Illegal California Loan Modification Companies Under Investigation – The Moral Of the Story: Hire A Licensed Local Attorney

CNBC.com is reporting that illegal California loan modification companies are now under investigation. In my view, homeowners should never, never, never hire a California company to attempt a loan modification in New York. Read more

Watch Out For Non-Attorney Foreclosure Rescue Scams Promising Loan Modifications

The New York Times has an interesting article on my latest pet peeve – all the rescue scammers that are blatantly and openly violating the laws online. None of this is being done in secret. Just go online and google will take you there. These are the companies that are practicing law without a license (a misdemeanor or felony in various states). They are violating RESPA Section 8 by creating affiliate programs for kickbacks. And don’t lose sight of the fact that many of them do nothing to help homeowners, leaving them in a lurch after taking an advance fee (also illegal in New York). Here is the article: “Swindlers Find Growing Market in Foreclosures.” Only a local licensed attorney can legally handle a loan modification. Anyone else will not be able to offer legal advice concerning bankruptcy and litigation. Anyone other than a licensed attorney is not legally permitted to represent a client in a real estate transaction in New York.

American Bankers Association Slams The Citibank Mortgage Modification Deal

It is being reported that the American Bankers Association is opposing the Citigroup deal I blogged about yesterday. Here is the report.

Citigroup May Agree To Allow Residential Mortgage Modifications In Chapter 13 Bankruptcy – This Could Impact Foreclosure Resolution In A Very Big Way

I got this very important email today from the President of NACBA advising that Citigroup is supporting residential mortgage modification bankruptcy legislation. This could be a very good thing for homeowners. Business Week is also reporting this also. Here is the email Read more

The Crisis Within The Crisis; Non-Attorneys and Out-Of-State Attorneys Making a Mess Of Loan Modifications (Why Homeowners Need Local Attorneys)

There is only one way that a loan modification should be handled – by a local attorney licensed in the state where the real estate is. In the midst of the worst foreclosure crisis in history, there seems to be a subcrisis developing. An entire market of loan mod scammers has risen to the surface. Read more

Bankruptcy and Loan Mod Dilemna: Do You Know Who Your Mortgagee Is?

Today’s NY Times has an interesting article about a key issue facing bankruptcy and loan modification attorneys: who holds their client’s mortgage? This is not always so easily answered as Wells Fargo and its borrower discovered. Wells Fargo now finds itself subject to possible sanctions from a Bankruptcy Judge as a result of the confusion created by its internal systems. Read the article here.

In my personal practice, I’d estimate that at least 75% of my clients are confused over who holds their mortgage. Many have experienced the stituation where payments sent to the original lender prior to an assignment were not credited to the account by the assignee. Other clients have complained that they do not even know who to pay. It is sometimes difficult for lawyers to identify which lender or servicing agent to communicate with but at least they can contact the attorneys for a lender if there is a pending foreclosure or bankruptcy case. Borrowers who are pro se are asking for trouble here. They often find it difficult to communicate with lender’s outside counsel. They may lose precious months trying to sort things out, all while accumulating interest, late fees and attorneys fees which are added to their principal.