How to Stop Foreclosure

The Feldman Law Center was founded by Steven C. Feldman who has been licensed by the State Bar of California for over 25 years. We are consumer and homeowner advocates that will protect you and your home.

The Law Offices were established to focus on real estate matters that include debt negotiation, predatory lending violations and settlements. Our primary mission is to provide our clients with proper legal advice and share our knowledge and expertise in the areas of real estate transactions, mortgage negotiations, loan modifications and debt settlement. We are here to help stop foreclosures and fight mortgage fraud. In addition, we would like to assist in mitigating losses in the hard hit financial sector and restore stability to our banking industry. With our state of the art technology and professional staff of 35 Attorneys, paralegals, former bank underwriters, compliance officers, asset managers and real estate brokers we have the experience necessary to achieve the most dynamic resolutions available and help stop foreclosure in this troubled market, fast and effectively.

There simply is not one right solution for everyone, and no one can tell you what is right for you without thoroughly analyzing your financial situation, loan documents and legal rights. We understand the mortgage industry from years of experience and will use leverage to negotiate, not just submit a loan modification request that may be denied or ignored by your lender. If you are facing financial hardship and behind on your mortgage and or credit card payments you may need to file bankruptcy to help stop foreclosure and protect your home. Filing bankruptcy is normally not recommended unless found necessary to help avoid foreclosure and save your home. In most cases we can contact your lender and get them to delay the foreclosure process without filing bankruptcy so we can negotiate a “win win” resolution for both sides. Foreclosure is very costly for lenders, so in certain instances a deed in lieu, “cash for keys” or “walk away” may be the right solution to keep a foreclosure off your credit report.

A few possible solutions include: a loan modification or restructuring of your current loan to lower your mortgage payments, a recapitalization and a principal balance reduction, a rescission of your current loan (up to 3 years) or a lawsuit against the mortgage company for predatory lending violations if found by a forensic loan document audit.

Steven C. Feldman has experienced California bankruptcy and litigation Attorneys on staff in addition to real estate experts so all options can be fully explored. We will review your documents and demand compliance. We will evaluate your current financial situation and find you a realistic legal solution which meets your short and long term objectives.

If the property has become too much of a burden, there are always options which can allow a borrower to just “walk away” from the bad investment without it affecting their financial future through judgments, wage garnishments, bank levies, etc. Frequently this can be achieved through a deed in lieu of foreclosure or, alternatively, a short sale of the property. A hard money bad credit mortgage or FHA secure loan is sometimes an option and Bankruptcy is usually a last resort to protect your assets. For many clients, that means keeping them in their home at any cost, for others it means eliminating the burden of unaffordable debt and mortgage payments. Our relationships with mortgage lenders and loan servicing companies allows us to bypass overwhelmed loss mitigation personal and negotiate directly with asset and portfolio managers and your lenders legal department. We strive to achieve fast positive results for both sides. We have extensive backgrounds and are specifically trained in the intricacies of real estate, mortgage and debt negotiation and also provide FHA and conventional financing.

Our best tool to negotiate with mortgage companies is the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). State and Federal law require mortgage companies to follow these guidelines when originating home loans. Many mortgage loans have these TILA and/or RESPA violations which can and will be used as leverage when negotiating a favorable settlement for our clients. The law must be followed and failure to do so can result in significant damages your lender. So, naturally, they will be very amicable to working your loan out to more affordable terms to avoid costly litigation.

Many of the home loans provided by mortgage brokers and mortgage lenders over the last few years have unexplainable fees and charges or were manipulated to qualify. Subprime mortgages with nasty adjustments and pre-payment penalties or Option ARM loans with minimum payment options which allowed borrowers to differ interest to a point where the loan recasts and forces the borrower into hardship by paying a much higher (unaffordable) mortgage payment. In most cases refinancing is not an option due to declining property value or debt to income ratios. We can resolve these issues fast and efficiently so you don’t to lose your home to foreclosure. Helping stop foreclosure and restoring financial stability for our clients and lenders is important to economic growth and the future of our country. The American dream is home ownership and our goal is to help both home owners and lenders and restore performance to home loans facing default or foreclosure.

If the creditor fails to properly provide notice of this right to cancel, the right of rescission may be extended for up to three years. When the right is extended for three years you can rescind the loan at any time before three years, meaning that the loan is treated as if it never existed. Essentially, you become entitled to all profits made by the creditor as a result of this loan. This means that the creditor must refund all interest paid, all closing fees, all broker fees, and even pay for your attorney fees. As you can imagine, this amount can be quite significant.

The extended right of rescission is a powerful tool to help borrowers who have been victims of predatory lending, and helping our clients exercise this right is often the first step in holding a creditor responsible for illegal behavior. Remember, we are a Law Office and get results. Mortgage and loan servicing companies do not want your home and most will work diligently with a Law Office to avoid foreclosure and end the foreclosure process. Litigating mortgage fraud and predatory lending cases can become costly for both sides and should be avoided unless the lender will not comply or there are significant damages to the borrower. Our clients retain us to make a best effort at resolving their hardship and fight for their rights. In most cases this can be done without costly litigation by using existing relationships to find an amicable resolution to stop foreclosures.

Loss Mitigation is a fairly new industry and as such it is not very tightly regulated. This has led to a notable number of unethical companies purporting to provide Loss Mitigation, Loan Modification and stop foreclosure services. Homeowners should be aware that such companies do exist and are advised to avoid companies that offer 100% Guarantees or are not attorney-backed where the Attorney is available. Ask to speak to their Attorney and see he has the experience necessary. There have been several Loan Modification companies advertising “Attorney backed”, “Attorney assisted” or “Attorney based” loan modification services. These Attorneys are not your Attorney and these companies should not mislead you or misrepresent the fact that they are a Law Office and have the ability to invoke your legal rights. In most cases these companies can only obtain an unaffordable forbearance agreement from your lender. If you are approached by a loan mod or loan modification company to help negotiate your mortgage or stop foreclosure please be careful as to not fall victim and research them carefully.

Recently there has been a growth in news about loan modification. Loan modification new to a lot of homeowners and information, resources, and tools do not reach some homeowners facing foreclosure until it is too late. We found a very interesting site online, www.LoanModificationHelpCenter.com.

The website provides some basics such as foreclosure news, foreclosure articles and more. However, the real time foreclosure forum they provide seems to be a very valuable tool. The Admin at LMHC told us via email that the forum is 100% about helping homeowners with questions. The questions are answered directly from loan modification professionals but even better it is monitored by a legal team to assure there is no misinformation or untrue information being provided to homeowners. The site and forum is a safe place for homeowners to get questions answered with out all the run around.

The site also allows professionals in the mortgage, loan modification, real estate industry and more to join the online community. By joining a business person can create their own blog and post info on their services along with articles and tools to help homeowners.

The Loan Modification Help Center also provides links to other resources that can be helpful in the ecomonic crisis. These include companies providing debt assistance, credit restoration, mortgage loans, and other support services.

Home foreclosure is a nationwide crisis and it is in the news every day. Homeowners are overwhelmed and sometimes have no where to go. The Loan Modification Help Center is geared towards being that resource. They plan to have a Toll Free Support Line available for calls in late October.

If you are facing foreclosure, mortgage payments are late, and you need help to save your home please visit the Loan Modification Help Center.

We can help - MyLoanSavers.com - Do not wait on the government it will be too late.

Latest in the news on the Housing Bailout Plan - Do not be fooled and sit around and wait for the government to stop or save your foreclosure. I hightlight one piece of this article below:

“Paulson and Bernanke did their best to argue that the risk of inaction was much worse for the American taxpayer than even the stratospheric cost of the proposal to buy up the toxic mortgage-backed securities that have paralyzed the credit markets”

The plan is not going to help you the homeowner that is now in need of help, the plan is to help buy mortgage back securities in the market to stabilize the market. Not save your home. Do not be fooled by the fluff.

If you are late now and need help now please call MyLoanSavers.com or visit our site www.MyLoanSavers.com before it is too late. We can save your home and not with all the political red tape and false promises.

Full article below

Less than a week ago, it seemed that the Bush Administration’s dire pronouncements about the nation’s financial markets were enough to scare Congress into passing whatever high-priced rescue plan it was asked to. Last Thursday night, around a glossy wooden table in House Speaker Nancy Pelosi’s offices, Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke described to congressional leaders of both parties how the credit crunch and panic on Wall Street that had already engulfed Lehman Brothers and AIG would soon lead to a near total collapse of short-term lending that could sink the economy into a Depression. According to an aide who was in the room, there was a 10-second-long, oh-my-God silence after the two described how the crisis threatened to wipe out virtually anything invested in the markets, no matter how safe they had been considered — 401(k)s, IRAs and defined benefit pensions could take massive hits, even though they are insured by the Federal Government to the tune of trillions of dollars.

In talking to their respective caucuses in the days since, party leaders have underlined the gravity of the problem. But having heard doom and gloom from the Bush Administration to justify everything from the Iraq war to the Patriot Act, rank-and-file Republicans and Democrats remain very skeptical about the rescue plan. In many legislators’ minds, President George W. Bush has cried wolf one too many times. “This is eerily similar to the rush to war in Iraq,” Representative Mike McNulty, Democrat of New York, said. “We have been told repeatedly by this Administration that the economy is fundamentally sound, and then all of the sudden they say the economy is going to collapse.”

The party leaders’ objections, of course, stem from their widely divergent agendas and beliefs. Democrats don’t want to take ownership of a problem they feel they didn’t create, especially if it seems to be rewarding many on Wall Street whose behavior led to the problems in the first place. On the right, this kind of bailout stands for everything they came to Congress to fight: Big Government tampering with free markets, and lots and lots of potential debt. Both parties appear to agree that they are being asked to consider and pass such a momentous piece of legislation way too quickly, and that whatever final plan is crafted will have to include some oversight. And while whatever compromise agreed upon in the end is likely to pass before the end of the week — especially with the markets tumbling hundreds of points a day — the final product won’t come without a lot of “twisted arms, bad karma and angry, angry people,” said one leadership aide.

That much was apparent at the heated Senate Banking Committee hearings attended by both Paulson and Bernanke on Tuesday. Senators from both sides of the aisle, including chairman Chris Dodd, a Connecticut Democrat, and the panel’s top Republican, Richard Shelby of Alabama, were not shy about expressing their reservations about the wisdom of the current broad rescue plan, which Dodd flatly declared to be “not acceptable.” Paulson and Bernanke did their best to argue that the risk of inaction was much worse for the American taxpayer than even the stratospheric cost of the proposal to buy up the toxic mortgage-backed securities that have paralyzed the credit markets, but the preening politicians weren’t buying it. And both Paulson and Bernanke will surely get an equally tough grilling at a House hearing Wednesday morning that will be chaired by Democrat Barney Frank, who is spearheading his party’s moves on the rescue plan.

The House is expected to take the lead on drafting legislation, as it did with the passage of the economic stimulus package earlier this year. House majority leader Steny Hoyer said Tuesday that he hopes to have a bill on the floor by Friday. But getting it there will mean overcoming his own caucus’s concerns, some of which have little to do with the merits of the plan. With Election Day about six weeks away, House Democrats are very concerned that the GOP will try to use the bailout as a populist rallying cry on the campaign trail, as a few conservative activists have already counseled. Some Democrats have even suggested that they will not vote for it unless Republican nominee John McCain does the same. They are adamant that “this has to be done together — we all hold our noses and jump at once,” as one Democratic leadership aide put it.

But the lame-duck, very unpopular Bush Administration no longer has much pull on Capitol Hill, even with its own party. Vice President Dick Cheney, Office of Management and Budget director Jim Nussle, Bush’s chief of staff Josh Bolten and a top White House economic adviser, Keith Hennessey, held a contentious 90-minute session with House Republicans Tuesday morning. “The large majority of our members remain skeptical of the plan,” one GOP leadership aide said after the meeting. House minority leader John Boehner, while reiterating the gravity of the crisis, sympathized with the precarious political position of many of his members, many of whom are in tough races for re-election. At the meeting Boehner said that much depended on Democratic demands for adding provisions to the bill, and that he himself would vote against a bill overloaded with too many.

The problem for the Democrats is that they can’t make this bill palatable to their own party without pushing for add-ons. “Certainly, we want to stabilize the markets, but we want to do so at the same time as we protect the taxpayer,” Pelosi told reporters Tuesday. Democrats are demanding three central changes to what started as a three-page, deliberately vague draft bill. They want to mandate new limits on executive compensation for any of the firms that take part in the government’s unprecedented assistance; they want increased regulation of those same firms; and they want expanded power for the Treasury to help distressed mortgage holders — essentially replacing the $300 billion housing bill passed earlier this year that many Democrats believe hasn’t worked.

Paulson and Bernanke have made it clear that they prefer what they call a “clean bill,” but they have started to open the door to include at least some Democratic provisions. For their part, House Republicans have balked at the idea of the government becoming more directly involved in buying mortgages, though even they seem to be giving some ground on the issues of executive compensation. Some Senators and House members are warming to the Senator Charles Schumer’s idea of giving the Treasury an initial payment of $150-$200 billion before committing the entire sum.

If the bailout debate has put many vulnerable members of Congress in a bind, the presidential campaigns have been put in an equally uncomfortable position. Barack Obama and John McCain have relatively light weeks as they prepare for their first debate Friday night, and both campaigns are doing their best to stay out of Congress’s way. But neither candidate can avoid weighing in on such a crucial bill; Obama has stressed the need to add more oversight and taxpayer protections to the legislation and Tuesday expressed interest in Schumer’s down payment idea. McCain made similar calls for more oversight and transparency in the system while expressing concern about the price tag. Still, underlining the high stakes of the bailout plan, both politically and economically, neither Obama nor McCain is willing to come out unequivocally for or against it, and it’s not clear if either candidate will even show up to vote for the final piece of legislation.