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A derogatory credit letter can brighten your world

May 18, 2012 By

I read this article & thought I’d share it with you. Many thanks to First Tuesday www.firsttuesday.us, they did a good job providing a road map & instructions, along with the forms you can use to improve yourclient’s chances of closing their loan, or even your own fiscal maturity :

Your buyer’s loan application, credit issues and saving your fee: have the repentant buyer submit a letter explaining his derogatory credit history

This article analyzes the use and advantages of a derogatory credit explanation letter when derogatory items appear on a homebuyer’s credit report.

During this Great Recession, lenders are extremely cautious to lend and loan funding is scarce for everyone except those with perfect credit. The likelihood of a denied loan application has dramatically increased from the easy money days of 2006, and will only worsen through the bumpy plateau recovery as the Federal Reserve (The Fed) withdraws excess funds from the financial markets and lenders begin repayment of the Troubled Asset Relief Plan (TARP) “loans” made by the Treasury.

While a lender’s refusal to lend vanquishes a homebuyer’s ability to obtain financing to purchase a home, it also blocks the transaction agent (TA) who represents that homebuyer from collecting a fee and earning an income on the sale he negotiated. Thus, it is in the interest of both the homebuyer and the TA to ensure all reasonable steps are taken to qualify the homebuyer for a mortgage.

Editor’s note –

The initial step for the TA is to have a lender pre-approve the homebuyer, a preliminary activity we do not review here.

An unblemished credit report is rare. The credit reports of most would-be-homebuyers contain derogatory items negatively affecting their ability to obtain financing, such as:

defaults;

foreclosures; and

late or missed payments.

Loan officers employed by lenders presume derogatory items on a credit report indicate the homebuyer has an increased risk of defaulting. A poor credit report may indicate a homebuyer’s financial habits and propensity to repay debt were at one point inappropriate for the loan currently sought. It is in the professional interest of a loan officer not to approve a loan for a homebuyer that has an unacceptable risk of falling into default (especially in times of greater government scrutiny when so many loans are turning or have turned bad).

Thus, when derogatory items exist on a credit report or a verification by a lender, the prudent TA makes sure his homebuyer prepares and submits a Derogatory Credit Explanation Letter to the lender. The Derogatory Credit Explanation Letter is designed to provide a personalized explanation for the derogatory items listed on the credit report or verification request. This candid response to the credit report is considered favorably by lenders when determining creditworthiness, and often makes the difference between approval and funding or denial of a loan. [See first tuesday Form 217-1]

Consider a homebuyer who needs a loan to fund his purchase of a home. The homebuyer’s TA completes a form for tracking the loan origination process and reviews it with the homebuyer. The form itemizes the different steps in the loan origination process. The homebuyer begins the property acquisition process by selecting a lender to provide funding for the loan. [See first tuesday Form 339 §1.1]

The homebuyer meets with a loan officer and submits a loan application. The lender orders out and receives a credit report which is sent to the homebuyer with the mandatory notice of credit score usage, informing the homebuyer of:

(1) the homebuyer’s credit score as calculated by the credit reporting bureau; and

(2)the key factors from the credit report adversely affecting the homebuyer’s credit score. [See first tuesday Form 227]

The homebuyer advises the TA he received the credit report and the credit score notice from the lender, and that there are negative items which may affect approval of the loan. The TA advises the homebuyer to immediately complete a Derogatory Credit Explanation Letter and submit it to the lender. [See first tuesday Form 217-1]

For the homebuyer, the explanation letter contains a cover page with instructions and recommendations for drafting a persuasive letter. While the TA offers to provide help when filling it out, he does not prepare any part of the letter for the homebuyer since the letter must appear sincere and contain personal information written in the words of the homebuyer, conditions that only the homebuyer can provide.

In the body of the explanation letter, the homebuyer identifies each of the derogatory items listed on the credit report. In chronological order, the homebuyer notes:

(1)the name of the creditor appearing on the report;

(2)the date each item was added to the report; and

the total sum of money involved with the negative item. [See first tuesday Form 217-1 §3]

Next, the homebuyer enters his explanation for each of the derogatory items listed. The explanations must establish enough historical context surrounding the rise and resolution of the derogatory items to adequately express the factors which colluded to create it. The explanations given need to be focused, concise and not waver from the history surrounding the item. [See first tuesday Form 217-1 §4]

In this example, some of the derogatory items were the result of the homebuyer’s own negligence in handling his finances. In addressing his neglect in avoiding delinquencies, the homebuyer is honest about his mistakes and approaches the items from a perspective which exhibits his reformed financial habits. He itemizes the steps he has personally taken to correct the negative items marring his report. In his acknowledgment of mistakes, the homebuyer provides concrete examples of how his financial health has improved as the result of his more prudent money management and spending patterns. [See first tuesday Form 217-1 §4]

The TA advises the homebuyer to submit supplementary information along with the explanation letter to provide support for his explanations. Some of the negative items on the report resulted from a job loss and a period of unemployment with no savings to draw on, so the homebuyer attaches a copy of his layoff notice and unemployment records. This additional information, together with having later established a savings account, lends legitimacy to the homebuyer’s explanation.

The TA instructs the homebuyer to mail the explanation promptly. Time is of the essence, as the explanation letter is ideally viewed by the lender concurrently with the credit report containing the derogatory items.

Does the lender provide funding for the homebuyer even though he has less-than-perfect credit resulting from derogatory items on his credit report?

Yes! The loan officer, reviewing the explanation letter and exercising human judgment, is now able to determine the homebuyer does not pose an unacceptable risk of default as first indicated by the credit report. The explanation letter establishes the context for the negative items and provides a medium for the homebuyer to persuasively express his awareness of the negative items and his eagerness to avoid similar problems in the future. Thus, the homebuyer is able to purchase the property he desires – enabling the TA to earn his fee.

 

http://firsttuesdayjournal.com/may-2012-forms/

Copyright© 2012 by first tuesday Realty Publications, Inc

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Bank of America’s giving away $$ (sort of)

May 14, 2012 By

Our friend Herman Thordsen (h.thordsen@lendinglaw.com) brings us some good news

BANK OF AMERICA WILL NOTIFY ABOUT 200,000 CUSTOMERS IT MAY REDUCE THEIR HOME LOANS BY AS MUCH AS $100,000

FACTS

On May 8 2012  Bank of America said it has begun contacting about 200,000 customers who have fallen behind on home loans and owe more than their current home values. It is notifying them that they may qualify to have their loan balances reduced as much as $100,000 as part of a $25-billion settlement over foreclosure abuses.

 Only loans owned by Bank of America will qualify. Those owned or backed by government-controlled mortgage buyers Fannie Mae and Freddie Mac, or backed by the Federal Housing Administration, are ineligible.

 The offers are to be mailed out gradually through the end of September  2012.

 The $25 billion settlement requires Bank of America, Wells Fargo & Co., JPMorgan Chase & Co., Citigroup Inc. and Ally Financial Inc. to reduce principal for some borrowers.

 B of A is alleged to have said that more of the offers would go to states where Countrywide Financial Corp., the high-risk lender it acquired in 2008, had done the most business.   The heaviest concentrations are expected to be California and Florida.  (lat5912)

MORAL

I’ll believe it when I see it but it sure sounds nice. If you get one of these letters and your principal is reduced please let me know so we may publish it anonymously to give others hope.

THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.

AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE.

 

 

 

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Protect your essence!

May 3, 2012 By
I received this today & wanted to share it with you. Having your identity stolen is not a load of chuckles, believe me; been there, done that, got the T shirt.
 
For the eleventh consecutive year, identity theft surpassed debt collection and internet services complaints as the most prevalent form of consumer fraud, according to the Federal Trade Commission, which received almost 251,000 identity theft complaints last year. For the first time, “imposter scams” – where imposters posed as friends, family, respected companies or government agencies to get consumers to send them money – made the top 10.

Many consumers associate identity theft with email solicitations and computer firewall breaches, but checks, credit cards and Social Security numbers remain targets as well. To protect yourself from becoming a victim, follow these tips to prevent identity theft.

Checks

- Use your initials and last name when ordering printed checks. A check forger won’t know how you sign your checks, but your bank will.
- Do not have your home phone number or Social Security number printed on your checks. Use your work phone number. Use a post office box or work address instead of your home address.
- Order new checks from your bank and pick them up at the bank, rather than having them sent to your home mailbox.

Credit cards

- When paying credit card bills, write only the last four digits of the account number in the check memo line.
- Do not sign the back of your credit card — instead write, “Photo ID required.”
- Photocopy both sides of your driver’s license, credit cards and other important contents of your wallet. In the event it is stolen, you’ll know exactly what is missing.
- Keep a list of your credit card numbers and their toll-free customer service numbers so you can cancel cards quickly if lost or stolen. Keep the list in a safe place in your home, not in your wallet.

Social Security Number

- Do not carry your Social Security card in your wallet. Memorize the number and put the original card in a safe place.
- If you believe your Social Security number has been compromised, contact the Social Security Administration fraud line 800-269-0271.

PINs and Passwords

- Do not write your PIN on the back of the card or on anything else in your wallet.
- Use different PINs for each debit and credit card. If you have too many to remember, consider reducing the number of cards you carry in your wallet.
- Do not use easily available information, like your birth date, phone number or part of your Social Security number, for PINS and passwords.

Mail and Trash

- Use post office collection boxes for outgoing mail, rather than your home mail box.
- Shred any trash that may contain personal information, including charge receipts, credit applications, insurance forms, medical statements, checks and bank statements, expired credit and debit cards and direct mail credit offers.
- You can opt not to receive direct mail credit offers by calling 888-567-8688.

If your wallet is stolen, you should immediately:
- File a police report to document the theft and the wallet contents.
- Contact one of the national credit reporting organizations (listed below) to have a fraud alert placed on your name and Social Security number. The organization you contact is required to contact the other two. If the thief’s purchases initiate a credit check, the credit reporting organization can alert the merchant. Placing a fraud alert entitles you to free copies of your credit reports.
- Equifax 800-525-6285
- Experian 888-397-3742
- Trans Union 800-680-7289
- Close all accounts for missing credit cards. Check your credit reports for accounts opened fraudulently.
- File a complaint with the Federal Trade Commission, which maintains a database of identity theft cases, online at www.consumer.gov/idtheft . This database assists law enforcement agencies and helps the FTC learn more about identity theft.
- Notify your bank if your wallet contained a checkbook or debit/ATM cards.

 
Thank you to David Valenzuela at mycitylender.com for the heds up.
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Foreclosures failing to work

April 12, 2012 By

Duane Gomer (duanegomer.com) sent an interesting morsel of information Is it any wonder the legislators are screwing with the system.?

FORECLOSURES
The San Francisco Assessor commissioned a foreclosure study during 2009 and 2011. The results are revealing and stunning to me and I’ve studied this market for decades. For example: 1 – 99% had irregularities, 2 – 84% had violation of law, 3 – 75% had issues with the assignments of the trust deeds, 4 – 84% had problems with the substitution of trustees, 5 – 59% had evidence of backdating, 6 – 45% the foreclosing party had never been assigned the loan. The Assessor’s conclusion: The California Non-Judicial Foreclosure System is “utterly broken” and needs repair. You can’t trust anyone anymore. Be aware. Get out the word.

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Martha rides again! Debt relief in your future?

March 15, 2012 By

Here’s an alternative to being swallowed by your credit card debt; Martha Jackson brings you a new wrinkle to consider

What’s  a debt management plan?

A debt management plan is an informalrepayment plan that you could agree with your unsecured lenders – ifyou can no longer afford your original repayments.

Professional debt management is designed to give people an affordable way out of debt, and take awaythe pressure of dealing with lenders on their own.

But how much will you have to repay ifyou enter a debt management plan?  Let’s find out.

How could a debt management plan help me repay my debts?

Agreeing a debt management plan isdesigned to give you a realistic, manageable way out of unsecured debt problems. If you and your unsecured lenders agree that a debt management plan is the best way for you to repay yourdebts, you will:

Make smaller monthly payments, based on what you can afford after you’ve covered your basic living costs
(Hopefully) stop receiving phone calls and letters from your unsecured lenders
Have a clear way out of unsecured debt – at a pace you should be comfortable with. If you’re looking to set up aprofessional debt management plan, a professional debt management company could help you.

How much will I repay on a debt management plan?

You’ll make your new monthly repaymentson a debt management plan until you’ve repaid everything you owe – so the overall timeframe depends on how much debt you owe in total and how quickly you can repay it. However, if your circumstances improve, and you can afford to make your original full payments again, yourdebt management plan can come to an end at this point.

Bear in mind that making smallerpayments could end up being more expensive  (once the interest has been taken into account), and will affect your credit rating for six years.

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A couple ideas on saving a buck

March 10, 2012 By

This was sent to me by an associate. I thought you may get something out of it.

Thanks to Martha Jackson for the heads-up

Ways to obtain low interest rate debt consolidation loans

 

After the recent colossal economic crisis, a large number of individuals are not being able to manage the finances and are thus, incessantly falling into debt. If are also in a similar situation, drowning under the sea of outstanding debt and looking for a solution to become debt free, debt consolidation is an attractive option. Debt consolidation is a program that allows you to consolidate all your high interest debts into a low interest loan, which in turn reduces your monthly payments and saves you money. So now the concern is how to get a low interest rate debt consolidation loan.

 

Here are a few important ways to obtain a low interest rate debt consolidation loan.

 

  • The best way to get a low interest rate debt consolidation loan is to apply for a home equity loan. These types of loans offer low interest rates because they are secured loans, backed by collateral. This means, when you are acquiring a home equity loan you have to put your property as collateral so that in the event you should default on loan repayment, lender will take away your property. You can also choose to cash out your equity by refinancing or obtaining a second mortgage. Many people choose this option since they usually cost zero to hundreds of dollars to open.

 

  • The second way to get a low interest rate debt consolidation loan is to open a new credit card account. If you shop around well, you will find a number of credit card companies that offer zero percent interest rates. Obtain such card and transfer all the balances on debt onto the new card. However, these types of offers are introductory, that means the rates may jump in six to twelve months. So make more than minimum monthly payments and pay down the debt as soon as possible before the rates increase. At the end of the introductory offer you may acquire another zero percent interest card and transfer the remaining balances onto it. Continue the process until you can pay off all your debts.

 

  • Another best way to consolidate debt into a low interest rate loan is to taking out a personal loan. Personal loans are loans offered through banks and financial lenders. But the interest rates obtained with these loans depend on the individual’s FICO credit score and cash asset. Additionally, keep in mind, these loans are unsecured loans and thus will charge relatively higher interest rates. However, when compared with credit interest rates, these loans are significantly lower.

 

  • Finally, shop for loan interest rates in order to acquire a low interest rate consolidation loan. You should research the rates regardless the type of loan you choose. You can save thousands on interest rates by contacting several different lenders and comparing the interest rates offered.

 

In conclusion, if you want obtain a low interest rate debt consolidation loan, bear the above mentioned ways in mind.

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Say goodbye to tax deductions for home interest?

March 8, 2012 By

This is a very interesting viewpoint on home loan interest deductability, what do you think?.

Thank you to First Tuesday Realty Publications for shasring their thoughts. Their contact information is at the bottom.

As of January 1, 2012, a new law has eliminated the ability of large numbers of home buyers and owners to write off their mortgage insurance premiums (MIPs). Alongside the loss of the tax deduction, Congress now requires new fees on all conventional Federal Housing Administration (FHA) loans. Together, these regulations will lead to an increase in the cost of homeownership for buyers by the end of this year.

Millions of existing owners and new homebuyers will be affected by the elimination of the MIP deduction. The law will affect all newly originated mortgages with less than a 20% downpayment and may also apply to all low downpayment-mortgages made after 2007. [For information on personal savings and the 20% downpayment solution, see November 2011 first tuesday article, The 20% solution: personal savings rates and homeownership.]

Enacted in 2006, the MIP deduction allowed borrowers using private or federal insurance to write off their premiums. In most cases, borrowers saved significantly from their post-tax deductions, depending on marginal federal tax brackets (with higher income households saving more). Thus, the termination of mortgage insurance deductibility concerns middle-income and first-time buyers in terms of price consideration.

This elimination of the ability to write off premiums is not the only change in law to affect borrowers’ housing costs. Beginning in April, Fannie Mae and Freddie Mac will charge a surtax on guarantee fees charged to private lenders, which could add an eighth of a percentage point to rates, significantly increasing costs paid by the borrower over the life of the loan. FHA loans will raise annual premiums for new borrowers by one-tenth of a point annually.

first tuesday take: Embrace this change. Government sanctioned tax policies to supplement homeownership have artificially increased home prices as a tool to keep the economy going. The American Dream, built on expectations of homeownership, has suffered as a result.

While the virtue of owning a home has become deeply embedded in the American psyche, our present model of homeownership is riddled with detrimental policies that serve only to increase debt for homeowners and, as we have seen again recently, increase their risk of losing their homes.

The homeownership driven economy of the past 30 years was created through government tax incentives, supporting loopholes to purportedly implement the nation’s housing policy rather than personal savings for that home purchase and a sustainable economic vision for those inclined to own. [For more information on government tax deductions in relation to homeownership, see the June 2011 first tuesday article, Subsidizing the American Dream.]

Rather than benefitting American homeowners, tax subsidies always both profit the rich and support loss-operating businesses – builders, mortgage banks and the Wall Street bond market. Worse, they are bad for the economy, to say nothing about the inevitable violence these juiced up conditions bring to the real estate market.

As housing subsidies have been determined to have no effect upon the level of homeownership nationwide, the loss of tax deductions will not reduce the number of homeowners. Instead, this change will ultimately benefit homebuyers because the government will then have an opportunity to create a stronger plan for economic recovery rather than simply dropping interest rates and granting subsidies for homebuyers so construction jobs and lending activity take off again.

The removal of the MIP deduction is a first step toward the repeal of mortgage interest tax deduction subsidy, which has long been advocated by first tuesday. Such a repeal will have little impact on sales prices. The low- and mid-tier homebuyers and owners receive no value from these subsidies. Subsidies serve primarily to drive up the price of homes (evidenced most recently by the cycle in 2009-2010) and mortgages, both of which form the pass through of the subsidy to the rich.

It is the rich that scream about losing the subsidies (builders, lenders, provides of closing services and high-tier homeowners).

Better yet, without subsidies, prices will more likely remain at their fundamental equilibrium rather than be driven by conditions outside the basic need for a home. A change in the collective attitude regarding mortgage debt is needed, with the MIP deduction being a step in the right direction. [For more information on mean pricing and the historical pricing equilibrium, see October 2011 first tuesday article, The equilibrium trendline: The mean-price anchor.]

Re: “Federal tax deduction for mortgage insurance premium expires” from L.A. Times

Copyright © 2012 by the first tuesday Journal Online – firsttuesdayjournal.com;
P.O. Box 20069, Riverside, CA 92516

Readers are encouraged to reproduce and/or distribute this article.

Copyright © 2012 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 20069, Riverside, CA 92516.

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Sales of existing homes at almost a 2 year high!

March 7, 2012 By

Good news for a change!

 Buying existing homes contracts have hit a two year high according to NAR, the National Association of REALTORS®’ index of pending home sales., The housing  recovery is looking good folks.. The index of deals for previously owned homes is up 8 percent from last January

This increase is equal to the 2010 tax credit incentive sunset. Could the market be rebounding without a major government crutch?.

While the west region showed the smallest % increase, anything is better than nothing, right? .Existing home sales nationally were up more than 4 percent in January, bumping 4.57 million.

Housing experts such as Lawrence Yun, the REALTOR® group’s chief economist, credit the sliding unemployment rate—which fell in January to its lowest point in three years —as well as a downward trend in home prices and a supply of homes that is at a nearly seven-year low.

“Movements in the index have been uneven, reflecting the head winds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery,”  according to Lawrence Yun, the REALTOR® group’s chief economist,  in a statement.

 

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The Homeowner Bill of Rights

March 1, 2012 By

Here’s something you might find interesting. As usual good intentions that may lead to unintended consequences.
California Attorney General Kamala D. Harris has announced the California Homeowner Bill of Rights designed to protect homeowners from unfair practices by banks and mortgage companies and to help consumers and communities cope with the state’s urgent mortgage and foreclosure crisis. Joined by Senate President pro Tem Darrell Steinberg and Assembly Speaker John A. Perez, Attorney General Harris announced her sponsorship of six bills designed to guarantee:

►Basic standards of fairness in the mortgage process, including an end to dual-track foreclosures

►Transparency in the mortgage process, including a single point of contact for homeowners

►Community tools to prevent blight after banks foreclose upon homes

►Tenant protections after foreclosures

►Enhanced law enforcement to defend homeowner rights – paid for by fees imposed on banks

►A special grand jury to investigate financial and foreclosure crime

“California communities and families are being devastated by the mortgage and foreclosure crisis. We must ensure the deceptive practices that caused it never happen again,” said AG Harris. “The California Homeowner Bill of Rights will provide basic fairness and transparency for homeowners, and improve the mortgage process for everyone.”

The legislation builds on the California commitment announced by Attorney General Harris earlier this month, which is expected to result in $18 billion of benefits for California homeowners. That agreement included reforms for mortgages owned by the five banks that were signing parties. The California Homeowner Bill of Rights will strengthen those protections, make them permanent, and apply them to all mortgages in the state.

“I want to congratulate the Attorney General on the victory she won on behalf of the people of California,” said Speaker John A. Perez. “Our state has suffered greatly as the result of bad actors in the banking and financial industries, and this settlement holds them accountable as we continue the difficult work of recovering the housing market and stemming the tide of foreclosures, evictions and auctions.”

If passed, the following bills would:

Assembly Bill 1602/Senate Bill 1470: The Foreclosure Reduction Act of 2012Authors:Assemblymen Mike Eng and Mike Feuer; Senators Mark Leno, Fran Pavley, and Senate President pro Tem Darrell Steinberg

►Require creditors to provide documentation to a borrower that establishes the creditor’s right to foreclose on real property prior to recording a notice of default.

►Require creditors to provide documentary evidence of ownership, the chain of title to real property, and the right to foreclose, at the time of the filing of a notice of default.

►Prohibit creditors from recording a notice of default when a timely-filed application for a loan modification or other loss mitigation measure is pending.

►Prohibit creditors from recording a notice of sale when a timely-filed application for a loan modification or other loss mitigation measure is pending.

►Prohibit creditors from recording a notice of sale while a borrower is in compliance with the terms of a trial loan modification or after another loss mitigation measure has been approved.

►Require creditors to disclose why an application for a loan modification or other loss mitigation measure has been denied.

►Require that notices of foreclosure sales be personally served, including notices of foreclosure sale postponement.

►Provide homeowners with a private right of action in instances in which the requirements set forth in the legislation are not followed

Assembly Bill 2425/Senate Bill 1471: Due Process Reform Legislation

Authors: Assemblywoman Holly Mitchell; Senators Mark DeSaulnier and Fran Pavley
► Require creditors to provide a single point of contact to borrowers in the foreclosure process who will be responsible for providing accurate account and other information related to the foreclosure process and loss mitigation efforts.

►Require creditors to provide a dedicated electronic mail address, facsimile number and mailing address for borrowers to submit information requested as part of a loan modification, short sale or other loss mitigation option.

►Authorize borrowers to challenge the unlawful commencement of a foreclosure process in court.

►Impose a $10,000 civil penalty on the recordation or filing of “robosigned” documents, defined as documents that contain information that was not verified for accuracy by the person or persons signing or swearing to the accuracy of the document or statement.

►Require that certain documents be recorded in a county recorder’s office.

Assembly Bill 2314/Senate Bill 1472: Blight Prevention Legislation

Authors: Assemblywoman Wilmer Carter; Senator Fran Pavley
► Prevent blight enforcement actions from being taken against new purchasers of blighted property for 60 days, provided that repairs are being made to the property.

►Require banks that release liens on foreclosed property to inform local code enforcement agencies of the release so that demolition of blighted property can proceed.

►Increase fines against owners of blighted property from $1,000 per day to $5,000 per day, and allow the imposition of the costs of a receivership over blighted property to be imposed directly against the owner of blighted property.

Assembly Bill 2610/Senate Bill 1473: Tenant Protection Legislation

Authors: Assemblywoman Nancy Skinner; Senator Loni Hancock

►Require purchasers of foreclosed homes to honor the terms of existing leases and give tenants at least 90 days notice before commencing eviction proceedings.

Assembly Bill 1950: Enhancement Of Attorney General Enforcement

Author: Assemblyman Mike Davis

►Impose a new $25 fee to be paid by servicers upon the recording of a notice of default. The fee would be deposited into a real estate fraud prosecution trust fund that would support the Attorney General’s efforts to deter, investigate and prosecute real estate fraud crimes, including the work of the Mortgage Fraud Strike Force.

►Extend the statute of limitations from one year to four years from the date of discovery for violations of law commonly occurring in connection with foreclosure-related scams, including acting as a real-estate agent without a license and charging up-front fees for loan modification services.

Senate Bill 1474/Assembly Bill 1763: Attorney General Special Grand Jury

Authors: Assemblyman Mike Davis; Senator Loni Hancock

►Authorize the Attorney General to impanel a special grand jury for the purposes of investigating and indicting multi-jurisdictional financial crimes against the state.

 

Fred Kreger, CMC

President Elect & Vice President, Government Affairs

California Association of Mortgage Professionals (CAMP)

“Excellence and Integrity in Lending”

 

 

Certified Mortgage Consultant

American Family Funding,

A Division of American Pacific Mortgage – A Direct Lender

24961 The Old Road Ste 101

Stevenson Ranch, CA 91381

Phone: (661) 505-4311

Cell: (661) 400-8905

Fax: (661) 705-8339

DRE License # 01371184 / 01215943

NLMS License# 214640 / 1850

 

Check out our GA blog site: www.campga.org

 

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One attorney’s advice

February 7, 2012 By

Herman Thordsen is a very knowledgable attorney with a specialization in real estate issues. He provides information to us on a regular basis. His contact info is available at the end of this article

 

IF YOU OWN FIVE UNITS OR MORE HAVE A RECYCLING RETAINER FOR YOUR TENANTS

 FACTS

 Owners of “multifamily dwellings” (residential dwelling of five or more units) mjust arrange for eht providing of recycling containers if there is adequate space for t hem unless a solid waste enterprise providing recycling services is not available to serve the property.  (a.b.818,Pub. Res. C. section 42913

 

MORAL

 If you own the units get the containers or the city may get you with a fine.  On the other hand if you are the consumer and you are mad at your landlord and no recycle bins, the city might be interested.

 CALIFORNIA FRANCHISE TAX BOARD GETTING MORE DIFFICULT ON PROPERTY TAX DEDUCTIONS

FACTS

 The California Franchise Tax Board is leaning on taxpayers and tax preparers to start complying with a LAW THAT PREVENTS PROPERTY OWNERS FROM DEDUCTING CERTAIN REAL ESTATE TAXES ON THEIR INCOME TAX RETURNS.   Many tax preparers are telling clients about the law and asking to see their property tax bills for the first time this year so they can determine which charges can and cannot be deducted.

Federal and state laws generally LIMIT THE REAL ESTATE DEDUCTION TO AD VALOREM TAXES, WHICH ARE CALCULATED AS A PERCENTAGE OF THE PROPERTY’S ASSESSED VALUE. Any tax that is a flat amount per property or benefits a specific property is generally not deductible. There are some minor exceptions, however, and property tax statements do not spell out which charges are not deductible.

 UNTIL THIS YEAR, almost everyone, including tax preparers, ignored this law and deducted 100 percent of property taxes. 

Once uncommon, nondeductible charges began creeping on toCaliforniaproperty tax bills after Proposition 13 in 1978 sharply limited general property tax increases. Since then, many local governments and school districts have been raising money with voter-approved parcel taxes and other charges that are not deductible.

 THE TAX BOARD HAD PLANNED TO ENFORCE COMPLIANCE BY ADDING THREE LINES TO 2011 STATE-TAX RETURNS THAT WOULD REQUIRE PROPERTY OWNERS TO SHOW THEIR PARCEL NUMBER, TOTAL PROPERTY TAX BILL AND THE DEDUCTIBLE AMOUNT. But IT POSTPONED THOSE CHANGES UNTIL 2012 RETURNS. This year, it is hoping to educate the public and tax preparers. It estimates that voluntary compliance could generate about $20 million in additional tax revenue this year.

The FTB has published information on how to comply with this law at www.ftb.ca.gov/individuals/Real_Estate_Tax_Deduction/index.shtml. This page includes a link where most people can look up their tax bill online not all counties offer online lookup and find a sample tax bill for their county. The sample bill attempts to show which charges are and are not deductible. But most people have taxes that are specific to their city, neighborhood or school district that do not show up on the sample bill. (SFCHRON2512)

 MORAL

We have dealt with the IRS on behalf of clients before and have found them to be very reasonable. However, I cannot say the same for the Franchise Tax Board. It is best to have a CPA or professionally responsible tax preparer do your tax returns.

 THE INFORMATION CONTAINED HEREIN IS NOT LEGAL ADVICE.

AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE.

SEMINAR AND SPEAKING ENGAGEMENT SCHEDULE

Contact Herman Thordsen at  888-667-8529 to Register

 

DATE: SATURDAY-MARCH 10, 2011
TIME: 9:30 P.M. -1:30 P.M.
LOCATION: 5 Hutton Centre DriveSuite 100Santa Ana, CA 92707
COST: FREE AS LONG AS YOU PREREGISTER.
SUBJECT: LOAN MODIFICATIONS- HOW THEY WORK AND ARE SUBMITTED TO OBTAIN A BETTER CHANCE OF BEING GRANTED.FORECLOSURES-HOW THEY WORK, HOW LONG THEY TAKE AND HOW TO AVOID DEFICIENCIES
SPONSOR: LAW OFFICES OF HERMAN THORDSEN
COMMENT: You will learn what the bureau examiners are looking act and in turn what them may find.  By doing this now you can make sure your house is in order before the examination.
   

 

We do have attorneys available for those that need assistance in the following areas:

 

Personal injury

Bankruptcy

Criminal defense.

Employment law including unpaid wages and overtime.

Divorce

Estate Planning, Probate and Trusts

Mortgages and Foreclosures, your rights and remedies

 FAMILY LAW

 

If you are considering dissolving your marriage or modifying an existing decree or order inCalifornia, please consult your attorney first.  Otherwise you may find problems long after the marriage is over.

 

 

 

 

TOO MANY CREDITORS BOTHERING YOU?

 

 

IF YOU ARE SUED OR THE DEBT IS TOO HIGH WITH CREDITORS BANKRUPTCY CAN BE AN OPTION and IS A LOT LESS EXPENSIVE THAN DEFENDING A LAWSUIT:

 Bankruptcy can potentially avoid a fraud judgment against the defendant thus reducing the risk of losing a professional license.

 If a foreclosure occurred the lenders on the junior mortgages have the right to sue when it is a non purchase money mortgage.  The lenders can sue on the junior mortgages as unsecured promissory notes and they are doing just that.  The bankruptcy can remove this lawsuit.

 Bankruptcy is a form of asset protection believe it or not.  It can in certain circumstances protect OVER $175,000 and more.

 A Chapter 13 bankruptcy may be able to remove that second and even third mortgage by stripping it down as an unsecured lien and paying a percentage of the amount potentially allowing you to save the home.

 Past due Income Taxes under certain circumstances can be discharged in bankruptcy. 

Under certain circumstances you may be able to legally keep one or more of your credit cards after the bankruptcy so you have something to reestablish credit and to use when traveling.

DISCLOSURE 

The services or benefits with respect to bankruptcy relief are under Title 11 of the United States Code.   In doing this: “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code” within the meaning of Title 11 United States Code Section 528.

 NON PAYMENT OF WAGES OR OVERTIME WAGES?

If anyone you know has not been paid proper wages or overtime we have capable attorneys available that can assist them. There is no charge for the consultation and we only get paid if we win.  Call 888-667-8529 for a free consultation.

PERSONAL INJURY

 

We do have super lawyers available for you in the event of serious injury.  The consultation is free and we will come to you.

 

Our trial lawyer for personal injury cases is Alan Brown, a member of the National Trial Lawyers Association.  It is by invitation only to the 100 top trial lawyers in each state.

 The National Trial Lawyers is an organization composed of The Top 100 Trial Lawyers from each state. Membership is obtained through special invitation and is extended only to those attorneys who exemplify superior qualifications of leadership, reputation, influence, stature, and profile as civil plaintiff or criminal defense trial lawyers. It is the mission of The National Trial Lawyers to promote excellence in the legal profession through practical educational programs, networking opportunities, and legal publications that deal with current issues facing The National Trial Lawyers.

 Our firm has been practicing law for over 39 years, the last 20 of which are at the exact same location in Hutton Centre, Santa Ana California where the 405 and 55 freeways meet.  The firm attorneys represent numerous clients in many areas of law in California and nationally.  Mr. Thordsen is a panel attorney with the Los Angeles Police Protective League and the firm is counsel to several trade associations.   Mr. Thordsen has been a member of the Advisory Board of the Mortgage Banking and Real Estate Appraisal Programs at California State University, Fullerton.  Mr. Thordsen has been a member of the California Department of Real Estate Solicitation Task Force Committee and the California Department of Motor Vehicles Anti-Fraud Task Force.

 Mr. Thordsen is an invited guest speaker before trade groups and other organizations on real estate, mortgages, consumer protection, bankruptcy issues and asset protection. 

The firm has represented people in minimum wage and overtime issues and protecting consumers from overzealous creditors and in two cases has assisted in the personal injury recovery of over one million dollars for persons seriously injured in automobile collision cases. 

He has spoken and written on the misclassification of employees as independent contractors to avoid paying minimum wage and overtime. 

 ATTORNEYS IN OUR FIRM are able to represent you in negotiations and litigation of lender buyback demands, deficiency payments on mortgages, foreclosures as well as white-collar crimes.  

We have been successful in representing clients in wage and overtime violation cases and personal injury cases on a contingency fee basis.  Wage disputes include minimum wage, overtime and unemployment compensation issues.

If we may be of service in these areas or estate planning and asset protection, please contact us, and one of our attorneys will discuss the matter with you. 

 

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