discovering the income discrepancy, ING sent a letter to YAM stating that it had breached the parties' Broker Origination Agreement by submitting a <span class="co_searchTerm" id="co_term_797">loan</span> <span class="co_searchTerm" id="co_term_798">application</span> which contained false salary information. ING's letter further stated that, under the parties' Agreement, YAM was required to repurchase the <span class="co_searchTerm" id="co_term_820">loan</span> from ING. YAM did not respond to the letter.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I706057da3f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1"><strong>B. ING's Complaint and Trial Court Proceedings</strong></div><div class="co_paragraph"><div class="co_paragraphText">In September of 2008, ING filed an action against Ramon and YAM alleging breach of contract (both defendants), <span class="co_searchTerm" id="co_term_858">fraud</span> (both defendants), judicial foreclosure (Ramon only), negligence (YAM only) and unfair business practices (YAM only). All of the claims were predicated on Ramon's misrepresentation of his monthly salary.</div></div><div class="co_paragraph"><div class="co_paragraphText">During <span class="co_searchTerm" id="co_term_890">discovery</span>, YAM's president and manager, Fariborz Nouri, testified that YAM did not know Ramon's <span class="co_searchTerm" id="co_term_904">loan</span> <span class="co_searchTerm" id="co_term_905">application</span> and earning statement misstated his salary until ING notified it of the misrepresentation. Nouri also stated that while processing the <span class="co_searchTerm" id="co_term_927">loan</span> <span class="co_searchTerm" id="co_term_928">application</span>, YAM never asked Ramon if his <span class="co_searchTerm" id="co_term_935">application</span> and earning statement accurately reflected his current income or take any other actions to verify Ramon's salary.</div></div><div class="co_paragraph"><div class="co_paragraphText">On May 8, 2009, ING filed a motion for summary judgment or, alternatively, summary adjudication, arguing that because Ramon and YAM had admitted that the <span class="co_searchTerm" id="co_term_979">loan</span> <span class="co_searchTerm" id="co_term_980">application</span> included inaccurate salary information, there was no triable issue of material fact regarding any claim asserted in its complaint. First, ING argued that, by submitting a <span class="co_searchTerm" id="co_term_1008">loan</span> <span class="co_searchTerm" id="co_term_1009">application</span> that falsely stated the borrower's salary information, YAM had breached the Broker Origination Agreement and Ramon had breached his <span class="co_searchTerm" id="co_term_1029">loan</span> agreement. Second, ING argued that both parties committed <span class="co_searchTerm" id="co_term_1039">fraud</span> because the undisputed evidence showed Ramon knowingly misrepresented his salary information and that YAM acted recklessly by submitting “a false <span class="co_searchTerm" id="co_term_1060">loan</span> <span class="co_searchTerm" id="co_term_1061">application</span> ... without regard for the truth of the [salary] information.” ING further contended that YAM's submission of a false <span class="co_searchTerm" id="co_term_1081">loan</span> <span class="co_searchTerm" id="co_term_1082">application</span> violated various federal and state statutes, and therefore constituted negligence as well as an unfair business practice within the meaning of <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000199&cite=CABPS17200&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a4e43f4511e08b05fdf15589d8e8">Business and Professions Code section 17200</a>. Finally, ING contended that it was entitled to foreclose on Ramon's property.</div></div><div class="co_paragraph"><div class="co_paragraphText">After the motion was filed, Ramon settled with ING and was dismissed from the case. The record does not state the terms of the settlement nor does it indicate whether ING permitted Ramon to retain possession of the property that was used to secure the <span class="co_searchTerm" id="co_term_1170">loan</span>.</div></div><div class="co_paragraph"><div class="co_paragraphText">YAM filed an opposition to ING's motion for summary judgment, arguing that although Ramon had misstated his monthly salary, triable issues of fact remained on each of ING's claims. First, YAM contended that the Broker Origination Agreement did not require it to verify the accuracy of Ramon's salary and therefore ING had not established any breach of the contract. YAM also argued that ING had failed to show that it was damaged by any breach because it had provided no evidence regarding the value or status of the property that had been used to secure Ramon's <span class="co_searchTerm" id="co_term_1270">loan</span>. YAM asserted that, without such evidence, it was impossible to determine whether ING could recoup the full benefit of its <span class="co_searchTerm" id="co_term_1292">loan</span> agreement by foreclosing on the property. In regards to ING's <span class="co_searchTerm" id="co_term_1304">fraud</span>, negligence and unfair business practice claims, YAM asserted that ING was required to prove that YAM knew or should have known that Ramon misstated his salary, which involved a triable issue of fact.</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_3">*3</span> The trial court granted ING's motion for summary judgment, concluding that it had introduced sufficient evidence to prove YAM knowingly submitted a false <span class="co_searchTerm" id="co_term_1362">loan</span> <span class="co_searchTerm" id="co_term_1363">application</span>. On the contract claim, the court ruled the parties' Agreement imposed on YAM an absolute duty to submit accurate <span class="co_searchTerm" id="co_term_1384">loan</span> <span class="co_searchTerm" id="co_term_1385">application</span> materials, which it had failed to do. It further concluded that ING had demonstrated contract damages “in the amount of the <span class="co_searchTerm" id="co_term_1408">loan</span> plus fees paid in connection with the <span class="co_searchTerm" id="co_term_1416">loan</span>.” The court did not address whether or how ING's deed of trust to Ramon's property affected its damages.</div></div><div class="co_paragraph"><div class="co_paragraphText">The court also ruled ING was entitled to summary judgment on its <span class="co_searchTerm" id="co_term_1449">fraud</span> claim because YAM had admitted it failed to “take any steps to review the information contained in the <span class="co_searchTerm" id="co_term_1468">loan</span> <span class="co_searchTerm" id="co_term_1469">application</span>.” In the court's view, this admission demonstrated “recklessness giving rise to the elements of knowledge and intent.” Finally, the court concluded ING had established that YAM committed negligence and engaged in an unfair business practice by submitting a false <span class="co_searchTerm" id="co_term_1511">loan</span> <span class="co_searchTerm" id="co_term_1512">application</span> in violation of federal and state law.</div></div><div class="co_paragraph"><div class="co_paragraphText">The court entered judgment in favor of ING and awarded the outstanding amount of the <span class="co_searchTerm" id="co_term_1536">loan</span> principal ($326,176.23), in addition to outstanding interest and late charges. It also awarded ING all the fees it had paid to YAM for originating the <span class="co_searchTerm" id="co_term_1564">loan</span>, along with prejudgment interest. YAM timely appealed the judgment.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I706057db3f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign2"><span class="co_smallCaps"><strong>DISCUSSION</strong></span></div><div class="co_headtext co_hAlign1"><strong>A. Legal Standards Governing Motions for Summary Judgment</strong></div><div class="co_paragraph"><div class="co_paragraphText">“The standard for deciding a summary judgment motion is well-established, as is the standard of review on appeal.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2007042179&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_572" id="co_link_I7060a4e53f4511e08b05fdf15589d8e8"><em>Richard B. LeVine, Inc. v. Higashi</em> (2005) 131 Cal.App.4th 566, 572</a> (<em>LeVine</em> ).) A party is entitled to summary judgment if there is no triable issue of material fact and the party is entitled to judgment as a matter of law. (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000201&cite=CACPS437C&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a4e73f4511e08b05fdf15589d8e8">Code Civ. Proc., § 437c</a>, subd. (c).) “[T]he party moving for summary judgment bears an initial burden of production to make a prima facie showing of the nonexistence of any triable issue of material fact.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2001516569&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_850" id="co_link_I7060a4e83f4511e08b05fdf15589d8e8"><em>Aguilar v. Atlantic Richfield Co.</em> (2001) 25 Cal.4th 826, 850</a> (<em>Aguilar</em> ).) Where plaintiff is the moving party, this initial burden requires it to produce evidence showing that each element of each cause of action has been established. (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000201&cite=CACPS437C&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a4ea3f4511e08b05fdf15589d8e8">§ 437c</a>, subd. (p)(1).) If a moving plaintiff satisfies this initial burden, the burden shifts to the defendant to set forth “specific facts” showing that a triable issue of material fact exists as to the cause of action or a defense. (<em>Ibid.;</em> see also <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2001516569&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_850" id="co_link_I7060a4ec3f4511e08b05fdf15589d8e8"><em>Aguilar, supra,</em> 25 Cal.4th at p. 850</a>.) “Despite the shifting burdens of production, the ... moving party[ ] always bears the ultimate burden of persuasion as to whether summary judgment is warranted. [Citations.]” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2022341176&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_1041" id="co_link_I7060a4ed3f4511e08b05fdf15589d8e8"><em>Garcia v. W & W Community Development, Inc.</em> (2010) 186 Cal.App.4th 1038, 1041</a>.) “In making this determination, courts view the evidence, including all reasonable inferences supported by that evidence, in the light most favorable to the nonmoving party.” (<em>Ibid.</em>)</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_4">*4</span> “ ‘We review the trial court's decision de novo, considering all of the evidence the parties offered in connection with the motion (except that which the court properly excluded) and the uncontradicted inferences the evidence reasonably supports.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2007042179&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_572" id="co_link_I7060a4ef3f4511e08b05fdf15589d8e8"><em>LeVine, supra,</em> 131 Cal.App.4th at p. 572</a>.)<sup id="co_footnoteReference_B00112024635931_ID0EPMAE"><a class="co_footnoteReference" href="https://a.next.westlaw.com/Document/Ic06f9a283e9a11e080558336ea473530/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad6040a0000013168bc8a1adce0efe2%3FNav%3DCASE%26fragmentIdentifier%3DIc06f9a283e9a11e080558336ea473530%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=1e7054fa58d78395b4c46b430539ff52&list=CASE&rank=1&grading=na&sessionScope=88ce58977a997c6974ee9bbb2db4ba1b&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnote_B00112024635931">1</a></sup></div></div></div><div class="co_contentBlock co_section" id="co_anchor_I706057dc3f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1"><strong>B. ING Failed to Establish There is No Material Issue of Fact Regarding its Claim for Breach of Contract</strong></div><div class="co_paragraph"><div class="co_paragraphText">YAM argues that ING failed to demonstrate two elements that are necessary to establish a claim for breach of contract. (See generally <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2014709342&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_1239" id="co_link_I7060a4f13f4511e08b05fdf15589d8e8"><em>CDF Firefighters v. Maldonado</em> (2008) 158 Cal.App.4th 1226, 1239</a> [breach of contract requires following elements “(1) existence of the contract; (2) plaintiff's performance or excuse for nonperformance; (3) defendant's breach; and (4) damages to plaintiff as a result of the breach”].) First, YAM contends that the Broker Origination Agreement did not require it to verify Ramon's salary information and therefore ING failed to demonstrate that YAM breached the contract. Second, YAM argues that ING did not meet its initial burden to produce evidence showing that it was damaged as a result of YAM's purported breach.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I706057dd3f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1"><em>1. ING established that YAM breached the Broker Origination Agreement</em></div><div class="co_paragraph"><div class="co_paragraphText">YAM argues that the trial court erred in concluding that the submission of a <span class="co_searchTerm" id="co_term_2087">loan</span> <span class="co_searchTerm" id="co_term_2088">application</span> which misstates the borrower's income constitutes a breach of the Broker Origination Agreement. Although YAM concedes that Ramon's <span class="co_searchTerm" id="co_term_2108">application</span> contained false salary information, it contends that, under the parties' Agreement, it had no duty to independently verify Ramon's salary information.</div></div><div class="co_paragraph"><div class="co_paragraphText">The plain language of a contract governs its interpretation. (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS1638&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a4f23f4511e08b05fdf15589d8e8">Civ.Code, § 1638</a>; <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1995178609&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_18" id="co_link_I7060a4f33f4511e08b05fdf15589d8e8"><em>Waller v. Truck Ins. Exchange, Inc.</em> (1995) 11 Cal.4th 1, 18</a>.) Section 10, subdivision (bb) of the Broker Origination Agreement states that YAM “shall not submit a <span class="co_searchTerm" id="co_term_2173">Loan</span> <span class="co_searchTerm" id="co_term_2174">Application</span> Package where the information contained in the <span class="co_searchTerm" id="co_term_2182">application</span> or other document submitted in connection with the <span class="co_searchTerm" id="co_term_2191">loan</span> <span class="co_searchTerm" id="co_term_2192">application</span> is not true, correct and undisputed and does not reflect full, correct and accurate information as to the matter represented.” This clause does not contain any qualifying language indicative of a scienter element, such as “knowingly” or “intentionally.” (See generally <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2023341324&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_168" id="co_link_I7060a4f43f4511e08b05fdf15589d8e8"><em>Margarito v. State Athletic Com .</em> (2010) 189 Cal.App.4th 159, 168</a>.) We therefore agree that the Agreement imposed an unambiguous, absolute duty on YAM to submit truthful salary information in any <span class="co_searchTerm" id="co_term_2267">loan</span> <span class="co_searchTerm" id="co_term_2268">application</span>, which it admittedly failed to do.</div></div><div class="co_paragraph"><div class="co_paragraphText">YAM, however, argues that other documentation in the record demonstrates that YAM was not required to verify the borrower's salary information. Specifically, YAM <span class="co_searchTerm" id="co_term_2300">points</span> to language in ING's “Lending Guidelines,” which were incorporated into the Broker Origination Agreement. The Guidelines describe various terms and conditions applicable to two different types of ING financial products: “stated income <span class="co_searchTerm" id="co_term_2334">loans</span>” and “verified income <span class="co_searchTerm" id="co_term_2338">loans</span>.” A “stated income <span class="co_searchTerm" id="co_term_2343">loan</span>” is “a <span class="co_searchTerm" id="co_term_2346">loan</span> where the borrower states their monthly income, and the lender will ... accept that as the income upon which to make the <span class="co_searchTerm" id="co_term_2368">loan</span> decision” without requiring any further documentation. A “verified income <span class="co_searchTerm" id="co_term_2379">loan</span>,” on the other hand, requires the applicant to submit verification of salary, including W2s or the borrower's most recent pay stub. YAM argues that ING's Lending Guidelines explain the specific acts that are necessary to verify a borrower's income: for a stated income <span class="co_searchTerm" id="co_term_2424">loan</span>, a broker need only ask the borrower his or her income, and for a verified income <span class="co_searchTerm" id="co_term_2441">loan</span>, it must obtain a wage earning statement. In this case, YAM contends it did both things: it asked Ramon his salary, which he then verified through a wage statement. In YAM's view, compliance with the Guidelines was sufficient to discharge any duty it had to substantiate Ramon's income.</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_5">*5</span> The ING Guidelines do not alter or amend the Broker Origination Agreement's requirement that YAM submit accurate and truthful <span class="co_searchTerm" id="co_term_2512">loan</span> <span class="co_searchTerm" id="co_term_2513">application</span> information. Instead, the Guidelines describe the type of documentation that ING requires a borrower to submit in support of specific types of <span class="co_searchTerm" id="co_term_2537">loans</span>. Although it appears YAM did collect sufficient information and documentation to satisfy the Guidelines' requirements, the Broker Origination Agreement imposed an independent obligation on YAM to ensure the accuracy of any <span class="co_searchTerm" id="co_term_2570">loan</span> <span class="co_searchTerm" id="co_term_2571">application</span> that it submitted to ING.</div></div><div class="co_paragraph"><div class="co_paragraphText">Because YAM admits the <span class="co_searchTerm" id="co_term_2582">loan</span> <span class="co_searchTerm" id="co_term_2583">application</span> misstated Ramon's salary, ING established breach.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I706057de3f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1"><em>2. ING failed to introduce sufficient evidence to establish contract damages</em></div><div class="co_paragraph"><div class="co_paragraphText">YAM next contends that, even if ING established a breach of the Broker Origination Agreement, it failed to satisfy its initial burden to introduce evidence demonstrating that it was damaged as a result of the breach. Contract damages are generally intended to “ ‘compensate[ ] the [plaintiff] for the loss of his “expectational interest”-the benefit of his bargain which full performance would have brought.’ [Citation.]” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2021289150&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_1144" id="co_link_I7060a4f53f4511e08b05fdf15589d8e8"><em>Sharabianlou v. Karp</em> (2010) 181 Cal.App.4th 1133, 1144-1145</a>.) “The ‘benefit of the bargain’ measure of damages is the difference between the actual value of what the plaintiff has received and that which he expected to receive.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1994095690&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_564" id="co_link_I7060a4f63f4511e08b05fdf15589d8e8"><em>Salahutdin v. Valley of California, Inc.</em> (1994) 24 Cal.App.4th 555, 564</a>.) Thus, to satisfy its initial burden under summary judgment procedures, ING was required to introduce evidence establishing that YAM's breach caused ING to receive less than what it would have otherwise received under its lending agreement with Ramon. Moreover, it had to show there was no dispute about the total amount of its damages. (See <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1997128674&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_1097" id="co_link_I7060a4f73f4511e08b05fdf15589d8e8"><em>Department of Industrial Relations v. UI Video Stores, Inc.</em> (1997) 55 Cal.App.4th 1084, 1097</a> [summary judgment or adjudication improper where amount of damages raises factual issue].)</div></div><div class="co_paragraph"><div class="co_paragraphText">In the trial court, ING introduced evidence demonstrating that Ramon stopped making his monthly <span class="co_searchTerm" id="co_term_2821">loan</span> payments, along with an account statement indicating the unpaid balance of the <span class="co_searchTerm" id="co_term_2834">loan</span>. It also introduced evidence that YAM had refused to repurchase the <span class="co_searchTerm" id="co_term_2847">loan</span> from ING, as required under the parties' broker agreement.<sup id="co_footnoteReference_B00222024635931_ID0EA2AE"><a class="co_footnoteReference" href="https://a.next.westlaw.com/Document/Ic06f9a283e9a11e080558336ea473530/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad6040a0000013168bc8a1adce0efe2%3FNav%3DCASE%26fragmentIdentifier%3DIc06f9a283e9a11e080558336ea473530%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=1e7054fa58d78395b4c46b430539ff52&list=CASE&rank=1&grading=na&sessionScope=88ce58977a997c6974ee9bbb2db4ba1b&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnote_B00222024635931">2</a></sup> ING alleges that this evidence demonstrates that it has been damaged as a result of YAM's breach because it is now “stuck with a non-performing <span class="co_searchTerm" id="co_term_2885">loan</span>.” The trial court agreed, concluding that “ING has been damaged in the amount of the <span class="co_searchTerm" id="co_term_2902">loan</span> plus fees paid in connection with the <span class="co_searchTerm" id="co_term_2910">loan</span>, which it would not have made but for the income representation in the <span class="co_searchTerm" id="co_term_2924">loan</span> <span class="co_searchTerm" id="co_term_2925">application</span>.”</div></div><div class="co_paragraph"><div class="co_paragraphText">YAM, however, contends that ING has not established that it suffered damages (or the amount of any such damages) because it failed to introduce any evidence showing that Ramon's property, which was used to secure the <span class="co_searchTerm" id="co_term_3029">loan</span>, is insufficient to provide ING the full amount it would have received under its <span class="co_searchTerm" id="co_term_3044">loan</span> agreement.</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_6">*6</span> It is undisputed that Ramon provided ING a deed of trust to his property to secure the <span class="co_searchTerm" id="co_term_3064">loan</span>. ING failed to come forward with any evidence indicating the current value of Ramon's property or the current status of the deed of trust. Without doing so, ING has failed to establish whether it has been damaged by YAM's breach of the Broker Origination Agreement, and if so, by how much. If ING still owns the deed of trust and is entitled to foreclose on the property, it is possible that the value of the property is equal to or greater than what ING would have received under the <span class="co_searchTerm" id="co_term_3157">loan</span> agreement. If, on the other hand, ING has foreclosed and sold the property, it has not demonstrated that the amount it received did not offset all or part of its damages.<sup id="co_footnoteReference_B00332024635931_ID0E65AE"><a class="co_footnoteReference" href="https://a.next.westlaw.com/Document/Ic06f9a283e9a11e080558336ea473530/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad6040a0000013168bc8a1adce0efe2%3FNav%3DCASE%26fragmentIdentifier%3DIc06f9a283e9a11e080558336ea473530%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=1e7054fa58d78395b4c46b430539ff52&list=CASE&rank=1&grading=na&sessionScope=88ce58977a997c6974ee9bbb2db4ba1b&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnote_B00332024635931">3</a></sup></div></div><div class="co_paragraph"><div class="co_paragraphText">Because ING has failed to introduce sufficient evidence proving it suffered any damages, and also failed to demonstrate the total amount of its damages, we reverse the trial court's grant of summary judgment on ING's contract claim.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I706057df3f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1"><strong>C. There is a Material Issue of Fact Regarding ING's <span class="co_searchTerm" id="co_term_3277">Fraud</span> Claim</strong></div><div class="co_paragraph"><div class="co_paragraphText">YAM argues the trial court erred in concluding that there is no triable issue of fact in regards to ING's <span class="co_searchTerm" id="co_term_3300">fraud</span> claim. “ ‘<span class="co_searchTerm" id="co_term_3303">Fraud</span> is an intentional tort, the elements of which are (1) misrepresentation; (2) knowledge of falsity; (3) intent to defraud, i.e., to induce reliance; (4) justifiable reliance; and (5) resulting damage. [Citation.]’ [Citation.]” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2004258342&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_85" id="co_link_I7060a4f83f4511e08b05fdf15589d8e8"><em>Intrieri v. Superior Court.</em> (2004) 117 Cal.App.4th 72, 85-86</a> (<em>Intrieri</em> ).) YAM contends that there is a factual dispute whether YAM knew the <span class="co_searchTerm" id="co_term_3363">loan</span> <span class="co_searchTerm" id="co_term_3364">application</span> misstated Ramon's salary. The trial court concluded the knowledge element was satisfied by YAM's “admitted ... failure” to take any steps to verify Ramon's salary. In the court's view, such conduct constituted “recklessness giving rise to the elements of knowledge and intent.”</div></div><div class="co_paragraph"><div class="co_paragraphText">It is well-established that “[f]alse representations made recklessly and without regard for their truth in order to induce action by another are the equivalent of misrepresentations knowingly and intentionally uttered.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1997137898&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_974" id="co_link_I7060a4fa3f4511e08b05fdf15589d8e8"><em>Engalla v. Permanente Medical Group, Inc.</em> (1997) 15 Cal.4th 951, 974</a>.) Whether a party acted with actual knowledge of falsity or reckless disregard for the truth is generally a question of fact to be determined by the jury. (See <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1960108484&pubNum=225&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_225_332" id="co_link_I7060a4fb3f4511e08b05fdf15589d8e8"><em>Buist v. C. Dudley De Velbiss Corp.</em> (1960) 182 Cal.App.2d 325, 332</a> [for purposes of <span class="co_searchTerm" id="co_term_3499">fraud</span>, “knowledge of party” is “question of fact”]; <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1968111854&pubNum=225&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_225_80" id="co_link_I7060a4fc3f4511e08b05fdf15589d8e8"><em>Radinsky v. T.W. Thomas, Inc.</em> (1968) 264 Cal.App.2d 75, 80</a> [“Whether there has been <span class="co_searchTerm" id="co_term_3522">fraud</span> by misrepresentation is question of fact for determination by the trial court”]; <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2004258342&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_87" id="co_link_I7060a4fd3f4511e08b05fdf15589d8e8"><em>Initieri, supra,</em> 117 Cal.App.4th at p. 87</a> [triable question of fact existed as to whether defendant “knew the statements were false” where it is “questionable whether a reasonable person would believe” his testimony]; cf. <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1902005115&pubNum=220&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_220_232" id="co_link_I7060a4fe3f4511e08b05fdf15589d8e8"><em>Cooper v. Los Angeles Terminal Railway Co.</em> (1902) 137 Cal. 229, 232</a> [whether defendant acts were “reckless ... was for the jury to determine from all the evidence”].) Thus, a plaintiff may only obtain summary judgment on a <span class="co_searchTerm" id="co_term_3608">fraud</span> claim where he has introduced evidence “that would require a reasonable trier of fact to find [more likely than not]” that YAM had actual knowledge of falsity or acted with reckless disregard for the truth. (<em>Aguilar, supra,</em> 25 Cal.4th at p, 845.) Stated differently, summary judgment may only be granted if “undisputed facts leave no room for a reasonable difference of opinion” as to whether YAM had actual knowledge that Ramon misstated his salary or acted with reckless disregard as to the truth of his stated income. (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1995178607&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_1239" id="co_link_I7060a5013f4511e08b05fdf15589d8e8"><em>Alliance Mortgage Co. v. Rothwell</em> (1995) 10 Cal.4th 1226, 1239</a> [discussing reliance element of <span class="co_searchTerm" id="co_term_3715">fraud</span> claim]; <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1991204696&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_843" id="co_link_I7060a5023f4511e08b05fdf15589d8e8"><em>Guido v. Koopman</em> (1991) 1 Cal.App.4th 837, 843</a> [“existence of <span class="co_searchTerm" id="co_term_3728">fraud</span> ... is a question of fact” unless reasonable people can come to only one conclusion based on the facts].)</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_7">*7</span> YAM contends that the following evidence establishes a triable issue of fact as to whether it acted with actual knowledge and/or recklessness: (1) YAM introduced evidence that, at the time it submitted the <span class="co_searchTerm" id="co_term_3782">loan</span> <span class="co_searchTerm" id="co_term_3783">application</span> to ING, it was unaware that Ramon misstated his salary; (2) Ramon's <span class="co_searchTerm" id="co_term_3796">loan</span> <span class="co_searchTerm" id="co_term_3797">application</span> stated that he was providing “true and correct” information; (3) the <span class="co_searchTerm" id="co_term_3809">loan</span> <span class="co_searchTerm" id="co_term_3810">application</span> contained language notifying Ramon that any intentional misrepresentation might subject him to civil and criminal penalties; (4) Ramon provided YAM an earnings statement that appeared to confirm the level of income stated in the <span class="co_searchTerm" id="co_term_3845">application</span>; (5) according to ING's Lending Guidelines, an earnings statement is generally sufficient to verify a borrowers' income, and; (6) Ramon was seeking refinance of a Chase Manhattan Mortgage <span class="co_searchTerm" id="co_term_3874">loan</span>, meaning that another lending institution had already determined he was qualified for a $300,000 <span class="co_searchTerm" id="co_term_3889">loan</span>.</div></div><div class="co_paragraph"><div class="co_paragraphText">In light of this evidence, which we must interpret in the light most favorable to YAM, a reasonable trier of fact could find that YAM did not know that Ramon misstated his salary and did not act recklessly by failing to take any further actions to verify Ramon's salary. First, there is no evidence that YAM knew Ramon misstated his salary or had any reason to doubt the information in Ramon's <span class="co_searchTerm" id="co_term_3963">loan</span> <span class="co_searchTerm" id="co_term_3964">application</span>. Second, Ramon attested to the truth of his current income and provided documentation that appeared to verify his income. Third, ING's Lending Guidelines suggest that, if ING had originated the <span class="co_searchTerm" id="co_term_3997">loan</span> itself, it would not have required any more salary verification or documentation than what YAM gathered. Fourth, a bank had already given Ramon a sizeable <span class="co_searchTerm" id="co_term_4024">loan</span>, which he was trying to refinance. Given all of this evidence, there is a disputed issue of fact as to whether YAM had any reason to question the veracity of Ramon's <span class="co_searchTerm" id="co_term_4057">application</span> and, as a result, whether YAM acted recklessly.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I706057e03f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1"><strong>D. ING Failed to Establish YAM Committed Negligence</strong></div><div class="co_paragraph"><div class="co_paragraphText">YAM argues that ING failed to introduce evidence establishing its negligence claim. In the trial court, ING argued that federal and state statutes imposed a legal duty on YAM “to refrain from making any substantial misrepresentation” in a <span class="co_searchTerm" id="co_term_4115">loan</span> <span class="co_searchTerm" id="co_term_4116">application</span>. It further argued that because YAM submitted an <span class="co_searchTerm" id="co_term_4126">application</span> that misstated Ramon's salary, it had violated its statutory duties and therefore was negligent as a matter of law. The trial court agreed, concluding that “the undisputed facts show that YAM submitted a <span class="co_searchTerm" id="co_term_4161">loan</span> <span class="co_searchTerm" id="co_term_4162">application</span> which contained materially false information ... in violation of several statutes.” The court further ruled that these statutory duties “were specifically enacted to prevent <span class="co_searchTerm" id="co_term_4187">fraud</span> on banks such as ING, and supplement Broker's general duties of care not to submit a <span class="co_searchTerm" id="co_term_4204">loan</span> <span class="co_searchTerm" id="co_term_4205">application</span> which contains material factual misstatements.”</div></div><div class="co_paragraph"><div class="co_paragraphText">ING cites three statutes in support of its contention that YAM had a duty of care to ensure that any information in Ramon's <span class="co_searchTerm" id="co_term_4235">loan</span> <span class="co_searchTerm" id="co_term_4236">application</span> was truthful: <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000546&cite=18USCAS1014&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a5033f4511e08b05fdf15589d8e8">18 U.S.C. section 1014</a>, <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000546&cite=18USCAS1344&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a5043f4511e08b05fdf15589d8e8">18 U.S.C. section 1344</a> and <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000199&cite=CABPS10176&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a5053f4511e08b05fdf15589d8e8">California Business and Professions Code section 10176</a>. The federal statutes cited by ING only apply where the actor knowingly makes a false statement. (See <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000546&cite=18USCAS1014&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a5063f4511e08b05fdf15589d8e8">18 U.S.C., § 1014</a> [“Whoever knowingly makes any false statement ...”]; <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000546&cite=18USCAS1344&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a5073f4511e08b05fdf15589d8e8">18 U.S.C., § 1344</a> [“whoever knowingly executes .... scheme ... [ ] to defraud a financial institution ...”].) <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000199&cite=CABPS10176&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a5083f4511e08b05fdf15589d8e8">Business and Professions Code section 10176</a>, on the other hand, permits the State to suspend or revoke a real estate license if the licensee commits various enumerated acts of dishonesty, including making “any substantial misrepresentation” or engaging in “any other conduct ... which constitutes <span class="co_searchTerm" id="co_term_4342">fraud</span> or dishonest dealing.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000199&cite=CABPS10176&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a5093f4511e08b05fdf15589d8e8">Bus. & Prof.Code, § 10176</a>, subds. (a), (j).) <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000199&cite=CABPS10176&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a50a3f4511e08b05fdf15589d8e8">Section 10176</a> only applies to misrepresentations that are known to be false or are made with reckless disregard for their truth. (See generally <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1960108318&pubNum=225&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_225_183" id="co_link_I7060a50b3f4511e08b05fdf15589d8e8"><em>Nichandros v. Real Estate Division of Dept. of Inv.</em> (1960) 181 Cal.App.2d 179, 183</a>.) As we have explained, the evidence raises a triable issue of fact regarding whether YAM acted with knowledge or recklessness. Therefore, the evidence does not establish, as a matter of law, that YAM breached its statutory duties nor does it establish that YAM committed negligence by violating the statutes.<sup id="co_footnoteReference_B00442024635931_ID0EQUAG"><a class="co_footnoteReference" href="https://a.next.westlaw.com/Document/Ic06f9a283e9a11e080558336ea473530/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad6040a0000013168bc8a1adce0efe2%3FNav%3DCASE%26fragmentIdentifier%3DIc06f9a283e9a11e080558336ea473530%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=1e7054fa58d78395b4c46b430539ff52&list=CASE&rank=1&grading=na&sessionScope=88ce58977a997c6974ee9bbb2db4ba1b&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnote_B00442024635931">4</a></sup></div></div></div><div class="co_contentBlock co_section" id="co_anchor_I706057e13f4511e08b05fdf15589d8e8"><div class="co_headtext co_hAlign2"><span class="co_smallCaps"><strong>DISPOSITION</strong></span></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_8">*8</span> The trial court's judgment in favor of ING is reversed and the case is remanded for further proceedings. YAM to recover its costs on appeal.</div></div></div></div><div class="co_contentBlock x_voteBlock"><div class="co_contentBlock x_voteLine">We concur: <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0180896701&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a50f3f4511e08b05fdf15589d8e8">PERLUSS</a>, P.J., and <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0331024301&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a5103f4511e08b05fdf15589d8e8">JACKSON</a>, J.</div></div></div></div></div><div class="co_footnoteSection" id="co_footnoteSection"><h2 class="co_footnoteSectionTitle co_printHeading">Footnotes</h2><div><div class="co_footnoteNumber"><span id="co_footnote_B00112024635931"><a href="https://a.next.westlaw.com/Document/Ic06f9a283e9a11e080558336ea473530/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad6040a0000013168bc8a1adce0efe2%3FNav%3DCASE%26fragmentIdentifier%3DIc06f9a283e9a11e080558336ea473530%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=1e7054fa58d78395b4c46b430539ff52&list=CASE&rank=1&grading=na&sessionScope=88ce58977a997c6974ee9bbb2db4ba1b&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnoteReference_B00112024635931_ID0EPMAE">1</a></span></div><div class="co_footnoteBody"><div class="co_paragraph"><div class="co_paragraphText">The same standards apply to motions for summary adjudication. (See <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2004849823&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_631" id="co_link_I7060a4f03f4511e08b05fdf15589d8e8"><em>Haney v. Aramark Uniform Services, Inc.</em> (2004) 121 Cal.App .4th 623, 631</a>.)</div></div></div></div><div><div class="co_footnoteNumber"><span id="co_footnote_B00222024635931"><a href="https://a.next.westlaw.com/Document/Ic06f9a283e9a11e080558336ea473530/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad6040a0000013168bc8a1adce0efe2%3FNav%3DCASE%26fragmentIdentifier%3DIc06f9a283e9a11e080558336ea473530%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=1e7054fa58d78395b4c46b430539ff52&list=CASE&rank=1&grading=na&sessionScope=88ce58977a997c6974ee9bbb2db4ba1b&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnoteReference_B00222024635931_ID0EA2AE">2</a></span></div><div class="co_footnoteBody"><div class="co_paragraph"><div class="co_paragraphText">Paragraph 11 of the Broker Origination Agreement includes a provision requiring that, in the event the broker (YAM) “fails to abide by any term ... of this Agreement with respect to any <span class="co_searchTerm" id="co_term_2959">Loan</span> or <span class="co_searchTerm" id="co_term_2961">Loan</span> <span class="co_searchTerm" id="co_term_2962">Application</span> Package ... or if any representation ... made by Broker fails to be true, then Broker agrees to immediately repurchase, on demand, any <span class="co_searchTerm" id="co_term_2984">Loan</span> which may be affected by such failure.”</div></div></div></div><div><div class="co_footnoteNumber"><span id="co_footnote_B00332024635931"><a href="https://a.next.westlaw.com/Document/Ic06f9a283e9a11e080558336ea473530/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad6040a0000013168bc8a1adce0efe2%3FNav%3DCASE%26fragmentIdentifier%3DIc06f9a283e9a11e080558336ea473530%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=1e7054fa58d78395b4c46b430539ff52&list=CASE&rank=1&grading=na&sessionScope=88ce58977a997c6974ee9bbb2db4ba1b&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnoteReference_B00332024635931_ID0E65AE">3</a></span></div><div class="co_footnoteBody"><div class="co_paragraph"><div class="co_paragraphText">YAM raised this damages argument in both the trial court and its opening appellate brief. ING has never responded to the argument nor has it ever explained the status of its deed of trust.</div></div></div></div><div><div class="co_footnoteNumber"><span id="co_footnote_B00442024635931"><a href="https://a.next.westlaw.com/Document/Ic06f9a283e9a11e080558336ea473530/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad6040a0000013168bc8a1adce0efe2%3FNav%3DCASE%26fragmentIdentifier%3DIc06f9a283e9a11e080558336ea473530%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=1e7054fa58d78395b4c46b430539ff52&list=CASE&rank=1&grading=na&sessionScope=88ce58977a997c6974ee9bbb2db4ba1b&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnoteReference_B00442024635931_ID0EQUAG">4</a></span></div><div class="co_footnoteBody"><div class="co_paragraph"><div class="co_paragraphText">The trial court also concluded that because ING established YAM violated federal and state law, there was no triable issue of fact on ING's unfair business practice under <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000199&cite=CABPS17200&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a50c3f4511e08b05fdf15589d8e8">Section 17200</a>:</div><div class="co_paragraph"><div class="co_paragraphText co_indentLeft2">The Court finds that it is undisputed that YAM submitted a <span class="co_searchTerm" id="co_term_4490">loan</span> <span class="co_searchTerm" id="co_term_4491">application</span> to ING which contained materially false representations as to the borrower's income. YAM's submission of that <span class="co_searchTerm" id="co_term_4509">loan</span> <span class="co_searchTerm" id="co_term_4510">application</span> was both an unlawful act and a fraudulent act. The misrepresentations as to the borrower's income for the purpose of securing a <span class="co_searchTerm" id="co_term_4534">loan</span> violates <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000546&cite=18USCAS1344&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a50d3f4511e08b05fdf15589d8e8">18 U.S.C §§ 1344</a> (bank <span class="co_searchTerm" id="co_term_4541">fraud</span>) and 1014 (false statement in a <span class="co_searchTerm" id="co_term_4548">loan</span> <span class="co_searchTerm" id="co_term_4549">application</span>) and therefore violates the unlawful and fraudulent prongs of a breach of the California Unlawful Business Practices Act.</div></div><div class="co_paragraph"><div class="co_paragraphText co_indentLeft1">Because we reverse the trial court's finding that ING's evidence demonstrates YAM violated a statutory duty, we also reverse the court's decision that YAM violated <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000199&cite=CABPS17200&originatingDoc=Ic06f9a283e9a11e080558336ea473530&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I7060a50e3f4511e08b05fdf15589d8e8">Section 17200</a>.</div></div></div></div></div></div><table id="co_endOfDocument"><tbody>
<tr><td>End of Document</td><td class="co_endOfDocCopyright">© 2011 Thomso</td></tr>
</tbody></table>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-64130438101969874202011-07-26T14:19:00.000-07:002011-07-26T14:19:14.957-07:00HERITAGE PACIFIC FINANCIAL, LLCIf you have been sued by them for loans originating on property located in CALIFORNIA..... AND you live in CALIFORNIA PLEASE CALL US ASAP we can help you whether you are in bankruptcy or not.<br />
<br />
RenayAnonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-14207290538308723822011-07-24T14:38:00.000-07:002011-07-24T14:38:31.510-07:00JUST BECAUSE YOU CAN'T CITE TO A CASE.... Doesn't mean you can't learn from it....<div>Congratulations goes out to Michael D. Finley, Esq. (661) 964-0444<table cellspacing="0" class="tblMemberDetail"><tbody>
<tr><td><br />
</td><td><br />
</td></tr>
</tbody></table>Mr. Finely had a victory against WELLS FARGO BANK in the <b>non-citable</b> case of <span style="text-decoration: underline;">DeMucha v. Wells Fargo Home Mortg. Inc.</span>, F059476, 2011 WL 2612835 (Cal. Ct. App. July 5, 2011) While you cannot cite to it to support your own case, you can look at the meat and potatoes of it to help you find a way to make legal challenges to foreclosure. </div><div> </div><div>Mr. Finley pleads that the Original NOTE and Deed of Trust were given in favor of BANK A. There were no assignments of both the NOTE AND THE DEED OF TRUST to BANK B. BANK B started foreclosure proceedings. HOMEOWNER files suit saying that BANK B cannot foreclose because BANK B is not the beneficiary under the note & Deed of Trust. How very clever Mr. Finley. Instead of stating that BANK B doesn't have the original Note, you subtlety state something similar but legalistically very different. You state that BANK B is not the beneficiary. </div><div> </div><div>There is another case that says that MERS while it can act as the AGENT for a beneficiary under a note and Deed of trust, it HAS NO AUTHORITY to execute an assignment. How many of you out there have had your loan assigned by MERS. Possible place to challenge any foreclosure when MERS is the purported Agent. Don't leave your case to chance. Hire competent counsel to represent you with these matters.</div><div> </div><div>If you are losing your home in the Santa Clarita Area Mr. Finley just may be the attorney your are looking for who can help you keep your home. </div><div> </div><div><u><b>READ BELOW FOR THE WHOLE DECISION</b></u></div><div> </div><div><div class="co_cites">2011 WL 2612835</div><div class="co_contentBlock co_editorialNoteBlock"><div>Only the Westlaw citation is currently available.</div></div><div class="co_message">California Rules of Court, rule 8.1115, restricts citation of unpublished opinions in California courts.</div><div class="co_contentBlock co_courtBlock"><div>Court of Appeal, Fifth District, California.</div></div><div class="co_title"><div class="co_suit"><div class="co_partyLine">Mark DEMUCHA et al., Plaintiffs and Appellants,</div><div>v.</div><div class="co_partyLine">WELLS FARGO HOME MORTGAGE INC., Defendant and Respondent.</div></div></div><div class="co_docketDate"><div class="co_contentBlock co_docketBlock"><span>No. F059476.</span><span>(Super.Ct.No. CV–267074).</span></div><div class="co_date"><span>July 5, 2011.</span></div></div><div class="co_contentBlock co_actionBlock"><div>APPEAL from a judgment of the Superior Court of Kern County. <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0205738701&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a20a88c11e08b05fdf15589d8e8">Sidney P. Chapin</a>, Judge.</div></div><h2 class="co_attorneyBlockLabel co_printHeading" id="co_attorneysAndLawFirms">Attorneys and Law Firms</h2><div class="co_contentBlock co_attorneyBlock"><div>Law Offices of Michael D. Finley and <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0282193201&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a21a88c11e08b05fdf15589d8e8">Michael D. Finley</a> for Plaintiffs and Appellants.</div><div>Kutak Rock, <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0189804401&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a22a88c11e08b05fdf15589d8e8">Jeffrey S. Gerardo</a> and <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0357689101&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a23a88c11e08b05fdf15589d8e8">Steven M. Dailey</a> for Defendant and Respondent.</div></div><div class="co_contentBlock co_opinionBlock"><h2 class="co_printHeading" id="co_opinion">Opinion</h2><div class="co_contentBlock x_opinionBlockBody"><div class="co_contentBlock x_opinionLead"><div class="co_contentBlock x_opinionBody"><div class="co_contentBlock co_section" id="co_anchor_I1c266221a88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign2"><span class="co_smallCaps"><strong>OPINION</strong></span></div><div class="co_contentBlock x_leadAuthorLineBlock"><div class="co_contentBlock x_leadAuthorLine">FRANSON, J.</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_1">*1</span> This case presents a classic example of the longstanding rule that “in passing upon the question of the sufficiency or insufficiency of a complaint to state a cause of action, it is wholly beyond the scope of the inquiry to ascertain whether the facts stated are true or untrue” as “[t]hat is always the ultimate question to be determined by the evidence upon a trial of the questions of fact.” (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1916022624&pubNum=221&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_221_752" id="co_link_I1c268a25a88c11e08b05fdf15589d8e8"><em>Colm v. Francis</em> (1916) 30 Cal.App. 742, 752</a>.)</div></div><div class="co_paragraph"><div class="co_paragraphText">The trial court dismissed this civil action after sustaining the demurrer of respondent Wells Fargo Home Mortgage, a division of Wells Fargo Bank, N.A. (Wells Fargo), to the first amended complaint of appellants Mark and Cheryl DeMucha. Appellants contended in the trial court, as they do on this appeal, that the allegations of their pleading were sufficient to survive demurrer. As we explain, we agree with appellants on all of their causes of action except the second (their attempt to state a cause of action for removal of a cloud on title) and the fourth (their attempt to state a cause of action for intentional infliction of emotional distress). We reverse the judgment, remand the matter to the trial court, and direct that court to overrule respondent's demurrer as to all causes of action except the second and fourth.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I1c266222a88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign2"><span class="co_smallCaps"><strong><em>FACTUAL AND PROCEDURAL BACKGROUND</em></strong></span></div><div class="co_paragraph"><div class="co_paragraphText">In their first amended complaint, appellants allege as follows. They are the owners of a home located on Fernside Court in Bakersfield. They “executed a Deed of Trust in favor of CTX MORTGAGE COMPANY, LLC, which is the company that held the mortgage on this home, which Deed of Trust was recorded” on or about November 28, 2007. In January of 2008, Wells Fargo “claimed that the mortgage on 5813 Fernside had been transferred to it from CTX MORTGAGE COMPANY, LLC,” (CTX) but Wells Fargo and other unnamed Doe defendants “have all failed and refused to produce the original note or otherwise provide proof that any of the Defendants is or at any time was the holder of the original note that the Defendants, and each of them, are trying to enforce....” The defendants “have repeatedly, beginning on or about 1/4/2008 and continuing in documents issued by the Defendants ... up to and including the month of April 2009, alleged that the mortgage on 5813 Fernside had been transferred to them and/or the entity on whose behalf they were acting, and that the Defendants ... had the right to enforce the note against 5813 Fernside, which claims were false....”</div></div><div class="co_paragraph"><div class="co_paragraphText">Appellants incorporate the above-described allegations into purported causes of action entitled “Quiet Title” (first), “Action to Remove Cloud” (second), “Fraud & Misrepresentation” (third), “Intentional Infliction of Emotional Distress” (fourth), and “Slander of Credit” (fifth).</div></div><div class="co_paragraph"><div class="co_paragraphText">Wells Fargo demurred to appellants' first amended complaint and to each purported cause of action contained in it, and asked the court to take judicial notice of the deed of trust recorded on November 28, 2007, and of a Notice of Default recorded on January 9, 2009. The court took judicial notice of these documents, sustained the demurrer without granting leave to amend, and ordered the action dismissed. The court's order stated in pertinent part:</div><div class="co_paragraph co_indentLeft1 co_indentFirstLine1"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_2">*2</span> “On September 28, 2009, the Court sustained Defendant WELLS FARGO HOME MORTGAGE, A DIVISION OF WELLS FARGO BANK, N.A.'S [“WELLS FARGO's”] Demurrer to Plaintiffs' First Amended Complaint without leave to amend.</div></div><div class="co_paragraph co_indentLeft1 co_indentFirstLine1"><div class="co_paragraphText">“WELLS FARGO's Requests for Judicial Notice are granted. The Court based its ruling the Court's finding that Plaintiffs cannot allege and establish that they tendered all amounts due under the loan and based on its finding that, under established case and statutory authority, that a lender has no obligation to ‘possess the note’ pursuant to the non-judicial <span class="co_searchTerm" id="co_term_884">foreclosure</span> process. The Court sustained the Demurrer to the entire First Amended Complaint without leave to amend.”</div></div></div></div><div class="co_contentBlock co_section" id="co_anchor_I1c266223a88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign2"><span class="co_smallCaps"><strong><em>STANDARD OF REVIEW</em></strong></span></div><div class="co_paragraph"><div class="co_paragraphText">Our standard of review of an order sustaining a demurrer on the ground that the complaint fails to state facts sufficient to constitute a cause of action is well settled. We review the sufficiency of the complaint de novo. (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2002314532&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_1126" id="co_link_I1c268a26a88c11e08b05fdf15589d8e8"><em>Zelig v. County of Los Angeles</em> (2002) 27 Cal.4th 1112, 1126</a>.) Although we are aware that a carefully worded complaint, as alleged here, can avoid disclosure of a demurrable defect known by the parties (see <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1943114466&pubNum=231&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_231_710" id="co_link_I1c268a27a88c11e08b05fdf15589d8e8"><em>Willson v. Security–First Nat. Bk.</em> (1943) 21 Cal.2d 705, 710),</a> “[w]e give the complaint a reasonable interpretation, reading it as a whole and its parts in their context. [Citation.] Further, we treat the demurrer as admitting all material facts properly pleaded, but do not assume the truth of contentions, deductions or conclusions of law. [Citations.] When a demurrer is sustained, we determine whether the complaint states facts sufficient to constitute a cause of action. [Citation.]” (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2012734170&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_865" id="co_link_I1c268a28a88c11e08b05fdf15589d8e8"><em>City of Dinuba v. County of Tulare</em> (2007) 41 Cal.4th 859, 865</a>.) “We also consider matters that may be judicially noticed.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2007113942&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_1083" id="co_link_I1c268a29a88c11e08b05fdf15589d8e8"><em>Reynolds v. Bement</em> (2005) 36 Cal.4th 1075, 1083,</a> disapproved on another ground in <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2022086487&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_50" id="co_link_I1c268a2aa88c11e08b05fdf15589d8e8"><em>Martinez v. Combs</em> (2010) 49 Cal.4th 35, 50, fn. 12</a>.)</div></div><div class="co_paragraph"><div class="co_paragraphText">When a demurrer is properly sustained on the ground that the complaint fails to state facts sufficient to constitute a cause of action, and leave to amend the pleading is denied and judgment is entered in favor of the demurring defendant, “we decide whether there is a reasonable possibility that the defect can be cured by amendment: if it can be, the trial court has abused its discretion and we reverse; if not, there has been no abuse of discretion and we affirm.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1985139336&pubNum=233&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_233_318" id="co_link_I1c268a2ba88c11e08b05fdf15589d8e8"><em>Blank v. Kirwan</em> (1985) 39 Cal.3d 311, 318</a>.) “The burden of proving such reasonable possibility is squarely on the plaintiff.” (<em>Ibid.</em>)</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I1c266224a88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign2"><span class="co_smallCaps"><strong><em>DISCUSSION</em></strong></span></div><div class="co_paragraph"><div class="co_paragraphText">“A real property loan generally involves two documents, a promissory note and a security instrument. The security instrument secures the promissory note. This instrument ‘entitles the lender to reach some asset of the debtor if the note is not paid. In California, the security instrument is most commonly a deed of trust (with the debtor and creditor known as the trustor and beneficiary and a neutral third party known as trustee).... [T]he creditor is said to have a lien on the property given as security, which is also referred to as collateral.’ [Citation.]” (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1995178607&pubNum=4040&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4040_1235" id="co_link_I1c268a2da88c11e08b05fdf15589d8e8"><em>Alliance Mortgage Co. v. Rothwell</em> (1995) 10 Cal.4th 1226, 1235;</a> see also <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2003082384&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_438" id="co_link_I1c268a2ea88c11e08b05fdf15589d8e8"><em>Nguyen v. Calhoun</em> (2003) 105 Cal.App.4th 428, 438</a>.)</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_3">*3</span> The parties have a great deal to say about whether Wells Fargo must “possess the note” or “produce the note” in order to enforce the note. We see nothing in the statutes governing nonjudicial <span class="co_searchTerm" id="co_term_1380">foreclosure</span> (see <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS2924&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a2fa88c11e08b05fdf15589d8e8">Civ.Code, §§ 2924</a> through <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS2924K&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a30a88c11e08b05fdf15589d8e8">2924k</a>; and <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1994124688&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_830" id="co_link_I1c268a31a88c11e08b05fdf15589d8e8"><em>Moeller v. Lien</em> (1994) 25 Cal.App.4th 822, 830–832)</a> expressly mentioning possession of or production of a note as a prerequisite for initiating <span class="co_searchTerm" id="co_term_1412">foreclosure</span>.<sup id="co_footnoteReference_B00112025609912_ID0EADAE"><a class="co_footnoteReference" href="https://a.next.westlaw.com/Document/Ibea699e3a77011e090e590fe1745b4c9/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad7051f000001315e011276442e8661%3FNav%3DCASE%26fragmentIdentifier%3DIbea699e3a77011e090e590fe1745b4c9%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=103b702c577e3a3e49d2c04ae436d807&list=CASE&rank=11&grading=na&sessionScope=79367222ca895ff068cbcd7cb58020a1&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnote_B00112025609912">1</a></sup> At the beginning of the nonjudicial <span class="co_searchTerm" id="co_term_1421">foreclosure</span> process, “[t]he trustee, mortgagee, or beneficiary, or any of their authorized agents shall first file for record, in the office of the recorder of each county wherein the mortgaged or trust property or some part of parcel thereof is situated, a notice of default.” (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS2924&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=SP&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_7b9b000044381" id="co_link_I1c268a32a88c11e08b05fdf15589d8e8">Civ.Code, § 2924, subd. (a)(1)</a>.) According to the first amended complaint, however, Wells Fargo is not a trustee, mortgagee or beneficiary. Wells Fargo is, according to the pleading, an entity which “falsely and fraudulently claim[s] to hold title to and/or the right to enforce the note.”</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I1c266225a88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1">A. <em>QUIET TITLE</em></div><div class="co_paragraph"><div class="co_paragraphText">Appellants seek to quiet title against any adverse claims of Well Fargo. “Quiet title claims are governed by <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000201&cite=CACPS761.020&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a36a88c11e08b05fdf15589d8e8">California Code of Civil Procedure § 761.020</a>, which requires that five elements be set out in a ‘verified complaint’: (1) a description of the property, both legal description and street address; (2) the title of the plaintiff, and the basis for that title; (3) the adverse claims to the plaintiff's title; (4) the date as of which the determination is sought; and (5) a prayer for the determination of the plaintiff's title against the adverse claims. <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000201&cite=CACPS761.020&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=SP&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_8b3b0000958a4" id="co_link_I1c268a37a88c11e08b05fdf15589d8e8">Cal.Civ.Proc.Code § 761.020(a)</a>-<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000201&cite=CACPS761.020&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=SP&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_7fdd00001ca15" id="co_link_I1c268a38a88c11e08b05fdf15589d8e8">(e)</a>.” (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2022845499&pubNum=4637&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4637_1031" id="co_link_I1c268a39a88c11e08b05fdf15589d8e8"><em>Briosos v. Wells Fargo Bank</em> (2010) 737 F.Supp.2d 1018, 1031;</a> see also <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=0289880281&pubNum=0155567&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a3aa88c11e08b05fdf15589d8e8">5 Witkin, Cal. Procedure (5th ed. 2008) Pleading, § 663, p. 90</a>.) Those elements all appear in the first amended complaint. Wells Fargo argues that the pleading does not allege facts showing the basis for the plaintiff's title. But it does. It alleges that the plaintiffs “are and were rightful owners of a home located at 5813 Fernside Court, Bakersfield, CA ... pursuant to a Grant Deed that was recorded on 11/28/2007.” Wells Fargo then argues that the pleading does not allege the adverse claims to plaintiff's title. But it does. It alleges that Wells Fargo “claimed that the mortgage on 5813 Fernside had been transferred to it from CTX Mortgage Company, LLC.” It further alleges that Wells Fargo is “trying to enforce” the note signed by the plaintiffs, that Wells Fargo has “repeatedly ... alleged” that it “had the right to enforce the note against 5813 Fernside” and that these “claims were false.”</div></div><div class="co_paragraph"><div class="co_paragraphText">The court took judicial notice of the deed of trust. The document identifies the “Borrower” as the DeMuchas, and “CTX MORTGAGE COMPANY, LLC,” as the “Lender” and “Trustee.” The “beneficiary under this Security Instrument” is “Mortgage Electronic Registration Systems, Inc.” or “MERS,” as nominee for Lender CTX.<sup id="co_footnoteReference_B00222025609912_ID0EKLAE"><a class="co_footnoteReference" href="https://a.next.westlaw.com/Document/Ibea699e3a77011e090e590fe1745b4c9/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad7051f000001315e011276442e8661%3FNav%3DCASE%26fragmentIdentifier%3DIbea699e3a77011e090e590fe1745b4c9%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=103b702c577e3a3e49d2c04ae436d807&list=CASE&rank=11&grading=na&sessionScope=79367222ca895ff068cbcd7cb58020a1&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnote_B00222025609912">2</a></sup> Thus, Wells Fargo was not a party to the original transaction and was not mentioned in the deed of trust. There are no allegations that Wells Fargo was a nominee, successor, assignee, or agent of CTX or MERS under the deed of trust. Appellants allege in essence that Wells Fargo is an interloper with no interest in the property. What the actual facts are we do not know. Evidence, when it is received, might perhaps ultimately show that Wells Fargo does indeed have some interest in the note and/or deed of trust that it is now trying to enforce. But that interest does not appear on the face of the first amended complaint or in any matter of which the court took judicial notice.</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_4">*4</span> Wells Fargo argues that the demurrer was properly sustained because appellants did not allege tender of all amounts due on the note appellants allege they signed. This might be correct if appellants were attempting to quiet title as against the lender, CTX, or MERS, as its nominee. “[A] mortgagor cannot quiet his title against the mortgagee without paying the debt secured.” (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1934119818&pubNum=220&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_220_649" id="co_link_I1c268a3ca88c11e08b05fdf15589d8e8"><em>Shimpones v. Stickney</em> (1934) 219 Cal. 637, 649;</a> see also <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1974103886&pubNum=226&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a3da88c11e08b05fdf15589d8e8"><em>Aguilar v. Bocci</em> (1974) 39 Cal.App.3d 475;</a> and <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2022845499&pubNum=4637&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4637_1032" id="co_link_I1c268a3ea88c11e08b05fdf15589d8e8"><em>Briosos v. Wells Fargo Bank, supra,</em> 737 F.Supp.2d at p. 1032</a>.) The first amended complaint does not allege, however, that Wells Fargo is a mortgagee or a lender or a trustee on the deed of trust, or that it has any connection whatsoever to the November 2007 loan and deed of trust. Wells Fargo cites a number of cases holding that a plaintiff attempting to attack a trustee's sale must allege tender of payment of amounts due on the loan, but appellants are not attempting to attack any trustee's sale and there is no allegation that any trustee's sale has taken place.</div></div><div class="co_paragraph"><div class="co_paragraphText">A deed of trust is not valid without a note. Transfer the note, and the deed of trust follows, not vice versa. “[A] deed of trust is a mere incident of the debt it secures and ... an assignment of the debt ‘carries with it the security.’ [Citations.]” (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1969111961&pubNum=225&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_225_553" id="co_link_I1c268a3fa88c11e08b05fdf15589d8e8"><em>Domarad v. Fisher & Burke, Inc.</em> (1969) 270 Cal.App.2d 543, 553;</a> see also <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1935119927&pubNum=231&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_231_349" id="co_link_I1c268a40a88c11e08b05fdf15589d8e8"><em>Lewis v. Booth</em> (1935) 3 Cal.2d 345, 349</a> [“A lien is but an incident of the debt secured, and cannot be transferred apart therefrom. A transfer of the debt carries with it the lien”] .) We think a fair reading of appellants' complaint is that the note they signed was never transferred or assigned to Wells Fargo from CTX, that the deed of trust securing the debt therefore does not secure any debt owed to Wells Fargo, and that Wells Fargo therefore has no right to initiate nonjudicial <span class="co_searchTerm" id="co_term_2484">foreclosure</span> proceedings against appellants. Wells Fargo points to nothing in the first amended complaint alleging that Wells Fargo holds any interest in the note secured by the deed of trust. Wells Fargo argues that it is a “creditor,” but points to nothing in the first amended complaint so alleging.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I1c266226a88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1">B. <em>ACTION TO REMOVE CLOUD</em></div><div class="co_paragraph"><div class="co_paragraphText">An action to remove a cloud on title is authorized by <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS3412&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a41a88c11e08b05fdf15589d8e8">Civil Code section 3412</a>, which states: “A written instrument, in respect to which there is a reasonable apprehension that if left outstanding it may cause serious injury to a person against whom it is void or voidable, may, upon his application, be so adjudged, and ordered to be delivered up or canceled.” (See also <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1961108530&pubNum=231&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a42a88c11e08b05fdf15589d8e8"><em>Smith v. Williams</em> (1961) 55 Cal.2d 617;</a> and <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=0289880289&pubNum=0155567&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a43a88c11e08b05fdf15589d8e8">5 Witkin, Cal. Procedure (5th ed. 2008) Pleading, §§ 671</a>–<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=0289880292&pubNum=0155567&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a44a88c11e08b05fdf15589d8e8">674</a>.) “A suit to quiet title must be distinguished from an action to remove a cloud on the title alleged to have been created by a designated instrument. In a suit to remove a cloud the complaint must state facts, not mere conclusions, showing the apparent validity of the instrument designated, and point out the reason for asserting that it is actually invalid. [Citations.]” (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1946111212&pubNum=231&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_231_833" id="co_link_I1c268a45a88c11e08b05fdf15589d8e8"><em>Ephraim v. Metropolitan Trust Company of California</em> (1946) 28 Cal.2d 824, 833–834</a> (<em>Ephraim</em> ).)</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_5">*5</span> Respondent correctly points out that appellants' first amended complaint does not identify any instrument claimed by appellants to be invalid. The pleading alleges that Wells Fargo and Doe defendants “are attempting to claim title based upon a false and fraudulent claim that they are entitled to enforce the note against the property.” Appellants do not contend or allege that the note and deed of trust they executed are invalid, but rather only that the debt on the note is not owed to Wells Fargo. The first amended complaint does contain an allegation stating “Plaintiff ... respectfully requests an order that the instrument through which the Defendants claim title to and/or the right to enforce the note against 5813 Fernside be declared invalid and void, and that it be destroyed,” but the pleading nowhere alleges what that instrument is. No cause of action to a remove a cloud on title is therefore stated. (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1946111212&pubNum=231&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a47a88c11e08b05fdf15589d8e8"><em>Ephraim, supra,</em> 28 Cal.2d 824</a>.)</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I1c266227a88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1">C. <em>FRAUD</em></div><div class="co_paragraph"><div class="co_paragraphText">“The essential allegations of an action for fraud are a misrepresentation, knowledge of its falsity, intent to defraud, justifiable reliance, and resulting damage.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1976102195&pubNum=226&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_226_109" id="co_link_I1c268a48a88c11e08b05fdf15589d8e8"><em>Roberts v. Ball, Hunt, Hart, Brown & Baerwitz</em> (1976) 57 Cal.App.3d 104, 109;</a> see also <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS1709&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a49a88c11e08b05fdf15589d8e8">Civ.Code, §§ 1709</a>, <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS1710&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a4aa88c11e08b05fdf15589d8e8">1710</a>.) Appellants' first amended complaint alleges that on January 4, 2008, Wells Fargo “falsely and fraudulently stated, ‘... your loan was recently transferred from CTX Mortgage Company, LLC.... Your first payment to Wells Fargo Bank, N.A. is due 02/01/08.” It further alleges: “The Defendants knew that the statements were false and fraudulent and the truth was that none of the defendants ever legally obtained the transfer of the loan that Plaintiffs legally owed to CTX Mortgage Company, LLC. While acting in reliance upon the false and fraudulent claims of Defendants, ... plaintiff has made mortgage payments to the Defendants to his damage.”</div></div><div class="co_paragraph"><div class="co_paragraphText">Wells Fargo argues that the pleading contains no allegation that any representation Wells Fargo made was false. It does. It alleges that Wells Fargo falsely told appellants their loan had been transferred from CTX to Wells Fargo. Wells Fargo argues that the pleading fails to allege that any misrepresentation was made with knowledge of its falsity. It does. It alleges “[t]he Defendants knew that the statements were false.” Wells Fargo argues that the pleading alleges no facts showing reliance on a misrepresentation. It does. It alleges that “plaintiff has made mortgage payments to the Defendants to his damage.” A cause of action for fraud has been properly stated.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I1c266228a88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1">D. <em>INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS</em></div><div class="co_paragraph"><div class="co_paragraphText">“The elements of a prima facie case for the tort of intentional infliction of emotional distress are: (1) extreme and outrageous conduct by the defendant with the intention of causing, or reckless disregard of the probability of causing, emotional distress; (2) the plaintiff's suffering severe or extreme emotional distress; and (3) the actual and proximate causation of the emotional distress by the defendant's outrageous conduct.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1979124305&pubNum=233&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_233_593" id="co_link_I1c268a4ba88c11e08b05fdf15589d8e8"><em>Cervantez v. J.C. Penney Company, Inc.</em> (1979) 24 Cal.3d 579, 593</a> (<em>Cervantez</em> ).) An attempt to collect an alleged debt by means of a false document has been held to be sufficiently outrageous to constitute an outrageous act for purposes of this tort. (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1971103843&pubNum=226&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_226_641" id="co_link_I1c268a4da88c11e08b05fdf15589d8e8"><em>Kachig v. Boothe</em> (1971) 22 Cal.App.3d 626, 641, fn. 1</a>.) Appellants incorporate their prior allegations that Wells Fargo sent them a document falsely stating that they owed mortgage payments to Wells Fargo. Appellants further allege:</div><div class="co_paragraph co_indentLeft1 co_indentFirstLine1"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_6">*6</span> “From approximately November 2, 2008 through April 2009, the Defendants and each of them, have falsely asserted that Plaintiffs are in default in paying the loan on 5813 Fernside to the Defendants and have threatened to commence and have commenced non-judicial <span class="co_searchTerm" id="co_term_3339">foreclosure</span> proceedings against the Plaintiffs based upon false and fraudulent pretenses and without compliance with the laws necessary to commence <span class="co_searchTerm" id="co_term_3359">foreclosure</span> proceedings.</div></div><div class="co_paragraph co_indentLeft1 co_indentFirstLine1"><div class="co_paragraphText">“The Defendants' acts were intentional, unreasonable, and so outrageous that they exceed all bounds usually tolerated by a decent society and Defendants knew or should have known that the commission of these wrongful acts against the Plaintiffs would be likely to cause illness, injury, and emotional distress. As a direct result of the Defendants' conduct, Plaintiffs suffered illness, injury, and emotional distress.”</div></div></div><div class="co_paragraph"><div class="co_paragraphText">Wells Fargo argues that the pleading does not allege an outrageous act because “a debt collector is entitled to a qualified privilege.” There is no allegation, however, that appellants owe any debt to Wells Fargo. Appellants allege that they owe nothing to Wells Fargo. Wells Fargo further contends, however, and correctly in our view, that the first amended complaint fails to allege that Wells Fargo acted with the intention of causing, or reckless disregard of the probability of causing, emotional distress. (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1979124305&pubNum=233&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a4ea88c11e08b05fdf15589d8e8"><em>Cervantez, supra,</em> 24 Cal.3d 579</a>.) Also, there is no allegation that Appellants' suffered serious or extreme emotional distress. While these omissions would appear to be capable of correction by amendment, they are omissions of essential elements of the cause of action, and thus the demurrer was properly sustained as to appellant's attempt to state a cause of action for intentional infliction of emotional distress.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I1c266229a88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign1">E. <em>SLANDER</em></div><div class="co_paragraph"><div class="co_paragraphText">The tort of defamation is effected by either “libel” or “slander.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS44&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a4fa88c11e08b05fdf15589d8e8">Civ.Code, § 44</a>.) These two terms are statutorily defined (see <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS45&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a50a88c11e08b05fdf15589d8e8">Civ.Code, §§ 45</a> and <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS46&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a51a88c11e08b05fdf15589d8e8">46</a>), but it may be said, generally speaking, that libel is defamation effected through “writing” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS45&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a52a88c11e08b05fdf15589d8e8">Civ .Code, § 45</a>) while slander is “orally uttered.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS46&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a53a88c11e08b05fdf15589d8e8">Civ.Code, § 46</a>.) Slander is defined to include “a false and unprivileged publication, orally uttered ... [¶] ... [¶][w]hich, by natural consequence, causes actual damage.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS46&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a54a88c11e08b05fdf15589d8e8">Civ.Code, § 46</a>.) The essential elements of a cause of action for defamation are simply that the specified false and defamatory matter was published to third persons. (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=0289880353&pubNum=0155567&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a55a88c11e08b05fdf15589d8e8">5 Witkin, Cal. Procedure (5th ed. 2008) Pleading, § 735, p. 156</a>.)</div></div><div class="co_paragraph"><div class="co_paragraphText">Appellants' first amended complaint alleges: “Defendants, and each of them, from November 2008 to and including April 2009, have maliciously published statements to third parties that Plaintiffs are in default in paying the loan on 5813 Fernside to the Defendants, which statements are and were false and the Defendants knew or should have known that the statements were false at the time they published the statements. The third parties to whom the false statements were maliciously published included, but were not limited to, credit reporting agencies, which have reduced Plaintiffs' credit ratings as a result of the publication of the false statements, to Plaintiffs' damage.”</div></div><div class="co_paragraph"><div class="co_paragraphText"> <span class="co_starPage" id="co_pp_sp_999_7">*7</span> Appellants contend the required elements have been pled. We agree. Wells Fargo argues that appellants “failed to identify the allegedly defamatory statement.” But they did. They alleged that Wells Fargo told third parties that appellants were in default in paying the loan to Wells Fargo. Wells Fargo argues that appellants “failed to allege that any statement about their credit was false.” But they did. Appellants alleged that the statements made by Wells Fargo “are and were false.” Wells Fargo then argues that “[t]ruth of the statements made is a complete defense against civil liability for defamation.” This principle may or may not ultimately help Wells Fargo to defend the action on its merits, but this argument ignores the procedural reality that on a demurrer a court is “passing upon the question of the sufficiency or insufficiency of a complaint to state a cause of action” and is not determining “whether the facts stated are true or untrue.” (<a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1916022624&pubNum=221&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_221_752" id="co_link_I1c268a56a88c11e08b05fdf15589d8e8"><em>Colm v. Francis, supra,</em> 30 Cal.App. at p. 752</a>.) Appellants' pleading alleges that the statements made by Wells Fargo “are and were false.” Whether the statements made by Wells Fargo were in fact false, or instead were true, will be determined by the trier of fact upon the evidence ultimately offered and received in the case.</div></div><div class="co_paragraph"><div class="co_paragraphText">Wells Fargo then cites <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1959122215&pubNum=225&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a57a88c11e08b05fdf15589d8e8"><em>Pavlovsky v. Board of Trade</em> (1959) 171 Cal.App.2d 110,</a> which states: “Ordinarily, privilege must be pleaded as an affirmative defense. [Citation.] But where the existence of the privilege is shown on the face of the complaint, it may be raised by general demurrer.” <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1959122215&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a58a88c11e08b05fdf15589d8e8">(<em>Id.</em> at p. 113.)</a> Wells Fargo fails to identify, however, anything at all in the first amended complaint that would show the applicability of any privilege. Wells Fargo appears to just assume that it is a creditor, and that it therefore has a <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS47&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a59a88c11e08b05fdf15589d8e8">Civil Code section 47</a> privilege to make a false statement to a credit agency if the statement is made without malice. <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=L&pubNum=1000200&cite=CACIS47&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=LQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a5aa88c11e08b05fdf15589d8e8">Civil Code section 47</a>, subdivision (3), provides a privilege for “a communication without malice to persons interested therein by one who is also interested.” (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=1959122215&pubNum=225&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_225_113" id="co_link_I1c268a5ba88c11e08b05fdf15589d8e8"><em>Pavlovsky, supra,</em> 171 Cal.App.2d at p. 113</a>.) Nothing in appellants' first amended complaint alleges, however, that Wells Fargo is appellants' creditor or that Wells Fargo has any interest in the subject loan what would enable Wells Fargo to invoke the privilege.</div></div></div><div class="co_contentBlock co_section" id="co_anchor_I1c26622aa88c11e08b05fdf15589d8e8"><div class="co_headtext co_hAlign2"><span class="co_smallCaps"><strong><em>DISPOSITION</em></strong></span></div><div class="co_paragraph"><div class="co_paragraphText">The judgment is reversed and the matter is remanded to the trial court for that court to overrule respondents' demurrer to all causes of action except the second (“action to remove cloud”) and the fourth (“intentional infliction of emotional distress”). Costs on appeal awarded to appellants.</div></div></div></div><div class="co_contentBlock x_voteBlock"><div class="co_contentBlock x_voteLine">WE CONCUR: <a class="co_link co_drag ui-draggable" href="https://a.next.westlaw.com/Link/Document/FullText?findType=h&pubNum=176284&cite=0136872001&originatingDoc=Ibea699e3a77011e090e590fe1745b4c9&refType=RQ&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29" id="co_link_I1c268a5ca88c11e08b05fdf15589d8e8">KANE</a>, Acting P.J., and DETJEN, J.</div></div></div></div></div><div class="co_footnoteSection" id="co_footnoteSection"><h2 class="co_footnoteSectionTitle co_printHeading">Footnotes</h2><div><div class="co_footnoteNumber"><span id="co_footnote_B00112025609912"><a href="https://a.next.westlaw.com/Document/Ibea699e3a77011e090e590fe1745b4c9/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad7051f000001315e011276442e8661%3FNav%3DCASE%26fragmentIdentifier%3DIbea699e3a77011e090e590fe1745b4c9%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=103b702c577e3a3e49d2c04ae436d807&list=CASE&rank=11&grading=na&sessionScope=79367222ca895ff068cbcd7cb58020a1&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnoteReference_B00112025609912_ID0EADAE">1</a></span></div><div class="co_footnoteBody"><div class="co_paragraph"><div class="co_paragraphText">Numerous federal district courts have held in recent years that possession of the original is not a requirement for initiating non-judicial <span class="co_searchTerm" id="co_term_1542">foreclosure</span>. (<a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2019795632&pubNum=4637&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4637_1053" id="co_link_I1c268a33a88c11e08b05fdf15589d8e8"><em>Nool v. HomeQ Servicing</em> (E.D.Cal.2009) 653 F.Supp.2d 1047, 1053;</a> <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2020661020&pubNum=4637&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4637_1201" id="co_link_I1c268a34a88c11e08b05fdf15589d8e8"><em>Castaneda v. Saxon Mortgage Services, Inc.</em> (E.D.Cal.2009) 687 F.Supp.2d 1191, 1201;</a> and <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2021626274&pubNum=4637&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4637_1189" id="co_link_I1c268a35a88c11e08b05fdf15589d8e8"><em>Jensen v. Quality Loan Service Corp.</em> (E.D.Cal.2010) 702 F.Supp.2d 1183, 1189</a>.) Because appellant's first amended complaint can survive a demurrer without that allegation, we need not address or resolve this issue in our decision.</div></div></div></div><div><div class="co_footnoteNumber"><span id="co_footnote_B00222025609912"><a href="https://a.next.westlaw.com/Document/Ibea699e3a77011e090e590fe1745b4c9/View/FullText.html?navigationPath=Search%2Fv3%2Fsearch%2Fresults%2Fnavigation%2Fi0ad7051f000001315e011276442e8661%3FNav%3DCASE%26fragmentIdentifier%3DIbea699e3a77011e090e590fe1745b4c9%26startIndex%3D1%26contextData%3D%2528sc.Search%2529%26transitionType%3DSearchItem&listSource=Search&listPageSource=103b702c577e3a3e49d2c04ae436d807&list=CASE&rank=11&grading=na&sessionScope=79367222ca895ff068cbcd7cb58020a1&originationContext=Search%20Result&transitionType=SearchItem&contextData=%28sc.Search%29#co_footnoteReference_B00222025609912_ID0EKLAE">2</a></span></div><div class="co_footnoteBody"><div class="co_paragraph"><div class="co_paragraphText">MERS is a national electronic registry that tracks the transfer of ownership interests and servicing rights in mortgage loans and is a key player in the secondary mortgage market. (See <a class="co_link co_drag ui-draggable co_draggabled co_drag_0" href="https://a.next.westlaw.com/Link/Document/FullText?findType=Y&serNum=2024624733&pubNum=4041&originationContext=document&transitionType=DocumentItem&contextData=%28sc.Search%29#co_pp_sp_4041_1151" id="co_link_I1c268a3ba88c11e08b05fdf15589d8e8"><em>Gomes v. Countrywide Home Loans, Inc.</em> (2011) 192 Cal.App.4th 1149, 1151</a>.) However, because MERS is not a party to this action or mentioned in the first amended complaint, we need not discuss its involvement here.</div></div></div></div></div>This case presents a classic example of the longstanding rule that “in passing upon the question of the sufficiency or insufficiency of a complaint to state a cause of action, it is wholly beyond the scope of the inquiry to ascertain whether the facts stated are true or untrue” as “[t]hat is always the ultimate question to be determined by the evidence upon a trial of the questions of fact.” (<em style="font-style: italic;">Colm v. Francis</em> (1916) 30 Cal.App. 742, 752.)</div><div> </div><div>This is a very interesting </div><div> </div>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-54401465253596451472011-06-27T14:09:00.000-07:002011-06-27T14:09:02.381-07:00FORECLOSURE ASSISTANCE OFFERED THROUGH STATE OF CALIFORNIA<div style="color: black; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px;">Greetings Readers:</div><div style="color: black; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px;"><br />
</div><div style="color: black; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px;">I found some more information on the programs now offered by the State of California. You can click on the links to take you to the State's programs. Here is a description of what they offer. If you need help applying please contact us and we might be able to help.</div><div style="color: black; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px;"><br />
</div><div style="color: black; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px;"><strong><a href="http://www.keepyourhomecalifornia.org/files/uma.pdf" style="color: black; text-decoration: underline;" target="_blank">Unemployment Mortgage Assistance Program</a> (UMA)</strong> – Intended to assist homeowners who have experienced involuntary job loss. UMA will provide temporary financial assistance in the form of a mortgage payment subsidy of varying size and term to unemployed homeowners who wish to remain in their homes but are in imminent danger of foreclosure due to short-term financial problems. These funds can provide up to six months of benefits with a monthly benefit of up to $3,000 or 100% of the existing total monthly mortgage, whichever is less.</div><div style="color: black; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px;"><strong><a href="http://www.keepyourhomecalifornia.org/files/mrap.pdf" style="color: black; text-decoration: underline;" target="_blank">Mortgage Reinstatement Assistance Program</a> (MRAP)</strong> – Intended to assist homeowners who have fallen behind on their mortgage payments due to a temporary change in a household circumstance. MRAP will provide limited financial assistance in the form of funds to reinstate mortgage loans that are in arrears in order to prevent potential foreclosures. These funds can provide benefits of up to $15,000 per household.</div><div style="color: black; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px;"><strong><a href="http://www.keepyourhomecalifornia.org/files/prp.pdf" style="color: black; text-decoration: underline;" target="_blank">Principal Reduction Program</a> (PRP)</strong> – Intended to assist homeowners at risk of default because of an economic hardship coupled with a severe decline in the home’s value. PRP will provide capital to reduce outstanding principal balances of qualifying borrowers with negative equity. Principal balances will be reduced in an effort to prevent avoidable foreclosures and promote sustainable homeownership. The principal reduction program will most likely be a prelude to loan modification. (Servicers that contribute through matching funds increase the benefit for homeowners).</div><div style="color: black; font-family: Arial, Helvetica, sans-serif; font-size: 12px; line-height: 16px;"><strong><a href="http://www.keepyourhomecalifornia.org/files/tap.pdf" style="color: black; text-decoration: underline;" target="_blank">Transition Assistance Program</a> (TAP)</strong> – Intended to promote community stabilization by providing homeowners with relocation assistance when it is determined that they can no longer afford their home. TAP will be used in conjunction with a servicer-approved short sale or deed-in-lieu of foreclosure program in order to help homeowners transition into stable and affordable housing. Homeowners will be responsible to occupy and maintain the property until the home is sold or returned to the servicer as negotiated. Funds will be available on a one-time only basis.</div>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-25817281430185846942011-06-18T09:55:00.000-07:002011-06-18T09:55:22.853-07:00You can file for Bankruptcy but it won't stop......<div><div class="co_contentBlock co_subsection" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 1em 0px 0px; padding: 0px;"><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><b style="font-style: normal; font-weight: bold;"></b>Dear Readers: </div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 0px; padding: 0px;"></div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 0px; padding: 0px;">Many of you know that under 11 USC, Section 362, which is commonly referred to as the "Automatic Stay" filing a bankruptcy can stop a foreclosure sale. However, it may not work in some instances. If you have previously filed a bankruptcy and/or the court issued an order lifting the stay its possible that the stay will only apply for 30 days or not apply at all. </div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 0px; padding: 0px;"></div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 0px; padding: 0px;">Your home is far too valuable to you to make a mistake. Don't trust your residence with a real estate broker. While there are many good ones out there, far too many of them make the mistake of filing a bankruptcy on your behalf unbeknownst to you so they can have more time to complete a short sale. This often times is a huge mistake and will impact you negatively. </div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 0px; padding: 0px;"></div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 0px; padding: 0px;">Make sure the professionals you are using to help you save your home know this information. I strongly recommend that you retain the services of a licensed Bankruptcy Attorney to make sure of what will apply to your situation. </div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 0px; padding: 0px;"></div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 0px; padding: 0px;">But what you might not know is that filing a bankruptcy won't stop any of the following (NOTE: This is not an all inclusive list):</div><div class="co_paragraphText" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 0px; padding: 0px;"></div>1. Family law issues such as paternity lawsuits, requests for orders for domestic support and visitation and the dissolution of marriage (but only to extent it is not seeking to divide assets); domestic support orders.</div><div class="co_contentBlock co_subsection" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 1em 0px 0px; padding: 0px;">2. Driver's license restrictions & Wage garnishments for domestic support obligations. However, once you file a chapter 13, it is possible to negotiate with these agencies for a payment plan in bankruptcy to get the driver's license reinstated and stop the wage garnishments.</div><div class="co_contentBlock co_subsection" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 1em 0px 0px; padding: 0px;">3. The interception of a tax refund. So note that if you are going to file for bankruptcy, make sure you already got your refund!</div><div class="co_contentBlock co_subsection" style="border-color: black; border-style: none; border-width: 0px; font-size: 100%; margin: 1em 0px 0px; padding: 0px;"></div></div><div>4. IRS or Franchise Tax Board Audit, issuance of a notice of tax deficiency or a demand for tax returns;</div><div><br />
</div><div></div><div>5. COMMERCIAL LEASES: If your lease is expired, a bankruptcy won't stop eviction proceedings.</div><div></div><div></div><div>6. As I said above, a FORECLOSURE if there is an order entered in Prior Two Years giving relief from stay.</div><div><br />
</div><div>7. EVICTION JUDGMENT. Note this is an important one. If you have lost your house in foreclosure, you can stay the case if there has not been entered a judgment. But if Judgment has been entered, the Bankruptcy will not stay the Sheriff's lock out. There are some exceptions where some local Sheriff's departments won't do a lock out in the face of a bankruptcy.</div><div></div><div>Call me if you need me! Have a great weekend! </div>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-7083612278133869562011-05-25T14:30:00.000-07:002011-05-25T14:30:22.167-07:00NACA.COM - SAVE THE DREAM TOUR JUNE 2 - 6 2011Dear Readers: <div><br />
</div><div>Last January I reported that NACA was having a tour date in Los Angeles in January. I sent one of my clients that had been denied at least 5 times for a loan modification. I sent him down to the Tour fully equipped with every document I could think of he would need in order to get loan modification approval. He was a Bank of America customer. GUESS WHAT!!!! He got a loan modification at 2%!!!!!!!!!!!!!!! SOOOOOOO</div><div><br />
</div><div>I think the banks don't want lawyers being successful getting loan modifications so you won't use us. I don't have a problem with that per se, but you need guidance on how to get your loan modification. Banks seem to have a good relationship with NACA.COM. So if you want to get a loan modification, please go to HTTP://WWW.NACA.COM and sign up for their help and register for a TOUR DATE!!!!! Also register with NACA.com and attend the next TOUR DATE.</div><div><br />
</div><div>JUNE 2 - 6 LA SHRINE EXPO CENTER. BE THERE EARLY AND PREPARE TO CAMP OUT!</div>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com0tag:blogger.com,1999:blog-5895379498745726232.post-55074028149603117972011-03-29T13:37:00.000-07:002011-03-29T13:37:33.717-07:00BEING HARASSED FOR DEBTS MORE THAN 4 YEARS OLD..... DEBT IS UNCOLLECTABLE UNLESS YOU ENTER FOOLISHLY INTO A PAYMENT PLAN AND MAKE A PAYMENT.<div class="MsoNormal"><span>Dear Readers:</span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span>Not long ago I had a collector calling me regarding an old AT&T bill. Wanted to make a deal with me to settle for HALF of what I owed. I asked him home much I owed and he said like $400.00 but would settle for $200.00...... Then as I got to thinking..... I asked him how old is that bill? He balked at telling me but finally admitted it was from 1998!!!!! That was like 13 years ago!!!! I recognized as an attorney the statute of limitations had run. I realized that that they had no more right to report this on my credit report. I realized that they couldn't touch me. I informed him that this bill was charged off when I was a broke person and couldn't pay. Its well over the FOUR YEAR STATUTE of limitations he has to sue me for an account. He tried to say that I made a payment within the last four years..... this was a lie!!! I told him show me proof of that..... again he hemmed and hawed..... I told him I wasn't going to pay it and that he should just sue me if he thought he had a chance to win. I haven't heard nothing from him since! He knew statute was blown....</span></div><div class="MsoNormal"><span><br />
</span></div><div class="MsoNormal"><span>BUT I GOT TO THINKING ABOUT THE NON-ATTORNEYS who don't know their rights and who could be bullied into paying a bill that was uncollectable.... Then I ran across this story..... These collectors and their attorneys could be in for a LOT OF TROUBLE! Read on....</span></div><br />
<div class="MsoNormal"><b><u><span>McCollough v. Johnson, Rodenburg & Lauinger, LLC</span></u></b><b><span>, 2011 Westlaw 746892 (9th Cir. 2011)</span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span> <b>Facts</b>: A consumer failed to pay his credit card debt, and the issuer subsequently charged off the account. A few years later, the issuer sold his account to a collection agency in the business of purchasing bad debt portfolios. The collection agency brought suit against the consumer, who raised the defense of limitations; undeterred, the collection agency then referred the account to a law firm.</span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span> According to the firm's records, the account was not barred by limitations, because the consumer had supposedly made a recent payment. In fact, the records were incorrect. Without seeking to verify those records, the firm then brought suit against the consumer, who filed a pro se answer, again raising the bar of limitations and informing the firm that he was severely disabled. The firm nevertheless pressed ahead with the prosecution, serving requests for admission on the consumer. Those requests for admission failed to contain an explanation required by state law that the requests would be deemed admitted if there was no response within 30 days. After the consumer retained counsel, the firm dismissed the second collection action.</span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span> The consumer then filed suit in federal court, alleging violations of the Fair Debt Collection Practices Act ("FDCPA"), along with state law claims for malicious prosecution and abuse of process. The trial court granted partial summary judgment to the consumer on his FDCPA claims. His tort claims were then tried to a jury, which awarded him $250,000 in emotional distress damages and $60,000 in punitive damages. The Ninth Circuit affirmed.</span></div><div class="MsoNormal"><span> </span></div><div class="MsoNormal"><span> <b>Reasoning</b>: The law firm first argued that it could not be held liable under the FDCPA because its conduct was the result of a "bona fide error." But the appellate court affirmed the trial court's summary judgment in favor of the consumer, holding that the firm "erred by relying without verification" on the collection agency's representation that the account was not time-barred. Further, the firm's reliance on the collection agency's data was unreasonable as a matter of law, since the collection agency had itself expressly disclaimed "the accuracy or validity" of its data.</span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span> The Ninth Circuit also affirmed the trial court's ruling that the firm's requests for admission violated the FDCPA as a matter of law because they asked the consumer "to admit facts that were not true." The court also noted that the firm's failure to include a statutorily-required explanation that the requests would be deemed admitted if not contradicted within 30 days was misleading as a matter of law, from the standpoint of "the least sophisticated debtor." The firm argued that discovery procedures should be excluded from coverage under the FDCPA, since the applicable court rules already provide sufficient protection. But the court held that the "clear statutory language" of the FDCPA sufficiently encompassed discovery abuses.</span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span> Turning to the malicious prosecution claim, the court held that there was substantial evidence that the firm did not reasonably believe that the second suit against the consumer was not time-barred, since the firm failed to check with the collection agency to verify that the statute of limitations was inapplicable. Finally, the court also upheld the jury verdict on the abuse of process claim:</span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.5in; margin-right: 0.5in;"><span>[The firm] filed suit to extract money . . . that it could not legally obtain in a collection action and . . . filed a baseless action with knowledge that it had no legal claim . . . . [The firm] filed and pursued a time-barred lawsuit . . . , even though [the firm's] own electronic file indicated that the suit was time-barred . . . . [The firm] sought attorney's fees without confirming that [the consumer] had a contractual fee obligation. The jury could have inferred from this evidence that [the firm's] purpose in filing the lawsuit was to coerce [the consumer] to pay awards and fees to which it and [the collection agency] were not entitled.</span></div><div class="MsoNormal"><span> </span></div><div class="MsoNormal"><span> So for you people out there that are being harassed about an old debt TAKE HEED. </span></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><span>1. DO NOT ENTER INTO A PAYMENT PLAN FIRST</span></div><div class="MsoNormal"><span><br />
</span></div><div class="MsoNormal"><span>2. ASK TO SEE AN ACCOUNTING OF THE DEBT YOU OWE.</span></div><div class="MsoNormal"><span><br />
</span></div><div class="MsoNormal"><span>3. DO NOT REFUSE TO PAY SIMPLY STATE THAT YOU ARE UNSURE OF WHETHER YOU OWE THE DEBT AND WOULD LIKE TO SEE THE ACCOUNTING.</span></div><div class="MsoNormal"><span><br />
</span></div><div class="MsoNormal"><span>4. IF YOU FIND THE LAST ENTRY FOR A PAYMENT YOU MADE OR A CHARGE ON THE ACCOUNT WAS MADE OVER FOUR YEARS AGO, CONSULT WITH AN ATTORNEY. THERE MAY BE NO WAY FOR THEM TO COLLECT FROM YOU. BUT YOU MUST CONSULT AN ATTORNEY TO KNOW FOR SURE.</span></div><div class="MsoNormal"><span><br />
</span></div><div class="MsoNormal"><span>Good Luck out there!</span></div><em><span></span></em>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com1tag:blogger.com,1999:blog-5895379498745726232.post-3667020755988084172011-03-24T09:35:00.000-07:002012-05-09T16:26:58.990-07:00FREE LOAN MODIFICATION ADVICE AND HOW NOT TO HAVE YOUR HOUSE SOLD IN FORECLOSURE<br />
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;"><br class="Apple-interchange-newline" />IF YOU ARE TRYING TO GET A LOAN MODIFICATION:</span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 12pt;"></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0px; margin-right: 0px; margin-top: 0px;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">1.</span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">SIGN UP WITH NACA AND LET THEM MAKE THE INTRODUCTION TO YOUR LENDER. SEE WHAT THEY ADVISE FIRST. THEN FILL OUT ALL OF THE INFORMATION REQUESTED BY YOUR LENDER.</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">2.</span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">SEND ALL OF THE INFORMATION IN A MANNER THAT WILL RESULT IN WRITTEN CONFIRMATION THAT IT WAS RECEIVED. </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">PREFERABLY BY FAX, OR E-MAIL OR BY CERTIFIED MAIL, OR OVERNIGHT MAIL, OR DIRECT DELIVERY WITH A SIGNATURE RECEIPT BY THE LENDER IF THEY HAVE A FORECLOSURE CENTER.</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">3.</span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">VERY IMPORTANT: CALL ONCE A WEEK TO REQUEST STATUS. </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">IF THEY TELL YOU DON’T CALL BACK FOR A MONTH, DON’T LISTEN TO THEM, CALL EVERY WEEK. </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">ASK THEM “ARE YOU MISSING ANY DOCUMENTS?” </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">ARE THERE ANY OTHER DOCUMENTS NEEDED? IF YOU REALLY WANT TO BE RELENTLESS DO THIS EVERY DAY UNTIL THEY SEND YOU SOMETHING IN WRITING TO STOP CALLING EVERY DAY. YOU DON'T WANT LENDER ACCUSING YOU OF TERRORISTIC THREATS.</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">4.</span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">WHATEVER RESPONSE YOU GET, EITHER SEND THE MISSING DOCUMENTS, EVEN IF YOU HAVE SENT IT 64 TIMES BEFORE AND THEY KEEP CLAIMING THEY DON’T HAVE, SEND IT AGAIN. </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;"> ALSO IN YOUR LETTER SENDING IT, RECITE THE DATES OF EACH OTHER TIME YOU SENT THE SAME DOCUMENT TO THEM TO REMIND THEM AND ATTACH A COPY OF YOUR FAX CONFIRMATION SHEET OR THE EMAIL THAT WAS SENT WITH EACH OTHER TIME YOU SENT THAT DOCUMENT.</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">5. </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">IF THEY SAY THAT THEY HAVE EVERYTHING, THEN FAX A LETTER TO THEM SAYING THAT “I SPOKE WITH _________ AT THIS PHONE NUMBER _____________ AND HE/SHE TOLD ME THAT YOU HAVE ALL MY PAPERWORK AND THAT I AM PRESENT BEING REVIEWED. </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">IF THIS STATUS SHOULD CHANGE, PLEASE CONTACT ME IMMEDIATELY.”</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">6. IF THEY SAY THEY ARE MISSING SOMETHING SEND LETTER TO THEM BY FAX SAYING " I SPOKE WITH ______ WHO TOLD ME THAT YOU STILL DON'T HAVE __________. I SENT THAT DOCUMENT TO YOU ON ____________(List all the dates you sent). BUT FOR YOUR CONVENIENCE I AM SENDING IT TO YOU AGAIN WITH THIS LETTER. I WILL CHECK BACK WITH YOU IN ONE WEEK TO CHECK THE STATUS."</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="font-family: arial; font-size: small; margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<div style="font-family: 'Times New Roman'; font-size: medium;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">7.</span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 7pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">EVERY WEEK FAX A LETTER TO THEM SENDING THEM ANY BANK STATEMENTS THAT YOU HAVE RECEIVED IN THAT WEEK OR COPIES OF ANY PAYSTUBS YOU HAVE RECEIVED IN THAT WEEK. </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;"> </span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">THIS WAY WHEN THE REVIEWER GETS TO YOUR PAPERWORK, THEY CAN’T MAKE EXCUSES ABOUT HOW THEY DON’T HAVE UP TO DATE INFORMATION.</span></div>
<div style="font-family: 'Times New Roman'; font-size: medium;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;"><br /></span></div>
<span style="font-family: 'Times New Roman', serif;"><span style="font-size: 21px;">8. EVERY 3 MONTHS: YOU MUST SEND THEM AN UPDATED HARDSHIP TO LETTER TO LET THEM KNOW IF YOUR CIRCUMSTANCES HAVE CHANGED. ALSO SEND THEM UN UPDATED 4506T FORM.</span></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">8. NO MATTER WHAT, DON'T GIVE UP. IT SEEMS TO ME THAT THE GOAL OF ALL OF THESE LENDERS IS TO FRUSTRATE YOU TO DEATH, EITHER YOUR OWN OR SOMEONE ELSES (JUST KIDDING) I BELIEVE THEY HOPE YOU GIVE UP SO THAT THEY CAN JUST TAKE YOUR HOUSE AND ADD IT TO THEIR PORTFOLIO OF REOs. THE BANK LOOKS LIKE A STRONGER INVESTMENT TO PEOPLE IN DUBAI AND IN CHINA WHEN THE PORTFOLIO IS FILLED WITH REOs AND NOT A BUNCH OF LOANS WHICH HAVE SHOWN POOR PERFORMANCE IN THE PAST. HOPEFULLY MY SAVVY READERS GET THIS POINT BY NOW!</span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">9. IF THEY WON'T CONTINUE A SALE DATE AT LEAST 5 DAYS BEFORE IT IS SCHEDULED TO GO TO SALE, FIND A BANKRUPTCY ATTORNEY TO FILE A BANKRUPTCY IN CHAPTER 13 TO STOP THE SALE. IF THE BK ATTORNEY YOU CONSULT SAYS YOU CAN'T DO IT, CALL ME AND I WILL DOUBLE CHECK IT FREE OF CHARGE. I HAVE BEEN ABLE TO HELP A LOT OF PEOPLE EVEN WHEN OTHERS DIDN'T HAVE THE FAITH OR KNOWLEDGE TO MAKE IT HAPPEN</span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 13.5pt;"></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">MY CLIENTS WHO FOLLOW THIS PROCESS SEEM TO DO BETTER THAN THE ONES WHO DO NOT. THERE ARE NO GUARANTEES THAT YOU WILL GET A LOAN MODIFICATION AND THANKS TO THE COWARDICE OF CONGRESS AND OUR PRESIDENT IN NOT STANDING UP TO THE BANKS, AND TAKING THEIR CAMPAIGN CONTRIBUTIONS, THEY WON'T EVER STAND UP TO THEM, THERE IS NOTHING REQUIRING OR MANDATING THAT YOU BE GIVEN A LOAN MODIFICATION.</span><span style="color: black; font-family: 'Times New Roman', serif; font-size: 13.5pt;"></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; margin-left: 0.75in; margin-right: 0in; margin-top: 0in; text-indent: -0.25in;">
<span style="color: black; font-family: 'Times New Roman', serif; font-size: 16pt;">GOOD LUCK OUT THERE!!!!!</span></div>Anonymoushttp://www.blogger.com/profile/14681796245925932182noreply@blogger.com1