The Nails are in the Coffin When it Comes to Wrongful Foreclosure.

Dear Readers:

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.

HERRERA v. FANNIE MAE (Federal National Mortgage Association) 

No. E052943.

May 17, 2012.

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.

Court of Appeal 4th District Affirmed the trial court's rulings which held that:

1.  MERS had authority to assign deed of trust;

2.  The assignee of deed of trust had authority to execute substitution of trustee;

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

4.  That Fannie Mae was authorized to initiate foreclosure before assignment of deed of trust was recorded.

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.

Call us today for help.  The consultation is free!

MORE BAD FAITH AND CRAP FROM AURORA LOAN SERVICING

Dear Readers:

Today, my client got a letter that her loan payment on her home was going to double.  Her rate is 8% for the first five years, which then drops to 2.25% over the H.15 Constant maturity 1-Year Rate established by the US Treasury which is currently .2733 so technically her rate at the five year rate will be 2.675  more or less.  With insurance and taxes her payment should be only about $3,700.00 per month to keep her house.  But Aurora wants $4,883.00 until July 12, 2012, then they will drop it to $3,700.00 per month or whatever index is at that time.

But here is the kicker.  She filed a chapter 13 Bankruptcy.  I sent in an authorization for her to speak directly with the lender regarding loan modification.  She asked for one, and was told she doesn't qualify.  After calling repeatedly, they finally agreed to interview her for a loan modification.  But here is what we learned. . . .  UNLESS BOTH the LAWYER AND THE BORROWER send a letter in WRITING requesting loan modification, it WILL NOT BE OFFERED.  How is that for complying with the spirit of HAMP.  What a dismal failure that program turned out to be.

Anywyer Readers, the squeaky wheel gets the grease.  At this point I would recommend that each of you call your lender WEEKLY and SEND FAXES weekly of your attempts to get loan modification from your lenders.  When finally the Government wakes up and decides its going to help you, IF and ONLY IF that day ever comes, then you will have adequate documentation of your legitimate attempts at loan modification.

Additionally, I cannot impress upon you enough that if you have stopped making payments on your mortgage to at the least use a mortgage calculator online.  Figure out what you owe to your lender.  Calculate a mortgage payment based on 4% and at least mail in that amount to your lender.  Show them you can succeed with a reasonable loan modification.  Furthermore, if your lender won't take your money then open a savings account and deposit that amount into your bank account each month.  You will have documented proof for your lender that you can make a reasonable mortgage payment.  At the end of the day, if you cannot save your house, you will likely have saved up quite a bit of money if you have to move, or cure your default.

I can tell you that it is painful to go from not making payments for 2 years to paying rent or a mortgage again.  We as humans get use to having that money around and we spend it.  Please don't make that mistake!

Good luck out there, until the next time I have more news to report.

God bless each of you for the coming year!

Who is Sleeping with Who? Aurora, Litton, and Saxon oh my!

Dear Readers:  

In case you haven't heard Barclays Bank PLC announced today that it is selling HomEq it's loan servicing arm to Ocwen Loan Servicing.  Did you know that HomEq was the loan servicing arm of The Money Store.  Barclay's acquired HomEq in 2006.  Did you know that Wachovia merged with First Union in 2001.

Now look at what other interesting things were happening in 2006.  

Lehman Brothers bought Aurora Loan Services.  Goldman Sachs had bought Litton Loan Servicing.  Morgan Stanley bough mortgage servicer Saxon.

It seems to me that the Securities companies each had a Servicing Company to do their dirty work of carrying out foreclosures and the rest of it.  The banks that provide money to the Security Companies divorced themselves from the disdainful task of foreclosing on homeowners.  

So the predatory unfair crappy loans out there got serviced by the equally disdainful Aurora, Litton & Saxon, while the lenders themselves deal with troubled loans which were not sub-prime from their inception.

This peaks my interest. . . .  More to follow.

DON'T SIGN AURORA LOAN or QUALITY LOAN SERVICES "Special Forebearance" Agreement without seeing a lawyer first!

Interestingly every borrower I know who has been desperately awaiting word from Aurora to get a loan modification received a letter offering them a "Special Forbearance Agreement."

The terms generally are to pay for two or three months a lowered payment with a balloon payment of the balance of the arrearages paid in the third or fourth month. The Agreement provides the customary this is all there is language:

"This Agreement sets forth all of the promises, covenants, agreements, conditions and understandings between the parties hereto with respect to the subject matter hereof. This Agreement supersedes all prior understandings, inducements or conditions, express or implied, oral or written with respect thereto except as contained or referred to herein."

Over the telephone I have had three different agents assure me and my clients that this is just a test to see if they can really make the payments. If they really can make these payments then they will consider a more permanent loan modification. There is no way the borrower could prove this was ever promised because of the language in the Agreement. Even if they had a tape recording I can here some judge telling the borrower, "Well you should have known it wasn't true because of what was in the written agreement!"

But what I find to be absolute sneaky bad faith tactics is the "Customer's Admissions" paragraph which reads:

"Customer admits that the Arrearage is correct and is currantly owing under the Loan Documents, and represents, agrees and acknowledges that there are no defenses, offests our counterclaims of any nature whatsoever to any of the Loan Documents or any of the debt evidenced or secured thereby."

What this means to my lawyer mind is that if Aurora refuses to entertain any further negotiations with a borrower for a loan modification, you will have already waived any claim under California Civil Code Section 2923.5 & 2923.6 if any existed. If you had any claims that could have been brought in Bankruptcy court to reduce the claim on the loan, those too would be waived.

AND FOR WHAT??????? In exchange for a two month forebearance agreement? That is INSANE! Please before you sign anything with Aurora see an attorney. ANY ATTORNEY!!! Please don't give away your rights for bread crumbs!