TheNewsFactory » california

Wells Fargo Blames Borrowers, Noted California Bankruptcy and Real Estate Attorney Timothy McFarlin Reacts

TheNewsFactory — Tue, 06 Jul 2010 07:06:11 +0000

IRVINE, CA (AttorneyNewswire.com) — July 6, 2010 — Michael Heid, co-president of Wells Fargo Home Mortgage, recently offered testimony in a hearing conducted by the House Committee on Oversight and Government Reform. His testimony offered an explanation for the lack of loan modifications his employer has managed to approve since the institution of President Obama’s Home Affordable Modification Plan (HAMP).

Heid claims that borrower error is a main factor in Wells Fargo’s inability to approve loan modification packages. Applications are often ineligible, completed incorrectly, or lack important documents. Despite the fact that much of the blame for his organization’s inability to modify loans has been passed to the borrowers, Heid did state that Wells Fargo will soon implement a policy requiring each homeowner to be paired with one Wells Fargo representative from the beginning of the loan modification process to the end, which is meant to alleviate some of the problems that borrowers face when they have to deal with multiple representatives distributing different information.

Timothy McFarlin, an Irvine, CA based foreclosure attorney, thinks Wells Fargo should accept more of the blame:

“The problem with Wells Fargo is that they have alienated struggling borrowers from day one. Their customer service agents have been accused of being rude and lacking the knowledge necessary to provide assistance to borrowers who are already in a fragile state of mind. Mr. Heid should try harder to put himself in the shoes of his borrowers. Mr. Heid should imagine what it would be like to face the loss of something near and dear to his heart, only to be faced with concrete deadlines, long and arcane application forms, rude customer service agents, and phone lines that always seem to disconnect before an answer to one of his questions has been offered.”

McFarlin believes that Wells Fargo should have offered one on one assistance from the beginning.

“If Wells Fargo noticed a problem of ineligible, incorrect, or incomplete application forms, they should have implemented a program to offer assistance to borrowers who needed help filling out the forms. Instead, they continue to toss a stack of papers at their borrowers and say ‘you figure it out’. That doesn’t sound the like action of a lender who wants to help their borrowers as much as Mr. Heid says he wants to help. This new idea of Wells Fargo to implement a one on one policy is coming too little too late, especially for the thousands of homeowners who have already lost their homes.

The timing of this implementation leads me to believe that Wells Fargo needed something to offer the House Committee in an effort to calm the controversy surrounding the lender. Hopefully the idea manages to work, but I’m not holding my breath.”

McFarlin recommends that borrowers have a legal professional review their loan modification documents prior to submitting them to their lenders to avoid a denial based on improperly filled out application forms. He also recommends that borrowers seek legal representation from an experienced foreclosure attorney. This not only releases the borrower from a tremendous burden, it will also help keep the lender honest.

About McFarlin & Geurts:

McFarlin & Geurts LLP is a full service law firm representing both businesses and consumers in California and throughout the United States. McFarlin & Geurts attorneys possess a keen sense of the law and markets, along with an astute business background that is invaluable in bankruptcy and business litigation. The McFarlin & Geurts team includes five leading attorneys and supporting staff to assure clients that their needs are placed at the forefront of any engagement. Legal representation and counseling is critical in our complex modern world, and McFarlin & Geurts is driven by a desire for excellence and commitment to provide quality, personalized service with integrity.

Media Contact:
Talien Barsamian
(888) 728-0044

Respected California Real Estate and Foreclosure Attorney Encourages Borrowers To Negotiate With Lenders

TheNewsFactory — Wed, 23 Jun 2010 18:19:04 +0000

IRVINE, CA (AttorneyNewswire.com) — June 23, 2010 — When a person applies for a loan modification, the process can take several months of filling out forms, gathering documents, writing letters, etc. In order to modify a loan, both lender and borrower have to agree to the new terms, since it would be illegal to modify the terms of an original contract without the knowledge and consent of both parties involved.

The process of a loan modification is more like a negotiation, but few homeowners and borrowers treat it as such. In many cases, the borrower is so happy to hear the news that their application for a modification has been approved; they leap at the first offer given to them by their lender.

Timothy McFarlin, an Irvine based real estate and foreclosure attorney, says that borrowers shouldn’t be afraid to negotiate:

“Borrowers facing foreclosure are already in a very fragile emotional state, which is understandable. The idea of losing one’s home is enough to rattle anybody to their core. Lenders know this and, in an effort to save as much money as they can, will often fail to offer the best possible deal to their borrowers. Lenders know full well that borrowers will jump at the first offer made just so they can put the whole experience behind them. For many borrowers, the first offer made is just fine. They see the first offer as better than nothing. In reality, borrowers could unknowingly lose out on thousands of dollars over the length of their loan just by not presenting a counter offer to their lender. Thousands of dollars for the struggling homeowner could be better spent paying off other debt instead of paying an inflated interest rate or overpriced late fees.”

McFarlin advises homeowners pursing a loan modification to secure a local foreclosure attorney to handle the negotiation for them. At the very least, he advises, borrowers should attempt to negotiate with their lenders and try to talk them down to a better offer. Many borrowers may be surprised to learn that a little persistence will go a long way over the length of the loan.

“Borrowers have to remember to put their loans into perspective” McFarlin says. “What may seem like a good deal now may only be a temporary fix to a long term problem. Negotiating for the lowest possible monthly payments now is a good way to help avoid foreclosure in the future. There isn’t anything wrong with asking for a lower monthly bill…that’s the whole point of a negotiation.”

About McFarlin & Geurts:

Media Contact:

Talien Barsamian

(888) 728-0044

To learn more about services offered by McFarlin & Geurts Law Firm, visit www.McfarlinLaw.com.

California Real Estate Attorney Tim McFarlin Urges Mortgage Customers To Seek Legal Counsel Before Accepting A Loan

TheNewsFactory — Sat, 19 Jun 2010 15:19:19 +0000

IRVINE, CA (AttorneyNewswire.com) — June 19, 2010 — Ann L. Koontz, of West Virginia, is suing her lender, Wells Fargo, for predatory lending practices which she claims led to the foreclosure of her home.

Koontz signed on to an adjustable rate mortgage with Wells Fargo in 2003 after being told by her lender that payments would likely decrease over time. Her initial payments were supposed to be $614 a month, but that number rose to $700 a month by the time her real estate deal closed in what she describes as a “hurried” process that offered little explanation of loan documents. Over time, payments rose to approximately $980, which she could no longer afford, and in 2008 she began making partial payments. Wells Fargo allegedly refused to process the payments and she was advised to apply for a loan modification.

Koontz was approved for a trial modification, was told that her mortgage payments would be adjusted to only $550 per month if she made all of her trial payments on time and in full. She did as she was told by her lender, made all of her trial payments as instructed, but was disappointed to discover that her application to modify her loan was denied. Koontz was assigned to a new representative who advised her to stop making payments while her claim was being processed. She did as she was told and on April 20, 2010 received a letter informing her that her home was now in foreclosure. Koontz filed suit against her lender and the case is still pending.

Timothy McFarlin, a real estate and foreclosure attorney in Irvine, CA says that he sees this scenario play out all the time:

“Lenders seem to have adopted a habit of making promises with no merit. They say one thing to the borrower then turn around and issue a document saying something completely different. Most people would never expect to be scammed by their lenders this way, especially lenders who have been around as long as Wells Fargo, but this seems to be happening more and more. Borrowers can protect themselves from acts of predatory lending by requiring any promises to be documented. When a promise makes its way into a contract, the borrower has a lot more fire power to fight the lender if they renege. If the person making the promise doesn’t have the authority or desire to commit the promise to the contract, then had no business making the promise in the first place, and the borrower should walk out the door as fast as they can.”

McFarlin also advises borrowers who feel they have already been lied to by their lenders to seek legal assistance. He also urges future borrowers to take as long as they need to review contracts and other mortgage documents, having them reviewed by an attorney if at all possible. This way, he explains, disputes can be settled before the borrower is contractually obligated to begin making payments.

About McFarlin & Geurts:

Media Contact:

Talien Barsamian

(888) 728-0044

To learn more about services offered by McFarlin & Geurts Law Firm, visit www.McFarlinLaw.com.

Respected California Attorney Tim McFarlin Reminds Homeowners That Loan Modification Consultants Are Typically Not Lawyers

TheNewsFactory — Fri, 11 Jun 2010 13:39:21 +0000

IRVINE, CA (AttorneyNewswire.com) — June 11, 2010 — California law strictly forbids attorneys from splitting legal fees with or paying referral fees to loan modification consultants. Many homeowners facing foreclosure that are drawn in to loan modification companies claiming to have attorneys on staff usually have very little contact with the attorney who should be handling their case. Loan modification consultants, who are not attorneys, do most of the work involved with the business and usually use the status of the attorney to attract clients. The problem is that these consultants and the cases they attract often outnumber the number of attorneys on staff, which means the client isn’t getting the full service they pay for. The State of California made it illegal for attorneys to split attorney fees or pay referral fees with non-attorneys to avoid this problem, but there are still companies that attempt to operate outside the law in order to earn a quick buck.

Timothy McFarlin, of Irvine based law firm McFarlin & Geurts, explains the difference between a law firm and a loan modification company with an attorney on staff:

“A law firm is an established and highly regulated business dedicated solely to the practice of law. When a person hires a law firm, they will be paired with an attorney that will usually stay their attorney for the duration of their case. A legitimate law firm will not cloak their attorneys behind ‘consultants’ or ‘advisors’, which is common practice with several loan modification companies. When a person has a question for their attorney, they should be able to speak directly to their attorney, not to a consultant. Loan modification companies cheat their clients by making them think an attorney is personally handling their case, when in reality the attorney will have little to no knowledge of each individual case and will mostly be used to sign or review legal documents.

McFarlin advises individuals facing foreclosure to hire a standalone law firm staffed mainly by attorneys, not a company staffed mainly by “consultants” with a handful of attorneys on staff. This type of company creates an environment that is not conducive to offering distressed homeowners the one on one legal advice and attention they deserve.

About McFarlin & Geurts:

Telephone: 1-888-728-0044

REST Might be the Key to Saving Your Home From Foreclosure, California Attorney Tim McFarlin Is Ready To Help

TheNewsFactory — Tue, 01 Jun 2010 18:01:07 +0000

IRVINE, CA (AttorneyNewswire.com) — June 1, 2010 — For homeowners facing foreclosure, a little known computer software program may be the key to saving their home. The reason why most consumers have never heard of the REST software platform is because it is a type of program that is only sold to banks and other lending institutions with thousands of loans that need to be analysis faster than human analysts can provide. By inputting a few key pieces of information into the REST program, a lender is able to see a carefully calculated prediction of consequences that various actions might produce, including but not limited to, the approval of a loan modification or letting a home fall into foreclosure.

Timothy McFarlin, an who practices real estate and foreclosure law in Irvine, CA knows firsthand how a REST report can help those fighting foreclosure. “Lenders,” he says, “are all about dollars and cents. Borrowers can beg and plead until they are blue in the face, but the stone cold fact of the matter is that unless a lender thinks that a loan modification is going to save or make them money in the end, convincing one to approve a modification can be next to impossible. If a homeowner is able to provide their lender with a REST report that details the benefit of approving a loan modification, the chance of their application being approved increases enormously.”

McFarlin goes on to explain that a REST report, in most cases, is not voluntarily generated by the lender because of the costs involved, and few homeowners even know that they can request such a report through their lender.

About McFarlin & Geurts:

Media Contact:

Talien Barsamian

(888) 728-0044

To learn more about services offered by McFarlin & Geurts Law Firm, visit www.McFarlinLaw.com.

Loan Auditors Support California Attorney General Jerry Brown's Phony Loan Crackdown

TheNewsFactory — Fri, 12 Mar 2010 00:21:15 +0000

SACRAMENTO, CA (AttorneyNewswire.com) — March 11, 2010 – US Loan Auditors announced recently that they are endorsing California Attorney General Jerry Brown’s crack down on “phony loan audits” and “loan modification” scam artists by warning California families that scammers are out to steal their hard earned homes and money.

“It is a shame that people would setup a storefront and call themselves a foreclosure relief agency just to steal from local families,” said Shane Barker, one of the founders of US Loan Auditors. “It is absolutely critical that consumers do their research into the company they are working with and extensively check references before assuming a firm has experts. We have never done, and will never do loan modifications. Our audits are specially designed for attorneys to take right into court.”

US Loan Auditors is not a loan modification firm, but instead is specialized in using the science of forensic loan auditing to help victims of predatory lending, and their legal counsel, uncover violations during the loan documentation or loan origination process. Customers can rest assured that the principals of the firm have extensive mortgage industry experience and the company backs up its expertise by offering a free upfront consultation for their forensic audit services.

“Our audits are not performed with a loan modification in mind,” Barker said. “We do the forensic loan audit to help give homeowners the leverage they need in court, not for a loan modification. Beware of companies promising big results after illegally collecting a large upfront fee.”

Along with a large upfront fee, scam artists may request the transfer of the title of the house to the “rescue” firm; making the mortgage payments to the scammer instead of the lender; and even prey on people that sign paperwork without carefully reading the documents or having an attorney review them.

“Unfortunately, some people are becoming victims twice,” Barker said. “Please be aware of the warning signs of a scam artist and take steps to protect yourself, your home and your family from further risk.”

An estimated 80 percent of the homeowners with one or more of the following; adjustable loans, pick a payment or option ARMs, non speaking or limited English speaking, or stated loan transactions, may have been victims of predatory lending.

For more information about US Loan Auditors, or get a free initial consultation for your mortgage loan, please call 916-256-3991 or visit them online at http://www.usloanauditors.com.