When you are responsible, to any degree, with the flow of income into your employer, company, family etc., you are always looking for new ways to increase your reach. About 2 yrs ago I had the privilege of meeting Gia Heller with the National Business Experts. I was blown away by her idea of a networking group on Facebook, Arizona Women Networking. I had felt at the time Facebook was so NON business. Was I ever wrong. One of the key aspects of business is relationships. If the only way I was building new ones was through networking groups like BNI and others, I was not going to go as far as I could.

Well, I did not make a decision at that time. I hesitated. As they say, “He who hesitates, is lost.” Lost I was. I did start paying attention to her and join her open group at Friends of Gia Heller and began to figure it out. I realized that the kind of networking she was doing was so different from any other group out there.

6 months ago I went to an introduction and interview session to learn what it was all about. WOW. Arizona Women Networking had grown to add Arizona Men Networking and then grew into what is known as The National Business Experts. I joined. For $50 dollars a month, how could I turn it down?

I get 4 hours a month of Social Media Training,  I get to go to two tremendous meetings a month where nationally recognized speakers come to talk about how to improve your business like Sharon Lechter of Rich Dad Poor Dad and Outwitting the Devil fame, Les Brown another nationally renowned speaker and others, membership to a local chapter of the TNBE, The Phoenix Business Experts, and further the chance to attend two networking lunches a month with a even more local chapter in my circle of influence. Really? For only $50 a month? Where else can you go to get that much for that price? But wait, there is more.

So hear is the deal. It is not a single layer deal. Networking is only one layer of this cake. There is the training, but in addition to that, through involvement with the members, you learn what to do with that training. Even if you don’t meet one single new client, or get one referral, the education you get on how to integrate your Linkedin, Twitter, Youtube, Website, Facebook Page, Facebook Profile and Blog is priceless. But wait, there is more!

Every member of The National Business Experts is your sales force. That’s right. My fellow members in the group help me by commenting on and sharing my posts to their network of friends increasing my touch exponentially. I in turn help them by doing the same. There is simply no other group I have found that is as significant and effective as this group.

If you are responsible for your companies revenues and you are not active in Social Media, I predict as well as every other expert out there, that in the next few years, you will either have no company to be responsible for, or your company will find someone to do it for you. You need to follow the links in this post and see what I mean. If you want to learn more, call me 602-571-9644. That is my personal cell phone. You can be my guest at the next Monthly Information Session and learn more. To be clear, this is NOT an MLM. I get nothing from this testimonial or you joining, other than to bring one more professional into a group that I am very proud to be a part of.

The Treasury Department will withhold Home Affordable Modification Program payments from JPMorgan Chase (JPM: 33.95 +2.17%) and Bank of America (BAC: 5.88 +1.73%) for the third straight quarter.

With so many homeowners facing foreclosure for so long you would think Chase would get it? On the other hand, maybe they do. It has been several quarters that Treasury has been warning them to get their act together and still no result. Now they are holding back money. I read the article with great interest till I noticed the part about how much money Chase has received to date from Treasury. Putting aside what I think I know and what I KNOW I know about HAMP, the numbers quoted make no sense.

“Both Chase and BofA combined to start 315,000 permanent HAMP modifications and extended more than 800,000 three-month HAMP trials.” Ok, so that is our basis of numbers. Then we get this quote, “The Treasury uses Troubled Asset Relief Program funds to pay servicers $1,000 for every permanent modification and another $1,000 every year the new loan is current.” Wow, only $1000 per mod plus another $1,000 per year as long as the loan is current. Well let’s see, if we then assume every mod lasts for only one year and is current, putting aside the fact that we know the default rate on them runs between 30% and 65% depending on whoever is tracking and reporting the numbers, then that is $2,000 per loan mod. As the article did not tell us how much of the 315,000 perms were done by each, I will split it in half with BofA. That leaves us 157,500 laon mods done by Chase. 157,400 mods times $2,000 per mod equals $315,000,000 dollars for Chase. For both of them that is $630,000,000, Six hundred Thirty Million Dollars. Over half a Billion Dollars of payments possibly due to or paid by Treasury to these two lenders.

Now, putting aside the fact that this is allot of money. Here is the quote that my eyebrows really raised on, “According to Treasury data, more than $87 million in HAMP payments went to Chase so far, and another $80 million went to BofA.” That is $167,000,000 million dollars actually paid. Now, I am confused. If BofA and Chase are due $630,000,000 and have only been paid $167,000,000 that means that $463,000,000 is in arrears and being held by Treasury to be paid when they get their act together. You are a lender or lenders that are owed almost half a Billion Dollars and all you do is pull your head out of your ass and get paid and you still cannot figure it out?

I understand why in law school my Commercial Law lecture professor (Douglas Whaley) always used Octopus National Bank to stand in for the bank. They are in fact a Blind Octopus that cannot find it’s ass with all hands, a bright light and Google Maps. Of course the real joke is that an octopus has no ass!

Arboleda Brechner (www.abfirm.com) is pleased to announce the addition of Kevin W. Hardin CMB, CMC, CMPS to the firm. Mr. Hardin was previously the Director of the Mortgage Mediation practice group (www.MortgageMediationGroup.com) at Thomson Law, PLC, the leading practice group involved in Short Sales and Foreclosures here in Arizona. With negative equity and foreclosure issues growing unabated it is becoming increasingly necessary to bring additional tools to the fight for homeowner’s rights and their dream of home ownership specifically. Mr. Hardin possesses the highest educational credentials from the mortgage industry and as a JD Candidate at Concord Law School he will be a great addition to the team. While Arboleda Brechner’s work PRIMARILY involves BANKRUPTCY, ASSET AND ESTATE PLANNING, TAX, REAL ESTATE AND GENERAL litigation in Arizona, THE FIRM also assist businesses confronted with VARIOUS legal issues throughout the world, including Costa Rica, Venezuela, Mexico, and Switzerland. Mr. Hardin may be contacted at  888-909-1030 or www.MortgageMediationGroup.com

“Remember, if you are or know someone that is facing a point today or in the near future where the home is no longer affordable or it no longer makes sense to keep paying and the home is underwater, please call us to learn what legal obligations and rights exist before the home is short sold, foreclosed or walked away from.”

If being the victim of Nazi persecution was not enough, a client of ours has another injustice to suffer under Chase. The client came to us because he has been fighting to keep his modest home from foreclosure for two years. He has been given 3 Trial Mod periods just to be denied a permanent mod each time. Each time due to unacceptable form of income.

Many years ago, Mr. H, we will call him, was interred in a concentration camp as a very young boy. They branded him and tattooed a number on his arm. He pulled his sleeve up and showed me it. I got this massive case of chills. My wife is Jewish and we raise our children Jewish and the stories and atrocities come flooding into my mind. He was very proud of his survival and coming to America to live, work and retire. Many years ago a settlement was reached with the German and Hungarian governments to compensate holocaust survivors. The documents he gets are not in English but the deposits are made like clockwork  into his accounts.   http://www.claimscon.org/index.asp

Mr. H. wants to keep his house. His son, who lives with him, is disabled now and can no longer contribute to the home. This represents a clear hardship. He has given them two years of bank statements in the quest to keep the home, and right there on those statements are his deposits. Of course the payments come in the form of Euros and the bank then does a calculation for conversion to US Dollars, also right there on the Bank Statements. This is just one example of the pendulum swing of over regulation.  They MUST have an award letter, IN ENGLISH, to verify income. Otherwise, Chase will not use the income to qualify for the modification. We live in such an ethnocentric society. Chase is clearly one of the biggest idiots in the business. Nazi’s took his home and family first, now Chase is going to do it again. We will help the client pro bono and hopefully stick this up Chase’s left nostril.

“Remember, if you are or know someone that is facing a point today or in the near future where the home is no longer affordable or it no longer makes sense to keep paying and the home is underwater, please call us to learn what legal obligations and rights exist before the home is short sold, foreclosed or walked away from.”

I was sent a video from Fox News in which Bob Massi was interviewed about Mortgage Insurance. Watch Video Here. Watch the video first for the rest to make sense.

Here is the issue. They are discussing concept of Subrogation. That is the right of the mortgage insurance carrier to step into the shoes of the Lender after paying the loss claim and assert what rights the lender has or had against the borrower to recover the amount paid. Now, that is all great but we need to understand the relationship of the parties. The Lender is the named insured party, the borrower is not. So the Lender is the First Party. The homeowner, who has actually been making the insurance payment in most cases, is the Third Party. Under the common law principal of subrogation there should be no reason why an MI company cannot pursue the borrower.

Now, let’s apply it to Arizona, where I work as Director of the Mortgage Mediation Group and handle short sale and deficiency liability issues. Under Arizona Revised Statutes, specifically ARS 33-814(g), a Lender is precluded from securing a deficiency on a single one to two family dwelling of 2.5 acres or less that is limited to and which is utilized as a single one to two family dwelling. Without spending the next two pages discussing what this means is simply that most MI covered first conventional mortgages on one to two family homes in Arizona are protected from any deficiency after a foreclosure (trustee sale).

If the MI policy allows the MI company to step into the shoes of the Lender, the MI company will start driving the bus. Now, if you are doing a short sale and negotiating with the lender, that lender is going to inform the parties that MI must approve the sale. Next comes the classic Greenmail tactic. The MI company makes a demand for a cash contribution. Everyone starts jumping ship. Here is the problem. In most cases, there is no legal right for the MI company to make the demand. If they are going to subrogate, they should already have paid the claim. Here they have not. In order for the MI company to have a valid claim for that money, the lender would have to have had that right. They do not. This brings us to a Third Party Bad Faith Claims. Too many times we here that that short sale collapses or worse the borrower agrees to a promissory note to the MI company.

If you or you know someone that is contemplating or is in a short sale right now and an MI company is engaged in this tactic, contact our office immediately. There are proper responses to these demands that an attorney can deliver will save you, clients or friends from this evil deed.

“Remember, if you are or know someone that is facing a point today or in the near future where the home is no longer affordable or it no longer makes sense to keep paying and the home is underwater, please call us to learn what legal obligations and rights exist before the home is short sold, foreclosed or walked away from.”

My brother in law, Jim Small, who was living and working in Europe at the time sent this to us right after 9/11. It was very moving then and still is today. I thought I would share it again.

Dear friends and family,

I know that we’ve all been affected by this past week’s tragic events in
New York, Pennsylvania, and Washington.  While most of you are physically
closer to these events than I am right now, I think that it’s very
insightful if I share with you what I witnessed in Europe yesterday.

On the 14th of September 2001, the free world stood as one.

At exactly 11AM GMT (12PM CET) on Friday the 14th of September, the people
of the European Union (15 countries with a population similar to that of
the entire United States of America) observed a perfectly synchronized 3
minutes of silence.  A similar response was reported in 28 additional
countries.

Being a part of this event was not only overwhelming, moving, and touching,
but also shockingly powerful.  Bustling streets became as frozen as a photo
as commuters, bicyclists, and even vehicles stopped – completely – for 180
seconds.  Office workers turned off desk phones, mobile phones, and stopped
the constant hammering away at their keyboards to sit, stand, or kneel in
utter silence.  Stock markets (where fortunes can be made and lost in
seconds) stopped completely.  No, not the market itself, but rather all of
its traders, market makers and transaction processing.  Utter silence.

European Heads of State stood powerfully silent and still as they were
blanketed by the US Ambassadors to their countries.  The 3 minutes of
silence was observed at Embassies, Churches, Government offices,
Cathedrals, Synagogues, and tourists attractions alike.  Many television
channels observed the 3 minutes by stopping all transmissions, except for a
blank screen.  Radio stations similarly were eerily silent.

My immediate reaction after taking part in this powerful and moving action
was a sense of amazement and a powerful resolve of the world to mourn the
dead and vow to rid the world of these type of devastating acts.

Additionally, the Changing of the Guard at Buckingham Palace in London was
altered for the first time in over 200 years, as the Queen ordered that the
US National Anthem was to be played prior to the standard ceremony.
Meanwhile, throughout the European Union flags are at half mast.  Not just
US flags, but ALL flags.

Yes, yesterday I watched the world stop.

_______________________________________________

James R. Small

Accenture

At least that is what the client was explaining. 5 years ago, her son came to her and asked if his mom could help him buy a home by co-signing. His credit and income was not what it needed to be so, she ended up being the only signer on the loan. She was self employed and the loan officer suggested that they get her approved for a stated income loan. The loan closed and the son moved in. So, what is the problem?

The market and economy collapsed as it has for many homeowners. The son lost his job and could not maintain home. Tried to short sale the home, but an Attorney told them that they were more protected from deficiency if they allowed it to go to foreclosure. First problem, the attorney did not review the actual loan documents and fully interview the actual signer on the loan, the mom. You see, the Mom overstated the income. the Mom never moved into the home. She was just trying to help the son.

Home went to foreclosure and they thought all was well, until a letter came from a company doing a Quality Control review on the loan. It seems that they are aware that she breached of the convenant to occupy the home and the income she stated was more than she actually made. Even though her son occupied the home and they had quit claimed him onto the home, the mom is responsible for the loan. The lender on the loan is moving forward to make the claim that the Breach of the Covenants for occupancy and Misrepresented Income circumvent the exception in Arizona’s Deficiency protection and the $180K in deficiency is going to be pursued.

How could this have been avoided? Obviously, by never doing the mortgage this way at all, but the cats out of the bag. First, if you are facing foreclosure or an inability to pay your mortgage, get advice from legal counsel that will actually review your loan documents and is trained and specializes in mortgage issues. If this client had come to us at the beginning of the default, we could have let them know their risks, encouraged them to secure a short sale and allow us to negotiate a waiver and release from the lender.

If you are facing a point today where you can no longer afford your mortgage or it no longer makes sense and owe more than your home is worth, Call Kevin Hardin today. We will help you understand your legal obligations and rights before you stop paying, walk away, foreclose, short sale or modify your loan and when you get those answers, you will be able to make an informed decision and the Mortgage Mediation Group can then assist you with that plan. www.MortgageMediationGroup.com

On the other hand, if your story sounds like this Mom’s story, then come to a law firm like ours that knows how to protect you and guide you through this. Don’t let the lender bully you. They probably don’t own the loan anyway.

You don’t really think I mean that do you? See link https://www.desertschools.org/templates/product/baseproduct.aspx?id=3804 As many people know, I spend most of my time meeting face to face with homeowners facing challenges with their mortgages. There no greater challenge than when a person gets a knock on their door from someone who intends to put a stack of papers in their hand with the spoken words, “You have been served.” Which brings me to the current client. I of course will not use their name in order to protect the innocent. That leaves Desert Schools Federal Credit Union front and center.

So, I sit down with the client, and they share their story. About 5 years ago they purchased a home with an 80 / 20 1st and 2nd mortgage. Both mortgages funded by DSFCU. Life is good for this young couple. Real Estate Market is doing well and jobs are great. The husband owns another property prior to marriage of which they rent out. Come 2008 the market has collapsed, and one of them loses their job. They can no longer afford their home. They try to work with DSFCU but to no avail and the home goes to foreclosure. Now, here is the deal. DSFCU informs them that they have to pay their second mortgage back. DSFCU threatens them and treats them like scum, especially since they have now moved back into the other spouses rental which has some equity left. Having not spoken to an attorney to understand their legal rights they make a bad decision under great duress. They accept a promissory note for the amount of the second mortgage. Worse yet, DSFCU attaches it by way of Deed of Trust on the rental that they now live in, eating up the remaining equity. You see, according to ARS 33-729(A) their was no deficiency liability for that second mortgage following foreclosure and the foreclosed homeowner could have told DSFCU to “Stick it up their left Nostril!” I don’t word it that way to be nice. It is a much smaller hole (pointing to my nose) and it would be much more painful.

Not only has DSFCU pressured the homeowner into the NOTE where none should have occurred, they caused that Note to be secured to their other home by way of Deed of Trust. But Wait! The market does not improve and worse yet, on the much lower income they had, they fail to be able to keep up with the payments on the rental and it goes to foreclosure as well. Which brings us back to the current situation. DSFCU has filed suit against this client under the argument that, NOW, there is no protection from deficiency as the new 2nd mortgage was not purchase money. Really!?

Well, I predict this is not going to go well for this lender as the client found us. The shame is, the amount of money the client is going to spend to prove they don’t owe the money is money they don’t have. Don’t let this happen to you.

If you are facing a point today or in the near future where you can no longer afford your home or it no longer makes sense to pay AND owe more than your home is worth, Contact Kevin Hardin and the Mortgage Mediation Group at Thomson Law, PLC at 602-774-3757. Let us help you understand your legal rights and obligation before foreclosure, short sale or contemplating walking away.