Tammy Spagnola’s original monthly mortgage payment was $2,173.  Like many other borrowers in this down economy, Spagnola was hit hard when her husband’s work hours were cut in half.  The pair applied for a Chase loan modification and were awarded a temporary modification lowering their monthly mortgage payment to $1,635.  When the couple was notified of the lender’s final decision, they were surprised to learn that their lender proposed a loan modification that would make monthly payments of $2,191 per month.  This means that Spagnola’s attempt to modify her loan resulted in monthly payments that were $18 higher than what she normally paid.  After some review, it turns out the pay stubs were to blame.  When the application was filled out, it required the two most recent pay stubs be attached.  Unfortunately for the Spagnolas, the two most recent pay stubs of Tammy’s husband reflected a rare period when he was allowed to work close to 40 hours per week.  This rare occasion produced two pay stubs that presented the image of a higher income than was actually earned.

The Spagnola’s rejected the bank’s offer and are expected to appeal the decision.

A foreclosure attorney in Irvine, CA, Timothy McFarlin said that no person attempting a loan modification should ever settle for a higher monthly payment than normal.

“What happened to the Spagnolas is unfortunate” McFarlin said, “but it is also very rare.  The whole point of a loan modification is to lower monthly payments.  One way to avoid this type of situation is to review each and every document submitted to the lender very carefully.  If the document reflects a higher income than is actually earned, the document should not be submitted to the lender.  An attorney should be consulted for further guidance, but at the very least the borrower should explain to the lender that the document in question may lead to false conclusions being formed about the borrower’s actual earnings.”

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

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

Martin Andelman is a former CEO who now works as a guru / consultant for several companies of several industries.  His blog, Mandelman Matters, found at www.Mandelman.ML-Implode.com, features commentary and sometimes rants on current lending industry news.  By injecting his point of view with humorous jabs targeted at the subjects of the news, he makes learning and staying current with the lending industry an easier pill to swallow.  It is important for borrowers considering loan negotiations to stay current on court decisions, changes to laws, and anything else that may impact the outcome of a negotiation.  His style of writing is a cool glass of water to a normally dry subject matter.

The team of attorneys at McFarlin & Geurts take a much more serious approach to helping borrowers.  They represent borrowers trying to avoid foreclosure in court and in negotiations with their lender.  They apply their expert knowledge of the law to help borrowers stay in their homes and get out of debt.  Timothy McFarlin, an attorney on the team, agrees that borrowers must be more proactive in learning about their money.

“Borrowers need to know how their money works.  They need to understand things like credit and how credit can have such a huge impact on their future.  I’ve seen the information on Martin Andelman’s blog and I think it’s great.  It doesn’t matter how borrowers decide to receive the information, it just matters that they receive it, so people like Martin who educate borrowers play a very vital role in getting the information to the borrowers.  We do what we can to educate our clients as we represent them, but it’s always helpful when the client has a general understanding of the laws at work in their situation.”

Even though Andelman and McFarlin take such different approaches to helping borrowers, the work they do has helped borrowers all over the country.  While one offers commentary and consultations, the other offers legal representation, but both offer options and alternatives to foreclosure and debt.

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

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

By January 1, all states will follow suit after federal law is enacted that will require some sort of standard licensing requirements for all brokers in the U.S.  Part of the law will assign unique identification numbers to each broker in order to track their history of lending.

Irvine based foreclosure attorney Timothy McFarlin appreciates the effort by the government, but admits that it may have come too little too late.

“These laws are a great idea, but they don’t do much to address the current issue.  Millions of homeowners are kicked out of their homes on a regular basis and millions more are quickly approaching foreclosure at this very moment.  The law is only a few days from taking effect in California and a few months from taking effect nationwide, but that does little for the borrowers who have already been made the victims of predatory lenders and brokers.”

McFarlin admits that he is skeptical about the new law because, “Every time a new law is put on the books, some crook gets right to work trying to figure out a way to work around it.”

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

To learn more about services offered by McFarlin & Geurts Law Firm, visit www.McFarlinLaw.com. ]]> http://www.thenewsfactory.com/2010/07/26/noted-foreclosure-attorney-tim-mcfarlin-explain-new-law-that-requires-background-checks-for-mortgage-brokers/feed/ 0 http://www.thenewsfactory.com/2010/07/09/mcfarlin-and-geurts-llp-provides-counseling-and-assistance-to-union-bank-borrowers-helping-them-save-thousands-per-month/ http://www.thenewsfactory.com/2010/07/09/mcfarlin-and-geurts-llp-provides-counseling-and-assistance-to-union-bank-borrowers-helping-them-save-thousands-per-month/#comments Fri, 09 Jul 2010 06:28:50 +0000 TheNewsFactory http://thenewsfactory.com/?p=1450 IRVINE, CA (AttorneyNewswire.com) — July 9, 2010 –  McFarlin & Geurts, LLP is pleased to announce it is now able to represent Union Bank borrowers in negotiating lower mortgage payments and interest rates through little publicized Union Bank rules and regulations on “jumbo” loans.

Very few “jumbo” Union Bank borrowers may be aware that in response to a wave of distrust and scrutiny in the mortgage marketplace, Union Bank has voluntarily set up programs to negotiate with and assist its own borrowers and distinguish itself from the rest of the industry.  These programs are complex and require specialized expertise to gain full benefit to the borrower, but with rates at unbelievably low levels, now is the time.

The program is only available to select Union Bank customers with a mortgage over approximately $730,000 with no more than 80% loan to value and good credit.  It seems to stem from a strong desire by Union Bank to maintain and preserve its status as one of the leaders in the “jumbo” market and protect existing customers.  The process will not damage a borrower’s credit, and does not require income verification or extensive documentation.

Real Estate and Mortgage Attorney Timothy McFarlin commented recently: “The new Union Bank regulations are an extraordinary opportunity for select Union Bank customers with jumbo mortgages.  With rates as low as they are, just about anyone who got a Union Bank loan in the past 7 years can benefit without even having to provide income documentation.”  McFarlin went on to say: “There is nothing like this in the industry, its going to make Union Bank the leader in jumbo mortgages for the foreseeable future.”

About McFarlin & Geurts:

McFarlin & Geurts LLP is an Irvine California based full service law firm representing both businesses and consumers in California and throughout the United States. McFarlin & Geurts regularly negotiates on behalf of clients to secure more favorable terms on residential and commercial loans without damaging or affecting a borrowers credit.

Media Contact:

Talien Barsamian

(888) 728-0044

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