Tonight I had the opportunity to attend an hour and a half seminar on toxic mortgages. Just when you thought the only hazardous material in your home could be lead based paint or asbestos, we now find out that our mortgage may be toxic.
The seminar was hosted by an attorney who specializes in sticking it to the bad guys and his marketing director who specializes in warming up the crowd and preparing the audience for the soon to be savings. In this case the bad guys happen to be the bank that issued you the toxic mortgage. The predator they seek is an adjustable rate mortgage.
Banks, in their opinion are the primary reason we find ourselves in this economic malaise. Banks are responsible for thousands of hard working citizens committing themselves to more home than they can afford and over extending their monthly obligations through continual refinancing. Banks are responsible for global warming. Banks have become the anti-Christ.
This process begins with your initial payment of $3000, followed by six monthly payments of $1000. The attorney then will slap a lis pendens on your property. They didn’t come out and say it but it was hinted that while your property is undergoing litigation, you may not want to make your monthly payment.
Your loan documents are requested from your lender. This can take up to three weeks for arrival. Their research is based upon uncovering a missing disclosure, document or a misrepresentation that could cause your loan to be modified. Plus, most banks are not in a litigating mood these days and public perception is not on their side. Furthermore, attorneys can be more successful when it comes to negotiating with lenders than most mortgage holders.
The process can take about 6-9 months to reach a conclusion. The desired result is based upon court precedent, California v Countrywide. A successful outcome can reduce your mortgage balance to 90% of the appraised value and also secure a market interest rate on the new balance.
The current number of homes in default or mortgages facing resets has also created companies that specialize in loan modifications. They will attempt to negotiate with lenders as well in an attempt to obtain more favorable loan terms. These companies may be less expensive. Its worth exploring your options before you make a decision.
About Doug Willis
Who was the attorney?
Shane
Please provide contact info for the referred Law Firm.
Thanks,
Marco
Some more tips would help in a lot of ways. Any more information and experiences is appreciated.
I have loan with BAC – B of A – who took over Countrywide servicer – I have refinanced my home here a couple of times giving more possibilities for mistakes along the way. But I find it difficult to believe you could have a whole mortgaged wiped away over a document with minor flaws or an appraisal which may have been a little low (they are subjective values, essentially) Does anyone know anyone who successfully got their principle loan balance wiped away or drastically reduced strictly because of som earlier mistakes in settlement process? call me – 301-831-9480
Why don’t the banks won’t just implement a loan mod plan and do it. Many people have just stopped paying and they would atleast be able to turn a profit.
i recently had a forensic audit done on my mortgage they descovered eleven state@federal violation what should i do? thanks dave
I was informed my home will be foreclosed on in January. I want a lawyer to do a forensic evaluation. I live in Suwanee, GA 30024. This is about 35 min. drive north of Atlanta.
If you could assist me with a good lawyer or good law firm in my area it would be greatly appreciated.
Thanks Very Much,
Christopher
Christoper,
Back when the article was written there were many companies doing forensic loan audits. Here in California, I believe the Department of Real Estate would not allow payment in advance, therefore its hard to find a company that does this.
I am not familiar with Georgia. I would suggest calling a real estate agent in your area familiar with short sales and ask them for a recommendation
I you have not found assistance, I have an attorney referral that may be able to help you in GA.