California Bankruptcy Attorney Blog

Despite the best efforts of homeowners and government agencies, loan modification efforts are failing at major lenders, USA Today reported June 19. The newspaper said homeowners who call their lenders for help are facing unreturned phone calls, bureaucratic mistakes and denials for no apparent reason, the newspaper said. This delays loan modifications for months -- and meanwhile, lenders continue with foreclosures, forcing people out of their homes despite their efforts to handle the situation responsibly. As a result, the paper said, lenders have foreclosed on more than 1 million homes since the Obama Administration's Making Home Affordable plan was launched, while the plan has modified just over 190,000 loans.

The article tells the story of Woodland Hills homeowners Robin and Craig Doyle, who have been trying for a loan modification through the program since February of this year. Robin Doyle sent her lender, Chase, a 200-page file supporting their application, only to be told a month later to redo it because it had become outdated. In later interactions, the lender told her that her file had been closed by mistake, and that she needed to include information on her homeowners' association fee -- a fee that doesn't exist. After USA Today called, Chase told the Doyles to resubmit paperwork for a fifth time -- then told them they don't qualify for Making Home Affordable because of the size of their loan.

We're surprised to see USA Today suggesting that this problem is limited to people participating in Making Home Affordable. As Riverside County loan modification attorneys, we can testify that we've heard from many borrowers who have been ignored or jerked around by their lenders, including those who aren't using the Obama plan as well as those who are. The trouble is not Making Home Affordable so much as it is the bureaucracy inside the lenders -- who are overwhelmed by demand, reluctant to lose profits and sometimes beholden to investors in securitized mortgages. Red tape may be a fact of life, but when people's homes, savings and credit ratings are threatened -- and the delays are hurting the housing market, as suggested in the article -- lenders need to step up.

Continue reading "Lender Bureaucracy Continues to Slow Mortgage Loan Modifications Under Obama Housing Plan" »

During its next term, the U.S. Supreme Court will hear a case very important to Irvine bankruptcy attorneys like us. As New York Times columnist Adam Liptak reported June 22, United States v. Milavetz, Gallop & Milavetz challenges a provision of the sweeping 2005 changes to consumer bankruptcy that restricts the advice bankruptcy lawyers can give to their clients. As Liptak observes, the issues involved are more directly about free speech than bankruptcy -- but with so many Americans facing financial problems right now, bankruptcy issues are highly relevant.

The challenge mainly concerns a provision of the law that seems to say bankruptcy attorneys cannot tell their clients to take on more debt before formally filing for bankruptcy. According to Liptak, it was intended to prevent attorneys from telling their clients to take on lots of debts right before bankruptcy, with the goal of having it forgiven so they won't have to repay it. This is an acknowledged and illegal abuse of the bankruptcy system -- but it was already illegal (and unethical) for lawyers to advise clients to break the law. Because this provision is so broadly written, the column said, it could also criminalize attorneys for advising their clients to take on perfectly legal debt, such as taking out a low-interest-rate loan to pay off credit card bills.

The federal government has argued that the law shouldn't be overturned because it wasn't intended that broadly. The Fifth Circuit Court of Appeal agreed, but the Eighth Circuit did not. Those cases were consolidated into the case the Supreme Court will hear. The lawyer bringing the challenge, Robert Milavetz of Minnesota, would also like to challenge a provision of the bankruptcy law that requires bankruptcy law firms to advertise themselves as "debt relief agencies," a phrase he finds derogatory and believes is intended to discourage advertising by consumer bankruptcy lawyers.

As you might imagine, our Downey bankruptcy lawyers agree strongly that federal law should not restrict our ability to give our clients advice that's otherwise legal and ethical. It's not difficult to think of reasons why it might be smart for a consumer headed for bankruptcy to take on additional debt. In fact, though debt is not desirable for people facing bankruptcy, it can also be a tool to help them get out of it -- refinancing a home might be one example. Because advising clients to abuse bankruptcy law is already illegal, it's hard to see what compelling interest the federal government has to regulate the attorney-client relationship. We also believe the "debt relief agency" requirement is misleading. Though we are happy to work with ethical non-lawyer debt relief companies, we are not one of them as they are traditionally understood -- we are a Rosemead bankruptcy law firm.

Continue reading "Supreme Court to Hear Case Challenging Bankruptcy Reform Act's 'Gag Rule' Provision" »

The agency that regulates mortgage lenders Fannie Mae and Freddie Mac may allow deeper-underwater homeowners to take advantage of federal foreclosure-prevention plans, Bloomberg News reported June 19. The Federal Housing Finance Agency's change would apply to the refinancing option in the Obama Administration's foreclosure-reduction plan. As things currently stand, homeowners who owe more than 105% of their homes' value on their mortgages are ineligible for the refinancing option. The new ceiling hasn't been decided, but the FHFA director said 125% was one number being considered. The goal is to increase slowing participation in the program, which has already helped refinance 80,000 loans.

The 105% limit was intended to stop abuses by people who took out large loans they couldn't repay. Unfortunately, it also disqualifies many people in volatile housing markets like Southern California, where home values have plunged dramatically from their highs earlier in the decade. According to real estate information firm Zillow, about 20.4 million of America's 93 million homes are "underwater," which means they owe more than the property is worth. An analyst from Credit Suisse said a 125% cap would help 10% of Fannie/Freddie borrowers (who are eligible for the foreclosure-reduction program), leaving out another 4% who are even deeper underwater.

This is huge news for Orange County loan modification lawyers like us. According to March numbers from the Los Angeles Times, nearly a third of homeowners in Southern California are underwater. This change probably wouldn't help all of them, but it would give a substantial number another way to keep their homes. Refinancing is easier to get than loan modifications because the lender doesn't face any loss -- it simply replaces one loan with another. In the best cases, that also benefits homeowners by giving them a chance for lower loan payments and a more stable loan structure. However, because home values have dropped, many homeowners have lost the equity they need to refinance. That's the problem the federal refinancing program seeks to solve.

Continue reading "Federal Housing Regulators Consider Expanding Refinancing Program for Homeowners Deeper Underwater" »

As Orange County mortgage loan modification attorneys, we were pleased to see a June 17 story in the Wall Street Journal underscoring some of the obstacles our clients face when they call their lenders to ask about loan workouts. The article details the duties of Kellina Lawrie, a former mortgage broker who now helps clients with mortgages serviced by J.P. Morgan Chase & Co. get mortgage loan modifications. Despite Lawrie's best efforts, the article said, loan modifications are still difficult and time-consuming for many Chase customers, some of whom face foreclosure while they wait.

Loan modifications take months, the Journal said, because they require substantial paperwork and are processed by a staff that is only now being bulked up to meet overwhelming consumer demand. However, another major part of the problem is the practice of bundling mortgages into securities and selling them as investments. This can make it difficult to figure out who actually owns the loan at issue, the paper said -- and investors have a legal right to object to loan modifications they believe threatens their investment. As a result, all Lawrie was able to offer one borrower mentioned in the article was a forbearance plan, which suspends payments temporarily but can't change payments. Another borrower profiled in the article waited 10 months for a loan modification, and a third is still waiting -- even though Chase is still pursuing a foreclosure.

Stories like these sound all too familiar to Rancho Cucamonga mortgage loan modification lawyers like us. On more than one occasion, we've encountered borrowers who are completely approved for a loan modification -- only to have the deal quashed at the last minute by a veto from investors who own a slice of the mortgage. Ironically, too much protectionism can actually hurt these investors (along with homeowners and lenders), because when loans go into foreclosure, they're unlikely to ever recoup their investments. In fact, a recent OC Register report said foreclosed homes in Orange County were selling for two-thirds of the value of the debt. Loan modifications are not without costs, but borrowers who want to keep their homes and stay out of financial trouble are highly motivated to pay, even if that puts them above market price.

Howard Law LLP has an active mortgage loan modification practice, helping homeowners throughout California remain homeowners, even when they run into financial trouble. We are proud to say that our West Covina loan modification lawyers have helped multiple homeowners change the structure of adjustable-rate and other "exotic" mortgages, lower interest rates and make other changes that kept them in their homes. Unlike the fly-by-night loan modification companies that have suddenly appeared in the past few months, we are a law firm, which means we are licensed professionals who face career-ending consequences for cheating our clients. And because we are Buena Park loan modification attorneys, banks pay attention when we call, because they know a lawsuit could follow.

If you know you need help getting your mortgage lender or servicer to consider changing your loan, you can contact Howard Law today for a free, confidential consultation. You can call us toll-free at 1-800-872-5925 or contact us online.

The Obama Administration's plan to reform how the financial industry is regulated would include substantial new powers to curb abuses in the mortgage industry, Dow Jones Newswire reported June 16. The plan was officially announced June 17 and will likely go through months of debate and restructuring in Congress before it becomes final. However, Dow Jones said an early report on its provisions included an outright ban on certain mortgage industry practices and new regulations for others, intended to give consumers greater information on the decisions they make. The plan also includes the creation of a Consumer Financial Protection Agency, which would have the power to enforce the law and add new regulations.

According to Dow Jones, one key provision of the administration's plan is a requirement for banks to offer plain, conventional loans along with "exotic" and more complex loans. Consumers would still be able to take out the complex loans, but they would have the ability to opt in. The plan would also substantially change the way mortgage brokers do business. Among other things, they would be required to give borrowers the option of taking out the best loan for which they qualify and ensure that those borrowers can afford the loans they do take out -- both areas that experts believe were subject to abuse. The CFPA would be able to ban yield-spread premiums and other practices that incentivize brokers to sell overly expensive loans. And brokers, banks and non-bank lenders would all be subject to CFPA oversight, ending the potentially spotty oversight caused by the current patchwork of state and federal regulators.

The proposal includes many provisions that don't apply to the mortgage industry, including consumer-protection provisions related to credit cards. However, as Chino Hills mortgage loan modification lawyers, we are very happy with this list of the Administration's goals. Because we work every day with financially struggling homeowners, we recognize the need for many of the reforms listed here. For example, as things currently stand, borrowers have no objective way to find out whether a mortgage broker is offering them the best loan they qualify for. During the housing boom, this allowed mortgage brokers and loan officers earn big bonuses by steering consumers into expensive loans. Curbing practices like these allows consumers access to the basic information they need to make an informed decision -- including a decision for the more expensive loan, if they decide that meets their needs.

Based in Anaheim, Howard Law LLP represents homeowners throughout California who need help convincing their lenders to give them a fair and sustainable mortgage loan modification. Our San Marcos loan modification attorneys have successfully negotiated for reduced interest rates, loan restructuring and other major changes. Even if your lender or servicer won't answer your phone calls, we can often get its attention simply because we are lawyers -- and when lawyers call, financial institutions get nervous. In many cases, we've been able to use evidence of predatory lending as ammunition to get clients a better deal. Our goal is always to keep clients in their homes by lowering monthly payments to a reasonable and sustainable amount.

If you're struggling to get your lender to consider a loan workout, the Valencia loan modification lawyers at Howard Law LLP can help. To set up a free, confidential consultation, please contact us online or call us toll-free at 1-800-872-5925.

A state law that took effect June 15 will slow foreclosures for some homeowners and encourage banks to give loan modifications to others, the San Francisco Chronicle reported June 15. The California Foreclosure Prevention Act gives mortgage lenders a choice: Offer borrowers a comprehensive loan modification program or allow an extra 90 days to elapse before foreclosing on defaulted borrowers. The 90-day delay would double the amount of time between default and foreclosure for most borrowers, allowing about six months before a foreclosure could be complete. However, the bill's author, Democratic Assemblyman Ted Lieu of Torrance, said the goal is not to extend foreclosures but to encourage loan modifications.

Under the bill, the loan modification programs lenders offer would have to allow reduced interest rates, extended loan repayment periods or reductions or deferrals of part of the principal. The California Department of Corporations would have the power to approve the plans; a list of participating lenders is available on its Web site. The program is intended to be similar to the Obama Administration's Making Home Affordable program, which offers financial incentives to lenders to modify loans; a spokesperson for the Center for Responsible Lending suggested that the Foreclosure Prevention Act is a "stick" to go with the federal plan's "carrot."

A report from Sacramento's ABC 7 had more on how the bill could affect one homeowner:

As Lake Elsinore loan modification lawyers, we're happy to see state regulators take an active role in the ongoing foreclosure crisis, which has hurt California more than almost any other state. At the very least, the California Foreclosure Prevention Act will give homeowners an extra 90 days to fight a foreclosure or plan for a future that includes one. At most, the Act could make the loan modification process easier for millions of Californians. Even though most lenders say they offer loan modifications, news reports and our own clients have made it clear that many of them actually offer months of delays, unreturned phone calls or meaningless, minor changes. That's a shame, because the right loan modification can save money for everyone in the long run, when foreclosure or bankruptcy is the other option.

The Costa Mesa loan modification lawyers at Howard Law LLP fight for homeowners throughout Southern California who need help to keep their homes. Frequently, clients come to us after their attempts to negotiate a loan workout on their own have failed. Banks pay attention to us even when they won't take calls from their own customers, because we are attorneys -- and that means we can and will sue a financial institution that violates our clients' rights, if necessary. In fact, we have successfully used evidence of predatory lending to help convince banks to give our clients a fairer deal. The goal for our Baldwin Park loan modification attorneys is always to lower our clients' monthly payments to a realistic amount that allows them to keep their homes for the long term.

If you're facing default or foreclosure and you need help to stop it, call Howard Law today for a confidential and completely free consultation. You can contact us through the Internet or call 1-800-872-5925.

As San Bernardino County bankruptcy attorneys, we were already all too aware that medical debt is a leading cause of consumer bankruptcy in America. That statistic comes from a 2001 study, released in 2005, which found that about half of consumer bankruptcies in five states were caused by medical bills, even among insured people. Now, the authors of that study have updated and expanded it, National Public Radio reported June 10, and found that medical bills are now responsible for 62% to 69% -- about two-thirds -- of all bankruptcies. And nearly 80% of those who did go bankrupt because of medical bills had insurance.

The study, published in the American Journal of Medicine, was authored by researchers at Harvard Medical School, Harvard Law School and Ohio University's Department of Sociology. They surveyed a random group of 2,314 people who filed for bankruptcy in 2007. The result: Bankruptcies attributed to medical causes rose by an alarming 49.6% between 2001 and 2007. Most of the people they studied had medical insurance and were well-educated homeowners with middle-class incomes. In the vast majority of cases, medical bills were more than 10% of pre-tax income; in others, debtors mortgaged their homes to pay medical bills or lost income (and health insurance) because of their illnesses. The authors contrasted this with a 1981 study showing that only 8% of families filed for bankruptcy in that era after a serious medical problem.

The authors' sad conclusion was that medical bills are responsible for a large proportion, even a majority, of consumer bankruptcies -- and that proportion is growing. We're sorry to say that we've experienced this firsthand in our practice as San Diego County bankruptcy lawyers. As the authors of this study note, many people use credit cards to pay their medical bills, which can send them deeper into debt when credit card companies jack up interest rates or lower their credit limits. The situation is also complicated by emotional issues, as co-author Deborah Thorne noted in the NPR interview. Because people feel ashamed or overwhelmed by their debt, some of them delay bankruptcy, increasing their financial problems. As Ventura bankruptcy lawyers, we find this horribly ironic, because if there's one debt no one would voluntarily choose, it's debt from a serious medical condition.

Howard Law LLP represents clients throughout California who are ready to get control of their financial lives through bankruptcy. We represent consumers in both of the most common types of bankruptcy -- a Chapter 7 liquidation and a Chapter 13 reorganization, which allows debtors to hold on to their homes and other large assets. Our Alhambra bankruptcy attorneys can help you decide which is best for your circumstances, stop harassing phone calls from creditors and guide you through the complex process of declaring bankruptcy. If it's appropriate for you, we can also help you resolve your debts without a bankruptcy, through debt settlement services or a mortgage loan modification.

If you're overwhelmed by debt you don't believe you can pay and you know you need help, call Howard Law as soon as possible for a free, confidential consultation. You can reach us toll-free at 1-800-872-5925 or contact us via email.

Salt Lake City's ABC affiliate is ready to help a family of six fight for a mortgage loan modification, the station, the station, KTVX, reported June 8. ABC 4 News has made the Weldons of Park City, Utah the focus of an ongoing series called "Family on the Brink." They started following Clay Weldon and his wife, Julie Weldon, as they dealt with the effects of Clay Weldon's layoff and the ballooning interest rate on their adjustable-rate mortgage. Thanks in part to the station's efforts, Clay Weldon has landed another job -- but now, the family faces the difficult task of negotiating a loan workout with their bank.

According to the report, the Weldons bought their home at the height of the subprime lending bubble and have an adjustable-rate mortgage. That would be a problem even if Clay Weldon had never lost his job, because the interest rate on the mortgage has risen sharply, to 10.5% -- giving them a monthly mortgage payment of nearly $5,000. They used their savings to continue to pay on time, but called their mortgage lender, Wells Fargo, to discuss a loan modification. Like thousands of other responsible borrowers, they were told that the bank wouldn't even consider a loan modification until they were in default. The station reported that they've spent hours on the phone, mostly on hold, trying to speak to someone about applying for the bank's version of the federal Making Home Affordable plan, whose criteria they know they meet.

As Puente Hills mortgage loan modification lawyers, we happen to know that adjustable-rate mortgages are some of the riskiest loans out there, since they allow borrowers to take out loans that they may not be able to repay later. This opens the door to predatory lending by loan officers and others willing to mislead consumers without a lot of experience with mortgage lending. In fact, adjustable-rate loans are blamed in part for the real estate crisis. On paper, the Weldons look like a pretty good candidate for a loan modification -- but apparently, neither a steady income nor the publicity surrounding the ABC 4 News reports is enough to even get their lender's attention, never mind seal the deal on a loan workout.

Howard Law LLP represents people who are just like the Weldons, except without a TV news station to help. Our Rancho Cucamonga loan modification lawyers negotiate with mortgage lenders on behalf of clients who believe they can avoid foreclosure or bankruptcy and stay in their homes if they make some changes to their loans. In many cases -- particularly those involving adjustable-rate loans -- we can use evidence of predatory lending to make sure we have the bank's full attention. Our Santa Ana mortgage loan modification attorneys have successfully gotten lenders to lower monthly mortgage payments by changing the structures of exotic and subprime loans; lowering interest rates; and changing repayment periods.

If your family is struggling to make mortgage payments, or you know you will soon, and you need help taking the next steps, you should call Howard Law for a free, confidential consultation. To set one up, you can call us toll-free at 1-800-872-5925 or contact us via email.

Loan officers at Wells Fargo Bank steered minorities into subprime loans even though they qualified for cheaper conventional loans, the New York Times reported June 6. Loan officers also made openly racist statements at work, former colleagues charged, calling minorities "mud people" who got "ghetto loans" because they don't pay their bills and have bad credit. The revelations came as part of a predatory lending lawsuit filed by the city of Baltimore against Wells Fargo, alleging that the lender's practices resulted in a staggering rate of foreclosures that left homes across the city vacant, especially in predominantly African American neighborhoods, and cost the city tens of millions in services and taxes.

According to the Times, loan officer Beth Jacobson testified that Wells Fargo systematically targeted black customers for subprime loans. This practice, known as "reverse redlining," is a problem for customers because subprime loans have a higher interest rate than traditional mortgage loans. As the Times noted, a difference of just 3% in interest rates translates to $100,000 more in interest payments. Another former loan officer, Tony Paschal, told the court that loan officers earned bonuses for steering customers who qualified for a prime loan to the subprime division. To achieve that, Jacobson testified, loan officer falsified documents and lied about clients' willingness to document their income.

We have already written a bit about reverse redlining after the NAACP lawsuit accusing Wells Fargo and other banks of similar behaviors. While the racist comments are appalling and possibly evidence of illegal behavior, our Riverside County predatory lending lawyers are also concerned about the financial side of the case. People of any color are vulnerable to manipulation by lenders if they are not familiar with the mortgage lending process -- and most people are not. If the allegations are true, these loan officers took advantage of that lack of familiarity, and the lack of regulations requiring full disclosure, to essentially cheat their clients. As a result, clients took on hundreds of thousands of dollars in unnecessary debt, leading in many cases to foreclosures that hurt them, their neighbors and the economy as a whole.

Howard Law LLP helps people who were entrapped by an unscrupulous lender demand justice through Southern California predatory lending lawsuits. Numerous state and federal laws require that lenders fully disclose the terms of loans, treat borrowers of all races fairly and otherwise refrain from unfair or manipulative behavior. If they do not, victims can sue to have the loans declared unenforceable and win back every payment they made on the unfair loans, interest, closing costs and even attorney fees. Our Monterey Park predatory lending attorneys have successfully stopped foreclosures, modified mortgage loans and released clients from onerous financial obligations they would never have agreed to if the lender had been honest.

If you believe you were misled when you took out your loan or refinanced and you're facing serious financial problems as a result, Howard Law can help. To set up a free, confidential consultation, please contact us as soon as possible via email or call toll-free at 1-800-872-5925.

Federal authorities have announced their securities fraud lawsuit against former Countrywide Financial Corp. CEO Angelo Mozilo, the Los Angeles Times reported June 5. The move was expected; Mozilo is also being investigated on criminal charges for insider trading by the FBI and a grand jury in Los Angeles. He is accused of misrepresenting Countrywide's financial health to the public, even as he privately sold off his company stock and told associates within the company that its loans were "toxic" and "poison." Lawyers for Mozilo and two associates, David Sambol and Eric Sieracki, said the allegations were baseless and politically motivated.

Countrywide's stock was valued at $45.03 a share in February of 2007, near the height of the housing bubble. By the end of that year, it was worth just $9 a share; when Bank of America purchased the company in 2008, it was trading at $4.25. Mozilo is accused of making and changing stock-selling plans throughout 2006 and once in early 2007, allegedly to dump shares he knew would soon plummet in value. During this time, the SEC says, Countrywide misled investors into believing that it was writing substantially less risky loans than it did. The "smoking gun" cited in the SEC's complaint was a statement Mozilo made in an email sent in April of 2006, saying "In all my years in the business I have never seen a more toxic product." The specific product he meant was a loan to borrowers with bad credit, requiring no money down. He went on to say "Frankly, I consider that product line to be the poison of ours."

The lawsuit does not allege that Mozilo committed mortgage fraud or predatory lending. However, both practices are widely believed to be responsible for Countrywide's downfall. Countrywide was one of the first mortgage lending companies to fall when the housing market went south; its emphasis on subprime and option ARM mortgages has already become the basis of a predatory lending lawsuit by state attorneys general, including California's own Jerry Brown. As Anaheim loan modification attorneys, we have learned to look very closely at mortgages issued by Countrywide (and now owned by Bank of America). While some of them must be aboveboard and legitimate, we have found that many more originated with misleading statements, manipulation or outright lies by loan issuers and other players in the mortgage lending chain.

Howard Law LLP can use evidence of these tactics to help Southern California homeowners who face default and foreclosure negotiate loan modifications. Even if your mortgage is held by a lender other than Bank of America/Countrywide, will scrutinize your loan and its history carefully, looking for indications of impropriety as well as other ways to convince a bank to grant you a sustainable loan modification. Banks listen to our San Marcos mortgage loan modification lawyers because we are attorneys -- meaning that we can and will sue banks for violating our clients' rights. We have successfully argued for changes to loan structures, lowered interest rates and other changes to loans that help keep families in their homes. Our goal is always to leave you with a lowered, more realistic monthly payment.

If you're facing default or foreclosure and you can't get through to your bank, Howard Law can help. To set up a free, confidential consultation with our Santa Clarita mortgage loan modification lawyers, please call us toll-free at 1-800-872-5925 today or contact us online.

Members of Congress whose districts are especially hard-hit by the foreclosure crisis are picking up the phones to help, the Associated Press reported June 5. The article discusses the efforts of Reps. Elijah Cummings of Baltimore and Maxine Waters of Los Angeles, both Democrats. The lawmakers have taken an active role in helping their districts deal with the foreclosure crisis, using the power of their offices to get the attention of banks after the same banks weren't helpful to constituents.

Cummings has asked lenders to designate someone to work with his office and hired a new staffer to handle that work. He also set up a "foreclosure fair" in his district that brings together troubled homeowners and lenders. Waters, who has been working directly with banks on behalf of individuals, said she has discovered that trying to contact loan services is "an absolute nightmare for anyone." According to the article, she has sat on hold for more than an hour and been transferred multiple times. In two cases, she said, she had to write directly to the CEOs of major banks to get action taken on her constituents' problems. When the homeowner is not grossly delinquent on payments, banks sometimes send her only to a loan officer who demands payment she told the AP.

Our San Bernardino County loan modification lawyers hear horror stories like this every day -- but usually, we hear them from clients. Many clients come to us only after trying to negotiate a loan workout with their lenders on their own, only to be endlessly put on hold, transferred around or told to wait for a call that never comes. Others discover that banks won't even entertain the idea of a loan modification before they go into default -- hurting their credit and their pride. In the meantime, threatening notices and phone calls from the lender keep on coming. It's disappointing, though democratic, that a Congresswoman would get the same poor treatment. Without serious action by banks, homes go into foreclosure and everyone loses -- including the banks.

Howard Law LLP has an active practice in mortgage loan modifications, serving homeowners throughout Southern California. Our Alhambra loan modification attorneys will not sign off on a shoddy loan modification that raises your payments or gets you deeper into debt -- we negotiate aggressively for lowered monthly mortgage payments that help you stay in your home for the long term. Unlike the crop of loan modification companies that have appeared recently, we are legally and professionally accountable for our actions -- we face career-ending consequences for taking advantage of our clients. Our Fallbrook loan modification lawyers have successfully argued for lowered interest rates, new loan structures and other major changes to our clients' mortgages.

If you need a loan modification and your bank -- or your Congressional representative -- hasn't been able to help, contact Howard Law as soon as possible for a free, confidential consultation. You can reach us via email anytime or call us toll-free at 1-800-872-5925.

As Santa Ana loan modification lawyers, we were disappointed but not especially surprised to see an article outlining the continuing problems facing responsible mortgage holders who need a loan modification. On June 3, the New York Times suggested that the foreclosure crisis is now spreading to homeowners who had taken out traditional fixed-rate mortgages but lost their jobs, leaving them without a way to pay their mortgages. Like people caught in the first waves of foreclosures, these homeowners are finding that their banks won't even consider a loan modification until they've already missed payments.

The article tells the story of Eileen Ulery, an Arizona homeowner who ran into financial trouble after she lost her job as an executive assistant. She had never missed a payment in the 12 years she owned her two-bedroom condo -- and that was the problem. She contacted her bank to negotiate a loan modification under the Obama Administration's Making Home Affordable plan, but the representative told her she wasn't eligible because she was not in default. Instead, the bank offered her a refinancing deal: If she paid $18,000, she could drop the payment by $79 a month, but she would actually pay a higher interest rate. Ulery told the newspaper that she laughed at the offer, which was a great deal for her bank but not helpful to her.

Judging by the article, it appears to our Redlands loan modification attorneys that banks are simply not learning from the mistakes they made with initial foreclosures. Despite a skyrocketing number of foreclosed homes on a real estate market where prices have plummeted, lenders' policies still seem designed by people who prefer a foreclosure. Loan workouts could save the banks' investments, or at least lose them less money than a foreclosure. And homeowners like Ulery, who bring up their financial problems before foreclosure, are being penalized for their financial responsibility by banks' refusal to even consider a loan modification before foreclosure.

At Howard Law LLP, we step in on behalf of homeowners like Ulery, who have been met with silence or indifference when they requested a loan modification. Our San Diego County loan modification lawyers are able to get banks' attention even where homeowners have not -- because we are lawyers. To banks, that means a lawsuit might be on the way. In fact, we have successfully used evidence of predatory lending in our clients' records to negotiate for favorable loan workouts. Even when there's no such evidence, we have had substantial success changing the structure of loans, their interest rates or other terms that can lower your monthly mortgage payment to an achievable number.

If you're having trouble getting your lender to agree to a loan modification and you know you need help, call Howard Law as soon as you can. For a free, no-obligation consultation, you can reach us toll-free at 1-800-872-5925 or contact us online.

A farmworker couple has won $500,000 in a lawsuit against debt collectors who harassed and threatened them, the Silicon Valley Mercury-News reported June 2. Manuel and Luz Faustos of Gonzales, south of Salinas, sued collection agency Credigy Services Corp. for numerous phone calls and mailings that threatened to ruin their credit and garnish Manuel Faustos' wages over a debt they had already paid. In a federal trial in San Jose, the couple won $500,000 in damages for Credigy's multiple violations of the Fair Debt Collection Practices Act.

Manuel Faustos is a 62-year-old naturalized citizen who works as a forklift operator. He and his 59-year-old wife, Luz, speak mostly Spanish. Their financial trouble began 17 years ago, when they signed up for an expensive credit card whose balance kept increasing despite regular monthly payments. They managed to pay it off with help from a debt settlement agency -- but seven years later, they got a call from Credigy. The Georgia company told Luz Faustos that they owed $17,000 on the card. Over the next two years, the company called the couple more than 90 times, threatening to take their home and savings, ruin their credit and garnish Manuel Faustos' wages. The jury in their eventual lawsuit awarded the Faustoses $100,000 in compensatory damages and $400,000 in punitive damages, payments intended to punish severe wrongdoing.

As Los Angeles County abusive debt collection attorneys, we are delighted to see such a strong blow struck in favor of victims of abusive debt collectors. The Fair Debt Collection Practices Act forbids debt collectors from several of the behaviors noted in the article -- threatening legal action the collector can't actually take, seeking amounts not owed and refusing to identify themselves. In fact, the law puts substantial restrictions on debt collectors, including specifying the hours during which they can call and restrictions on the number of calls. Unfortunately, debt collection agencies routinely violate those laws because they know most consumers don't understand their rights.

At Howard Law LLP, we stand up for those rights by suing debt collectors who violate the Fair Debt Collection Practices Act. Our Murrieta debtor protection lawyers represent both individuals and large groups of people victimized by the same debt collector. Under the law, consumers subjected to inappropriate practices like calls at work, profane language and false threats have the right to sue the debt collector for $1,000 plus attorney fees and all of the costs caused by the illegal conduct (such as missed work). Like the Faustoses, plaintiffs in a Riverside debt collection harassment lawsuit can also claim punitive damages for intentional lawbreaking or egregious bad behavior.

If you're ready to stand up against debt collectors who break the law, call Howard Law today for a free, confidential consultation. You can contact us online or reach us toll-free at 1-800-872-5925.

The California legislature is considering a bill that would ban yield-spread premiums and put other restrictions on the mortgage lending industry, the Los Angeles Times reported June 1. Assemblyman Ted Lieu of Torrance wrote the bill, which is intended to stop certain predatory lending practices believed to have contributed to the subprime mortgage crisis and plunge of home prices. The bill has passed the Assembly and must now get through the state Senate before facing Gov. Arnold Schwarzenegger, who has vetoed similar efforts.

AB 260 mainly applies to independent mortgage brokers, who help homebuyers strike lending deals with banks. It gives them a fiduciary duty to their clients, meaning they would have a legal obligation to get clients the best financial deal. The state attorney general could revoke violators' licenses and fine them $10,000 per violation. It also bans negative-amortization loans, which allow such low payments that mortgage balances can actually increase.

But the centerpiece of the law is its ban on yield-spread premiums, which are bonuses paid to mortgage brokers for selling customers loans that are more expensive than the best ones the customers qualify for. The bill makes it illegal for a broker to steer a client into a more expensive loan, limits penalties for prepayment and forbids both brokers and lenders from making deceptive statements about subprime loans. The governor rejected a similar measure last year, saying it was unfair to California lenders because it didn't apply to federally regulated lenders.

As Orange loan modification lawyers, we hope the governor changes his mind. Yield-spread premiums have lost their appeal because the real estate market is so poor, but they remain completely legal and even encouraged by the system. That's a problem because they actually encourage brokers and lenders to deceive homebuyers into spending money unnecessarily. The average homebuyer has no special real estate finance knowledge, which is why mortgage brokers and real estate agents exist in the first place -- to guide them to the best deal. When brokers steer buyers toward loans that are more expensive than the best ones the buyers could get -- and don't tell them -- they are taking advantage of that ignorance to enrich themselves.

Howard Law LLP represents clients throughout Southern California who need help modifying less-than-stellar loans in order to save their homes. Our Ontario loan modification attorneys have had substantial success changing the structure of subprime and exotic loans, as well as interest rates and repayment terms. In many cases, we can use evidence of predatory lending as leverage to get our clients' banks to pay attention -- which they do because they know a predatory lending lawsuit could follow. Our goal is always to get our clients a meaningful, substantial loan workout that lowers their monthly mortgage payments and keeps them in their homes.

If you need help convincing a lender to take your loan modification requests seriously, you should contact the Gardenia loan modification lawyers at Howard Law as soon as possible. For a free, confidential consultation, you can reach us online or toll-free at 1-800-872-5925.

Foreclosure consultants who are not licensed real estate brokers or attorneys will have to register with the state Department of Justice, the North County Times reported June 1. The new requirement was authorized by a bill authored last year by California Assembly speaker Karen Bass. Consultants must register with Attorney General Jerry Brown by July 1 or face up to a year in jail and fines of $1,000 to $25,000. They must also pay a $100,000 bond, similar to an insurance policy or a construction bond. Customers who lose money to fraud or mistakes by consultants have a right to be repaid from that money, up to the amount of the bond.

The move is a response to the growing threat of loan modification scams, which have mushroomed over the past year as foreclosures rose. In these scams, a crooked "foreclosure consultant" or "loan modification company" promises to help homeowners avoid foreclosure or get a loan workout in exchange for a fee. In some cases, they offer very little of value; in others, they simply take the money or a deed to the home and disappear. One San Diego County prosecutor told the newspaper that his office has received at least 1,000 complaints about foreclosure consultants. State regulators hope that the registry will help consumers distinguish between legitimate businesses and scammers.

As Temecula loan modification attorneys, we're very pleased to see the state government taking steps against these scammers. Homeowners facing foreclosure are already in bad financial situations; they simply can't afford to lose $2,000 or more to a foreclosure scammer. That's money that could pay the mortgage for another month or two or buy services of a legitimate professional who could help. Before this law, foreclosure consultants who were not attorneys or real estate brokers were entirely unregulated. This gave homeowners very little way to distinguish between legitimate businesses and crooks, and the crooks have been taking advantage. Now, homeowners willing to do their homework can at least expect to be repaid if they choose the wrong consultant.

Howard Law LLP offers an alternative to unlicensed foreclosure consultants. We are not a brand-new company that was hastily formed to capitalize on homeowners' misfortune; we are Glendora loan modification lawyers subject to professional ethics laws and potential disbarment for unethical behavior. As attorneys, we also have a key advantage over non-attorney loan modification companies: Banks pay attention when we call, because they know a lawsuit might not be far behind. In fact, we can use evidence of predatory lending violations as leverage to get our clients a fair, sustainable loan modification. Our Lawndale loan modification attorneys have successfully changed interest rates, repayment periods and even loan structures for many Southern California homeowners.

If you're struggling to keep your home, but your lender isn't responding, you should call Howard Law as soon as possible for a free, confidential consultation. To set one up, you can contact us online or call us toll-free at 1-800-872-5925.

A study released May 26 says the majority of homeowners involved in mortgage loan modifications will end up in default again within 12 months, the Los Angeles Times reported May 27. Fitch Ratings, a credit rating agency, said that of home loans reworked by loan modifications, 55% to 65% will end up 60 days delinquent within 12 months of a successful modification. For subprime loans, that number was 65% to 75%. Sixty-day delinquencies are considered the first step toward a foreclosure; mortgage payments must be 90 days overdue in most cases before banks start the formal foreclosure process.

The agency looked only at loans that were bundled and sold as investments, which are about 22% of all American mortgages. It based its projection on a growing rate of unemployment, falling home prices and evidence of deception when the loans were made. According to a spokeswoman for Fitch Ratings, loan modifications can still be valuable assuming the modification is "sustainable" -- which means the homeowner's new monthly payment should be affordable in the long term. In a separate Times blog post, consumer advocates agreed. A spokesperson for the Center for Responsible Lending also told the newspaper that the study should have taken into account the lowered payments expected for loan modifications made through the federal Making Home Affordable plan.

As loan modification attorneys in San Bernardino County, we could not agree more than sustainability is the key. Because we work every day with troubled homeowners, we know that a substantial amount of loan modifications don't do a thing to lower monthly payments. In fact, some loan workouts add the past-due payments and fees to the principal owed, actually driving payments higher. It's no wonder that loan modifications don't work when they add to the homeowner's financial problems! Given the bad real estate market and glut of foreclosed homes for sale, we wonder why mortgage lenders aren't willing to offer sustainable loan modifications to people who qualify.

At Howard Law LLP, we negotiate aggressively with lenders to get our clients effective, sustainable loan modifications that keep them in their homes for the long term. Our Escondido loan modification lawyers represent clients from around California who need a lawyer's help to get their lenders to take loan workout requests seriously. We have successfully lowered our clients' interest rates, changed the structure of "exotic" loans to conventional loan structures and extended the terms of mortgages. If appropriate, we use evidence of predatory lending practices to convince banks that changing loans is the right move for everyone. Once a Fontana loan modification attorney is on the job, banks are far more likely to pay attention.

If you're already in default on your mortgage or know you'll be there soon and you'd like to learn more about your options, Howard Law can help. For a free, confidential consultation, please contact us online or call us today at 1-800-872-5925.