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October 24, 2008

More on Local Foreclosures and Loan Modification Programs

The LA Times today says that foreclosures in California declined sharply in the third quarter, 2008, due to the new California law mandating delay and communication between the bank and the homeowner before foreclosure.  There were 94,000 default notices in the third quarter compared to 122,000 in the 2nd.  Default notices dropped to 15,000 in September after averaging 40,000 a month for the five months before that. 

There is speculation that this is just a lull since the new law added a few hurdles to foreclosing and that takes time.  One hurdle is that the lender may not file the NOD until 30 days after "contacting the borrower"   

On a similar front, Countrywide has announced it will introduce a "mortgage-modification program" which will reduce the borrower's monthly payment to 34% of his confirmable monthly income.  The ultimate goal is to modify 395,000 loans - 125,000 in California.  Countrywide will begin contacting borrowers on December 1. 

Indy-Mac mailed 15,000 loan modification proposals to borrowers and some 3,500 have accepted the proposal and "thousands more are being processed."

"I've got to admit it's getting better
A little better all the time (can't get no worse)"

October 24, 2008 in Current Affairs | Permalink | Comments (0) | TrackBack

October 23, 2008

Circuit Court of Appeals Cases From Last Week

1st Circuit Court of Appeals, October 06, 2008
Gray v. Evercore Restructuring LLC, --- F.3d ---, 2008 WL ------- (1st Cir. 2008)(in pari delicto defense established in a bankruptcy matter alleging gross negligence and breach of fiduciary duty for formulating and promoting an unworkable restructuring plan to the bankruptcy courts)

1st Circuit Court of Appeals, October 06, 2008
In Re High Voltage Eng'r Corp., --- F.3d ---, 2008 WL ------- (1st Cir. 2008)(no appellate jurisdiction where trustee filed his notice of appeal in the wrong set of cases)

1st Circuit Court of Appeals, October 06, 2008
In Re Engage, Inc., --- F.3d ---, 2008 WL ------- (1st Cir. 2008)(questions on attorney's lien are certified where issue was does Massachusetts law grant a lien on patents and patent applications to a Massachusetts attorney for patent prosecution work performed on behalf of a client)

October 23, 2008 in Other Circuit Briefs | Permalink | Comments (0) | TrackBack

Foreclosure Filings Up 71%

Per the Los Angeles Daily News today, owners of nearly 766,000 homes across the country received at least one foreclosure notice in the third quarter of 2008, up 71% from a year ago.  250,000 properties were "repossessed" in the third quarter according to the article.  California accounted for more than a quarter of the total.  By the end of the year there will be about 1 million foreclosed properties available for sale, about 1/3 of all properties for sale in the country.   

October 23, 2008 in Current Affairs | Permalink | Comments (1) | TrackBack

Ninth Circuit to Sit at McGeorge Law School

The Ninth Circuit Court of Appeals will hold oral arguments at McGeorge School of Law on October 29, 2008.  The announcement can be accessed here.  Kozinski, Thomas and Callahan will hear argument on two cases that morning including Video Software Deals v. Schwarzenegger, a case dealing with the distribution of violent vidoes. 

October 23, 2008 in Judicial Announcements | Permalink | Comments (0) | TrackBack

October 22, 2008

Rehnquist Papers Donated to Stanford

Hoover Institution News Release:

The papers of the late William H. Rehnquist, Chief Justice of the United States from 1986 until his death in 2005, have been donated to the Hoover Institution Archives at Stanford University.  Rehnquist, an alumnus of Stanford, received three degrees from the university, including his law degree, and, before ascending to the Supreme Court, was a member of the Hoover Institution Board of Overseers.

The announcement can be accessed here.

October 22, 2008 in Supreme Court | Permalink | Comments (0) | TrackBack

Default Mitigation Management

Here is some more information on the portal which hopefully will get debtors speaking directly to someone who can do something about their loan situation.  I signed up for the service yesterday and received this email from Joe Smith. 

Hello All and thank you for signing on to the Debtor's Counsel Loss Mit Web Portal. We introduced the central region of California over the week end and we now have over 50 debtor's counsels signed on for Central and Western region of Tennessee and Central region of California. We were very fortunate to have several trustees and two judges present on Saturday (Judge Maureen Tighe (San Fernando Valley Division) and Robert Kwan (Santa Ana Division). Their feedback was very positive and encouraging.

I know some of you have been sending in borrowers already and that is great. Our status with the lenders signing up is as follows:

1. New South Federal is on the Portal
2. Litton is signed up and we are finishing the set up for their two outsource providers, it should be today or tomorrow. We are already forwarding accounts to them to be worked.
3. Countrywide (and Bof A) are in process of their approvals. They very much want to be in the pilot. We are forwarding all of the notifications to them and are being told they are being worked.
4. Wells Fargo is also in the process of getting their approvals completed and is accepting accounts and has assured me they will be worked.
5. Resurgent is getting set up at this time and should be on soon.

Other servicers are in the process and will be coming on soon. I just did another demo with SunTrust this morning and they were very excited to get going.

Please do use the website and submit the borrowers. Please be sure to add financial information as to make the case for the servicer.  On the attorney portal page you will see the status change to "Open" when we e-mail it to the servicer.  We have contact with most of the servicers and none have refused a package.  They will not be able to respond through the system unless they have been set up, they will also not have to meet the 7 days at this point and we have had a couple say they will work them but it maybe two weeks before they get to them.  When we get messages like that we send them to the attorney.  Please update the status as you do have contact with the loan servicer.  If they have called or e-mailed you, please change the status on that account.
For those servicers listed above, if you have not received a contact in 7 days, then please let us know.
For other servicers if you do not receive a response in 10 days let us know and we will re-contact them to follow up.

Please let me know if you have any questions or concerns. There have been just a couple of issues reported with submissions and we have followed up on those with the attorney to make sure the issue is addressed.  Most appear to be when someone has registered and submitted info on multiple accounts before they have been approved.

Again, thank you for your effort and trust in us and please do submit those accounts even if the servicer is not listed. We are forwarding them and creating the records demonstrating the strength of the process and the commitment of the debtor's counsels to trying to get workouts done.  We are at our beginning stages and we do have a lot of momentum building and need to keep the pressure on.

Joseph (Joe) C. Smith II
President & CEO
Default Mitigation Management LLC
631 Washington Ave, #1
Newport, KY 41071
800-481-1013 (ofc
859-801-5195 (cell

October 22, 2008 in Current Affairs | Permalink | Comments (0) | TrackBack

October 21, 2008

Maybe Some Progress in Negotiating with Home Mortgage Lenders

I went to an mcle program given by the Central District Consumer Bankruptcy Attorneys Assn ("cdcbaa") on Saturday.  A gentleman by the name of Joe Smith spoke about a new web portal that his company has recently set up.  It is called Default Mitigation Management ("DMM").  The website is https://www.dclmwp.com  The portal is for the use of attorneys only.  The attorney inputs information regarding his client's mortgage including the loan servicer, account number and financial information.  The information is sent by the portal to the loan servicer.  DMM has an agreement with several major loan servicing companies so far.  The servicing company has promised to respond to the attorney by email within 7 days with comments on whether or not the lender is willing to make any changes in the loan to permit the debtor to keep his home.  The comments will come directly from some person who is authorized to negotiate on behalf of the lender.  The Central District of California and a district in Tennassee are the test districts for now. 

I have signed up for a password and I have a couple of clients whose information I am going to input to see what happens.  I will report on what happens when it happens. 

October 21, 2008 in Current Affairs | Permalink | Comments (1) | TrackBack