The five biggest US mortgage servicers are considering a cash for keys program that would pay delinquent borrowers money to leave their home. Is this a new play to lure people from their owns and steal the property with a carrot? Last week, the number tossed around was $21,000 to delinquent homeowners. Regulators and Banks are trying to agree on a solution.

The FDIC chaired the meeting last week and stated that the cash for keys program would involve the biggest servicers, such as Bank of America. This incentive would try to lure homeowners away from their home with small amounts of cash, instead of stealing it with fake documents signed by robo-signers.

Our Florida Foreclosure Defense Lawyers, have seen a lot of creative tactics presented by the banks to clear up the Florida foreclosure crisis. This new plan is one of the all time most creative that plays into the banks favor most of time.

Continue reading "Foreclosures: Cash For Keys Program and the Banks" »

The newest sexual harassment suit against American Apparel Chief, Dov Charney, comes from a former young American Apparel sales associate. The lawsuit was filed on Wednesday, alleges that CEO Dov Charney, sexually harassed her in a meeting that was conducted in home.

The American Apparel founder and chief executive has been open about engaging in sexual relations with employees and is known for feature young women in provocative ads.

In published reports, the attorney for American Apparel CEO, called the claims contrived and false. Mr. Peter Schey,said: 'I think this is an effort to shake down American Apparel. These claims should be resolved in confidential arbitration.”

This leads one to wonder if there is a reason for the company to make employees sign arbitration and confidentiality agreements when they are hired, or is this a way to safe guard tawdry company secrets.

Continue reading "American Apparel Chief faces Sexual Harassment Charges from former employee" »

Florida courts received a sigh of relief today when Governor Rick Scott approved millions of dollars in emergency funding to help clear some of the hundreds of thousand of Florida foreclosure cases.

The Florida Supreme Court warned the governor that the $14 million was desperately needed to clear the massive foreclosure case backlog throughout Palm Beach County, Broward County, Dade County and other counties throughout Florida.

Florida Foreclosure Defense Attorney, Audra Simovitch, is in court almost daily representing clients in fighting the banks against fraudulent foreclosures and helping clients in bankruptcy matters. This new financial boost for Florida courts should help in this foreclosure crisis.

If you are in Florida facing foreclosure or bankruptcy, understand that there is help out there for you in getting you that fresh start.

Click on the following links to read more on the Florida courts receiving millions in badly needed funding:

Governor approves millions to speed up foreclosure cases - - WPTV.com

Scott approves partial bailout for Florida courts - WTSP.com (Associated Press)

The majority of consumers have at least heard that the Obama administration is taking steps to make significant changes with the structure of both Fannie Mae and Freddie Mac, but few individuals truly understand how the new proposals will impact borrowers. Although a number of different strategies have been initiated, there are several that bear mentioning due to the fact that they specifically will cost prospective buyers more money or even the chance to own a home.

Minimum Down Payment Requirements
Many homeowners appreciate the ability to purchase a home without making a substantial down payment, and it is no secret that many prospective buyers do not have adequate savings to afford a 10-20% lump sum. However, the proposals are suggesting that a 10% down payment would be the minimum amount allowable in order to qualify for any federal support on the mortgage. While it may be possible for a consumer to easily afford their monthly payment, few can provide such a significant amount of money upfront.

Reduction in Federally Supported Mortgages
If the amount of Fannie Mae, Freddie Mac, and FHA loans are reduced as per the proposals, borrowers are going to have to depend more upon their local banks and credit unions. The unfortunate truth is that this means the lenders are going to have a much higher level of risk. Smaller institutions are going to be much less likely to offer fixed term mortgages for a lengthy period of time, and only highly qualified buyers will be approved for a loan. Higher risk also means that the lender must experience more of a reward for lending the money, so expect interest charges and other costs associated with home loans to increase substantially. The federally supported mortgages will also be unable to provide assistance with larger loan amounts, so many homeowners will be forced to deal with jumbo loan requirements that are likely to include large fees and down payments.

Continue reading "Fannie Mae and Freddie Mac Mortgage Proposals Could Cost Borrowers" »

The Federal Trade Commission is cracking down on scam artists that blatantly prey upon distressed homeowners facing foreclosure or in need of a loan modification. Recently, the FTC charged a national group of companies based in Palm Beach County, with marketing illegal loan modification services. The FTC seeks restitution for loan modification victims and wants the firms to end to their illegal practices.

According to published reports,U.S. Mortgage Funding Inc., Debt Remedy Partners Inc., LowerMyDebts.com LLC, David Mahler, Jamen Lachs and John Incandela Jr., also known as Jonathan Incandela Jr., allegedly violated the FTC Act and the FTC's Telemarketing Sales Rule and falsely claimed they had a 100% success rate in obtaining loan modifications that would drastically reduce mortgage payments for distressed homeowners.

It is important for distressed homeowners seeking assistance in mortgage modifications or debt relief to be wary of fraudulent scam artists that represent themselves as legitimate firms. Since Jan. 1, 2010, individuals or businesses offering services to negotiate a loan or mortgage modification must be licensed through the Florida Office of Financial Regulation. Also, new disclosures are required such as large-type print on contracts and a three-day rescission period.

In the recent complaint against the Florida based loan modification companies, they allegedly claimed to have loan approvals and affiliations with mortgage lenders> They also claimed that a homeowner would receive a full refund, if they failed to receive a loan modification.

Our Florida Consumer Debt Relief Attorneys, work with distressed homeowners every day, seeking legal help for mortgage loan modifications, foreclosure defense or bankruptcy. Many have spoken to or even hired fraudulent companies that prey upon distressed homeowners seeking immediate help. Before choosing a mortgage modification or debt relief firm, check the company's track record and history to make sure there are no complaints or charges pending against them.

The FTC and many state Attorney General's are prosecuting fraud on loan modification scam artists. If you feel that you have been exposed to mortgage or loan modification fraud, contact the Florida Attorney General's Office, at (866) 9-NO-SCAM (866-966-7226) or www.myfloridalegal.com

Click on the following link to read more on FTC sues Florida loan firm - Tampa Tribune/ Hernando Today

"New Name to Reflect the full scope of the Legal Team and Strength of Brand"

We are pleased to announce that LaBovick & LaBovick, P.A. has changed its name to LaBovick Law Group. This will enable the LaBovick Law Group to present a clear and strong brand in the Florida legal community.

The name change will reflect the firm's dynamic history as one of the preeminent law firms in the legal community. Founded by Brian LaBovick, Esq. and joined by his wife, Esther Uria LaBovick, Esq. the firm has moved beyond a small firm practice and into a full service firm serving clients throughout the nation. As part of this brand shift, the LaBovick Law Group will adopt a new tag line, “Your Full Service Law Firm” to reflect the firm’s ability to serve all the legal needs of clients.

The LaBovick Law Group will be committed to continuing to provide the expert legal services that clients have come to rely on in such core practices as Personal Injury, Qui tam, Employment Law, and Complex Litigation. The LaBovick Law Group is one of Florida’s leading civil trial law firms assisting individuals and businesses throughout Florida. In addition to its headquarters in Palm Beach Gardens, the firm has offices in West Palm Beach, Boynton Beach and Boca Raton.

Managing Shareholder, Brian LaBovick, Esq., stated "Over the past few years, several prominent attorneys have joined the firm, adding legal expertise in practice areas such as Maritime, Estate Planning, Tax Planning, Asset Protection, Complex Litigation, Foreclosure Defense, Mortgage Modification and Bankruptcy. We have selected a new name reflective of the full scope of legal services being offered and incorporated the strength of the LaBovick brand in the community."

Continue reading "LaBovick Law Group Announces New Firm Name" »

A legal gray area may derail an attempt by Securities and Exchange Commission officials to seek a civil or criminal suit against executives of the now defunct Lehman Brothers Holding Inc.

For months now, SEC officials have been hoping to charge former Lehman Brothers executives with duping their investors with an accounting strategy that is commonly known as Repo 105. In such a maneuver, a short term loan is classified as a sale on company balance sheets. The proceeds of this so-called sale are then used to reduce company debt in advance of publication of the company’s balance sheets. Once the sheets have been made public, the company borrows funds in order to repurchase their original assets. The strategy provides the investing public with an improved version of the company’s actual financial records, leading them to continue to invest, or remain invested, when a more realistic accounting of the company’s financial records might lead them to choose to invest elsewhere.

After serving our country, soldiers and veterans come home to find that lending institutions are fraudulently foreclosing on their homes. Recently, it has come to light that a Morgan Stanley subsidiary, Saxon Mortgage Services Unit, may have fraudulently foreclosed upon nearly two dozen military families from 2006 - 2008. The Department of Justice Department is investigating the allegations.

Several mortgage and lending companies are being investigated by the Department of Justice. including, Saxon Mortgage Services, a Morgan Stanley unit. The Service members Civil Relief Act is a federal law that governs actions creditors can take against service members on active duty. It expressly prohibits lender from foreclosing on active-duty service members without a court hearing.

At the forefront of these new revelations is the case of the fraudulent foreclosure sale of the home belonging to Sgt. James B. Hurley , a Michigan National Guard member. St. James Hurley came home from serving in the Iraq war and found that his home had been foreclosed upon.

Continue reading "Military Service Member foreclosures under attack by DOJ" »

Desiree E. Brown, who was once the treasurer of Taylor, Bean & Whitaker Mortgage Corp. recently pleaded guilty to a host of charges relating to fraud. The charges were leveled against Brown by the Securities and Exchange Commission, which alleges that Brown attempted to run a scam against the U.S. Treasury’s Troubled Asset Relief Program after assisting with a $1.9 billion scheme to defraud various investors.

Taylor, Bean & Whitaker was once one of the foremost mortgage lenders in the country. Beginning in 2002, the mortgage giant began to experience liquidity issues. As the economic situation in the country grew worse and the real estate market began its collapse, Taylor, Bean attempted to mitigate its losses by selling worthless mortgage assets to Colonial Bank. Taylor, Bean sold mortgages to Colonial that either did not exist, or had already been purchased by another bank. The mortgage company used the proceeds from these fraudulent sales to cover operating costs and other debts.

Continue reading "Former Treasurer of Mortgage Company guilty in $1.9 billion fraud scam involving Colonial Bank " »

The term “employment at-will” can be somewhat deceptive. Under this heading, it is understood that either the employee or the employer may terminate their relationship at any time and for any reason.

However, state and federal laws place limits on the seemingly free-wheeling nature of at-will employment, most of which benefit employees. Employers cannot wrongfully terminate employees for discriminatory reasons relating to their sex, race, ethnicity, or religion. Similarly, employers are barred from firing an employee as retaliation against whistle-blowing or for taking family and medical leave.

Employers are also not allowed to discriminate against active or reserve military personnel who must fulfill the requirements of their service in the armed forces. This particular question, and the wrongful termination of an employee as the result of his employer’s bias against his military service, is at the heart of a recent U.S. Supreme Court ruling that strengthens the rights of employees against discriminatory practices by employers.

In the case Staub vs. Proctor Hospital, Staub, a hospital employee, contended that he was terminated as a direct result of his supervisor’s bias against his military service, which required that he report to the military base on various weekends and for two or three weeks per year. His supervisor contended that such absences put a strain on the hospital’s resources and she collaborated with her supervisor to terminate Staub. The firing decision eventually came under the purview of a third supervisor who performed the actual termination.

Staub sued for wrongful termination and won the initial case. The hospital appealed the decision, and this time the court decided in their favor. Staub appealed to the U.S. Supreme Court, which ruled in his favor and ultimately strengthened the rights of the American worker. The court’s decision, as delivered by Justice Antonin Scalia, read in part that: “the employer is at fault [when the] ‘discriminatory animus’ [of a supervisor] was intended to cause, or did in fact cause, an adverse employment decision.”

Continue reading "U.S. Supreme Court ruling extends federal job discrimination laws" »

Every year, lending giant JPMorgan Chase & Co. files an annual securities report. This year's report, which was filed on February 28, included some very eye-opening information. The bank disclosed that it is currently the defendant in more than 10,000 legal proceedings around the United States. The proceedings stem from the huge array of investigations that have been taking place concerning foreclosure practices. Around the fall of 2010, glaring paperwork errors on foreclosures were brought to public attention. In many cases, those errors cost people their homes. Not surprisingly, the discovery prompted a vast range of investigations into foreclosure industry practices.

If JP Morgan ends up paying out on all of the proceedings, the New York-based bank could end up paying fines of up to $4.5 billion. The legal proceedings have been initiated by a number of different entities. The attorney generals of all fifty states have banded together to investigate botched foreclosures. The United States Department of Justice has gotten into the act, too; many bank regulators have been filing suit, as well. Considering the huge number of involved parties, it isn't especially surprising that the nation's second-largest bank is knee-deep in litigation concerning these foreclosures.

JP Morgan is not alone in its battle, though. CitiGroup, Bank of America, Wells Fargo and many other banks and lenders are facing legal proceedings, too. For homeowners who are facing foreclosure, this news highlights the importance of seeking a qualified foreclosure defense attorney. All too often, homeowners feel helpless in the face of such troubles. When a bank begins foreclosure proceedings, many people just let things proceed. The assumption tends to be that the bank knows what it is doing. As the huge number of botched foreclosures and the issue of far-reaching foreclosure fraud comes to light, it is clear that homeowners need to protect themselves.

Continue reading "J.P. Morgan Facing Up to $4.5 Billion in Fines over Botched Foreclosures" »