Corporate, Securities, & Bankruptcy Attorney

SEC Advised to Allow General Advertising in Rule 506 Offerings

2012-01-27T14:35:00.000-08:00

In a January 6, 2012 letter, the Advisory Committee on Small and Emerging Companies advised the Securities and Exchange Commission's chair, Honorable Mary L. Schapiro, that it should relax or modify existing restrictions on general solicitation and advertising of private placements. They are recommending that fund raising under Rule 506 with its restrictions to only using "accredited investors" and other investor protections are sufficient. They stated that the prohibition against general solicitation and advertising is not necessary and is too prohibitive in allowing companies the ability and access to raise capital under a Reg D Rule 506 offering.The SEC has not taken action yet on this advice; however, it is interesting to think that a private company looking to raise money could potentially use general advertising or solicitation to accredited investors. Would this create a sort of "public offering" of securities under Rule 506? The advisory letter is very brief, but one could see a rule change that allows companies some ability to publicly offer securities, provided they only accredited investors purchase the securities. This goes against the view that existing law and rules do not allow a company to even solicit the sale of securities to someone who is not already an accredited investor. Some clarification would be needed to allow companies and their counsel to navigate any changes, but this could ease things up for start up, emerging, or even steady growth companies that need access to capital. We will have to see what the SEC decides to do with this advice.

TARP will continue to haunt taxpayers

2012-01-26T10:27:00.001-08:00

<p>No one hears much about TARP anymore, but a recent report shows a gloomy picture for the next 5 years. The US can spend up to another $51 billion on various programs. Taxpayers are still owed over $130 billion and own over 70% of AIG and 30% of GM. </p>
Who knows how long it will take to pay back all those funds and get things back to normal, but in my opinion, the economy has not shown any signs that you can spend your way out of a depression.

Delaware Chancery Court Considers Whether a Reverse Triangular Merger Constitutes an Assignment by Operation of Law

2012-01-24T20:14:00.000-08:00

Delaware Chancery Court Considers Whether a Reverse Triangular Merger Constitutes an Assignment by Operation of Law

SEC Proposes New Rules Calling For Greater Independence Standards for Compensation Committees and Their Advisors

2012-01-24T19:08:00.001-08:00

SEC Proposes New Rules Calling For Greater Independence Standards for Compensation Committees and Their Advisors

The First 100 Days of Say-On-Pay Mark Many More Failed Votes and the Advent of Say-On-Golden Parachutes

2012-01-24T19:08:00.000-08:00

The First 100 Days of Say-On-Pay Mark Many More Failed Votes and the Advent of Say-On-Golden Parachutes

Spotlight on Pay For Performance Intensifies as ISS Releases New Evaluation Methodology for 2012 Proxy Season

2012-01-24T19:06:00.000-08:00

Spotlight on Pay For Performance Intensifies as ISS Releases New Evaluation Methodology for 2012 Proxy Season

Update on New Reporting Rules for Stock Splits, Recapitalizations, Mergers and Acquisitions

2012-01-24T19:05:00.000-08:00

Update on New Reporting Rules for Stock Splits, Recapitalizations, Mergers and Acquisitions

Regulatory Update: SEC Adopts Final Rules Defining "Accredited Investor" Consistent with Dodd-Frank

2012-01-24T19:03:00.000-08:00

Regulatory Update: SEC Adopts Final Rules Defining "Accredited Investor" Consistent with Dodd-Frank

Bankruptcy Petition Preparation Company Problems

2010-05-12T10:04:00.001-07:00

Many people who think about filing for bankruptcy often want to avoid legal costs and either look to do their case themselves or pay a petition preparation company that charge anywhere from $200 to $500 to prepare the forms. The problem with not at least consulting with a qualified bankruptcy attorney is that you are going into a very complex federal court system. It is not just a matter of a few simple forms.

If your forms and schedules are not done properly with the most up to date forms or they are not filed in compliance with the federal and local rules of procedure, your case can be dismissed within a matter of weeks of filing. Not only will you have to possibly pay the filing fee again to re-file, the court often imposes a ban on re-filing for 6 months. The court can also prohibit re-filing for an even longer time if they think your filing was an abuse of the system.

I have clients come in and end up spending even more money in the long run for me to fix the problems and properly advise them than if they would have just come to me in the first place. Petition preparation companies often give legal advice, even though they are not supposed to. They tell people that they can remove 2nd mortgage or qualify for chapter 7 filing status, only to have the client later learn that they were not properly advised.

Most bankruptcy lawyers will offer free consultations, so even if you don't hire them, you should at least get some advice before moving forward to be sure you are properly represented.

Chris Barsness, Bankruptcy Lawyer
http://www.bankruptcylawyerla.net

Short sale pitfalls

2010-05-01T11:55:00.000-07:00

These days many homeowners are realizing that loan modifications are extremely difficult to obtain, so they try to do a short sale of their home. A short sale is when you sell you home for less than what you owe the bank. The bank has to approve the sale which requires the homeowner to show a financial hardship. People assume that their real estate agent will protect them in the transaction. That is far from the truth. There are different legal issues that arise in the transaction for a short sale.

1) Future personal liability- most bank approval forms say they are agreeing to accept less than what they are owed to approve the sale, but many do not include any representation that they will not sue the homeowner down the road to get the difference between what they received and what they were owed. This means a year or two down the road, the homeowner could be served with a lawsuit when the bank thinks the homeowner may be back on their feet to collect.

2) Fraud- most bank are requiring the homeowner and the buyer to sign contracts stating that they are not engaging in some kind of side transaction. Many homeowners are approached by investors stating that they will rent the home back, sell the home back to the homeowner later, or pay the homeowner to do the short sale. If the homeowner signs this and they do something they stated they were not doing, the homeowner, investor, and real estate agents could face charges of fraud against the bank. The bank would argue that they would not have agreed to the sale if they knew there was a side deal.

Bottom line- check with a local real estate or bankruptcy attorney because a bankruptcy filing may be a better choice to walk away and eliminate personal liability or possible fraud claims.

Los Angeles Bankruptcy Attorney Chris Barsness, Esq.

http://www.bankruptcylawyerla.net

FORECLOSURE ACTIVITY INCREASES 7 PERCENT IN FIRST QUARTER

2010-04-14T22:10:00.001-07:00

FORECLOSURE ACTIVITY INCREASES 7 PERCENT IN FIRST QUARTER

Posted using ShareThis

Obama foreclosure plan makes little impact

2010-04-14T02:07:00.000-07:00

In a report released today, a congressional oversight committee concluded that the attempts to keep people in their homes is having little effect. The report from the Congressional Oversight Panel, created by Congress to monitor bailout spending, came as the Treasury prepared to release Wednesday its latest monthly report on the $50 billion Home Affordable Modification Program, or HAMP. That report will show that so far more than 230,000 households had been given permanent reductions in loan payments by the end of March, a Treasury spokeswoman said. That is up from 168,703 a month earlier.

By comparison, nearly eight million households are behind on mortgage payments or already in the foreclosure process.

HAMP loan modifications typically leave borrowers still heavily burdened by debts from second mortgages, car loans and credit cards, the panel noted. The typical household with a HAMP modification still must devote 59% of total income to debt service. "Most borrowers who proceed through HAMP will face a precarious future," the report said, adding that "many borrowers will eventually redefault and face foreclosure."

Even if you can get a modification, that doesn't mean that other options are not a better alternatives, such as bankruptcy, short sale, or a deed in lieu of foreclosure.

For a link to the full report of the panel, click here:

Congressional Oversight Panel: Evaluating Progress of TARP Foreclosure Mitigation Programs

Credit Repair After Bankruptcy - Steps To Take

2010-04-07T07:17:00.001-07:00

Even after one files bankruptcy, there are still steps that need to be taken to improve your credit score.

1) Be sure to check with credit agencies after filing. Many people are scared to look at their credit report after filing, but you should several months after filing or discharge to be sure everything is accurate. You want to be sure the bankruptcy is listed and any discharged debt doesn't show as anything more than a bankruptcy filing.

More can be found at this article below:

RT @NYDailyNews: There is life after bankruptcy http://bit.ly/c5rWzT

http://www.nydailynews.com/money/2010/04/05/2010-04-05_there_is_life_after_bankruptcy_credit_could_thaw_in_1824_months.html

2) Make attempts to obtain credit after discharge. You can get secured credit cards by applying for that specific type of card. You simply give collateral, such as equity in a car or cash, to show the creditor they have something of value to collect if you don't pay.

3) Any debts not discharged or incurred after filing must be paid on time. Don't think that "oh well, my credit is shot anyway." If you make all your payments on time after filing, you can be on the road to financial recovery.

Chris Barsness

http://www.bankruptcylawyerla.net

Loan Modification Changes - Will They Help?

2010-03-31T15:18:00.000-07:00

I am sure many of you may have heard about the recent changes and expansions announced last week to the guidelines for loan modifications. I have attached a link to the overview below:

http://www.nacba.org/files/email/Supp_Dir_10-02.pdf

Essentially, the government has heard the problems in the process and are trying to push lenders to start doing things right with more formal procedures and time frames. In addition, they want to expand modifications to homeowners in bankruptcy, provide assistance to those temporarily unemployed, provide cash payments to those who short sell or walk away, and provide more protection from unexpected foreclosure occurring during a modification review.

I must emphasize that these are only guidelines for non-GSE servicers to follow (those other than Fannie Mae and Freddie Mac) on HAM modifications only. There is no real enforcement procedure, it is more of a way to tell lenders that they must comply if they want to get the federal incentives. It took the lenders almost a year to implement the original guidelines announced last February 2009, so it is unknown what effect this will have and how long it will take.

The announcement by Bank of America that they will reduce principal on certain loans sounded like a positive thing; however, it was only done to settle certain cases brought by the Attorneys General of several states and will likely only apply to up to 45,000 borrowers who had certain Countrywide predatory loans.

To say on top of these issues, please follow our blog or visit our website to link to us on Facebook and Twitter. http://www.bankruptcylawyerla.net

Bankruptcy Attorney Chris Barsness

Treasury's New Attempts To Help Foreclosure & Loan Modification Problems

2010-03-27T13:33:00.000-07:00

The Treasury announced more attempts to help borrowers in foreclosure or close to foreclosure including payments toward relocation and short sales, as well as additional help for unemployed borrowers.

It remains to be seen whether these changes will help fix the foreclosure and loan modification problems, including problems facing borrowers going through bankruptcy.

For an overview of these changes, you can read more below:

http://www.nacba.org/files/email/Supp_Dir_10-02.pdf

California Bankruptcy Attorney Uses Chapter 11 to Stop Foreclosure

2010-03-20T10:19:00.000-07:00

A bankruptcy filing has the effect of placing a court order stopping foreclosure and eviction. It gives homeowners time to try to work out a solution to their financial problems. Loan modifications are few and far between these days and do not guarantee the bank won't sell the home during the process.

Many people do not realize that Chapter 7 and 13 are not the only alternatives when it comes to filing for bankruptcy. Chapter 11 is a reorganization like chapter 13, but can be used for individuals to accomplish foreclosure relief, debt reorganization, and lien stripping that essentially results in principal mortgage reduction. A homeowner's primary residence 2nd mortgage can only be lien stripped if the home's value is less than what is owed on the 1st mortgage. Rental or investment properties 1st and 2nd mortgages can be lien stripped in certain circumstances in Chapter 11.

Even in Chapter 13, a homeowner can benefit by removing the 2nd mortgage, resulting in more available income.

Consult with a bankruptcy attorney to review your options. Many, including our firm, provide free consultations to see if bankruptcy may be the right option for you.

http://www.bankruptcylawyerla.net

Watch my Twitter page for updates: http://twitter.com/BarsnessLaw

How to file bankruptcy - consult a bankruptcy attorney

2010-03-17T08:15:00.000-07:00

Record numbers of bankruptcy cases are dismissed by the court as they are not being filed properly. Both local and federal rules of bankruptcy procedure require compliance with filing deadlines and format of forms, schedules, and other documents. People want to avoid the costs of hiring an attorney, but they end up wasting the $300 filing fee and time involved by filing improperly only to have the court dismiss the case 14 to 30 days after filing.

If you are trying to rearrange your finances and get back on your feet, an experiences bankruptcy attorney can help you make sure you handle your case properly. Realize that you are eliminating debts and monthly payments, so an investment in your financial future is worth the cost. Most bankruptcy lawyers are willing to work with you to figure out how to pay the costs involved for their advice and representation.

In addition, a bankruptcy lawyer can explain advantages that you may be able to take advantage of, such as eliminating second mortgages on your home, saving your home from foreclosure, and other pieces of advice and counseling.

http://www.bankruptcylawyerla.net

Banks Intentionally Delay Modifications

2010-03-16T14:15:00.000-07:00

How can it be that of the millions of homeowners, loan modification companies, and attorneys applying, less than 200,000 homeowners nationwide have gotten loan modifications? The banks report to Obama that people fall through the cracks because of missing documents or failure to follow up; however, anyone who works in this industry or has tried on their own to get a modification knows that can't be the truth. No matter how many times you submit, resubmit, call, or mail things to follow up, you will no doubt be told everything is fine one day, then that you were supposed to send new paystubs the next day and because you didn't, your file is closed and your home will be sold.

It is quite apparent that the banks have no intention to finalize anything more than a small number of modifications to show the president they are trying. If you are an investor holding loans serviced by these banks, I would be outraged by their either intentional dismissal of help or complete and utter disorganization. Some have theorized that the banks want to take over a large number of homes and only slowly release them for sale to artificially boost the home buying market and prices. This potentially rises to the level of anti-trade violations if there is collusion by several banks to do this by artificially fixing markets and prices. When will the justice department get involved to investigate? Probably never because the banks will just keep blaming everything on homeowners not working with them when we all know that isn't the case.

The only thing that makes sense based upon these facts is an intentionally willingness to not modify loans or stop foreclosures. Not only are large banks possibly doing this, but they then refuse to lend any money to small business or new home buyers. I suggest closing any bank accounts with large banks and opening new accounts with small banks or local credit unions and keep your money out of the hands of the greedy corporations.

I once again call on Congress and the Obama administration to push realistic financial reform and pass legislation to allow primary residence 1st mortgages to be reduced to market value in bankruptcy.

Bankruptcy Attorney Chris Barsness Uses Chapter 7, Chapter 11, or Chapter 13 to Stop Loan... -- LOS ANGELES, March 11 /PRNewswire/ --

2010-03-15T11:27:00.000-07:00

Bankruptcy Attorney Chris Barsness Uses Chapter 7, Chapter 11, or Chapter 13 to Stop Loan... -- LOS ANGELES, March 11 /PRNewswire/ --

Banks Sue Homeowners Years After Foreclosure

2010-03-14T20:00:00.000-07:00

Other states see the same issues regarding lenders coming after foreclosed homeowners years down the road. See the below article for this happening in Nevada.

http://www.lvrj.com/business/underwater-homeowners-leave-behind-mortgages--but-lenders-can-still-come-calling-87612462.html

Bankruptcy may be the best option to avoid worrying about the banks suing a homeowner after a short sale or foreclosure and no one should assume everything is fine when they walk away from a home.

Beware Of Personal Liability After Foreclosure Or Walk Away

2010-03-12T10:48:00.000-08:00

Many people do not realize that they may face personal liability for certain debts if they walk away from their home or let it go to foreclosure. In California, if the 1st lender forecloses with a trustee sale, any other lienholders, such as a 2nd or 3rd mortgage or line of credit may be able to come after the borrower personally.

In fact, reports are that servicing companies are increasing their efforts to come after people who have been foreclosed upon for these personal obligations. Homeowners need to take steps to avoid going through more financial distress after a foreclosure. Often a Chapter 7 bankruptcy liquidation makes sense after a foreclosure to get rid of all other debts and personal liability.

See the report out today on CNBC:

http://www.cnbc.com/id/15840232?video=1439003187&play=1

Chris Barsness

http://www.bankruptcylawyerla.net

Bankruptcy & Short Sales Better Option Than Modification

2010-03-10T10:50:00.000-08:00

The recent announcement by President Obama of incentives to homeowners of $1,500 for selling their home in a short sale is just further evidence that lenders are unwilling or unable to complete realistic loan modifications. The President is realizing that lenders would rather take a short sale loss and move on than deal with modifications.

Many homeowners get emotionally attached to their homes, but they need to be realistic. If you are in a position where you cannot afford the existing payment and are severely behind in payments, it is unlikely a loan modification is going to help. With only 66,000 modifications in 2009 under the Obama HAM program nationwide, it seems unlikely that anything is going to get better.

Once homeowners realize that they may not be able to save their home and realistically think about moving on, they can properly evaluate all possible options. Many homeowners end up losing their homes during a modification review and end up with personal liability on 2nd or 3rd mortgages. Bankruptcy can be a useful tool to resolve some of these issues. It can be used to remove 2nd liens and bring a homeowner current on back owed payments.

The other options are short sales or deeds in lieu of foreclosure. Homeowners should consult with a local real estate or bankruptcy lawyer to be sure they are protecting their finances moving forward.

Chris Barsness

http://www.bankruptcylawyerla.net

Loan modifications - Have Realistic Expectations

2010-02-19T08:32:00.000-08:00

Many homeowners have very emotional connections to their home and it can often cloud their judgment when it comes to trying to save their home. If the homeowner doesn't have steady income, the bank is very unlikely to do anything to keep you in your home. The banks only look to financial performance, reward, and risk, and if you don't have current income, you are extremely risky. The banks see this over and over where they provide some form of assistance only to have the homeowner default down the road because they think they will start doing better financially, only to realize that the economy is not picking up in 2010 as many expected.

If you are living off withdrawals from retirement accounts, credit cards, or loans from family and friends, a mere change in the terms of your home mortgage is probably not going to be enough to save your home. The banks see this other debt and often take it into account when deciding whether to provide you a loan workout. If you think of a modification as a refinance, you will have more realistic expectations. In a refi, if you don't have verifiable income, reliable income, low other debt, and decent FICO scores, it is too risky for the bank and they will say no. Often clients try to argue that it makes financial sense to keep the person in their home versus foreclosing. The banks have their own internal numbers and they are more than willing to take substantial losses to be done with that loan since it is often not a valuable loan for them to service or sell.

Homeowners should think about what if a loan modification is denied, have they thought about turning the house over with a deed in lieu of foreclosure to avoid personal liability for the loan. Have they thought about a short sale to also avoid personal liability for the loan? Do they realize that once the home is in foreclosure, it is very difficult to get back out and foreclosure and evictions on your record are equal to or worse than bankruptcy. A person in bankruptcy can get a rental apartment because they are in a better financial position now that certain debts are gone; however, someone who had to be evicted tells a landlord that if they have to remove that person, it is going to cost time and money because that person is not willing to move out voluntarily.

For more information on bankruptcy, foreclosure, and loan modifications, visit our website or give us a call 888-881-6591.

Chris Barsness, Esq.
http://www.loanlawyermodification.com

Eliminate 2nd and 3rd mortgage, reduce principal

2010-02-02T17:34:00.000-08:00

Many homeowners are pounding their heads against a wall trying to get lenders to work to get them current or give them some form of loan modification. Many of these homeowners have been taking out of credit cards, personal loans, or other sources just to survive. However, many lenders look at large amounts of other debt negatively when considering your total debt to income ratio in a modification. These homeowners don't realize that a loan modification is not going to suddenly save them from the brink.

Often times a bankruptcy filing is a better option. It can eliminate the other credit card debts, personal loans, 2nd mortgages, and 3rd mortgages. It all depends upon the type of filing under what chapter of the Bankruptcy Code, but it is even possible to force principal reduction in some cases. Although there have been attempts at federal legislation over the last year to allow bankruptcy judges to force modification of terms of mortgages on principal residences, they are always defeated. There are ways to eliminate 2nd mortgages even on principal residences in some cases.

Homeowners needs to look at all their options and not delaying because your lender will move a foreclosure forward no matter how seemingly nice them seem on the phone.

For more information, contact us or view our website.
888-881-6591
http://www.bankruptcylawyerla.net/BankruptcyServices.htm

Forensic Loan Audit - scam or useful modification service?

2010-01-28T13:41:00.000-08:00

Even before the passage of SB94, real estate agents, consultants, and lawyers were offering to perform a forensic loan audit. Since SB94 went into effect, there are many companies and law firms doing this service to avoid the advance fee provisions of this new law. It seems to me that the majority of these are people who are desperate since they can't charge large up front fees to do loan modifications. It is hard to determine based upon the way they structure these services whether they violate SB 94, but there are things a consumer needs to know before paying any up front fees.

Forensic loan audits are where someone reviews the documents that were used to originate your loan(s). Under state and federal lending, banking, credit, and consumer protection laws, there are required disclosures that have to be provided and certain limits on fees and other things that happen during the loan process.

Someone who does a loan audit will often tell the consumer that if they find Truth In Lending Act (TILA) violations or Real Estate Settlement Procedures Act (RESPA) violations, that your lender will suddenly just change their tune and give you a loan modification. That is far from the case. While these violations can technically be legal claims, your lender will usually not even pay attention to them until a lawsuit is filed in court. Even then, it does not mean that they will just try to settle by giving you a modification.

There is a time and place for a review of the loan docs, but just finding violations is not a real service. Anyone who is not a licensed attorney may not realize that there are complex issues involved with lender litigation. Many banks are protected under federal laws such as the national banking act and the only claims that can be brought against them are with a regulatory agency, not a basic lawsuit. Lawsuits are often dismissed on this basis. Also, there are time limits within which you must bring your claims against the lender, many of which are within one year of the original loan date. Even the right of rescission's 3 year time limit is complicated as you often have to give back the property and loan proceeds in order to move forward with that remedy.

All in all, the majority of loan audits will not help you get a loan modification and are just another way people are trying to take your money. Only if you have very serious claims will it potentially make a difference and usually you have to go after the bank for monetary damages which doesn't guarantee you will keep the home or get a modification.

If someone claims all kinds of success in getting modifications or that their loan audit will push your mod through, take a look at this link with the minimal amount of permanent modifications in 2009 nationwide under the Making Homes Affordable Plan (66,000). Clearly, no one has a magic bullet that will guarantee modifications.

http://makinghomeaffordable.gov/docs/report.pdf

Loan Modification = Frustration & Delay

2010-01-22T15:10:00.001-08:00

The numbers announced last week by the administration show that some progress is being made on mortgage loan modifications. Approximately 66,000 final modifications nationwide were completed in 2009 under the Obama Making Homes Affordable Plan. That is a very small number since the number of eligible homeowners is somewhere in the millions. However, only 33,000 had been completed through the end of November, so the lenders completed an additional 33,000 in the month of December alone. This tends to show that lenders might finally have the infrastructure and processes in place to get modifications done.

There is also the thought that the servicing companies doing the modifications don't really care if they get them done or not. In fact, servicing companies can often make more off fees to foreclose than just servicing a loan or getting it current. The holder of the note/investor may not even be the one making the decision that can have drastic impacts on them. It seems that banks have already taken the accounting hits for dropping homes to fair value, so they don't have a problem letting them go to auction or selling at a short sale for current market price.

In any event, we will soon see how much can get done in 2010.

Chris Barsness, Esq. MBA

http://www.bankruptcylawyerla.net

Bankruptcy- do it yourself or hire an attorney?

2010-01-14T15:44:00.000-08:00

Many people question whether they should save money by filing their own bankruptcy case or hiring a petition preparer or other online source that puts the forms together. Bankruptcy is a federal court case that can have long term implications on a person's credit, finances, and their life in general. People pay for health insurance and pay to see a doctor when anything might affect their health long term, yet they fail to seek expert advice when it comes to their financial health.

Many of our cases come from people who did their case on their own and now have to pay significant fees for us to correct what was done improperly in the first place. The bankruptcy code is a complex set of laws and procedural rules, many that vary by court location with local rules. Many petition preparers do not have access to the local forms that need to be filed. Petition preparers or doing it yourself does not give you the proper guidance and legal review of which bankruptcy case is best for you, how to prepare for bankruptcy, how to list assets and debts, how to go through the process, which exemptions to claim, how to save your home or other assets, and how to minimize the long term impacts. If you fail to properly file the required forms, including required local forms, the court can dismiss your case. At that point, you would have to pay the filing fee again to refile and have lost weeks or months that your case could have been moving forward.

If you fail to list a debt, you can still have liability for it after the case. Our firm runs checks to be sure we are aware of all debt that may be out there, even some that you may have forgotten about or didn't even know was there.

Bottom line, be sure to investigate all the possible consequences before deciding to do your own bankruptcy. It may sound better to save the money and not get expert advice, but realize that you are eliminating all kinds of debt, so paying a little up front to be sure you are protected and getting rid of hundreds or thousands of dollars a month in payments can be worth the investment.

For more information, go to our website or call for a free consultation 888-881-6591.

http://www.bankruptcylawyerla.net/BankruptcyServices.htm

Obama HAM program failure

2009-12-16T12:08:00.001-08:00

In a report out last week, the number of final modifications completed by the major banks under the main Obama HAM program are ridiculous. Some 31,382 homeowners have entered into final modifications through the end of November under that specific program. That is out of millions of eligible homeowners, of which 759,000 have entered into trial plans. Here is a breakdown:

According to the report, through the end of November, J.P. Morgan Chase & Co. /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 41.32, +0.46, +1.13%) has 143,027 three-month trial modifications started under the program. It has made 4,302 modifications permanent. Wells Fargo Bank /quotes/comstock/13*!wfc/quotes/nls/wfc (WFC 25.81, +0.15, +0.57%) has 104,808 trial modifications started and 3,537 permanent modifications using the program.

But Bank of America Corp. /quotes/comstock/13*!bac/quotes/nls/bac (BAC 15.31, +0.12, +0.79%) has started 158,462 three month trial modifications with the program and has made just 98 permanent. Citigroup Inc. /quotes/comstock/13*!c/quotes/nls/c (C 3.47, -0.09, -2.53%) has started 103,478 three-month modifications under the plan. Of those only 271 have become permanent.

There are other programs that have resulted in modification for homeowners, but clearly the banks are more willing to foreclose on properties than modify loans. Most major banks have announced in the last week their intent or completion of paying back their TARP bailout money. They obviously want to be out from under public scrutiny and restrictions on payment of excessive salaries and bonuses.

The president met with 10 major bank CEO's this week to push several issues, including speeding up modifications, but we will see if it actually makes any difference.

Chris Barsness, Esq.

http://www.loanlawyermodification.com

Loan Modifications Slow - Bankruptcy Better Option to Save Your Home

2009-12-14T19:27:00.000-08:00

The Obama administration released figures at the end of last week indicating that only 32,000 homeowners have entered into final loan modifications under the HAM program this year. That is out of the several million homeowners that are likely eligible. These results show that lenders are slow or unwilling to finalize modifications to save homeowners. Lenders are putting homeowners in 3 month trial plans that are lasting 6 months and not leading to final modifications.

A Chapter 13 bankruptcy can result in elimination of 2nd mortgages and other debts and allowing homeowners to keep their homes. A Chapter 7 can still allow homeowners to keep their homes as well through reaffirmation agreements. The additional bonus is that the bankruptcy puts a stop on foreclosure or eviction proceedings, resulting in additional time for the banks to get their acts together and start finalizing modifications. Homeowners without this protection are relying on lenders telling them they will hold off on selling the home, but that is not a legally binding agreement. I get new clients who tell me their lender said they were working with them and not to worry, only to get an eviction notice stating their home has already been sold.

Now is the time to take action. Do not rely on a customer service rep telling you not to worry, they won't sell your house, because they will. You will never hear from that person again and they are not about to help you find a new place to live.

For a free consultation with an actual attorney and not a paralegal or assistant, call us today. 888-881-6591.

http://www.loanlawyermodification.com

Obama HAM program still not effective

2009-12-09T14:40:00.000-08:00

The following was reported by the Associated Press and reveals the lack of progress from the banks. The home is not safe until the permanent modification takes place, so there is significant risk of a trustee sale until that happens. A short sale or bankruptcy filing are alternatives to the long and unknown modification time frames and stressful postponement of trustee sales pending modification review.

Only about 10,000 homeowners have received permanent loan modifications under the Obama administration's mortgage relief plan, evidence of continuing woes for the government's effort to stem the foreclosure crisis.

That means fewer than 2 percent of the 650,000 homeowners enrolled in the program as of October had their mortgage payments permanently lowered to more affordable levels. The results spotlight the limited success lenders are having in getting borrowers through the trial period, according to an oversight panel report released Wednesday.

The Treasury Department is expected to release updated numbers through November on Thursday.

Loan Mod Delays - Trial Plans

2009-12-09T11:08:00.000-08:00

Many homeowners have been put into what the banks call trial plans or forbearance plans. They are usually setup as a 3 month trial plan under the HAMP program; however, most homeowners end up being told to keep paying months after the initial 3 months. Remember that banks are under no obligation to provide final loan modifications. They may be doing certain unfair business practices, fraud, or other misdeeds in their interactions with you, but without taking them to court, homeowners will have no real way to put any pressure on the lender or servicing company.

Often times a bankruptcy filing is also another way to save the home and put pressure on the lender to work something out; however, the legislation that would have given judges the power to force modifications was defeated this last summer, so they don't have cram down powers at this point.

Our office can review your situation to determine if you have enough evidence to support filing a lawsuit against the lender or servicing company or if a bankruptcy filing would benefit you and help save your home.

Contact us to have a consultation with a licensed attorney.

http://www.loanlawyermodification.com

California Homeowners - Beware Loan Mod Advance Fees

2009-11-19T09:27:00.000-08:00

No matter how a company or lawyer tries to justify some up front fee to help with a loan modification, whether they call it a progress payment, or break up their "services" into sections, it still is going to get them into legal hot water.

The law is very clear and was intended to make sure homeowners do not pay anything until the service has been performed. Many people charge a large fee to do a forensic loan audit or compile documents and review possible qualification for modification programs. They then claim they will do the loan modification for free or low cost (to avoid being guilty of Civil Code Section 2944.7, subjecting them to up to 6 months in jail).

Do not pay large fees for a loan audit or other alleged services or education about modification/foreclosure. The claims that they have some special knowledge or that they will find legal violations that will make the lender roll over and give you what you want are completely false!

The process is not that complicated and there are free services through HUD and others that can help guide a homeowner through the process. Our firm put together a do it yourself guide for $99 that can help homeowners try to save their home through a modification without huge fees.

There are times when certain laws are violated or homeowners have legal rights and claims against lenders and servicing companies; however, this requires a licensed attorney to review and without an actual lawsuit pending, most lenders will pay no attention to claiming they violated TILA, RESPA, or any other laws.

For more information on our do it yourself loan modification 101 guide, visit our website.
http://www.loanlawyermodification.com

Bankruptcy Or Short Sale Better Options Than Modifications

2009-11-19T09:12:00.000-08:00

It seems that banks are continuing to be extremely slow and difficult to deal with on modifications, even though the HAMP guidelines were published almost 9 months ago. I see many clients come in that may have tried a modification on their own or through a company, only to obtain no real relief. Many banks will give a denial, but then tell the homeowner to resubmit the exact same paperwork to be re-reviewed. This is only going to result in yet another denial unless something has changed in terms of financial ratios and the homeowner is kept is more months of frustration and delays.

The problem, as discussed in my do it yourself guide, is that homeowners often do not give the banks what they want to see. The other problem is that many homeowners are in over their heads and the terms a bank might give them will still not help, even if they can actually get approved.

In many cases, homeowners can keep their home through a Chapter 7 or 13 bankruptcy filing. This also helps the homeowner reduce other debts at the same time. The homeowner can still keep certain property and vehicles, so unless the homeowner was planning on buying a major item in the next 2 years, a bankruptcy filing can be the most effective way to get a fresh start.

A short sale (where the bank allows you to sell your home for less than what is owed) is also a good alternative. The banks will take tremendous losses in the process and the homeowner is no longer liable for a huge mortgage. It will take a few years to get bank into a position to purchase, but with the large number of vacant properties available for rent at a reasonable price, it shouldn't be that much of a concern.

For more information, contact us at
http://www.loanlawyermodification.com
Chris Barsness

Wrongful Foreclosure Class Action Lawsuits

2009-10-23T08:43:00.000-07:00

Our firm is currently examining potential claims for certain unfair business practices involved when home lenders or servicing companies foreclose and sell a house while they were telling the homeowners they were going to work with them to save their homes.

Countrywide already settled with the California Attorney General for almost $30 million for some of its lending practices and wrongful foreclosures. Unless the homeowner takes the settlement money offered to them and signs the release of claims, they can still pursue their own independent lawsuit. Most homeowners do not have the funds to spend thousands of dollars and the next year of their time suing a lender.

Our firm is in the process of analyzing claims in a class action lawsuit against some of the major lenders for their wrongful business practices. If the cases are strong enough, we will be taking these cases on a contingency basis, which means at no initial cost to the homeowner. We only get paid based upon a percentage of whatever we either win at trial or obtain in a settlement.

Shortly, we will be announcing an online portal where homeowners can submit their story to see if they may be eligible to be included in the class action lawsuit.

Chris Barsness, Esq.

http://www.loanlawyermodification.com

New California Loan Modification Law

2009-10-12T17:17:00.000-07:00

The governor took action over the weekend on two pending bills regarding loan modification. AB 764 was a tough measure with various restrictions, but it was vetoed. SB 94 was signed into law October 11th and is effective immediately as urgency legislation.

SB 94 essentially prohibits anyone (including an attorney or real estate agent) from collecting any fees to perform a loan modification or forbearance until the service has been completed. It also prohibits obtaining any security to assure payment and obtaining a power of attorney. Even if the person assisting you with a loan modification is willing to wait to get paid until the service is done, without a power of attorney, the homeowner will have to do all the work with the lender themselves. Attorneys often take deposits called retainers up front, but do not bill the client until the work is performed. This assures that the bills will get paid; however, the broad language in this bill implies that attorneys cannot collect a retainer to secure payment.

AB 764 was much tougher and required payment be collected only after the modification was successful, so even if the work was done, if it didn't go through, one couldn't collect.

Without a power of attorney or deposit to assure payment, our firm will no longer be taking new cases for loan modifications. We will provide related legal services for foreclosure relief, bankruptcy, wrongful foreclosure, and can provide a consultation to help homeowners pursue a modification on their own. This consultation comes with a copy of our self-written how to guide for performing your own modification.

Unfortunately, the law intended to protect consumers went too far in making it nearly impossible for a homeowner to get even legal assistance in the process.

Chris Barsness, Esq.
www.loanlawyermodification.com

Were you scammed into a loan modification?

2009-10-08T11:11:00.000-07:00

A large number of homeowners that have either tried on their own or hired companies or attorneys to try to get their home mortgage loan modified have been or will be rejected due to the amount of other debt they have. Some of these companies or law firms may have let greed cloud the judgment of what is in the homeowner's best interest.

If the homeowner has a large amount of credit card or other debt, many lenders will reject them for this reason. These are essentially being looked at like a refinance, if you don't have regular income or have large other bills, they will not approve you. They don't really care that it is your home or that you want to keep it, it is a matter of probability that you can make the payment if they work with you.

This is not to say that you should not try to get a modification, but realize that the number of actual modifications or trial plans in existence reported to the government is very low, so lenders are not just giving them away as some would make you believe.

In many cases, these homeowners would have been better off pursuing a bankruptcy from the beginning. It is still possible to save your home in a bankruptcy and due to the current economic climate, bankruptcy is not as much of a stigma as it has been in the past.

I have been approached by numerous potential clients after they paid and hired a law firm to try to modify their loan. Looking at their financial circumstances, it is clear from the start that they were never going to be qualified for a modification. In these cases, there are other options that should be considered, including a short sale, deed in lieu of foreclosure, or bankruptcy, that may be a better option and in the best interest of the client. Unfortunately, many of these companies or law firms may have simply been motivated by greed, not what is in the best interest of the client. In fact, the majority of people I speak with who hired a law firm never even talked to an attorney, ever!

All of our cases have always been reviewed by an attorney to determine what is in the best interest of the client. In some cases, even people who might qualify for a modification are still denied by the lenders. A homeowner needs to assess all possible options and not assume that a lender is on their side to keep them in their home.

A bankruptcy can be a fresh start to help people get back on their feet and, although every case can vary, it is possible to keep your home in a bankruptcy.

Although some of these companies may have shut down and disappeared with your money, it may be worth investigating to see if they really provided the service you paid them for, in which case you may be able to sue to get your money back or for other damages.

Chris Barsness, Esq.
http://www.loanlawyermodification.com

Loan Modification Do It Yourself Book Now $99

2009-10-01T09:52:00.000-07:00

In an effort to help homeowners in financial crisis, we have decided to discount our e-book on foreclosure relief and how to do your own loan modification to just $99.

It is written by a real estate attorney who has been doing loan modifications in California throughout the foreclosure crisis, but can apply to any homeowner throughout the United States.

This book was written to provide homeowners with some basic concepts surrounding mortgages, foreclosure, loan modification, and alternatives to foreclosure. It provides the tools necessary for homeowners to do their own loan modification. Despite some companies proclaiming they have a 99% success rate in loan modifications or saving your home, I can tell you that from my experience, there is no secret sauce that guarantees any specific result. You simply need to have the right information to provide to the lender to in the way they want to see it.

Here in California, many of the companies, law firm, or real estate licensees that were making all kinds of promises or guarantees of success are now out of business with some being investigated by the Federal Trade Commission, the State Bar, Attorney General, and FBI. With the passage of recent legislation in California, it has made it virtually impossible for our firm to assist homeowners in the process of loan modifications; therefore, I have written this guide to give you some insight into how the process works and how you can do it yourself.

Our firm will continue handling real estate and bankruptcy matters and also offer a consultation with a real estate attorney to go over your legal options, review your financial situation, and to come up with a strategy to accomplish the best foreclosure relief option. It includes a copy of the do it yourself kit and is for a flat fee of $500.

To order, you can order from http://www.loanlawyermodification.com/loan_modification_do_it_yourself.htm

Loan Modification Lawyer's Do It Yourself Kit

2009-09-26T09:43:00.001-07:00

We are proud to announce the first publication of our loan modification do it yourself kit. It is a e-book available in MS Word or Adobe Acrobat (pdf) format. The price for this book is $199 and is available for homeowners in any state. It is written by a real estate attorney who has been doing loan modifications in California throughout the foreclosure crisis.

This book was written to provide homeowners with some basic concepts surrounding mortgages, foreclosure, loan modification, and alternatives to foreclosure. It provides the tools necessary for homeowners to do their own loan modification. Despite some companies proclaiming they have a 99% success rate in loan modifications or saving your home, I can tell you that from my experience, there is no secret sauce that guarantees any specific result. You simply need to have the right information to provide to the lender to in the way they want to see it.

Here in California, many of the companies, law firm, or real estate licensees that were making all kinds of promises or guarantees of success are now out of business with some being investigated by the Federal Trade Commission, the State Bar, Attorney General, and FBI. With the passage of recent legislation in California, it has made it virtually impossible for our firm to assist homeowners in the process of loan modifications; therefore, I have written this guide to give you some insight into how the process works and how you can do it yourself.

Our firm will continue handling real estate and bankruptcy matters and also offer a consultation with a real estate attorney to go over your legal options, review your financial situation, and to come up with a strategy to accomplish the best foreclosure relief option. It includes a copy of the do it yourself kit and is for a flat fee of $500.

To order, you can order from http://www.loanlawyermodification.com

Professional Loan Modification Help Is Soon To Be Gone In California

2009-09-18T12:17:00.000-07:00

The California legislature has passed and is waiting for the Governor to sign Assembly Bill 764 and Senate Bill 94. When signed (sometime prior to October 11th), it immediately goes into effect and will all but assure no attorneys, real estate professionals, or companies will be providing any assistance to distressed homeowners who want help in trying to obtain a loan modification.

The bill makes it essentially a crime punishable with jail time to get paid to assist in a loan modification at any time prior to the modification being successful. Having worked in this field for some time now, I can tell you that there is a huge amount of time involved in trying to help homeowners pursue these remedies and there is no guarantee of success.

It is unlikely that any attorney or reputable professional is going to spend months and hours working on a loan modification hoping that if the modification goes through, the client will pay. Attorneys often request retainers (a deposit on future services held in a trust account) to assure that they will get paid because attorneys don't like to spend time in court trying to collect on unpaid bills. Depending upon how the bill is interpreted, it appears to also prohibit getting a retainer (deposit) to secure getting paid in the future. If we knew that lenders would be reasonable and process and approve reasonable loan modification requests, it would be much easier to say "no problem, you can pay me when the process is complete." However, anyone who has dealt with a big bank on these issues knows that there is absolute chaos and little rhyme or reason to why one homeowner gets a terrific result and another gets foreclosed upon. These modifications are voluntary, there is no legal authority to force a lender to modify a loan. I personally handle the majority of work on cases we accept and as a California lawyer, I have seen the abuses and scams that have happened in this industry; however, these bills will make it nearly impossible for homeowners to get any professional help.

Our firm must stop accepting new cases for loan modifications as soon as these bills go into effect in the next couple weeks. We will be able to continue aggressively working on our existing cases, but we will be limited in what we can do to help distressed homeowners that come to us looking for legal or other advice.

We will try to provide solutions to homeowners that do not violate this new law and to that end, we will provide a foreclosure relief consultation on a fixed $500 fee basis. This will include:

1) a review of the borrowers current financial situation,
2) a review of the status of any potential foreclosure action,
3) advice and instruction on the foreclosure process and their legal rights,
4) advice on potential strategies to lower their debt, whether mortgage, credit card, or other, and
5) a copy of our instructional book on how to do a loan modification on your own.

We will not be able to negotiate, arrange, or attempt to arrange for any loan forbearance or loan modification on your behalf, but we will try to give you the tools to accomplish this on your own.

In addition, we will continue to accept cases for wrongful foreclosure, predatory lending, bankruptcy, unlawful detainer, real estate transactions, real estate litigation, or other real estate issues on our normal hourly fee basis.

We will be announcing the release of this package and instructional book shortly and wish everyone luck in their process to save their home.

Chris Barsness, Esq.
Law Office of Barsness & Cohen

Loan Modification Money Back Guarantee, What If They Can't Pay You Back?

2009-09-14T16:16:00.000-07:00

Many potential clients ask whether our firm guarantees certain results or gives a money back guarantee if a loan modification doesn't go through. We do not because we know that we provide the best legal representation we can to find and aggressively pursue the best legal option for our clients. Not everyone can get a loan modification and an attorney cannot force the lender to approve someone.

I was quite shocked to hear that a law firm in San Diego that offered a money back guarantee sent its clients a notice that they are now insolvent. The Alliance Law Center in San Diego sent letters to existing clients and posted the letter on their website: www.alliancelawcenter.com.

So now people who paid thousands of dollars with a "money back guarantee" are being told that there is no money to even work on their case, much less give a refund. Never mind the contractual issues of their obligation to give the refund, what about their ethical duty as a licensed California attorney. Those fees were not earned and you cannot just close up shop and tell people to arrange to get their file back or hire another attorney.

Anyone who has been in this situation should contact the State Bar of California.

Chris Barsness, Esq.

www.loanlawyermodification.com
www.labusinessadvice.com

Indymac - No Foreclosure Moratorium

2009-08-12T09:27:00.000-07:00

Beware- If you think Indymac aka OneWest Bank is willing to work with you and will halt foreclosure proceedings, you are wrong! Indymac is now stating that as of August 5th, they will no longer postpone any foreclosure activity, even if your case is in review or even if you have been approved for a modification. It makes no sense that if they claim to be working with borrowers and a borrower has been approved for a modification, that they would go ahead and sell that person's house while the paperwork may still be on its way in the mail to the borrower.

All the media hype about moratoriums on foreclosure and the banks are willing to work with borrowers is complete B.S. President Obama probably thinks that a federal savings bank such as Indymac is actually working to keep people in their homes, oh how wrong that is!

The US is going to end up with 50% of the houses out there vacant and owned by the banks. This will do nothing but make things worse for our economy. I can't tell you how many homeowners come to me telling me that representatives at the lender told them to miss a few payments, then call back and they could help them. This just puts the borrower behind and while they use this excess money to help them live or pay down other debts, the lenders come back and chastise borrowers for not have a bunch of money in savings. Now the borrower is farther behind and the lender starts foreclosure proceedings, claims to be willing to work with people, and then sells the house from underneath you while you are being told your case is being reviewed! Is there some kind of conspiracy out there against homeownership? Everything I see on a daily basis makes no sense from a legal or business standpoint. Corporate greed got the lenders into these positions, but I can't figure out what logic there is in taking over all these properties. Maybe there is some other corporate greed that I am not seeing.

So what is one to do? You must act quickly and early in the process to try to get a signed modification agreement. If you can't get anything done, realize that renting is not such a bad option and there are many reasonably priced rentals out there.

This whole housing crisis makes me sick to my stomach.

Foreclosure Legal Pitfalls

2009-07-21T16:32:00.000-07:00

One of the biggest advantages to hiring an attorney to assist a homeowner with foreclosure relief or loan modification is the fact that there are numerous issues people are unaware of that, if not handled properly, could result in making their situation worse.

Remember that your lender is often taking computer notes and usually records calls. Although there are issues regarding the legality of recording phone calls in California and its potential as evidence in a case, it is still something that could come back to haunt homeowners.

Here is just one example: Let's say you purchased your house 3 years ago and told your loan officer or broker that you made a certain amount per month. The broker may have done what is called "stated income" which does not require proof of income, such as paystubs. Some borrowers may have heard or even been told by their broker that they can exaggerate or increase how much they make because it is not verified by the bank, thus allowing them to qualify for a more expensive house. Whether you intentionally increased ("fudged") your income or your broker may have done it for you, if you later tell your lender how much you were really making at the time or accidentally tell them you may have gone a little too high on what you actually make, you may have just given the lender the leverage it needs against you. "I shouldn't have even qualified for the loan because I didn't really make that much." You were likely in a non-recourse loan in California, which means you have no personally liability. The only thing the lender can do is to take back the home, they can't sue you for any missed payments, decrease in value of the home below what you owe, etc. Now suddenly the lender can sue you for fraud in connection with the original loan. Without realizing it, you opened yourself up for personal liability.

This is only one of a number of small legal issues that many homeowners don't understand. Lawyers serve as an intermediary to take the emotion out of the issues and understand the potential legal issues out there.

I am often asked by potential clients what exactly I do for homeowner that they couldn't do for themselves. Many people think it is just a matter of calling the lender and faxing over some bank statements and tax returns. Yes, that is part of the process, but remember that the banks spend millions of dollars per year on law firms and lawyers. They have an army of lawyers working for them to be sure they protect their financial assets. Homeowners should understand that banks see numbers not people and they will use any potential legal edge possible to be sure to maximize their profits.

CA Foreclosure Activity Remains High Despite Moratorium Efforts

2009-07-19T11:55:00.000-07:00

The number of new notices of default recorded in California rose to approximately 46,000 in the month of June up from 42,000 in the month of May. That number is up from approximately 10,000 2 years earlier. It is too early to see what effect the California foreclosure moratorium law will have in California, but due to the numerous loopholes in the law, it is unlikely that it will have any effect.

Although lenders have ramped up efforts and staff to implement loan modifications, they are still moving the foreclosure process forward even while reviewing a borrower for a potential modification. Borrowers must move quickly to pursue all legal options because the lenders will move forward with scheduling the sale of their home despite their claims that they will work with them.

It is likely that the number of notices of default and notices of sale will continue at their existing levels for the rest of this year.

http://www.loanlawyermodification.com

Victim of No Results or Scam Loan Modification? Steps to avoid scams.

2009-07-10T07:57:00.001-07:00

I can't tell you how many of our clients have already paid thousands of dollars to a loan modification company or a loan modification law firm or lawyer, only to have nothing happen. In some cases, the client's home has already been sold and they don't even know it until they get a notice of eviction (3 day notice to quit) on their door. There are reputable companies and law firms/lawyers out there putting forth efforts to save homeowners, but there are many that are simply greedy. They pile on as many cases as possible and have legal assistants, paralegals, or former loan officers do all the work.

These companies and law firms may not realize the potential liability associated with case overload. The loan modification arena is a very tricky one. Lenders may tell an assistant that they are postponing a foreclosure, but the trustee moves forward with the sale. There could be certain duties owed to the client and failure to exercise the proper amount of care can result in liability for negligence.

In addition, the State Bar of California and California Attorney General are dedicating significant amounts of staff to investigating and prosecuting anyone who ventures outside the ethical and legal bounds in search of getting rich. There have already been several loan mod companies shut down, but there are also loan modification attorneys that should be shut down. I have personally checked up on some companies advertising as loan modification lawyers here in southern California, only to find that some are not even licensed to practice law in California, have large histories of disciplinary actions from the state bar, or have been working in a completely unrelated field until 3 months ago when they suddenly became a trusted loan modification attorney.

In order to protect yourself, here are a few words of caution:

1) Anyone who tells you that you have to have an attorney to modify your loan is not telling you the truth. You can do it yourself; however, there are many legal issues involved in the process, so you could be doing yourself a disservice to not at least speak with an attorney before moving forward.

2) Beware of "attorney-backed" or "attorney-affiliated" companies. The state bar has already issued an ethics alert stating that these types of companies are not acting within the ethical bounds of the state bar here in California. I don't know exactly what these words mean, but my understanding is that they have an attorney who may work for the company or is somehow connected to the company, but they never actually review or get involved in your case ever.

3) Do your homework on law firms. There are confidentiality and ethical issues involved in giving guarantees, success rates, and prior cases results, but the attorney or firm should be able to give you an idea how long they have been working in real estate law and what type of experience they have. For example, have they ever gone to court and gotten an order to stop a foreclosure, have they represented clients in bankruptcy court so they are familiar with these interrelated issues, have they actually filed lawsuits for predatory lending, have they postponed existing trustee sales? If you never speak with an attorney at the firm when you are looking to hire them, do you really think an attorney is aggressively going to work on your case? Would you ever go to the doctors office for a serious condition and never actually see the doctor, just do whatever the nurse or assistant tells you to?

If you feel that you have been a victim of these types of scams, you may have legal rights you can pursue.

Chris Barsness, Esq.
888-881-6591
Law Office of Barsness and Cohen
http://www.loanlawyermodification.com

Owners of Rental and Investment Properties Must Act To Protect Themselves

2009-07-01T07:45:00.000-07:00

There are thousands of owners of rental and investment properties that are facing decrease in rental income or other financial hardships. Although they want to save the property, it may not feel like it is as pressing of an issue as their own home where they live. However, if you have tenants, this raises another potential issue for liability. If the lender forecloses on the property, they may do a trustee sale in which they will not be able to go after the owner for personal liability for any unpaid payments or a difference between the sale price and what was owed. This does not mean that the owner is free to just let the property go. Obviously there are potentially harmful credit impacts, but also the existing tenants have rights. More than likely, they have a written lease agreement with the owner. If they are suddenly served with a notice to move out or be evicted by the new owner after foreclosure, they may decide to bring a lawsuit against the former owner for damages. In fact, if they find that the former owner knew about a pending foreclosure when entering into the lease, they could have a claim for fraud, which will not go away even in bankruptcy.

Even though it is not where you live, owners of rental and income properties must still work to resolve any potential foreclosure of those properties. The federal programs do not include investment or rental properties, but many lenders will still work with you to try to reduce your payment and keep the rental. They will not do this if you don't aggressively pursue any potential option they may have.

Call us today to evaluate your situation.
888-881-6591
Law Office of Barsness & Cohen
http://www.loanlawyermodification.com

Beware Of Scam Loan Modification Lawyers

2009-06-24T19:44:00.000-07:00

The old saying always holds true, "if it sounds too good to be true, it probably is."

Consumers are being advised to search out a loan modification attorney to help them prevent a foreclosure or get a loan modification. There are many out there that advertise on the internet, radio, tv, and send out mailings to homeowners who may have had a notice of default filed against their property. When contacting these firms or individuals, borrowers should always do their homework. If you are made all kinds of promises of the result of your case, that is a warning sign. Attorneys have certain ethical restrictions regarding making claims about results or guarantees. Even if someone guarantees your money back if they aren't successful, ask yourself if the couple months that you waited while the person did nothing and gave you your money back does you any good. The clock is ticking when it comes to foreclosure and loan modification. The federal incentives for lenders to modify loans are only good for a certain period of time. After then, you are out of luck.

You should also make sure you actually talk to a licensed attorney in the state where your property is located. Property and foreclosure laws vary by state and you should get the advice of someone familiar with local laws.

I have also discovered that there are people who are claiming to be loan modification attorneys that are not even licensed as attorneys. If someone represents that an attorney is involved or handles your case, find out that person's name. You can then check with the state bar to see if they are actually licensed and if they have any record of disciplinary action against them. In California, you can search licensee's status online for free at http://www.calbar.ca.gov

Some attorneys register with a local chamber of commerce or the better business bureau, but the best way to check on an attorney is with the state bar.

There are all kinds of lawyers jumping into the market with little to no experience claiming to be a loan modification lawyer. Do your homework! If you never meet or speak with an actual attorney, do you really think an attorney is handling your case on a day to day basis?

If an attorney has never gone to court to stop a foreclosure or trustee sale, do they have the experience and knowledge on how to evaluate your legal options?

Caveat Emptor! Let the buyer beware.

Chris Barsness, Esq. SBN 222861
Law Office of Barsness & Cohen
Call for a free consultation 888-881-6591
http://www.loanlawyermodification.com

California Foreclosure Moratorium in The California Foreclosure Prevention Act May Not Save Your Home

2009-06-16T15:47:00.000-07:00

There has recently been some discussion in the news about the California Foreclosure Prevention Act. It was originally signed into law on February 20, 2009 by Governor Schwarzenegger, but it is essentially going into effect now. It requires California lenders to add an additional 90 days between the time of filing a notice of default and a notice of trustee sale. Previously, the lender or its trustee had to wait 90 days between the notice of default and notice of sale. This would take it from 3 months to 6 months. However, this is not automatic and it only applies to certain borrowers based more upon who their lender may be.

It only applies if all of the following are true:

1) The loan was recorded between January 1, 2003 and January 1, 2008,
2) The loan is a first mortgage or deed of trust,
3) The borrower occupied the property as primary residence when loan became delinquent, and
4) A notice of default has been recorded against the property.

Even if you fit in this area, you still are not automatically granted the extra 90 days. If your loan was securitized and sold off, it doesn't qualify. Also, if the lender/servicing company has implemented a loan modification program and obtained an order of exemption from the state, they are not required to comply.

Most big banks are going to get exemptions. So far, those that don't have to comply: American Home Mortgage, Carrington Mortgage, Champion Mortgage, Chase, GMAC, Homecomings Financial, JP Morgan Chase, Select Portfolio Services, Selene Financial, US Bank, Vericrest, Wells Fargo, ASC, OneWest (Indymac), First Federal of California, Fresno County Credit Union, Christian Community Credit Union, Provident Credit Union, First Entertainment Credit Union.

Click here for a list of frequently asked questions provided by the California Department of Corporations: http://www.corp.ca.gov/FSD/faq/CFPAConsumer.asp

Borrowers should also realize that even if they get the extra 90 days under this provision, it does not guarantee they will get a modification.

For a review of your situation, contact us for a free consultation.

Chris Barsness, Esq.
Law Office of Barsness & Cohen
http://www.loanlawyermodification.com

Now Is the Time to Modify Your Loan

2009-06-11T15:09:00.000-07:00

After months of legislative changes, bank takeovers, and servicing company delays, now is the best time to try to get your loan terms changed or save yourself from foreclosure.

The new guidelines from the Obama plan have been implemented and are being utilized by most lenders and servicing companies. The servicing companies have ramped up their staffing and begun training staff on how to deal with the volume of modification and other requests by homeowners. Most servicing companies are still taking 30 to 60 days to process a modification request, but they are all starting to request the same documents and follow similar guidelines. Now that there are more uniform rules to follow, homeowners can have a better idea on whether they might qualify for a modification.

Homeowners should beware though if your loan is already in foreclosure! Some lenders have simply decided that unless a homeowner in serious default or who tried unsuccessfully to modify their loan can prove a new ability to pay, they will not even discuss anything except a walk away from the property. In this situation, they might be willing to pay cash to the homeowner to execute a deed in lieu of foreclosure and move out in a timely fashion. This is better for the homeowner's credit than a full foreclosure and eviction proceeding.

If you want more information, please contact us for a free consultation.

Chris Barsness, Esq.
Law Office of Barsness & Cohen
http://www.loanlawyermodification.com

Mortgage Rates Jump

2009-06-02T17:46:00.000-07:00

Some of you may have notices that mortgage rates have jumped substantially in the last few weeks. A 30 year fixed rates averages over 5.25% when it was below 5% only a few weeks ago.

So how does this affect the loan modification process? Your lenders are watching rates as well. A modification is similar to a refinance, so the prevailing interest rates can affect what the lender is willing to do. Although the Obama Making Homes Affordable Plan discusses looking to getting homeowners into a payment that is 38% or 31% of their gross monthly income through interest rate reductions, extension from 30 to 40 years to pay, or even principal reduction, lenders also worry about fixing a rate too low.

It would appear that this recent increase in rates may only be temporary, but it is hard to tell. The 30 year fixed rate trends closely to the yield on the 10 year US treasury bond which went up significantly over the last few weeks. Some speculate that this is due to the increased demand for bonds; however, the yield goes up when the price goes down. Normally higher demand would tend to increase the price, and thus, the yield would go down. This increase in yield may simply be a correction to what its market value should have been or show an indication that the economy is actually growing and in recovery.

We will simply have to wait and see.

Lenders Pay Cash For You To Leave Your Home

2009-05-21T09:48:00.000-07:00

Many homeowners are unaware of the options that they may have when they are delinquent on their home loan. They hear about loan modifications and think that this will automatically save their home and is the only option they have. Many homeowners simply let the bank foreclose and simply walk away from their home. You should always know all your rights before making any decisions!!

Depending upon where you are at in the foreclosure stage, your lender may have a financial interest in you leaving your home quietly and quickly. Often lenders who see homeowners that are over 9 months delinquent or who have tried to do a loan modification and failed decide that they are simply going to move forward with foreclosure. They take into account many factors, but keeping a good person in their home they have lived in for 30 years is not one of them. It all comes down to the profit and loss, the almighty dollar!

Even in non-judicial foreclosure, which, here in California is a trustee sale of property, the bank has to incur substantial costs and time delays to foreclose. The lender looks at the costs and is often willing to pay cash to get a deed in lieu of foreclosure. This simply means that you agree to turn over the home to the bank and walk away at a certain time. This saves the lender the costs of paying the trustee to send notices, schedule the sale, attend the sale, transfer a trust deed, and then go to court to evict the homeowner. Even if your lender has taken title at a trustee sale and are entitled to immediate possession, they cannot simply go in and change the locks to force you out. If you occupy and are still in possession of the house, they have to serve you with a notice to quit and then go to court to get a court order to get you out. The lenders will often pay what is called "cash for keys" to avoid hiring attorneys and going to court to force you out.

Often the right negotiations and key pieces of leverage can get homeowners thousands of dollars from the lender that can help them start a new life.

We handle these types of cases and can assist you in obtaining the best possible remedy for your situation.

The information contained above is informational only and only discussed California law, you should consult an attorney in your state to evaluate all your legal options.

Chris Barsness, Esq.
http://www.loanlawyermodification.com

DIY Loan Modification Kit To Be Released

2009-05-21T09:38:00.000-07:00

We will soon be releasing a do it yourself loan modification book that is written by a licensed California real estate attorney. I am finishing the publication that will include an explanation of foreclosure and loan modification, as well as explanations of the recent governmental programs instituted by the Obama administration and US Congress. Although it is best to consult with a licensed real estate attorney in the state where the property is located, this book will give you general guidance as to how to try to modify your loan and explain your options.

Many homeowners who come to me haven't even tried to contact their lender or have given up too easily. The worst thing you can do is nothing! Our firm handles loan modifications, deed in lieu of foreclosure, short sales, and bankruptcy; however, for the homeowner who chooses not to hire an attorney, this will assist in trying to get it done on your own.

Anyone interested in the book can contact us by email so that we can send you more info when the book is released.

Chris Barsness, Esq.
info@loanmodificationlosangeles.net
http://www.loanlawyermodification.com

Homeowners Must Act To Save Their Homes From Foreclosure - There is no foreclosure moratorium!

2009-05-19T16:28:00.001-07:00

May 19, 2009- As part of the Obama Helping Families Save Their Homes Act of 2009, Congress provided guidance to loan holders, servicers, and homeowners in dealing with potential foreclosure or a foreclosure moratorium.

The legislation provides that Congress feels that lenders and servicers of mortgages should not start foreclosure proceedings or foreclosure sales on a homeowner's primary residence until the foreclosure provisions of the recent plans have been fully implemented.

Congress also states that they feel that the homeowner should also keep a home that may be in foreclosure in good repair, not allow damage to occur to the property, and should respond to the servicer or holder of their loan to requests during this foreclosure moratorium.

Homeowners should beware because this is not a federal foreclosure moratorium, but only sets out the general feelings of the US Congress and duties they think should be imposed. Your lender or servicing company can and will still move forward with foreclosure, so you must act to save your home. These are just guidelines and recommendations. Do not assume this foreclosure moratorium discussion bans lenders from foreclosure, trustee sales, or evicting you from your home!

Chris Barsness, Esq.
Law Office of Barsness and Cohen
http://www.loanlawyermodification.com
http://www.loanmodificationlosangeles.net

Congress approves Helping Families Save Their Homes Act of 2009

2009-05-19T15:56:00.000-07:00

May 19, 2009- Congress passed the Helping Families Save Their Homes Act of 2009 sending the legislation to President Obama for signature. This program expands the previously announced Obama Making Homes Affordable and Homeowner Affordability and Stability plans. Although the provisions that would give bankruptcy judges the power to cram down mortgage in bankruptcy proceedings was absent, the legislation adds more incentives to lenders to keep people in their homes with reasonable payments through mortgage modifications.

The act expands the number of homeowners who will be eligible for loan modifications. These programs can extend mortgages to 40 years, reduce interest rates, and reduce the principal on both first and second mortgages for a person's primary house. If a home that has a modified loan under this program is sold within the first 5 years after the modification, the mortgage holder (lender) gets anywhere from 10 to 90 percent of any equity accumulation from the net sales proceeds.

Since the plan gives the loan servicer (who is usually the only person you can negotiate with when it comes to your loan) a safe harbor when entering into certain loan modifications, workouts, or other loss mitigation plans, this should help push servicing companies to worry less about liability in modifying loans and more about helping homeowners.

The legislation also extends the increased Federal Deposit Insurance Act (FDIC) coverage limit from $100,000 to $250,000 from the end of 2010 to the end of 2015.

Chris Barsness, Esq.
Law Office of Barsness and Cohen
http://www.loanlawyermodification.com
http://www.loanmodificationlosangeles.net

Obama modification plan working

2009-05-14T10:15:00.000-07:00

The administration announced today that 55,000 loans were modified so far under Obama's making homes affordable plan. Although it took weeks and even months for the servicing companies to implement the programs that were expanded to apply to second mortgages, the lenders now are beginning to approve and process the applications.

In addition, the administration wants to expand the program to help those who are not approved for a modification to obtain assistance with a short sale or deed in lieu of foreclosure by giving lenders incentives to work on these alternatives to foreclosure.

"If a modification is not possible, we are also announcing steps to encourage the quick private sale or voluntary transfer of property, which will save homeowners money and protect their financial future," said Treasury Secretary Geithner. "These are critical steps in stemming the foreclosure crisis and stabilizing the housing market, both of which are critical to our economic recovery."

This is a very positive sign that although the number of foreclosures is rising, there is help out there for homeowners.

For more information, visit us at http://www.loanlawyermodification.com
Law Office of Barsness and Cohen

California Foreclosures Accelerate

2009-05-13T13:44:00.000-07:00

Industry source, RealtyTrac, announced that a record number of foreclosures went forward in April. A total of 342,000 homes received notices of default, auction notices or underwent bank repossessions in the month of April.

California easily outpaced every other state with with 96,560 filings, which is not a surprise to me. In our practice defending homeowners, the banks have accelerated the pace with which they are deciding to simply take over properties, even if they are underwater. Despite these bleak numbers, record numbers of loan modifications are still going through. The guidelines of the Obama Making Homes Affordable Plan have pretty much been implemented by most banks and they are processing applications quicker than in the past. The banks also seem to be more willing to work with people at most stages of delinquency, even those that are current on payments.

The trouble is that most homeowners wait until they are approaching a trustee sale date that is weeks away and it is virtually too late to help them. We have fought in court and stopped trustee sales literally hours before the sale, but that is not always the case. Usually lenders need several weeks prior to a trustee sale to review documents and voluntarily agree to postpone the sale.

Don't hesitate, there are programs available for many homeowners, but waiting too long can result in your lender writing it off for foreclosure sale.

If your home is about to or was just sold at a trustee sale, the lenders may be willing to pay you to turn over your home in a timely fashion and avoid the lender having to proceed with an unlawful detainer (eviction) proceeding in court. There are options available.

If you would like a free consultation, please contact us at 888-881-6591 or visit http://www.loanlawyermodification.com
You can also read more about the foreclosure numbers at www.realtytrac.com

2009-05-01T17:02:00.001-07:00

Press Release: Obama Foreclosure Relief Loan Modification Program Defeated

Obama Bankruptcy Mortgage Cram Down Fails

2009-05-01T12:54:00.000-07:00

April 30, 2009- The second step in assisting homeowners who are in jeopardy of losing their homes in foreclosure was defeated today in the U.S. Senate. The proposed law would have given bankruptcy judges the power to force lenders to modify mortgages on the debtor's home. The so-called "cram down" powers would be useful in adding leverage on the big banks to work with homeowners to avoid a judge ordering a modification. As it is now, the borrower can attempt to re-affirm their debt with the lender to keep their home during the bankruptcy process. They will still be able to attempt this; however, the banks will likely not be as willing to make any kind of changes or modifications to the actual terms. They will likely ask the borrower simply to reaffirm the debt on the same terms they originally had, but adding the unpaid or late payments to the principal.

If you have any questions about bankruptcy, loan modifications, or foreclosure relief, you can call for a free consultation.

Chris Barsness, Esq.
Law Office of Barsness & Cohen, Beverly Hills, California
888-881-6591
http://www.loanlawyermodification.com
http://www.loanmodificationlosangeles.net

No Foreclosure Moratorium

2009-04-22T11:01:00.000-07:00

Beware of the news in the last several months about lenders or the state instituting a halt on foreclosures! Although California has passed new legislation to delay potential foreclosures, the banks are moving forward at record speed with trustee sales that may not be legal. There are new procedural requirements under California Civil Code Section 2923.5, as well as the duties places upon loan servicing companies under Section 2923.6 to maximize net present value.

Many banks will not postpone a trustee sale to work with homeowners if it is within a few weeks of the trustee sale date, especially if they have postponed the sale one or more times in the past. You need to act quickly to prevent the trustee selling your home. Our firm goes to court to obtain a judge's order to stop the trustee sale, but we need ample time to prepare the necessary paperwork, get a judge to sign the order, and serve the trustee with the order prior to the sale.

If you would like more information, you can receive a free consultation by calling us at 888-881-6591 or submitting your case online at http://www.loanlawyermodification.com

or http://www.loanmodificationlosangeles.net

Mortgage Principal Reduction Necessary

2009-04-13T15:55:00.000-07:00

California Loan Modification Law Firm Urges
Congress and Obama Administration to Pass
Mortgage Principal Reduction Legislation

LOS ANGELES, CA—February 17, 2009— The Law Office of Barsness & Cohen announced that it supports the current efforts of the Obama administration and democratic lawmakers to pass urgently needed legislation to protect homeowners from the wave of foreclosures throughout the country. They also urge that mere interest rate reductions through mortgage modifications will not be enough to provide a long term solution for homeowners that owe significantly more than their homes are worth.

“We feel that reducing the interest rate or other efforts at loan modification are a step in the right direction to avoid foreclosure; however, this will not help those that hold negative equity in their homes,” said Chris Barsness, Esq. “During our free initial consultations, potential clients are disappointed to hear that a bankruptcy judge’s hands are essentially tied when it comes to their biggest debt, their home mortgage. By allowing bankruptcy judges and forcing lenders to modify the principal owed on a home loan to the home’s current fair market value, homeowners would see significantly reduced monthly payments. This will also result in homeowners having equity in their homes in the near future that could be used to open up the illiquid credit markets. We understand that this is a sweeping reform, but in these tough economic times, drastic approaches must be taken.”

For more information, contact them at: (888) 881-6591 or at http://www.loanmodificationlosangeles.net

Obama versus big banks

2009-04-13T15:53:00.000-07:00

Big Banks versus Obama, who will win the foreclosure dilemma?

February 17, 2009- President Obama is set to outline the details of his housing foreclosure relief package this Wednesday in Phoenix. He will likely face significant republican opposition to any measures to modify the principal on home mortgages. Proposed measures that could be taken are: 1) to change the law to allow bankruptcy judges to modify the principal owed on a home loan during bankruptcy proceedings, or 2) force the banks to reduce the principal owed to the home’s current fair value and waive past due payments. Although the big bank CEOs claim to be making every effort to help homeowners, very little, if any, are likely willing to actually reduce the amount of the loan or waive payments. Part of this may have to do with huge potential losses that may not yet be recognized on their books.

The mortgage banking accounting rules can be somewhat complex and confusing, but depending upon how the mortgages or mortgage backed securities are classified, they are either accounted for at amortized cost or under a fair value calculation. The fair value calculation is supposed to result in an accurate current value of the mortgages or mortgage back securities held by an institution, with resulting unrealized losses expensed on a regular basis. If they are held to maturity, they can be held at cost, i.e. approximately the original loan amount. Therefore, any mortgages or mortgage back securities classified as held to maturity are held against collateral that, based upon our current market, have dropped in value significantly. If those mortgages eventually go to foreclosure and the collateral is sold, the difference between the loan amount and the sale price will be recognized as a loss. How many potential problem mortgages are being held to maturity with huge unreported losses? A reduction in the principal of the loan and waivers of delinquent payments would result in losses that would be recognized currently, perhaps beyond what has been recognized, even under fair value accounting.

What happens if the banks foreclose on properties, but don’t sell them to avoid taking the losses until the market bounces back? I don’t think we can say we know the full extent of the problem for now.

Some homeowners feel that this would wrongly benefit homeowners who bought at too high a purchase price or got in over their head with adjustable or hybrid mortgages they couldn’t afford. However, there are federal and state laws that have been implemented to protect consumers from predatory lending and deceptive practices. Many lenders relaxed underwriting standards, deceived or manipulated consumers, and pushed what they knew were risky loans in order to grab a larger market share.

A reduction in principal is not necessarily a win-win for the consumer. Unless tax laws are changed, in certain circumstances, the reduction in the loan amount can be classified as “loan forgiveness income.” For example, if a homeowner gets their mortgage reduced from $400,000 at 8% interest to $300,000 at 6% interest, their payment will go down by over $1,100 per month, but they will have to report an additional $100,000 in income for that tax year.

Although we hope our Congress and the President will come up with a solution to the current problem without giving in to any big bank special interest pressure. The simple fact is that homeowners can’t wait for months or years for new legislation to take place. They need to protect their homes immediately. The banks have the legal right to pursue foreclosure and will continue to do so. There are legal steps that homeowners can take to protect themselves, such as loan modifications, forbearance plans, deeds in lieu of foreclosure, short sales, or bankruptcy. A licensed attorney can provide a comprehensive review of your situation and guide you to the right solution.

The Law Office of Barsness & Cohen is a California based law firm providing legal advice and solutions for clients facing foreclosure or other real estate issues. We assist clients in the state of California for a flat fee in obtaining the best possible legal option for foreclosure relief, including loan modifications, short sales, bankruptcy, and other alternatives. We are a Debt Relief Agency as defined by Federal Law. We help people file for relief under the Bankruptcy Code.

Call us or visit online today for a free initial consultation at: (888) 881-6591 or http://www.loanmodificationlosangeles.net

http://www.loanlawyermodification.com