Alabama Consumer Law Blog

The Sarasota Herald Tribune has posted an article about the rising problem of uncontested, bogus foreclosure claims. "Bulk-rate foreclosure firms" are cutting serious corners and filing "sloppy documents with unverified and false claims." They usually get away with it, too, because for the most part, foreclosure claims aren't contested and the documents are seldom even skimmed.

The article cites an incident in Sarasota where a man's house was almost foreclosed on by out of town foreclosure lawyers. William Berta, the homeowner, was never served with foreclosure papers because the lawyers claimed his house was abandoned and he couldn't be located...a ridiculous claim since he was a local business owner. A judge overturned the case and foreclosure was avoided.

That has led to filings so ridiculous that I thought anti-foreclosure lawyer April Charney was kidding when she e-mailed a recent find from Lee County. It is a template, a fill-in-the-blanks foreclosure document, that foreclosure-mill lawyers filed in court as a real one, with almost nothing filled in. But though law office employees or contractors apparently forgot, or didn't bother, to fill in names of key parties in that foreclosure, some ironic truth was left in there, Charney says. Where there should be names of the investment company that allegedly held the mortgages or transferred it to another company, the court document lists "Bogus Assignee" and "Bad Bene" (beneficiary, it seems).

This has been happening all over the country. After learning of the foreclosures through local ads, local law firms have no problem contacting homeowners who the bulk foreclosure firms couldn't locate.

If you would like more information about foreclosure, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Silive.com has posted an article about the a warning from the IRS concerning scams during the tax filing season. Scam artists are using the IRS logo, name and other devices to impersonate the agency and thus obtain your personal information for the purpose of identity theft. Scammers usually try to contact people through Twitter, emails or other online messaging services. Others use faxes or phone calls or set up their own websites.

The IRS rarely sends unsolicited emails to people, and if it does, information about tax accounts isn't discussed, nor will they ask for personal information or sensitive financial information such as bank accounts or PIN numbers.

Anyone with a computer, phone or fax machine could receive a scam message or unknowingly visit a phony or misleading Web site. Individuals, businesses, educators, charities and others have been targeted by e-mails that claim to come from the IRS or Treasury Department. Scam e-mails are generally sent out in bulk, based on e-mail addresses (urls), similar to spam.

If you have questions or concerns about identity theft, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

The Associated Press has posted an article about the direct relationship between lawyer misconduct and the rising numbers of foreclosures. Crooked mortgage lawyers have certainly leveraged the mortgage crisis for their profit.

This is a nationwide problem, but the article specifically mentions the investigation of 400 attorneys by the California Bar. The California Bar is responsible for licensing and regulating the 250,000 lawyers in the state and has already received the resignations of 15 lawyers accused of ripping off homeowners. Disciplinary charges are pending.

Complaints against crooked mortgage lawyers vary widely, ranging from "do nothing attorneys" to one California lawyer was charged with

not only failing to perform vital tasks to stop foreclosures, but calling his clients "losers" during the rare occasions they could get him to return their telephone calls.

If you would like more information about foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

The California Debt Blog has posted an article that gives a basic overview of the different types of attorney fees and how they can relate to a debt collection/creditor harassment case.

A Contingency fee is mainly used for personal injury cases and isn't common in debt collection cases. For this fee, the attorney gets a percentage of the settlement, usually in the range of 30%-40%.

A Flat fee is when the attorney charges a set rate regardless of the amount of work or settlement amount. This is a more common option for dealing with debt collection cases.

Hourly fees are the most common. It's exactly what it sounds like...a flat rate is charged per hour for the work the attorney does.

Usually, a debt collection defense case without a cross complaint against the debt collector is handled this way. So, if the debt collector has not violated any laws and sues you, most attorneys are going to handle it on an hourly basis. Now you know why debt collectors sue people over small amounts like $1,500 or $2,500. If there are no FDCPA or Rosenthal Act violations, it quickly gets expensive to prove that you do not owe the debt!

Hybrid fees are any combination of the above. The attorney can charge hourly for some things and also have a contingency fee. "Or it could be a flat rate with the rest being paid by the collector upon successful completion of the case."

Pro Bono fees mean that the attorney does not charge and you aren't billed.

However, if you call an attorney and ask them to take your case pro bono, most attorneys will tell you no. We like doing pro bono work and most of us take on pro bono cases. But these are cases that we select for a variety of factors.

This is just a basic overview of what fee options to expect, but if you have more questions about this or debt collection feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

The Los Angeles Times has posted an article about a growing concern that the number of foreclosures will continue to go up in 2010. High unemployment is still making it hard for people to pay their mortgages and it's difficult to receive help from the government instigated programs that are supposed to help keep people in their homes.

The Obama administration's mortgage modification plans look good on paper, but have been slow to turn temporary reduced mortgage payments into permanent reductions.

"The overarching sense is that the mortgage modification process has not worked that well," said Bert Ely, an independent banking consultant.

Progress is expected to come and the Treasury has really been pushing banks to increase the numbers of permanent mortgage modifications. A recent report said that those numbers were up to 12,700 from 3,200 in December 2009. Another 13,900 modifications are currently supposed to be in the final stages.

But that's a drop in the bucket considering that BofA holds about 1 million mortgages that are at least 60 days delinquent. About 4 million homeowners nationwide are 90 days or more delinquent on their mortgages or in foreclosure proceedings, according to Moody's Economy.com, which analyzes data from credit reporting company Equifax Inc.

Trial modifications have also helped keep homeowners in their homes temporarily, but another 2.4 million people are expected to lose their homes in the upcoming year, up from 2.1 million in 2009. This will drive real estate prices even lower, making it even worse for homeowners who owe more on their home than it is currently worth.

If you would like more information on foreclosures, please check out our articles The Three Stages Of Forelcosure In Alabama and Wrongful Foreclosures In Alabama.

If you have questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Our friend Denise Richardson, of givemebackmycredit.com, has posted an article that gives 5 helpful tips on what to avoid when dealing with debt collectors and debt collection agencies.

#1. Doing Business Over The Phone:
If dealing with a debt collection agency, there's a good chance you'll end up in court and will need proper documentation of your dealings with the agency. Conducting your business over the phone makes it harder to have a valid, official record of what has been said should you have grounds to sue the collection agency for harassment. Refuse to conduct business with them over the phone and instead insist all communication be done in writing.

#2. Accepting A Computer Printout As Official Debt Validation:

One of the most basic methods of credit repair is requesting a debt validation from a collection agency. Should the collection agency fail to provide you with a validation, it is required by law to remove any entries it has placed on your credit report. Upon receiving your dispute, many collection agencies will provide you with a printout containing your current account information.

Due to the fact that the Fair Debt Collection Practices Act does not clearly stipulate what constitutes a legitimate debt validation, collection agencies are free to use printouts to "prove" that you owe a debt. Even if it has met the basic criteria for a validation, all collection agencies know that printouts rarely hold up in court. Don't accept a computer printout as a legitimate debt validation. Demand that the collection agency provide you with a copy of the original contract that you supposedly signed. In many cases, they can't do so.

#3. Giving Personal Information:
Just because a collection agency is trying to collect a debt doesn't necessarily mean it has your personal information, like your Social Security number. If you give a customer service representative this information to "locate" your account, they can use it to gain information about you that they don't already have.

By giving a customer service representative at a collection agency any information about yourself other than your name, you may be helping the company validate your debt or report it to the credit bureaus.

#4. Making Payments On An Old Debt:
Although it seems backwards, paying a collection agency can really turn into a hassle and cause even more of a headache. Every state has a different statute of limitation that gives the amount of time a creditor is allowed use a lawsuit to collect a debt. After that time passes, you are safe from a lawsuit and/or wage garnishment. If you give the collection agency a payment the statute of limitation is reset. Also, if you pay with a check or automatic bank draft, the agency now has your bank information and has the ability, even though it's not legal without a court order, to empty your bank account.

#5. Not Getting Agreements In Writing:
When settling with a collection agency, one of the most important things you can do is get a representative of the company to send you a physical copy of the payment agreement. Collection agencies have high turnover rates, so if you and a representative come to a verbal agreement and the representative leaves there's a chance there won't be any record of your settlement. Getting everything in writing eliminates this problem.

We would also like to thank Denise for kindly linking to us on her site!

If you have had problems with creditor harassment or have other questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

The Huffington Post has posted an article that that discusses how the Obama administration has chosen to ignore some of the problems resulting from the many foreclosure programs that were instigated last year.

The administration has chosen to ignore the rising numbers of foreclosures and mortgage delinquencies and has not interfered with making mortgage companies reduce the amount owed by mortgage owners. Instead, the administration has left the companies alone and hoped they'd take care of it themselves.

...the administration "specifically had designed the program to allow principal reductions without taking a position of where principal reductions would be most advantageous," he said.

So for the past year, the administration had a policy of "rather than us endorsing a uniform approach to principal reductions, let's give flexibility to servicers and hope that they do it on their own in the right circumstances," Wheeler said.

Currently, about 11 million people, roughly a fourth of mortgage holders, are facing foreclosure or owe more on a mortgage than their home is worth...and the numbers are expected to rise. Negative equity is a huge problem and a driving force of defaults and also makes obtaining a mortgage modification very difficult.

Less than 10 percent of permanent modifications under the administration's Home Affordable Modification Program have involved principal reductions. Simply reducing interest rates for five years, which the Obama administration's program does for homeowners who transition out of three-month trial periods, is "a purely temporary modification [that] ultimately doesn't solve the problem," said Micah Green, a partner at Patton Boggs LLP, a Washington law firm that represents a mortgage-investor group of asset managers who hold more than $100 billion in residential mortgage-backed securities.

Meg Reilly, a Treasury spokeswoman, responded to this information by saying that 850,000 homeowners are now paying reduced mortgage payments, three million have refinanced and $6 billion has been provided to restore vacant or foreclosed properties (called the Neighborhood Stabilization Program Grants through the Recovery Act).

If you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Business Insider.com has posted an article about a truly strange idea a man had to help a judge "reconsider" his verdict.

Judge Robert Gettlemen had found Kevin Trudeau, an infomercial pitchman, in contempt of a court order, for $36.7 million, for using deceptive tactics to market a diet program.

Trudeau had the less than brilliant idea to supply his fans with the judge's email address so they could put in a good word for Trudeau. Needless to say, Gettlemen was pretty annoyed and called an emergency hearing where Trudeau was arrested on charges of criminal contempt and held on $50,000 bail.

Trudeau has since asked his fans not to email the court anymore, which is definitley a good idea.

You can sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

TampaBay.com has posted an article about an outrageous home foreclosure case. In 2005, Massachusetts couple Charlie and Maria Cardoso spent their life savings to pay for their future retirement house in Florida in cash only to have Bank of America seize the house, remove their belongings and change the locks five years later. Mr. Cardoso was forced to drive to Florida to get their home back.

The infuriating part of the story is that Bank of America had the wrong address. The home that was supposed to be foreclosed was about 10 doors down across the street. The Cardosos and a realtor employed by Bank of America were unable to convince the bank that they had to wrong address.

The Cardosos are seeking unspecified damages from Bank of America. The company showed negligence, trespassed and caused the couple emotional distress and financial hardship, especially because a tenant renting the home at the time got worried and left, according to the complaint. It's still unclear if the couple's credit rating has been affected, deMello said.

The couple became aware of the problem when their renter called them in a panic saying that men were there to clear out the house and change the locks. The Cardosos are also upset because this issue has also damaged their reputation amongst the community in their Florida neighborhood.

Cases like this are absolutely ridiculous, especially when the home has clearly been paid for and even the bank's own employee was insisting that their information was wrong.

If you would like more information on foreclosures, please check out our articles Wrongful Foreclosures In Alabama and The Three Stages Of Foreclosure In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Our friend Denise Richardson of Givemebackmycredit.com has posted an article that discusses why most homeowners aren't taking advantage of the massive government spending that is supposed to stall foreclosing and make homes more affordable.

Homeowners seeking a loan modification are often met with difficulties from the government programs supposed to help. They get responses like "we lost your paperwork" and "you're not qualified" and "we're understaffed." But the simple truth is that there is more money to be gained in foreclosures and short sales than in loan modification and the government programs make modifications such a hassle for homeowners that many see it as not worth it. Richardson also references a video.

Earlier investigative reports clearly show there is little to no incentive for mortgage servicing companies to work with homeowners. As mortgage fraud continues to be exposed and lenders continue to cut off home equity lines and block consumers from access to credit, we can only ask - who's looking out for us? What government agency can the consumer or small business owner turn to for protection?

If you would like more information on foreclosure, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Our friend Denise Richardson, of givemebackmycredit.com, has posted an article with five common mistakes that consumers make when transferring debt. Transferring your debt from a high interest credit card to a new card with lower interest should raise red flags. Following these five tips will help prevent you from having to pay more money and going further in debt as well as saving your credit score.

1. Closing the Original Account:
After transferring the balance to a new card, you should refrain from completely cancelling the account. 15% of your credit score is made up of the length of time you keep accounts. Cancelling accounts will lower your credit score and change the way it's calculated.

2. Not Confirming the Spending Limit Ahead of Time:

A credit card company will not notify you of the spending limit you qualify for until your initial application is approved. After the application is approved, you may call to inquire about your spending limit at any time. It is vital that you know what your spending limit is on the new card before you initiate a balance transfer. If the amount of the balance transfer is greater than the spending limit on your new credit card, you may lose the low introductory rate by going over the spending limit with your transfer.

3. Not Expecting Balance Transfer Fees:
Some credit cards will charge you a substantial sum to transfer your balance, sometimes as much as 5%. For example, if your balance is $5,000 you could pay about $250 in fees.

4. Ignoring the New Card's Default Interest Rate:
Initial low interest rates on a new credit card are temporary and will default back to a higher rate. The new interest rate can be as high as your previous card that you transferred the balance from.

Should this occur, you will be left repaying your debt under the same unfavorable terms you thought you had left behind. If you know your credit score, you can call the credit card company and ask which interest rate you qualify for.

5. Losing the Introductory Rate;
Making a late payment or going over your limit on a new card can result in early termination of the low introductory interest rate. Be sure to read the fine print to determine what stipulations apply.

If you have questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Yahoo! Finance has posted an article about the rise of consumers paying their credit card bills instead of mortgages.

A recent study developed by TransUnion found the percentage of Americans who were current on their credit cards but behind on their mortgage increased to 6.6 percent in the third quarter of 2009, up from 4.3 percent in the first quarter of 2008. Meanwhile, the share of consumers making mortgage payments on time but behind on their credit cards moved in the opposite direction, sliding from 4.1 percent to 3.6 percent over the same time period.

A simple reason for this is that it takes much longer for a home to be foreclosed than for a credit card to be revoked. Foreclosure can take anywhere from six months to a year and a half, whereas a credit card account can be cancelled in a few months.

With the high rates of unemployment, people are viewing their credit cards as more valuable than mortgages, using their cards to buy necessities like gas and groceries. Also, the tight economy has made credit more difficult to obtain, so consumers see keeping their credit as more important.

A credit card's ability to finance basic necessities--and the swift consequences of default--make the trends highlighted in the TransUnion study less startling, especially in a time of high unemployment and widespread negative equity. "For a borrower who has got a significant [cash] shortfall, it is a completely rational decision [to pay off a credit card bill while defaulting on a mortgage]."

We definitely don't recommend this method, but if you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

KFOXTV.com has posted an article about a deputy constable in El Paso, TX who allegedly tried to arrest a man (illegally) for not paying his bills from renting equipment from Buddy's Home Furnishings.

"He told him that he owed Buddy's [Home Furnishings]," said Scott Vogelmeier, an attorney representing the man. "And that if he didn't pay Buddy's, he would arrest him, put him in handcuffs and take him away right then and there."

Debt collection is out of the realm of law enforcement, even when accompanied by a representative from the creditor, as was in this case. Failing to pay a debt is not a crime and people should not be threatened with arrest by debt collectors. Also, debt collectors (and constables) are prohibited from showing up or calling where debtors work.

"To go out there, and suggest that my client committed some sort of criminal act, which in fact he did not, and that he could be arrested and handcuffed and dragged away in front of his co-workers and the patrons of that restaurant, it's just absolutely incredible that anybody would think that's correct," said Vogelmeier.

If you have had problems with creditor harassment, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

CNN Money.com has posted an article about how you might still be pursued by mortgage lenders even after your home has been foreclosed. If a foreclosed home sells at auction for less than what the mortgage is worth, the former homeowners are responsible for the difference.

These "deficiency judgments" can even come up years after a home has been foreclosed and include people who get approval from the bank to sell their home for less than it's worth.

Vanessa Corey, for example, short sold her Fredericksburg, Va., home in April 2008. She and her husband built the house in 2004, but setbacks, both personal (divorce) and professional (housing bust), made it impossible for the real estate agent to keep her home. So she negotiated the short sale and thought that was the end of it.

"My understanding was that the deficiency was negotiated away," she said. "Then, last November, I got a letter from a lawyer telling me I owed my lender $65,000. I had to declare bankruptcy. There was no way I could pay it."

These deficiency loans are really affecting people who have been impacted by falling home prices and unemployment. They can no longer sell their homes for what they owe and instead have to settle for quick sales or have to foreclose. After foreclosure, it's very common for banks to have houses that are worth less than what is owed on them.

Whether banks can and will pursue deficiency judgments depends on many factors, including what state the borrower lives in and whether there's a second mortgage or other liens. But if borrowers ignore the possibility of deficiencies, it could haunt them.

Lenders can currently pursue foreclosure deficiencies in 30 states. Even when lenders are willing, homeowners are often not aware that they can ask for release from further financial obligation. If you are interested in a short sale, be sure to have your attorney ask the bank to release you from further obligation.

If you would like more information about foreclosures you can check out our articles The Three Stages of Foreclosure in Alabama and Wrongful Foreclosures in Alabama.

If you have more questions, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

The CL&P Blog has posted an article about some companies beginning to use text messaging as a form of debt collection. This method has some conflicts with the Fair Debt Collection Practices Act's regulations on debt collectors disclosing themselves.

Some of them, like the validation message required under section 1692g, are only required within five days of the initial communication, and so can be sent in other ways, but under section 1692(e)(11), all communications must disclose that the communication is from a debt collector.

Character constraints in texting don't allow for adequate disclosure and then a more detailed statement of the debt from the collector. Also, billing plans charge recipients for text messages and not the sender, so consumers definitely won't be happy about paying for texts that tell them they owe money to debt collectors.

That also brings up section 1692f, which prohibits unfair practices, and in subsection (5) specifically bars:

Causing charges to be made to any person for communications by concealment of the true purpose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.

While the above was written before text messaging it is certainly applicable to this newest development.

If you have had problems with debt collector harassment feel free to contact us through our website or by calling 205-879-2447.
You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

The New York Foreclosure Law Blog has posted an article about some of the difficulties that consumers face when seeking a mortgage modification. Difficulties with banks seem to be the most common. Banks are generally not equipped and are too understaffed to deal efficiently with the large numbers of modification requests sent in over the past year.

The understaffing causes a delay before the bank gets back to you or can even confirm that they received your paperwork. Loan modification departments have groups of rotating phone representatives, meaning that you won't likely speak to the same person every time you call and will spend more time giving explanations that getting answers.

This method can take months if you go it alone, and be irritating when having to deal with courts or other legal proceedings that you might not be familiar with. This article suggests that if you are interested in pursuing a mortgage modification it's easier to contact a lawyer who can get you faster results.

If you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have more questions about mortgage modification, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Yahoo!Finance has posted an article that gives insight into how social networking websites can work against you in several situations, including debt collection, employment prospects and scams that can lead to identity theft.

Jobseekers should automatically assume that potential employers will do a Google search of their name and often social networking sites are some of the first results. You should take down questionable material and pictures. Or just set your profile(s) to private. Even established employees can sabotage themselves by posting negative material about their company or boss on sites such as Twitter. It's also important to remember that even material you set to private is still on the internet and thusly still accessible.

Social networking sites are also being used by debt collectors to track down debtors.

"If they don't have a good phone number or the mail's being returned, a lot of them use Facebook to find out if they have a different address or their employment information."

Debt collectors also keep an eye on debtors, not necessarily by contacting them, but by watching what the debtor posts. Some debt collectors violate legal and ethical boundaries and assume fake identities online to closer watch the debtor and possibly gain more information. Of course, debt collectors can also use this opportunity to further harass their debtors.

People provide social media sites with such a large amount of personal information that scams and identity thieves are rampant. Identity thieves can use seemingly innocent information to forge access your accounts.

If you have a public Facebook profile that gives your birth date and your parents' names and that kind of thing, they can provide the answers to security questions that your bank might have on its Web site.

Be wary of people who try and add you as friends, on sites such as Facebook, who you don't actually know. They might be hackers or scammers or people trying to sell products.

Being smart with the information you put online can save you a lot of trouble in the long run. Be careful of what you say about yourself and other people online, don't add people you don't know and always be mindful that identity thieves and hackers are on the same website.

If you have had issues with debt collectors or identity theft, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

MortgageLawNetwork.com has posted an article that gives advice on when is the right time to contact a foreclosure defense attorney. Andy Miofsky, author of the article, lists four circumstances where it might be in your best interest to contact a foreclosure attorney.

#4. You have received a Summons and Complaint for foreclosure and are now being sued by your mortgage company. You are in danger of losing your property and usually have 30 days or less to respond.

#3. A collection lawyer sends you a letter that gives you a deadline to catch up on delinquent mortgage payments and also threatens foreclosure. The next step is for the bank to sue you.

#2. Your mortgage company sends out a notification that your payments are in default. The next notification you receive should be a letter from the mortgage company's lawyer.

#1. If you are knowingly behind on your mortgage payments, go ahead and contact a mortgage defense attorney to plan a strategy and confront the problem head-on.

If you would like further information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have received one of the above notices, or have other questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Yahoo!Finance has posted an article that discusses traits that victims of identity theft have in common. Experian, a credit bureau, has conducted a study that indicates identity thieves go for "affluent suburban consumers" who often live in higher-income neighborhoods with few renters and own one or more new or luxury vehicles. Of twelve categorizations of people, three were most highly sought after my identity thieves: "affluent suburbia," "upscale American" and the more middle-class "American diversity."

Experian says these consumers live in and around metropolitan areas, favor leisure activities, have college diplomas or advanced degrees and more often tend to be married.

Experian identifies the common activities of those most often victimized by ID theft:

• Tennis
• Politics
• Foreign travel
• Charities/volunteering
• Cultural/arts
• Skiing

Where consumers live is also important to an identity thief. For example, it's easier to steal a discarded document in a suburban area. Also, these affluent households "may have domestic help and service people who may have the opportunity to steal personal info from the home that can be used to acquire credit."

Lenders also target these groups of people. Because of this, thieves have an easier time getting services and credit in the victim's name.

How to protect yourself can be tricky because you can't control where your information goes after it leaves your hands. Banks and other financial institutions have an obligation to guard your information. However, this article says that lenders need to strike a balance between guarding consumers' information and still making it possible to get a loan or credit without major hassles.

If you should be a victim of identity theft, consider a credit freeze even though it might be a bit more work on your end. Credit Monitoring alerts you when changes are made to your credit score.

If you have been a victim of identity theft or have questions or concerns on the subject, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

MortgageLawNetwork.com has posted an article about a recent investigation into accusations against about 300 California law firms that were involved in loan modification scams, according to a California Bar Association report. "Typically, homeowners facing foreclosure complain that they paid attorneys who then did nothing to help them keep their homes.”

Mortgage modifications rarely work because the terms never go far enough to solve the long-term problem – massive negative equity. The only way a homeowner can eliminate negative equity is by convincing the “lender” that doing so is in the “lender’s” best interest. This ONLY happens by fighting the foreclosure in the state court case. A good litigator can shift leverage away from the lender and toward the homeowner, forcing the lender to offer more meaningful solutions.

California has seen huge numbers of unemployment and foreclosures, yet homeowners all over the country should avoid lawyers who only do loan modification "workouts" with a loan servicer rarely achieve long-term success and the foreclosure likely won't be permanently resolved. You should never hire a lawyer who does not intend to defend the foreclosure in state court.

If you would like more information about foreclosures, please check out our articles The Three Stages of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have more questions or concerns, feel free to contact us through our website or by calling 205-879-2447.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

The mortgage companies want it to be. Right now Florida, unlike Alabama, is a judicial foreclosure state which means the mortgage companies and banks that want to foreclose have to prove their case in court. They don't like to do this. Because they usually can't. Here's what a friend of ours in Florida, Chip Parker, says in a scathing blog post about efforts in Florida to turn the foreclosure process into a non judicial one:

As a Florida foreclosure defense attorney with over 500 actively defended foreclosure cases, I believe the banks have “thrown in the towel” in the cases I’m defending. I cannot recall the last time the plaintiff in a foreclosure case came to a court hearing with an intelligent argument that resulted in a ruling against the homeowner.

Since the plaintiffs rely on fraud in almost every foreclosure case, good defense lawyers are always frequency-tuned to find the lies, and now that Circuit Court judges have been exposed to the stench of foreclosure mill pleadings, more judges are looking at each foreclosure with more skepticism.

We in Alabama who face foreclosures that quickly proceed through the Three Stages Of Foreclosure often look at Florida with some envy since the courts at least get to review the foreclosures. We did not expect that to change but it seems the mortgage companies want to change the rules since they are not winning under the current rules.

If you live in Florida and are reading this - let your representatives know you oppose this non sense.

If you live in Alabama and are facing foreclosure, make sure you stand up for your rights and fight back against wrongful foreclosure. We don't have judicial review unless you take your case to court to stop wrongful foreclosures.

Our tele seminar on Wrongful Foreclosure In Alabama happened last month and if you live in Alabama and would like the audio let us know. We are getting a transcript but don't have it typed up yet.

Also if you have already been foreclosed and are facing an Ejectment Action in Alabama, on Tuesday February 9, 2010 we are offering an hour long tele seminar on the Five Critical Mistakes Often Made When Sued For Ejectment In Alabama. This is free and you can contact us to let us know you want to be on the call.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

Feel free to contact us through our website or you can call us at 205-879-2447.