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The Problem with Lawyers (and Politicians)

August 13th, 2010 · Uncategorized

This may sound weird coming from a lawyer, but generally speaking I personally don’t like most laywers.  Obviously there are plenty of lawyers that are great people, great advocates, great champions of liberty and truly do all they can to  protect the rights and positions of their client.  I have many friends who are lawyers and those that I count as my friends all fall within this category.  That being said, I think most people can relate to what I would call a general disdane for the profession, and why many would consider the ”Lawyer” a nefarious species of animal that has slowly but surely embedded itself as puported required element in too many parts of our daily lives. 

So why am I brining this up in this blog?  Today I had an individual come into my office who had met with a couple of different laywers on an issue they are dealing with, and they were looking for a third opinion.   Can’t really go into the details of the “issue”, but suffice it to say he had been give accurate “legal” advice by the other two lawyers which, if followed, would have cost this guy thousands of dollars in legal fees, and he probably would have “won” his case.  The problem is that these other two laywers failed to look beyond the “legal” issues or the “rights” this guy has and give the guy some good business advice.  If they had, this guy would have realized that he could spend thousands of dollars and win, but actually end up with less in his pocket than if he took another approach to the problem, i.e., an approach that solves his problem and doesn’t end up costing thousands of dollars to “win” a judgment that would have no more value than the paper it would be written on.     I told the guy to take a step back, look at what he wanted, what the other side wanted, and how a simple business approach (without the need for lawyers) could get him what he wants now, instead of getting him a worthless judgment a year or two down the road, where the only true winners (at least financially) would have been the laywers on both sides of the dispute.

I run into this kind of situation all the time.  Sometimes I have to convince my own clients that while they may have the “law” on their side, moving forward with litigation is not really in their best interest, and they can get a better result without me by working out their problem on their own, directly with the other person or entity.  Of course, unlike many lawyers, I had other jobs and businesses before deciding to go to law school, so I see things not only through the eyes of an attorney, but also through the eyes of a person who lived in the real world of working for somebody else in a regular job and running my own businesses.  The problem with most lawyers is that they go to college directly out of highschool, they graduate and go to law school, then they start practicing law, but they never have lived in the “real world” of business.  Most lawyers work for law firms; they get paid every week; they never have to meet payroll or borrow money to get their business off the ground; they never have punched a time clock or waited tables; they never have had seen the real world through the eyes of the clients they actually represent.  It seems funny to me how a laywer who has never actually started and run his own business can truly relate to a small business owner or entrepreneur.  Sure, the lawywer can give them “legal” advice, but can they truly give that client good business advice, which sometimes requires telling the client that they should not “laywer up.”

And Politicians?? Wow, I really don’t even want to get started on this “species of animal”, but from what profession do most of our politicians slither their way to their respective positions?   That’s right, most of them are Lawyers.  And to make it worse, most of them were unsuccessful laywers.    So now we have people who never ran a business, never made a payroll, never punched a time clock, and never lived in the real world telling the rest of us not only how to run our businesses and our daily lives, but also being in charge of the most powerful country (at least at one time) in the World!! 

Ok, so I don’t like most laywers, and I most definitely don’t like most lawyer politicians; but that doesn’t mean there aren’t still some good ones out there.  Just be careful when taking advice from a lawyer and ask yourself “does this advice really help me in the long run?” or “is there another way to solve this problem without running to the courthouse?”  Often times the answer is that you don’t need to spend thousands of dollars on a lawyer, and in my opinion the good lawyers will tell you that.    

As for politicians???  Well, that’s a tough one.  My initial advice is to not vote for anyone unless they have had a real job or run their own business, and if possible, avoid the failed lawyer politicians.  Remember, being a “Politician” was NEVER EVER intended to be a career path by our founding fathers.  The intent was our neighbors and friends, local business owners, etc… would represent our interest for a few years and then return home and get back to their real jobs.  This system was designed so that our ‘Representatives” were looking out for “our best interest” because they were in fact “one of us.”  Unfortunately this in no longer the case and most politicians are only concerned with keeping their careers going by being re-elected.    Oh well, won’t be solving the World’s problems in this blog (maybe the next one), so in the interim, think before you hire a laywer, and really think before you vote one.  

Tu ne cede mailis sed contra audentior ito!!  (Yield not to misfortunes, but advance all the more boldly against them!!)

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FLORIDA ATTORNEY GENERAL INVESTIGATING FORECLOSURE MILLS!!

August 10th, 2010 · Foreclosure, Uncategorized

I see it every day in my practice, i.e., foreclosing banks filing questionable documents with the court like assignments of mortgages that mysteriously show up months after the plaintiff filed the foreclosure complaint.  Heck, in some of my cases the plaintiffs file multiple conflicting assignments, signed by the same people on behalf of multiple lenders and servicing companies.  Obviously, these documents always raise questions and are attacked by attorneys like myself representing homeowners in foreclosure cases, but now . . . finally. . .  it looks like our arguments to the Courts are finally being heard, and today the Florida Attorney General’s Office announced that it has launched three new investigations into allegations of unfair and deceptive actions by Florida Foreclosure Mill law firms.

The firms at the center of the investigation are “The Law Offices of Marshall C. Watson, P.A.”; “Shapiro & Fishman, LLP”; and the “Law Offices of David J. Stern, P.A.”.  According to the Attorney General’s official press release, “Because many mortgages have been bought and sold by different institutions multiple times, key paperwork involved in the process to obtain foreclosure judgments is oftent missing.  On numerous occasions, allegedly fabricated documents have been presented to the courts in foreclosure actions to obtain final judgments against homeowners.  Thousands of final judgments of foreclosure against Florida homeowners may have been the result of the allegedly improper actions of the law firms under investigation.”

Additionally, the Attorney General’s office has noted that it is “also investigatin whether the law firms have created affiliated companies outside the United States where the allegedly false documents are being prepared and then submitted to the law firms for use.”   WOW!!  This is amazing stuff.  It is stuff that the foreclosure defense bar has been screaming about for the past couple of years, and finally it looks like some action will be taken.

Subpoenans have been served on the law firms in question and the investigations are under way, so now we wait and see if this conspiracy that has resulted in thousands and thousands of Florida homeowners losing their homes is finally uncovered.

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FORECLOSING LENDERS UP TO NEW TRICKS??

August 5th, 2010 · Foreclosure, Uncategorized, loan modification

The Circuit Court of the Sixth Judicial Circuit In and For Pasco and Pinellas Counties issued a well thought local Administrative Order No. 2010-025 PA/PI-CIR that governs Mortgage Foreclosure Procedures.  A very important part of this new Administrative Order requires foreclosing lenders, as of July 1, 2010, to file a verified “Form A” with their Complaint and serve the “Form A”, (which is the document that will initially allow the Court to determine whether or not the homeowner is entitled to participate in the Circuit’s Foreclosure Mediation Program) to the homeowner along with the complaint.

There are several factors that will determine whether or not a homeowner is automatically entitled to participate in the mediation program, and one of the important factos is whether the property is the homeowner’s “Homesteaded” property.  If it is, the homeowner is allowed to participate in the mediation program, which means the foreclosing lender must pay a mediation fee and must actively work with the homeowner and in a mediation to see what can be done to help save the home.   Of course, the initial referral to mediation is based on the Plaintiff filing a verified, i.e., under oath form called “Form A” that tells the court if the homeowner’s property is homestead or not.  If not, the homeower is automatically considered ineligible for the mediation program.

So, guess what is happening in all of my client’s cases that have been filed since July 1st?  Mysteriously, every one of them has been told that they do not qualify for the mediation program because their property is not Homesteaded, at least according the “Verified” Form A filed by lender’s counsel.  The only problem here of course is that every one of these client’s properties ARE THEIR HOMESTEAD.    Now in addition to filing a response to the Complaint, we are having to file motions with the Court to prove something that these lenders already know; that these properties are homestead properties and the homeowners are entitled to participate in the mediation program.

Anyway, just a heads up for everyone out there to keep an eye out for this.  Looks like we are heading into the next layer of Fraud where the banks and their attorneys have absolutely no problem at all filing “Verified” documents under oath that are complete lies!!

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DON’T BELIEVE YOUR LENDER IF THEY TELL YOU NOT TO WORRY ABOUT A FORECLOSURE!!!

July 14th, 2010 · Foreclosure, Short Sales, Uncategorized

This week alone I have had 3 clients come into my office who where either already in a loan modification trial period with their lender, or were waiting to hear back from their lender about the status of their loan modification application, when they were served with a foreclosure complaint.  All three of these clients immediately called their respective lenders after getting served the complaint to ask what they should do about the lawsuit, and further, to question their lender as to why they were doing this when they had been actively talking with the lender and sending documentation back and for to obtain a modification (or like one of my clients, had actually already made payments under the modification).

All three of these clients were told “not to worry about it.” That’s right, all three were told by their lenders not to worry about the lawsuit they had just been served with because their trustworthy lenders were still working with them to get a modification, so the lawsuit was no big deal and “not to worry about it.”    Well, as would be expected, none of these clients sought the advice of an attorney and figured that because their lender just told them “not to worry about it” that they could ignore the lawsuit.  WRONG!!!

In all three cases several months have gone, i.e., from 8 months to over a year, since they were served with the foreclosure complaint.  Since being served the complaints none of them had received anything further from their respective lenders’ attorneys.  But just recently they all received this cool thing called a “Motion for Summary Judgment” in the mail.  “That’s weird” they all thought; “why am I getting this thing in the court case that my lender told me not to worry about 8 months or a year ago??”   “Let me call my lender and let them know that there is some kind of mistake here.”  Of course, when they call their lender they are told that their modification has been denied for whatever reason and that the foreclosure is proceeding.

What does this mean?  Well, in these particular cases it was very interesting to discover that while my clients had received the original lawsuit, and then the recently filed Motions for Summary Judgment, they never received the other pleadings that had been filed with the court, like the “Motion for Default”, i.e., a document that the plaintiff filed to tell the court that they had properly served the defendant with the lawsuit but the defendant failed to file any response, “so please go ahead and put the defendant homeowner in default” and let us move on to the next step of getting our final summary judgment and then sell the house at auction.

I have seen these a few other  times this year, and in the end it typically turns out ok for my clients because I file a Motion to Set Aside the default along with an affidavit from my clients telling the judge what happened, and we essentially ask the court to allow these clients the opportunity to now file a response to the complaint.  In general, as long as the facts are like the cases I have seen, you can get the problem fixed, but the real problem are the thousands of people out that to whom this happens that never go and see an attorney.  They may still be operating under the belief that what they lender told them a year ago about not worrying about the lawsuit is still true.  Unfortunately, they then discover a few months down the road that a summary judgment hearing has taken place and the court has scheduled a sale date for their home.

The lesson here is pretty simple, if you get served with a foreclosure complaint, see an attorney right away and DO NOT BELIEVE YOUR LENDER if they tell you “not to worry about it.”  Absent getting wiritten confirmation from the lender’s attorney that they have dismissed the case, the case is still moving forward, and if you fail to file a response within 20 days of being served with the lawsuit, they will seek a default against you, and from what I have seen, in most instances they won’t even tell you about it.

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A Word of Advice For Buyers Looking to Buy a “Short Sale”

July 9th, 2010 · Foreclosure, Short Sales, Uncategorized, loan modification

Short sales in Pinellas County Florida currently make up approximately 50% of residential real estate transactions.  As short sale purchase can be a opportunity for a buyer to acquire property at its true fair market value, i.e., what it is really worth in today’s market, not what it was worth back in 2004, 2005 and 2006 when our local real estate prices simply went through the roof.   To give you some examples of what I am talking about, the following are just a small sampling of some recent short sales approved and/or closed in the last couple of weeks which were negotiated by my office:

1)  Client owed lender $1,144,000 -  Approved for short sale at $512,000

2)  Client owed lender $799,000 -  Approved for short sale at $535,000

3)  Client owed lender $1,900,00 -  Approved for short sale at $1,295,000

4)  Client owed lender $415,00 -  Approved for short sale at $303,000

Of the four deals referenced above, three of them closed within the last two weeks, and one will be closing next week.  In sum, short sales do get done and you can see that the buyers are getting great deals.  Not only that, my clients who were selling the properties listed above were forgiven of more than $1.5 million in mortgage obligations.   What made these deals possible was not only the negotiations on behalf of my clients, i.e., the sellers of the properties, but also the realtors involved.   Short sales are a long and drawn out process that can easily take 4 to 6 months before an approval from the short sale lender or lenders is obtained.   If you are buyer looking at a short sale, it is extremely important to find a realtor who actually handles short sales so they can properly advise you of the time involved.

The wait is worth the reward, but every once in a while I run into a deal where the buyer has a realtor who has never handled a short sale.  This creates real issues because the buyer is brought into the process without having been fully advised of the process and how long it may take.  The buyer ends up getting frustrated after a month; really frustrated after 2 or 3 months, and outright crazy after 4 or 5 months with no approval of their offer.  Of course, the fact that their realtor who has never handled a short sale can’t explain the situation to the buyer is of no help at all, and often results in the buyer getting fed up and walking away.  In many cases, the buyer walks just before an approval from the lender, which then allows my clients’ realtors (who know what they are doing) to find a new buyer at the approved price, who then gets the benefit of a fast closing because we just spent the last 4 or 5 months negotiating the deal.

In sum, if you are buyer looking for a short sale, please interview your realtor and ask how many short sales they have handled, it makes a huge difference and will make the process much more tolerable for you as a buyer.

Questions about hiring a lawyer to represent you in your short sale?

Give me a call at 727-456-4462 or Contact Us via the web

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Served with a Foreclosure While Trying to “Short Sale” Your House? DON’T IGNORE IT!!

June 27th, 2010 · Foreclosure, Short Sales, Uncategorized

I often get calls from homeowners who have been working with a realtor for the past several months attempting to achieve a “short sale” of their home and they are concerned about the “summary judgment” hearing that is scheduled on their foreclosure case, or even worse, a foreclosure sale date.  They are confused as to why the lender is proceeding with their foreclosure case even though their “realtor told them not to worry about the foreclosure because they were going to do a short sale.”  BAD IDEA!!

A “short sale” is a great way to avoid a foreclosure, but despite what many realtors and/or other “short sale” negotiators tell their clients, it will not prevent the bank from filing a foreclosure action against you and continuing to prosecute that foreclosure action.   If you are served a foreclosure while you are also attempting to negotiate with your lender to accept a short sale offer, you MUST STILL RESPOND TO THE FORECLOSURE LAWSUIT.  While it is possible that you could ignore the foreclosure, get the short sale approved, and end up selling the property and thereafter having the foreclosure suit dismissed by the bank after confirming that the short sale has been accomplished, this is a very risky move.   What if your original buyer ends up walking after the short sale is approved?  What if the bank declines the short sale offer?  You must anticipate in any short sale that you will lose your first offer or the bank will reject the first offer and counter for a higher amount.  Either way, your realtor now has to find another buyer, and assuming they do find another buyer, in many cases you have to start the short sale submission all over again with the lender.  This can take months and months, and if you ignored your foreclosure lawsuit, those months will lead to the lender eventually obtaining a sale date in the foreclosure action and taking the decision of a short sale completely out of your hands.

Waiting to speak with an attorney about your foreclosure case months after getting served with the lawsuit, and just before important hearing dates, or possibly even a sale date, is not a good idea.  While the attorney may be able to salvage the situation, doing so at that point in the litigation will take much more of the attorney’s time, i.e., much more in fees to you.  In fact, in some situations there is simply nothing the attorney can even do for you, and the result will be your home going to a foreclosure sale because you waited too long to pay attention to the foreclosure litigation.  

The lesson here is do not take legal advice from anyone but an attorney when you are served with your foreclosure, and never ignore a foreclosure just becuase you are currently negotiating with your lender for a short sale.

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UNICORNS, LASER GUNS AND LOAN MODIFICATIONS

May 28th, 2010 · Uncategorized

loan-modification-jon-coats-lawI am starting to think that I have a better chance of getting shot by a laser gun wielding monkey riding a unicorn than seeing a true loan modification.  I had a client come in  who was served with foreclosure papers just after receiving a proposed loan modification from Wells Fargo that actually increased his monthly payment and principal balance.  WTF?? you may ask, well, that is something that I see a lot of these days.

The sad truth is that despite all the hype, most of these lenders (or purported lenders) do everything they can to completely screw over their borrowers.  That is of course until they hire an attorney who can fight back.    A good friend of mine and fellow foreclosure fighter Matt Weidner is blogging on this stuff daily.  Check out his site and his blog at www.mattweidnerlaw.com I enjoy it and I know you will as well.

Everyone have a great and safe Memorial Day Weekend.

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Is the “Obama Plan” to Help Homeowners Really Working? NO!!

May 19th, 2010 · Foreclosure, Uncategorized

Nobody can spend money like the numbskulls we have in Congress and the White House, and that is especially true when they are spending our money under the purported plan of helping us out. Yeah Right! Case in point is the billions of our tax dollars that the government is giving to banks to help homeowners modify their mortgages and save their homes. What a grand plan … too bad its a complete waste of our money and is making about as much progress as Al Gore’s attempt to save the planet by flying around in private jets and buying ever larger mansions to live in.

What’s the result of all this money coming out of our pockets to help us? Well, as of today the result is that over 10% of American Homeowners are deliquent on their mortgages. Wow, thanks Congress, thanks “Obama Plan“, nice jet Mr. Gore…

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Soon to Be Back up and Blogging.

May 12th, 2010 · Uncategorized

Hey Folks. It has been a while since my last blog, and that blog was only the second of two ever entered. A very busy schedule and then some technical issues kept me away from this for a while, but keep checking back as I will soon be back up an running with some interesting Foreclosure Defense and Short Sale updates.

It’s getting crazy out there and I have been slap dap in the middle of the craziness, so lot’s of cool stuff to report soon.

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Wachovia Short Sales Being Transferred to Wells Fargo

October 13th, 2009 · Real Estate Law, Short Sales, Uncategorized, loan modification

shortsales-jon-coats-law-FLFor anyone who has been negotiating short sales for client over the last couple of years, you first saw your Countrywide files get transferred to Bank of America, then WaMu files to JPMorgan Chase; and then Taylor, Bean & Whitaker files to God who know how many different servicing agents.

Well, the latest transfer of short sale files are the Wachovia files to Wells Fargo. In my personal opinion this will be a good thing, as Wells Fargo’s loss mitigation teams are generally much more organized than the cluster of problems often found with Wachovia’s loss mitigation section.

If you are dealing with Wachovia on a short sale, you may want to contact your negotiator and find out if they are still in play. For many of the files they are being transferred as this blog is being written. The problem with such a transfer is that your short sale file sitting in the Wachovia system will probably not fully be integrated into the Wells Fargo system for several days to several weeks.

Be proactive and contact the lender and find out the status of your file and follow up daily to make sure it does not get lost in the millions of files these guys are dealing with.

Questions about hiring a lawyer to represent you in your short sale?

Give me a call at 727-456-4462 or Contact Us via the web

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