Foreclosure Strategy Unleashed

We want to provide you with valuable Foreclosure Strategy and Education so that you can stop your foreclosure or avoid foreclosure.

Why? Because we ourselves have been dealt a huge blow by the banks and decided to fight back!

Within 48 hours of our house being sold on the courthouse steps, we stopped our foreclosure by filing a lawsuit against the lender, Chase Bank.

You might think, why was it so last minute…

It wasn’t.

You see, I was attempting to negotiate in good faith, a loan modification with my current lender 4 months prior to the foreclosure date. I had plenty of calls and sent in all of my financial data. I simply wanted to reduce the monthly mortgage rate to make some financial sense to the what the current housing market had to offer.

While this negotiating was going on, little did I know, without advising me or sending me any legal notification, the other department of the same lender was still proceeding with the foreclosure.

You might think, why would they do that?

You see, what no lender, news show or newspaper might not tell you…is that most of the banks got ‘insurance’ against a loan going unpaid. The high falooting term on Wall Street for this ‘insurance” is called:

Credit Default Swaps

What does a ‘credit default swap’ have to do with yours or my home mortgage?

Well, what this insurance means…is that if Chase Bank does indeed foreclose on my home, they still get paid by the insurance company (AIG Insurance is one of the biggest ones that offered the Wall Street high falooting ‘credit default swaps’)

So…when you might think it is in the lenders best interest to negotiate with you a loan modification, well…it isn’t.

It is in the best interest of your lender to let the foreclosure happen, and then get the money from AIG Insurance (which the Federal Government, your tax dollars, bailed out by the way)

Now it gets even worse, AIG has in the past and could with your home, then file a lawsuit against you for that loss of insurance!

So what did we do?

We sued the bank to put them on notice of their predatory lending practice….

And guess what?

The stopped the foreclosure process within 48 hours AND sent me a ‘settlement statement’ to me!

These are the things you must know to fight back against your lender.

Did you know:

You as a homeowner have rights!

According to former fully employed lender, over 90% of home loans that were processed since 2001 have mistakes in them.

You can go to the courthouse and take legal action against the bank. Some homeowners can walk back out having foreclosed on their lender and receiving the title to their home free and clear of the mortgage or note.

What do if You Have Received Foreclosure Legal Papers?

If you are served with a summons and complaint (or petition), this means someone has filed a lawsuit against you. A summons notifies you that you have been sued and informs you that you must respond to the lawsuit. A complaint sets forth the reason and basis for the suit. If you do not want to lose your right to defend yourself and participate in the court proceedings, you must file an answer within the time frame stated in the summons.

“The biggest driver of the housing market has been the drop in home prices, but now it’s the economic risk of the job market collapsing and consumer sentiment,” said Sam Khater, a senior economist at the Santa Ana, California-based mortgage data firm First American CoreLogic.

Predatory Lending

Thursday, October 12, 2006
“Predatory Structured Finance”: Is it time for a new label within the lexicon of predatory lending?
by Christopher Peterson
Over the past five years commentators in the debate over subprime home mortgage lending have ironed out a standard list of practices and contract terms that serve as warning signs of “predatory lending.” These terms and practices include high interest rates, high fees and closing costs, balloon payments, negative amortization, inflated appraisals, insurance packing, mandatory arbitration, unaffordable loans based on the value of collateral, rushed closings, multiple refinancing, abusive collection, prepayment penalties, and misleading or fraudulent disclosure. This list is both necessary and useful.

However, in a new article entitled “Predatory Structured Finance” (forthcoming in the Cardozo Law Review) I suggest that the concept of predatory lending has nevertheless been cast too narrowly. In today’s subprime mortgage market, originators and brokers quickly assign home loans through a complex and opaque series of transactions involving as many as a dozen different strategically organized companies. Loans are typically transferred into large pools, and then income from those loans is “structured” to appeal to different types of investors.

The article includes a useful illustration (pictured above) of a typical subprime home mortgage securitization structure. This process, usually referred to as securitization, can lower the cost of funds for lenders, allowing them to offer better prices. But, it can also capitalize fly-by-night companies that specialize in fraud, deceptive practices, abusive collections, and other predatory behavior. Some of the institutions that sponsor and administer securitization of mortgage backed securities are complicit in predatory lending. By encouraging, facilitating, and profiting from predatory loans, these financiers have themselves slipped into predation. In addition to transferring liability to the secondary market through assignment based rules (such as the Federal Trade Commission’s holder-notice rule or the Home Ownership and Equity Protection Act’s assignee liability provisions), courts and policy makers should explore common law imputed liability theories such as civil conspiracy, aiding and abetting, and joint venture. Unlike assignee liability rules, these older common law theories can reach architects of predatory structured finance that never actually own predatory loans themselves.