Homeowners whose primary residence was part of a foreclosure action between January 1, 2009 and December 31, 2010, and whose home loan was serviced by a participating servicer, may be eligible for an Independent Foreclosure Review.  This is a money play...it will not necessarily get your home back.  Call the Firm for more info.

Your servicer must be on this list:

America's Servicing Co.
Aurora Loan Services
Bank of America
Beneficial
Chase
Citibank
CitiFinancial
CitiMortgage
Countrywide
EMC
EverBank/EverHome Mortgage Company
GMAC Mortgage
HFC
HSBC
IndyMac Mortgage Services
MetLife Bank
National City Mortgage
PNC Mortgage
Sovereign Bank
SunTrust Mortgage
U.S. Bank
Wachovia Mortgage
Washington Mutual (WaMu)
Wells Fargo Bank, N.A.

The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (federal bank regulators) have required an Independent Foreclosure Review by an independent consultant to identify eligible customers who may have been financially injured due to errors, misrepresentations or other deficiencies in their foreclosure process. If the review finds that financial injury occurred, the customer may receive compensation or other remedy.

To qualify, your mortgage loan would need to meet the initial eligibility criteria:

• Your mortgage loan was serviced by one of the participating mortgage servicers.
• Your mortgage loan was active in the foreclosure process between January 1, 2009 and December 31, 2010.
• The property was your primary residence.

Eligible customers will be mailed a letter by December 31, 2011 that explains the Independent Foreclosure Review process and a Request for Review Form that identifies some examples of situations that may have led to financial injury. The form must be completed and postmarked not later than April 30, 2012.

CRIMINAL CHARGES FILED AGAINST "ROBO-SIGNERS" in Nevada...why not in CALI?

FIRM COMMENTARY:

Yesterday on Wednesday, November 16th, JOHN P. KELLEHER, Assistant Chief Deputy Attorney General of the State of Nevada, filed the first in what may be a long series of criminal charges in an alleged robo-signing case in the name of Catherine Cortez Masto, Attorney General of the State of Nevada.  This office has previously met with Mr. Kelleher to discuss the fraudulent practices of lenders and banks as the attempt to create the illusion of valid mortgage loan transfers.  As promised, Nevada is now targeting this criminal activity.  California homeowners are encouraged to contact our Attorney General, Kamala Harris and encourage her to take the same legal actions against robo-signers.  To read the actual criminal indictment, click http://alfn.site-ym.com/resource/resmgr/Docs/Nevada-Robosigning-Indicment.pdf.

"According to the indictment, defendant Gary Trafford, a California resident, is charged with 102 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor). The indictment charges defendant Gerri Sheppard, also a California resident, with 100 counts of offering false instruments for recording (category C felony); false certification on certain instruments (category D felony); and notarization of the signature of a person not in the presence of a notary public (a gross misdemeanor). The indictment alleges that both defendants directed the fraudulent notarization and filing of documents which were used to initiate foreclosure on local homeowners."

"The State alleges that these documents, referred to as Notices of Default, or "NODs", were prepared locally. The State alleges that the defendants directed employees under their supervision, to forge their names on foreclosure documents, then notarize the signatures they just forged, thereby fraudulently attesting that the defendants actually signed the documents, which was untrue and in violation of State law. The defendants then allegedly directed the employees under their supervision to file the fraudulent documents with the Clark County Recorder's office, to be used to start foreclosures on homes throughout the County. The indictment also alleges that these crimes were done in secret in order to avoid detection."

Credit to:  William M. LeRoy, President & CEO

American Legal & Financial Network (ALFN)

Firm commentary:

The Congress missed the opportunity to avert a prolonged housing recession when it failed to pass Bankruptcy "Cram down" provisions that would have allowed bankruptcy judges to modify first mortgages. 

This office joined NACBA, the National Association of Consumer Bankruptcy Attorneys, to lobby members of Congress to pass the legislation in 2009.  The well funded lobbying efforts of the lending industry prevailed over the best interest of the consumers and the national economy.   The proposed law passed the House but failed to pass in the Senate by 5 votes.  

NACBA is now promoting a new proposal, the "Principal Paydown Plan" that is said to be gaining momentum in Washington DC including the support of 19 members of Congress and Edward DeMArco, Acting Director of  the Federal Housing Finance Agency (FHFA).  FHFA is the entity that manages defaulted FANNIE MAE and FREDDIE MAC.

The Plan would allow homeowners in Chapter 13 bankruptcy to pay down loan principal and reduce negative equity during a five-year period with no interest.  In exchange, homeowners would agree to settle claims against servicers, thereby avoiding litigation and reducing taxpayer liability.

See Press release below:

UNITED STATES CONGRESS

For Immediate Release
October 26, 2011
 

FHFA Director Praises Principal Paydown Plan as "Promising" and "Credible"
Pledges to Provide Members an Assessment in Two Weeks

Washington, DC (Oct. 26, 2011)--During a meeting today with 19 Members of Congress, Edward DeMarco, the Acting Director of the Federal Housing Finance Agency (FHFA), praised a principal reduction proposal by Rep. Zoe Lofgren and pledged to provide an assessment within two weeks of how it could be implemented.
 
Rep. Elijah E. Cummings, the Ranking Member of the House Committee on Oversight and Government Reform, hosted the meeting with Rep. Dennis Cardoza, Co-Chair of the Housing Stabilization Task Force, to discuss additional measures to address the foreclosure crisis.
 
Members lauded the latest move by FHFA.  In response to DeMarco's comments, Cummings said, "If Mr. DeMarco actually works with us to implement this proposal, it would be an important step to address this crisis, especially on the heels of his announcement Monday that he will implement the President's plan to help responsible American homeowners refinance at today's historically low rates."
 
Rep. Lofgren stated, "I am encouraged that the Federal Housing Finance Agency is considering a plan similar to the one I've long advocated. Allowing homeowners to pay down the principal balances on their mortgages more rapidly in conjunction with Chapter 13 filings is a sensible solution.  Linking this to the bankruptcy process will help those who truly need it and avoid the administrative failures that have plagued other modification initiatives. I believe this plan is entirely consistent with FHFA's obligation to minimize taxpayer losses in Fannie Mae and Freddie Mac, and I look forward to Director DeMarco's answer two weeks from now."
 
Rep. Lofgren's proposal would allow homeowners in Chapter 13 bankruptcy to pay down loan principal and reduce negative equity during a five-year period with no interest.  In exchange, homeowners would agree to settle claims against servicers, thereby avoiding litigation and reducing taxpayer liability.
 
During today's meeting, Mr. DeMarco said his legal team had already begun reviewing the proposal.  "Based on initial feedback," he said, the proposal "has a lot of promise," "strikes me as being responsible," and appears to be a "credible way" to address the crisis while recognizing various interests in mortgaged properties.  He committed to Members that he would provide a more detailed assessment of the proposal within two weeks.
 
Today's meeting was a follow-up to a previous meeting Cummings and Cardoza hosted on October 6, 2011, during which Members pressed DeMarco to implement the President's recent proposal to eliminate barriers faced by underwater homeowners seeking to refinance their mortgages at current market interest rates.  DeMarco announced on Monday that FHFA would be taking several steps to reduce these barriers.
 
Cummings issued a release on Monday stating, "I commend the President for proposing this idea in his speech to Congress, and I thank Mr. DeMarco for listening to the concerns of Members and their constituents.  The changes announced today will provide additional relief for middle-class Americans and an important boost for our economy.  But we must not stop here.  Economists warn that the housing crisis is 'ground zero' for the economy and jobs, and this is only one modest step towards addressing it."