HBO has been airing a made for HBO movie entitled “Too Big to Fail”. The film has an A list cast and was written by Andrew Sorkin. The story line revolves around the failure of Lehman Brothers and the bailout of AIG.

The film details the history and ultimate failure of “default swaps” and the carving up and repackaging of mortgage bundles. The government stepped in. The Treasury Department and the Chief of the Fed orchestrated a deal with the major banks to accept TARP funding to perpetuate increased consumer credit. However, the government had no way to ensure the banks would use the funds in the way they were intended.

Sadly, the banks did not use the funds as envisioned and instead ramped up their legal coffers to begin a huge onslaught of foreclosures. Now, several years later, we are all feeling the impact of this ill fated idea. The courts are clogged, unethical law firms are employing robo-signers to perpetuate bad documents and fraudulent Florida Foreclosure filings.

Continue reading "HBO Series - Too Big To Fail - TARP'S Role in the Foreclosure Crisis" »

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" »

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" »

The Obama administration has been working hard to reduce the number of foreclosures and help consumers remain in their homes. The Banks and their Analysts are bristling about the prospect of mandatory requirements for lenders to offer a mortgage modification to every borrower. They do not want to take into account contributing factors, which include bank servicing errors and lax underwriting which placed many individuals in homes that they could not afford. Two other major contributing factors beyond anyone's control are the economy and unemployment.

The banking community opposes the idea of a unified settlement requiring banks to pay over $20 million in civil fines for mortgage-servicing errors or fund the same amount in modifications, with a focus on principal reductions.

Restructuring a loan with a mortgage modification provides the borrowers a chance to get back on track and a chance to stay in their home. Writing down a loan balance is only going to help a consumer if the outcome makes the monthly payment affordable. Lenders complain about this concept and cite that they must eat excessive costs to make modifications work.

The banks complain that more consumers will take advantage of the opportunity to reduce their loan amount with a mortgage modification. Most homeowners that seek mortgage modification relief do so, because of a hardship. The parameters are very clear in the mortgage modification lending process. It is not easy or prudent to prove a hardship just because the person is delinquent in paying the mortgage. A successful mortgage modification that leads to a balance reduction will have the facts and documentation to prove the homeowners request is legitimate. The banks know and understand this, yet they fight against the mortgage-loan plan with the arguments that this could encourage more homeowners to seek mortgage relief and extend the housing crisis.

Continue reading "The proposed Mortgage-Loan Plan is not favored by the Banking Community" »

Since our firm helps people who are facing foreclosures we have a unique perspective on the "foreclosure crisis." We see cases from start to finish. Sometimes folks come to us too late in the process. They want us to try and "unwind" the case. These poor people simply want to know their options, such as modification and/or mediation.

After doing hundreds of investigations, we have discovered the insidious side of home loans and banking. We have uncovered massive foul play when it comes to the foreclosure process.
Many times the original loans are sold and assigned to lending servicing agents. These loans are sold multiple times.

The buying and selling of the loan is not illegal or unethical if the law if followed. Remember, we are talking about the right to take away most people's greatest asset, their shelter, their family safety and their life security.

The law must be followed when a bank forecloses on a family's home. The law requires that any sale of the mortgage and note must be properly "assigned" to the new owner. That "assignment" must then be recorded. If those steps are not followed the homeowner will never know who actually owns the property. This is NOT happening!

Now we have lawsuits being filed by companies who are swearing under oath that they own the mortgage and note. Unfortunately they have no legal proof and many times it is not true. These note holders are suing the homeowner in foreclosure even though they do not have the legal right to foreclose! Sounds crazy. It is. But it is also true.

Many of these note holders are banks. These banks are moving forward with bad documents and trying to avoid the judge throwing their case out by filing assignments far too late in the case. Sometimes the banks wait over a year to file an assignment. Keep in mind, the Judges are being crushed in foreclosure cases. They want them to be over more than anyone. So, some Judges are actually allowing the bank to file "catch up" documents at any time just to end the foreclosure.

Yesterday I was in court trying to set aside two foreclosure judgments which the bank actually got even though they did not own the note or the mortgage when they filed their lawsuits. In other words, they sued and foreclosed on a family home and they did not own any paperwork which supported the allegation that the bank had any right to foreclose!

The documentation we presented was clear on this and the fact that the bank got the judgment using fraud. It did NOT matter. The judge denied the motions! Of course we are appealing, but so few people have the money to hire lawyers to fight banks who are taking their homes to begin with, it is the norm for the homeowner to just give up.

The system is terribly weighed down by the foreclosure crisis. The banks are not following the law, which makes matters worse. I assume the trial judges rightfully believe people facing foreclosure will simply go away if they are denied access to justice. These rulings further delay justice and justice delayed is justice denied. This is true most of the time, but not for my clients. We are going to fight down to the bitter end and obtain the justice our clients deserve!

If you do not know about the foreclosure crisis in South Florida, you must have been living under a rock, or living in the wilderness without any communication to the outside world. Several National Banks and Florida Law Firms have been in the news for committing fraud upon the courts and homeowners by filing false affidavits to establish assignments of the loans.

In the mortgage world, assignments are not uncommon. Mortgages are bought and sold on a daily basis. However, for a final holder of the mortgage, note and security agreement to prevail in a foreclosure action, it must produce accurate and truthful evidence of the assignment of those documents to the current holder. That has now been the rub in a voluminous amount of cases currently in the court houses across the state and the nation.

Many lenders and unscrupulous law firms have employed “Robo-signers” to defraud homeowners. These people spend hours on end every day executing these assignment affidavits without having actual knowledge of the contents of the documents they are signing and therefore are committing perjury. This led several lenders to halt the foreclosure process and courts to halt the sale of distressed properties. Unfortunately, the moratorium has been lifted in many states and the banks have resumed foreclosures.

This crisis has opened the door for aggrieved borrowers to attack these fraudulent foreclosures and force the banks into a modification of their loans. Our Palm Beach Gardens law firm along with several other firms across the state has been aggressively defending mortgage foreclosures. Our firm has helped hundreds of families keep their home. Our professional staff has many years of experience in the lending industry. They assist homeowners in mortgage modifications even through the foreclosure process. Our staff of attorneys are well versed in defending foreclosure actions and work closely with our mortgage modification personnel to achieve the best possible result for our clients.

If you are currently under water on your home loan or facing foreclosure, do not give up. You have rights. At LaBovick Law Group we are experienced, aggressive and will use our legal expertise and resources to help protect your most precious asset – your home.

Don’t let the banks take advantage of you during these rough economic times. Stand Up and Fight.

Florida Foreclosure Defense Attorney Scott Haft was interviewed in the Palm Beach Post regarding South Florida man gets his property back after judge reverses Chase foreclosure.

Mr. Haft discussed how his South Florida client had his foreclosure reversed today ay based on a motion arguing the bank was wrong to take the property back at auction while at the same time negotiating a loan modification on the home. Attorney Haft filed a motion to vacate the foreclosure judgment based on fraud, misrepresentation and misconduct by JP Morgan Chase, which had promised a trial loan modification

The Palm Beach Post article discusses how Miami-Dade Judge Marc Schumacher granted the motion. It was agreed to by Chase's attorneys, which is also unusual. A summary judgment is a quickie foreclosure hearing, usually granted when the facts of the case are irrefutable.

Click on the following link to read the article South Florida man gets his property back after judge reverses Chase foreclosure

In two letters recently released by, Attorney General Richard Cordray criticized a number of banks and loan-servicing companies, including Wells Fargo & Co.; Ally Financial Inc.'s GMAC Mortgage; Bank of America Corp.; and J.P. Morgan Chase & Co. Mr. Cordray accused the banks of trying to paper over fraud committed in foreclosures with temporary fixes that don't address underlying problems in the banks' practices.

In light of the fiasco an option for banks would be to allow borrowers to modify loans and make settlements. This would be a win-win for everyone instead of forging ahead with paperwork that could be bogus or flawed. This is a huge issue for the courts in light of a 50-state probe, which includes top law-enforcement officers from all 50 states in response to allegations of robo-signing and massive errors.

It is a but suspect for Bank of America to remain silent on the subject, given that that in 2008 they agreed to an $8.4 billion loan modification program after its Countrywide Financial unit was probed for predatory lending practices. Thus took place only two years ago.

Wells Fargo on the other hand is resubmitting submitting affidavits for 55,000 pending foreclosures,since some of the paperwork might be flawed. One Wells Fargo employee admitted to signing hundreds of foreclosure documents a day without checking for accuracy. When questioned in a Florida deposition, she exclaimed that it was not part of her job description to check for accuracy. This should make homeowners and the bank feel really confident about the validity of the documents signed.

Click on the following link to read more from the WSJ on Big Banks Told Not to 'Fix' a Fraud .

A recent Palm Beach Post article on the drop in foreclosure filings in Palm Beach County indicates that 1,529 bank takeovers occurred in April, a 47 percent decrease from April 2009, according to numbers released by the Palm Beach County Clerk and Comptroller. Between January and April 2010, the number of Palm Beach County initial foreclosure notices totaled 7,764, a 30 percent tumble compared to the first four months of 2009.

Mr. Paul Baltrun, director of the firm’s Loss Mitigation division, gave Palm Beach Post Real Estate writer Kim Miller commentary on the drop in foreclosures. In the article, Mr. Baltrun stated that one of the possible reasons for the decline in the foreclosure rate is loan modifications. Mr. Baltrun and his team are seeing more people in Florida and across the nation being hands-on in trying to get a loan modification. In addition, the banks are becoming more willing to give homeowners modifications – especially in situations where a modification will enable a homeowner to avoid foreclosure.

"People are being more proactive and seeking workout solutions before their file goes into foreclosure," Baltrun said. Loan modifications made through the federal Making Home Affordable Program provide incentives to banks that reduce mortgage payments through interest rate cuts, principal amount reductions, and prolonging the loan’s life.

Click on the As filings fall, courts finally make dent in foreclosure cases link to read the Palm Beach Post article.

As the United States slowly recovers from the mortgage crisis and ensuing economic downturn, the fact remains that thousands of homeowners all across America are still facing the threat of foreclosure. Given the current state of the economy, the possibility of missing just one mortgage payment can sometimes be the tipping point that pushes a homeowner closer to the brink of foreclosure. Despite a seemingly dismal outlook, mortgage modification and foreclosure defense are just two of the tools available to help struggling homeowners protect themselves against foreclosure.

A foreclosure occurs when a lender sues a borrower for not making payments toward the property. The lender’s goal in filing this lawsuit is to recover, through the sale of the property, the money it lent to the borrower. Once a lender files a foreclosure lawsuit, an official will deliver a summons to the homeowner’s residence notifying them of the suit. However, a foreclosure not only has the potential to wreak havoc on a homeowner, it can also lead to community degradation and other negative societal impacts.

According to the Joint Center for Housing Studies, each foreclosed home can reduce nearby property values by 1 percent or more. Additionally, foreclosures can also lead to:

•    The foreclosed home and property falling into disrepair
•    A decrease in buyer perception of the area
•    Unpaid HOA fees, normally leading to an increase in the existing members’ payments
•    A refusal by prospective homeowners to live in a neighborhood that includes foreclosed and neglected properties

While these examples are ominous, it is important to note that a successful mortgage modification can help prevent such negative impacts in addition to possibly allowing a homeowner to keep his or her home. Click on the links below for more information.

Lenders’ Cost of Foreclosure Policy Paper – Mortgage Bankers Association

Foreclosure Sales Affect Home Values - Nearby Homes Feel Effect – About.com

Link to Joint Center for Housing Studies – Harvard University

A recent report released by real estate research firm Zillow states that 44.3 percent of South Florida homes were underwater during the first part of 2010. Zillow’s first quarter analysis report also determined that home values in Palm Beach, Broward and Miami-Dade counties continued to decrease from 2009.

In a recent article on the Real Time Blog, Palm Beach Post Real Estate writer, Kim Miller, reports that it could take up to five years for home values to begin climbing,according to Zillow. In addition, the real estate research firm expects national home values to hit bottom not in the second quarter of 2010, but the third, presumably extending the housing crisis nearly all the way through 2010. Zillow is also predicting that negative equity and foreclosures will compound to keep home value appreciation in the U.S. near zero possibly until 2015.

According to foreclosure data, services and online marketplace RealtyTrac, Florida homeowners continue to face some of the highest foreclosure rates in the country. The following is a current breakdown of the foreclosure situation in South Florida:

Palm Beach County: 18,755 Foreclosures
8,401 Homes for Sale

Broward County: 42,467 Foreclosures
3,960 Homes for Sale

Miami-Dade County: 40,184 Foreclosures
8,094 Homes for Sale

Homes still sinking, 44.3 percent in South Florida underwater – Palm Beach Post

Link to RealtyTrac’s map of Florida Foreclosures & Home Sales

Link to Zillow’s Web site

As millions of American homeowners continue to deal with a struggling economy and a poor housing market, more and more of these individuals and families now have to contend with another problem: a breakdown in communication between banks that service mortgages. Not only does this miscommunication bring frustration, it can also lead to mistaken or even premature foreclosure in spite of a pending mortgage modification application.

This communication breakdown can occur between banks or servicers that are participating in the Obama Administration’s Making Home Affordable Program, despite provisions that prohibit servicers from auctioning a person’s or family’s home while a mortgage modification is pending. The article indicates that the lapses in communication that can lead to premature or mistaken foreclosure continue to occur because they go unpunished for the most part. USA Today indicates that the U.S. Treasury Department is reportedly aware of such problems and is “moving to fix them.”

In a ProPublica news report on the topic, the breakdown in communication between servicers generally occurs due to their organizational structure. The ProPublica article points out that one division normally deals with modifications while a separate unit contends with foreclosures, presumably leading to both internal and external communication problems.

"Basically, you have the right hand at the mortgage company not knowing what the left hand is doing," said Mark Pearce, North Carolina's deputy commissioner of banks. Communication glitches and mistakes are "systemic, more than anecdotal" among mortgage servicers, he said.

Although miscommunication between mortgage servicers does occur, having the assistance of an experienced team of mortgage modification professionals that will aggressively ensure that the servicers communicate properly can help prevent such tragedies from coming to light.

If you are a homeowner in need of assistance with a foreclosure, contact an experienced foreclosure attorney to discuss your situation.

Homes can be lost by mistake when banks miscommunicate – USA Today

Disorganization at Banks Causing Mistaken Foreclosures – ProPublica

Link to the Obama Administration’s Making Home Affordable Program