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<!DOCTYPE HTML PUBLIC '-//W3C//DTD HTML 4.01 Transitional//EN' 'http://www.w3.org/TR/html4/loose.dtd'>;
<html><head><title>Real Estate Pro Articles | California Lawmakers to Push 120-day Foreclosure Moratorium</title></head><body><h3>California Lawmakers to Push 120-day Foreclosure Moratorium</h3><br><br> By: Leticia Carvalho<br><br><p>The Democrats’ proposal is longer than the 90-day moratorium that California Governor Arnold Schwarzenegger is proposing. Both proposals will be tackled during a special session called by Schwarzenegger to discuss California’s budget shortfall which increased to $11 billion due to declining revenues amid the housing and financial crisis.</p>
<p>California is one of the states hardest hit by foreclosures resulting from risky mortgages, including subprime loans availed during the peak of the housing market.</p>
<p>The state legislature has approved a bill that requires lenders to start initiating foreclosure proceedings 30 days after they have informed a borrower.</p>
<p>Karen Bass, California Assembly Speaker, explained that during the 120-day moratorium period, affected borrowers would be compelled to pay affordable loans. She believes that tougher times call for 120-day foreclosure moratorium instead of the 90-day proposed by Schwarzenegger in order to rework loans and address foreclosure problems.</p>
<p>Meanwhile, lenders can avoid imposing Schwarzenegger’s 90-day foreclosure moratorium proposal if they can show that they have a loan modification program in place.</p>
<p>Schwarzenegger wants California lawmakers to allow the state to implement federal laws and policies to regulate real estate licensees. He also wants to change lending practices to protect borrowers, including expansion of fiduciary duties covering mortgage brokers to allow them to modify a loan to suit a borrower’s conditions.</p>
<p>Furthermore, he wants to penalize lenders who issue false and misleading statements and to increase and standardize loan originators’ licensing requirements.</p>
<p>The plan by state Democrats coincides with mortgage finance companies, Freddie Mac and Fannie Mae’s launching of a program to reduce monthly mortgage payments for homeowners having difficulty meeting their financial obligations.</p>
<p>Borrowers who are eligible for the program are those who are facing the threat of foreclosure. A borrower who spends over 38 percent of his income on paying his mortgage is also eligible for reduced monthly payments.</p>
<br><br> <b>Author Resource:-></b>  http://www.listingsforeclosures.com/california/california-lawmakers-to-push-120-day-foreclosure-moratorium        <br><br><b>Article From</b> <a href='http://www.realestateproarticles.com/'>Real Estate Pro Articles</a><br></body></html>
 
 
 General Info
 
 To your Servicing Agent 

Where the abuses towards elderly and minorities continue, our take is that all borrowers

cannot remain quiet and should seek enforcement of federal law and a right to full disclosure.

The claim of predatory lending has likely played itself out throughout the years and is the

cause for more borrowers to become exposed to hardship. You idea of providing assistance

should not have empasis  on a boorwers economic instability and need for releif where it

is shown to be soley due to lender and servicing negligence.

A deed conveys an interest in Real Estate where the obligation is secured by a lien recorded

against the real estate.The lien acts a collateral for the obligation and becomes the lenders

security. A lender will assign the serviing to an internal laon collections department or outside

 thrid party servicing agent. The servicer will collect payments every month subject to the rules

and regulatory requirements promulgated under the statutes provided by the federal governement,

 

a “Qualified Written Request” is a law puruant to Section 6 of RESPA (12 U.S.C. Section 2605)

whereby a borrower is provided certain rights with regards to the loan. payments and servicing

rights. You are seeking an answer and the servicers assistance in circumventing a

wrongful foreclosure action brought against the benficiary, Servicer and trustee in the event of

a wrongful foreclosure.A failure to adhere to a “Qualified Written Request” is a violation of Section 6

of RESPA (12 U.S.C. Section 2605) whereby a borrower is provided certain rights with regards to

servicing.

You, the client is no longer patient and we are together seeking an answer for your willingness to

entertini a negotiated loan settlement.  For the record,  the servicing agent, Countrywide, has

failed to comply with the law whereby the Trustor provided your client with a satisfactory resolution

to the matter  The lender and its agents’ have superior knowledge concerning the origination and financing

provided to you, the borrower. The lender cannot misrepresent the condition of the borrower

and overstate the encumbrance. There is evidence of false and misleading information caused

by the lender that can be found throughout the file. Therefore the Trustor will argue “a deed is

likely to be considered void if obtained through  false representations and withholding of material

facts to the detriment of the borrower”.

 

If the deed is determined to be defect and sale or encumbrance must fail. If there was a willingness

by your client to accept a sensible approach towards mediation they are smart to let this problem

resolve it before escalating to an action. A suggestion is to allow for "offer in compromise" to be considered

as an accord in satifsfaction" . The terms of the exisiting loan can be modified as follows:

1. Allow the loan to be recast as a balabce totaling 80% of the current outstanding amount

including all interset and fees due and payable.

2. Allow the borrowers to assume the 2. modify the terms to relflect an amount equal to 80%

of the prior outstanding balance.

3. Offer to recast the interst rate charged and coupon rate adjusted to 3% which would be

payable interest only 

4. Have the borwer indemnify the lender frmany willingness or against

 the adjusted balance. 

 

Upon meeting these and anyother terms, the new  loan would be

underwrtitten at the current reduced balance and at the best possible rate at such time,

not to exceed 200 basis points from the adjusted 3% proposed rate or combined 5% per

annum.The exisitng loan balance would be determned by using properly executed accprtance criteria

issued by HUD and according to industry “full income” verification standards. The borrower

will have no other recourse towards your client assuming you agree to expunge the current

obligation as “void”. We, the auditor move for each party to agree to forgo any claims for any

losses and potential damages for wrongful lending practices and negligence.

Senior Examiner

Compliance Specialist

Cc: Susan Rabin

Attorney at law


Truth-in-Lending Truth-in-Lending Reg Z RESPA Real Estate Settlement 
and Procedures Act ECOA  Chartered Banks, FDIC, HUD Offices Section
32 Reg Z RESPA Real Estate Settlement & Procedures Act ECOA, Reg Z