FORECLOSURE FRAUD AND THE $25 BILLION NATIONAL MORTGAGE SETTLEMENT
The record $25 Billion Dollar National Mortgage Settlement Agreement signed earlier this year involved 5 big lenders. According to recent reports, the Federal Reserve is now adding another 8 to the list.
According to officials 8 firms will be faced with fines and penalties due to flaws and irregularities. They include the following:
-SunTrust Bank
-HSBC
-EverBank
-MetLife
-Goldman Sachs
-OneWest
-US BankCorp
- PNC Financial Services
The addition on Goldman Sachs was surprising to many considering Goldman Sachs never played a major role in the mortgage processing industry. Goldman Sachs, actually, sold its loan processing unit (called Litton Servicing Loan LP) to Ocwen Financial Corp. in 2011 for about $264 million (after a $200 million write-off, loss taken by GS).
After the country’s downfall, Goldman Sachs was actually one of the firms thought to be unscathed in the foreclosure crisis. Other firms that did sink in the crisis either disappeared or were penalized (like Lemah Brothers and Bear Sterns or the Big Five). Goldman Sachs actually continued to turn in staggering profits with merely any legal trouble from feds or state governments.
Goldman Sachs did leave itself “open to future penalties” and fines due to its role in creating wrongful foreclosure properties across the country when it sold Litton Loan Servicing. This leaves a case open to penalties that may come close to – but probably not meet or exceed- the fines against JPMorgan Chase, et al., in the original agreement.
How much are these eight (8) firms expected to pay in fines, write downs, and other credit obligation? The Big Five, each, owed on average about $5 billion. These eight (8) firms though are much smaller (by revenue and total assets), so the amount of money would be exponentially less. Also the percentage of wrongful foreclosed homes caused by these eight firms is no-where near the amount of wrongful foreclosure caused by the Big Five, which is by these firms were not targeted earlier.
Ray Garcia, Esq.
Board certified in Real Estate Law
By the Florida Bar
www.raygarcialaw.com
BANKRUPTCY MAY ASSIST IN FINANCIAL STRESS
Bankruptcy is an option for some people who are overwhelmed by their debt. At times, stress is caused from debt related issues. This stress can lead to illness, loss of employment or even divorces. One could possibly avoid all the above mentioned issues by relieving their stress. Many times, filing bankruptcy is ones best option. It is important to understand filing for bankruptcy is not the end of the world. Filing bankruptcy provides an opportunity for one to repair and build credit. When filing a Chapter 7 bankruptcy all your debt is discharged, allowing you the opportunity to start fresh. In this economy, many people need the opportunity to start over.
In Florida, there are certain exemptions for residents who have lived in Florida over two (2) years. These exemptions would include the following:
Homestead exemption: A home which you own is considered ones homestead. If you wish to continue living in your home, you are “retaining” your homestead. Retaining your homestead allows you to exempt all of the equity in it, if in fact there is equity in the property.
Personal property exemption: In Florida, a person filing bankruptcy is allowed $1,000 in personal property if you are claiming your homestead exemption or $4,000 in personal property if you are not claiming your homestead exemption.
Vehicle exemption: In Florida, a personal filing bankruptcy is allowed $1,000.00 in exemption for a vehicle. If you do not use the total personal property exemption allowed, one may then use the balance towards the vehicle.
Retirement/Life Insurance benefits: Are 100% exempt in a bankruptcy, meaning that money will not be a part of the bankruptcy estate, meaning no one will touch your money.
Some debt that would not be dischargeable in a bankruptcy would include:
Student loans
Income taxes that are LESS than three (3) years old
Child support dues and/or divorce settlements
When considering this option, it is important to have an attorney whom you trust and feel comfortable with. If you have any questions concerning this matter, please feel free to contact the Law Office of Ray Garcia, P.A. for a free consultation at 305-227-4030.
Ray Garcia, Esq.
Board Certified in Real Estate Law
By the Florida Bar
www.raygarcialaw.com
Why Florida’s Foreclosure Machine Is Slowing Down
The State of Florida has the third highest foreclosure rate in the United States after Nevada and Arizona. Florida’s legislature appropriated $9.6 million this year to hire semi-retired judges and case managers to preside and assist in foreclosure hearings such as those in Tampa. The idea is to avoid “Rocket Docket” type jurisprudence. The goal is to clear 62 percent of the backlog by next July. These facts are per a spokesmen for the Florida Supreme Court which thought it was able to accomplish this goal through the appropriation. However, some banks such as JP Morgan Chase and have slowed down on their foreclosures and evictions, because of this they seem very doubtful that they can clear that amount. Among the alleged defects the banks are examining are lender affidavits signed by people, often described as “robo signers,” who repeatedly failed to verify the accuracy of the information in the documents. Every homeowner that’s in foreclosure now should be questioning the documents and go through thoroughly to make sure there is no fraud going on.
Ray Garcia, Esq.
Board Certified in Real Estate Law
By the Florida Bar
www.raygarcialaw.com
