This story came from Ms. S., a visitor to one of our free Saturday consultations. Ms. S. makes her monthly mortgage payments to servicer BSI, which is short for Banca della Svizzera Italiana, the oldest bank in the Swiss canton of T. BSI was sold in 1998 to the Italian Genarali Group, which last year sold it to a Brazilian company called BTG Pactual for $1.7 billion. This trip around the worldwide financial universe is to show you that servicing American mortgages has now become big international business, thanks to securitization and the explosion of profit-heavy foreclosure. Financial ... Read More >>
What You Need to Know Before You Miss a Mortgage Payment
Having interviewed over a thousand clients for complaints against their lenders, servicers, and the securitized trusts that bought their subprime loans, I have heard this line from clients over five hundred times: “They told me to stop paying my mortgage.” The advice to stop paying your mortgage might come as a whispered aside from the “friendly” agent of the servicer that answers the phone when you call – whether it’s Nationstar, Ocwen, BSI, SPS, SLS, Wells Fargo, Caliber, CHASE or any of the others. It may be from the representative at the loan modification company that you hired to help ... Read More >>
After the Fall
Yesterday I had a free consultation with three young musicians that had worked and saved to move into their dream house, only to lose it. It was in a good location in North Hollywood with big rooms for rehearsing that could hold all their equipment and they were thrilled to get a lease-to-own contract that got around their low credit scores. The problem was they gave their money to someone that didn’t actually own the house. The warning signs were there, but they didn’t see them, being blinded by the house they wanted so badly. The expensive fixtures were missing and hadn’t been replaced ... Read More >>
David & Goliath
The battle between David and Goliath started as a war between two armies, the Philistines and the Israelites in the valley of Elah in Palestine. The two sides faced off across a deep ravine, each afraid to descend the steep slope between them only to have to face a steep climb up the other side and what would surely be certain defeat. Neither side moved until the giant Goliath stepped forward, 6’9” and awesome in heavy armor that covered him from head to toe, weighing over a hundred pounds and glistening in the sun. Goliath, demanding a type of one-on-one fight known as “single combat”, ... Read More >>
Stopping a Sale
A NOTICE OF DEFAULT is the first step in the foreclosure process and must be served on you by certified mail or posted on your property according to California statute. The NOTICE OF DEFAULT is required by statute so that ninety (90) days later your lender may record a NOTICE OF TRUSTEE’S SALE which will include the sale date for your property. Many borrowers report never receiving a NOTICE OF DEFAULT and are surprised (to say the least) when they get a NOTICE OF TRUSTEE’S SALE informing them of a foreclosure sale twenty (20) days later. At this point everyone asks: “How do I stop my ... Read More >>
Important New Rights under the Foreclosure Reduction Act – the Homeowners Bill of Rights (HBOR)
California Civil Code §2923.5 (§ 4) and §2924.18 - Dual Tracking: Dual tracking is when the Loan Servicer assures you that you are being considered for a loan modification while simultaneously (sometimes secretly) foreclosing according to the California foreclosure statutes by recording a NOTICE OF DEFAULT (“NOD”) and a NOTICE OF TRUSTEE’S SALE (“NOS”) and then holding a sale. Loan Servicers argue that they have no duty to modify a loan, and have used this “lack of duty” argument to win in court against borrowers that were successfully distracted by dual tracking. The new statute requires ... Read More >>
The Banks Don’t Want to Modify Your Loan
“The California Homeowner Bill of Rights” was signed into law on July 12, 2012 by California Governor Jerry Brown to address the widespread negligence and fraud by Loan Servicers required by law to modify homeowners’ loans. The new “Foreclosure Prevention Act” defines the duties that Loan Servicers must perform and provides statutory penalties for nonperformance. Finally, in California, there are some teeth in the foreclosure laws. Six years ago (or more) you may have gotten an interest-only or neg-am loan based on an inflated appraisal and stated income as part of a scheme by your ... Read More >>
Welcome to the Advocate Legal Blog
– main contributor Susan M. Murphy Advocate Legal is a law firm dedicated to taking power back from the lenders that control our lives through controlling our credit. From our law office in Los Angeles, we litigate both individual and mass joinder lawsuits on behalf of homeowners. Our intention is to help our clients hold onto their property, reduce their debt, get justice and achieve peace of mind. We do it with leverage. It’s how David brought down Goliath with a slingshot. From this blog we hope to educate, inform and share important news that affects your financial life to help you ... Read More >>