Alabama Consumer Law Blog

Getting threatened with foreclosure is tough.

Actually being foreclosed on is tough.

Particularly when the mortgage company has foreclosed illegally.

But then to add insult to injury, you will receive a letter demanding you leave your home or you will be sued.

Remember this - if the foreclosure was wrong . . . and they often are . . . then the threat of a lawsuit (ejectment) is something that you can turn to your advantage by countersuing for the illegal conduct of the mortgage companies.

To help you understand this area of the law a little bit better in Alabama, you can request our book (at no charge) - "The Five Most Common Mistakes Alabama Consumers Make When Sued For Ejectment" please fill out the form below:

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.

When you are sued for ejectment (after a foreclosure) in Alabama, the first most common mistake is to not answer the complaint. The second most common mistake is to give up by assuming there is nothing you can do after a foreclosure.

If there has been a wrongful foreclosure, then the ejectment lawsuit is a perfect time to bring these issues up.

Don't believe all of the people who tell you it is too late - or who question your ability to fight a wrongful foreclosure.

To help you understand this area of the law a little bit better in Alabama, you can request our book (at no charge) - "The Five Most Common Mistakes Alabama Consumers Make When Sued For Ejectment" please fill out the form below:

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.

To get an overview of the five mistakes - read our blog post and watch the video here.

Many Alabama consumers face abusive debt collectors - its just part of the package that comes with an economic downturn.

She discusses her experience not only with the abusive collector but also her experience in hiring us to help her deal with the situation.

If you live in Alabama and would either like our book - Little Known Ways To Stop Abusive Debt Collectors - or you would like to set up a free consultation with us - call us at 205-879-2447 or contact us through our website.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Here's the reason to use some type of collection log - to help you track the calls and other communications from debt collectors.

Remember - if a company is willing to break the law - then it is willing to lie about breaking the law. Your collection log will help these abusive debt collectors "remember" the illegal conduct they committed against you.

So if you are facing violations of the Fair Debt Collection Practices Act (FDCPA) or Telephone Consumer Protection Act (TCPA), then consider using a collection log to help track the abuses.

If you have further questions or concerns or would like our free book on stopping abusive debt collectors, feel free to contact us through our website or by calling 205-879-2447.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Best wishes,

John Watts
Birmingham, Alabama

It may not make sense but this is the law - you have to dispute directly with the credit reporting agencies - the national ones include Trans Union, Innovis, Experian, and Equifax.

You can and should also send a dispute to the furnisher of information (i.e. the creditor or collector) but if you do not send it to the reporting agency, then there is no obligation on the furnisher to do anything.

Crazy but that's the political process folks....

Remember when you send a dispute to do it by certified mail, return receipt requested.

If you live in Alabama, feel free to contact us through our website or you can call us at 205-879-2447 if you have any questions.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Remember that line from the movie "Show me the money!" - that's the answer.

Plain and simple. You are not the customer of Equifax, Experian, Innovis, or Trans Union.

Instead the companies supplying the false information are - and they pay well. You don't.

So when it comes down to the reporting agencies believing you or their customer . . . well, you generally lose.

Doesn't make it right - and you can sue when this happens - but this is reality....

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Many Alabama consumers want to know exactly what happens when they dispute false information on their credit reports - in this video we take you "behind the scenes" to what actually happens.

It is ridiculous to call what the reporting agencies - Equifax, Experian, Innovis, or Trans Union - do a true "investigation" but nevertheless this video explains the real story.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

When you are dealing with credit report errors, after you first pull your reports, and then review them for inaccuracies, the third step is to dispute the false information to Equifax, Experian, Innovis, and Trans Union - the national credit reporting agencies.

The addresses to dispute can be found online but the safest approach is to use the address provided on each credit report that you pulled and then reviewed.

Send your disputes by certified mail, return receipt requested to the bureaus and also to whatever creditor or debt collector ("furnisher") is providing false information. Keep a signed copy for your records.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

After you have pulled your credit reports from Equifax, Experian, Innovis, and Trans Union, then you need to carefully review those reports to see what is accurate and if there is any false information on your reports.

You can watch our video on the overview of the Five Steps To Correct Credit Report Errors here or you can watch our video on the first step which is to pull your credit reports.

Feel free to contact us through our website or you can call us at 205-879-2447 if you have any questions about credit report errors.

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

I received a question from a gentleman in New York who requested and read our report "Five Secrets Debt Buyers Who Sue You Don't Want You To Know" - the report is based upon our experience with well over a hundred debt buyer lawsuits in Alabama but it can also be of some help to consumers outside of Alabama as it discusses general principles of the law.

The question - and its a good one - is:

Could a settlement with a debt buyer (before any judgment) look better on my credit reports than a win against them in court (because they couldn't prove the debt)?

More specifically:

Your "Five Secrets" report explains that a debt buyer who loses in court is required by law to remove the debt from my credit reports. Must they remove the entire collection account? Does the original lender's account show any change?

Alternatively, if I insist as part of a settlement agreement, can they remove their entire collection account and show the original lender's account as paid?

Let's take these one at a time....

Could a settlement with a debt buyer (before any judgment) look better on my credit reports than a win against them in court (because they couldn't prove the debt)?

Not really. It might be just as good but it won't be better in this sense. When you win your debt buyer lawsuit (at least in Alabama) this means you don't owe that debt buyer. So that debt buyer must remove the account that it put on your report.

Now in a settlement you can accomplish the same thing but if you don't insist upon it then the debt buyer will report your account as paid via settlement or "settlement for less than full balance" which generally is a negative. Better to have the whole account removed than to have any collection account - even if paid.

Your "Five Secrets" report explains that a debt buyer who loses in court is required by law to remove the debt from my credit reports. Must they remove the entire collection account? Does the original lender's account show any change?

Yes the entire collection account must be removed in Alabama. If it is not after you dispute it with the credit reporting agencies, then you have the option to sue the credit reporting agencies and the debt buyer.

The original lender's account is not affected by the victory over the debt buyer. The original creditor was not a part of the lawsuit so the judgment has no affect on the original creditor.

Now, if the debt buyer was reporting the account then the original creditor must show the account as having a zero balance and "sold/transferred" on the notes.

Alternatively, if I insist as part of a settlement agreement, can they remove their entire collection account and show the original lender's account as paid?

Yes if you can get the debt buyer and original creditor to agree. I'll tell you this - most debt buyers will agree if you push them on this. But generally they don't control the original creditor and so it may be difficult to get the original creditor's account to be deleted or paid.

But the beauty of a settlement is that it is a voluntary agreement where the parties make up the terms so you can ask for it....

I hope this has been helpful to you - I'm including the section of our Five Secrets report that prompted these questions:

SECRET NUMBER FIVE – WHEN DEBT BUYERS LOSE, THEY MUST CORRECT YOUR CREDIT REPORTS

When you win your debt buyer lawsuit it normally means that you do NOT owe the debt buyer any money. A judge has ruled that there is no obligation for you to pay the debt buyer. If you don’t owe the debt buyer any money, then the debt buyer must take this off of your credit reports. They hate doing this!

The reason they hate doing this is because leaving false information on your credit reports is one of the best ways to force you to pay something you don’t owe. We call this “parking an account” which gives you a sense of what and why they are doing. They leave or “park” this false information on your credit reports in the hopes that one day when you go to refinance a house or buy a car or apply for a bank job or military job that this will prevent you from getting the loan or the job. Your only quick solution, they believe, is for you to pay this false debt. It’s as if they parked a broken down car in your front yard. Eventually a time will come when you will pay to get rid of this even though it is not yours.

But now you know their dirty secret that they cannot keep this on your reports. So, what should you do? You have several choices:

1. Do nothing and hope that the debt buyer does the right thing;
2. Contact the debt buyer directly and ask the debt buyer to do the right thing; or
3. Dispute this false account with the consumer reporting agencies (Equifax, Experian, Innovis, and Trans Union) using a Fair Credit Reporting Act dispute.

The words that come to mind on the first option are “Good luck.” We have seen clients who handled (and won!) the debt buyer case on their own and who come to us six or nine months later and the false information is still on their credit reports.

The second option has some appeal as the debt buyer might realize you know about the obligation for the debt buyer to correct your credit reports but here is the problem. Under the Fair Credit Reporting Act (FCRA) you can’t sue the debt buyer for putting false information on your credit report unless you have first disputed with the credit reporting agencies. You can sue under the Fair Debt Collection Practices Act (FDCPA) but we have seen debt buyers taking the bizarre position that the FDCPA does not apply to them when it comes to credit reporting. Bottom line, some debt buyers believe they can intentionally put false information on your credit reports and you can’t touch them until you do a proper dispute under the FCRA. This is a bogus position they take but some do take it which means the false information on your credit reports will stay. This leads us to the third option.

The third option, doing a dispute under the FCRA, is the safest approach. Sometimes the credit reporting agencies actually remove false information. It’s rare but it does happen occasionally. Sometimes a debt buyer will realize that you know this fifth secret and will remove the false information. But if the credit bureaus and the debt buyers don’t follow the law, then you can sue them. That’s why we like this approach the best – it gives the debt buyers a chance to do the right thing. If they do, then great. If they don’t, that’s ok also as we can sue them to encourage them to follow the law.

If you would like more information, and in particular our free report on the Five Secrets Debt Buyer's Don't Want You To Know About, contact us at 205-879-2447, through our website, or by filling out the form below. We wish you the best!

This story helps explain, at least in part, why debt collectors will abuse consumers and why mortgage companies will try to steal the homes of consumers.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

To know how to correct credit report errors you first have to pull your reports. You might as well pull your reports for free if you haven't already done so in the last twelve months.

Go to Annual Credit Report and Innovis to pull your reports for free.

Next, you'll need to review your reports but first make sure you have pulled them.

You can watch our video on the overview of the Five Steps To Correct Credit Report Errors here.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

This is what consumers around the country face - people laugh and say "there is no way you can fight a giant mortgage company that has already foreclosed on your home!"

But when homeowners fight back - smartly and powerfully - when the mortgage companies feel the pain of answering for their evil deeds . . . the laughing stops....

You see people just assume . . . the mortgage companies just assume . . . that there is NOTHING you can do when a national mortgage company (you know - those "too big to fail" type of places?) decides to foreclose on you . . . and then decides to sue you to kick you out of your home.

If you dare to think out loud that there might be something you can do . . . that there must be something you can do . . . that surely this type of injustice can't keep going . . . then people will love to tell you how wrong you are.

Tell you that you have no chance . . .

Tell you that these mortgage companies hire the most expensive lawyers and have unlimited resources to fight you . . .

So why in the world would you think you could fight back?

This is where the laughing and snickering and the "you are so naive" head shaking goes on.

But remember this - its easy to sit on the sidelines and be critical. Be negative.

Those people aren't important in your decision on whether to fight back against the big mortgage companies. Or I guess I should say their "opinions" are not important.

If you believe you have a legitimate case. If you believe it makes sense for you to fight the mortgage companies. If you have met with a skilled foreclosure defense lawyer who you believe in and who believes in you and your case.

If you have all of that, then who cares about those negative "nay sayers" on the sidelines who are pulling up a chair to "watch you fail" - to watch you be brought back to their miserable level.

Thousands of years ago there was a ferocious enemy. He was huge. Well equipped. Well trained. Unstoppable.

Those who thought of opposing him wilted and hid.

But then there came someone who believed. Believed that he could defeat this giant. Believed that God was with him and the giant could be brought down.

People laughed at him.

Doubted him.

Even his own brothers.

But you know what? He grabbed a slingshot. He ran towards (not away) the giant. The giant was better equipped and had the odds in his favor.

But a slingshot and a single stone . . . placed in the right spot - right between the eyes - and guess what that giant did?

Fell.

Dead.

Those who laughed and made fun of that shepherd boy?

Oh they cheered him now.

Remember this - those on the sidelines are so quick to change their opinion . . . so if you know you have been wronged and believe that you have the ability to win . . . then let that laughter and mocking fade into nothingness.

Get prepared and run towards that giant. . . .

Best wishes

John Watts

We have blogged and written about the fact that debt buyers normally can't or won't prove that they own the debt but it still is remarkable that we see time and time again that at trial the debt buyer has no proof.

I don't mean the proof is not persuasive. I mean there is no proof. No witness that can testify. No documents to introduce into evidence.

Why?

Money. Its all about the money.

Costs money to bring in witnesses and to actually have proof that the alleged debt is owned by the debt buyer and owed by the consumer. Since so many people don't answer the lawsuits - and therefore receive a default judgment against them - why should the debt buyers spend money on actually proving their case?

Remember in your case they may be able or willing to prove their case - but I haven't seen it yet.

If you would like more information, and in particular our free report on the Five Secrets Debt Buyer's Don't Want You To Know About, contact us at 205-879-2447, through our website, or by filling out the form below. We wish you the best!

If we don't answer the lawsuit (the complaint) then the mortgage company wins. Even if the foreclosure was bogus. Even if the foreclosure came about by fraud. If you don't answer the lawsuit, you lose.

Many people come to see us who don't answer and the court enters a default judgment against them. The time runs out to set aside that default judgment and then they show up at our office. There is nothing we can do.

Don't make this mistake. Instead fight back - at least answer the lawsuit.

To help you understand this area of the law a little bit better in Alabama, you can request our book (at no charge) - "The Five Most Common Mistakes Alabama Consumers Make When Sued For Ejectment" please fill out the form below:

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.

To get an overview of the five mistakes - read our blog post and watch the video here.

We've already discussed that debt buyers can legally buy your old debt but this doesn't mean it can prove it owns your debt. One huge problem is that more than one debt buyer can claim to own your debt. Folks, that's impossible!

Only one company can own the debt. If two claim to own it then one is lying or both are lying. The records kept are so sloppy and so incomplete often these debt buyers who so arrogantly claim "Of course we own this debt - how dare you suggest otherwise!" start stumbling all over themselves when they get caught lying.

This is why you should never assume the debt buyer truly owns your debt - you don't know and the lawyer suing you on behalf of the debt buyer doesn't know. Make the debt buyer itself prove it owns the debt.

If you would like more information about how to do this in Alabama, check out our free report on the Five Secrets Debt Buyer's Don't Want You To Know About, contact us at 205-879-2447, through our website, or by filling out the form below. We wish you the best!

No one likes getting calls or letters from debt collectors and in particular from companies that have bought up bad debt - these are called "debt buyers".

Some folks on the internet think it is illegal for companies, for debt buyers, to buy up bad debt. This simply is not true. I don't like it but the fact is that companies can buy bad debt.

Now, whether they can or will prove they own the debt is a whole different story! In well over a hundred trials we have not seen debt buyers prove they own the debt.

So understand that just because a company can legally buy debt is not the same thing as the particular debt buyer you are dealing with being able to prove it owns your debt.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

If you are familiar with our blog, website, videos, and the stuff I do on my Avvo profile, you know that I have been pounding on the theme that we need to know what our rights are AND take action.

We provide information to help with the first part - knowing what your rights are - and we also encourage you to take action.

Normally the action we recommend is to sue the abusive debt collector or the mortgage company that is wrongfully foreclosing, etc. but there are times when other action is appropriate.

I wanted to share with you a conversation I had yesterday morning with a friend and client of mine. She has been dealing with computer dialed calls to her home phone by a collection agency. Voicemails are left - not by a live human but by a pre recorded or machine voice - but the voicemails are not for her. They are for someone else who has the same first letter of her first name (but a man) and same last name.

These pre-recorded messages are illegal under the Telephone Consumer Protection Act. [Remember, calls to our home and cell are treated differently - let me know if you have any questions and I can go into more detail].

Taking the knowledge she has learned, she called the collector back and said "That person doesn't live here. Don't call me again."

Knowledge of her rights and taking action.

Of course she was assured the calls would stop - the collector was clearly violating the law.

But even those these were illegal calls and the collector had been warned, the calls continued. . .

So she called back again and said "I know these calls are illegal. I told you to stop. If you call again, you'll pay me for these calls [$500 or $1500 per call]."

This time her knowledge plus action resulted in the collector stopping the calls.

Two points from this:

1. These places will call until they see if you know what your rights are; and

2. When you take action - such as telling them you know they are breaking the law and they will be held accountable, this often stops them.

An observation - I think these places should be sued when they break the law but what this client has done is to stop the harassment and if they call again, what more can she do except sue? Sometimes this is the only way to make these abusive debt collectors start to follow the law.

Second observation - when we quickly sue abusive collectors (or mortgage companies about to wrongfully foreclose) what we get in return is "You sued us too quickly, you should have given us another chance."

But, when we don't sue right away, the same companies say "You should have sued us sooner to make us stop violating the law. You knew we would continue to violate the law until you sued us so we are not responsible."

Can you imagine a bank robber saying to the police:

1. "You have to let me go - you arrested me too soon" or

2. "You should have arrested me sooner - you knew I would just commit even more crimes so its your fault you were too easy on me when I committed my first crime."

These abusive debt collectors or mortgage companies that illegally foreclose will argue you either sued too quick or too late - if it wasn't so serious it would be humorous how absurd they act....

But let's get back to the "take home message" - learn but always use the knowledge you have or it is not worth knowing.

One way to learn more about your rights is to request our free Alabama books:

*4 Secrets To Stopping Wrongful Foreclosures In Alabama;
*5 Common Mistakes Consumers Make When Sued For Ejectment; and
*Ways To Stop Abusive Collectors.

We also have several reports focusing on Alabama law you can request including:

*5 Secrets Debt Buyers Don't Want You To Know About When They Sue You In Alabama;
*How To Make Collectors Pay When They Call Your Neighbors; and
*How To Make Collectors Pay When They Leave Illegal Voicemails.

Then make sure you take action - sometimes it is as simple as telling the person you know they are breaking the law and you will hold them responsible.

Pretty neat when that does the trick, don't you think?

Thanks and have a great weekend - we'll look forward to visiting with you next Thursday.

John Watts
Birmingham, Alabama

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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 five most common mistakes are:

1.Not answering the ejectment lawsuit;
2.Assuming since the foreclosure has already occurred that there is nothing you can do;
3.Assuming the company doing the foreclosure had the right to do so;
4.Assuming the foreclosure process was proper and valid; and
5.Not filing a counterclaim.

We'll have videos covering each of these points in detail. If you would like our book(at no charge) - "The Five Most Common Mistakes Alabama Consumers Make When Sued For Ejectment" please fill out the form below:

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.

Shamethebanks.org has posted an article about JP Morgan Chase's latest escapades in exacerbating the current foreclosure crisis. Apparently, the company was advising people to stop paying their mortgages, saying it was the only way to obtain a loan modification, then turned around and repossessed their homes.

The article specifically mentions one couple, the Jahanis, who have sued Morgan Chase and Washington Mutual Bank for these practices.

In their federal complaint, the Jahanis say they contacted the bank in December 2008 "to indicate that they were having trouble paying their mortgage and would like to discuss a possible loan modification."

The Jahanis say the bank representative told them "that they would not work with plaintiffs at all because they were currently not in breach of their loan terms. Plaintiffs were specifically advised at that time to stop making payments for a period of three months, at which time defendants would consider a loan modification. Plaintiffs were specifically informed that as long as they were current on their mortgage payments, that defendants would not consider a loan modification.

In June 2009, the Jahanis received a 'Notice of Intent To Foreclose' letter from Morgan Chase. They were told they were behind a little over $100 behind on their mortgage payments and unless the balance was paid in 30 days, foreclosure proceedings would commence.

Months of correspondence between the Jahanis and Chase followed, with the Jahanis repeatedly sending Chase documents it had requested, and Chase repeatedly sending them letters claiming it had not received proper documentation and that their loan modification was "in jeopardy."

The Jahanis say they called the bank to check on the status of their loan modification, and were told to disregard Chase's letters, that the bank "had in fact received all necessary documentation."

In October 2009, the Jahanis' home was sold at a trustee sale. The couple says that people came to their house and told them that "the property had sold at auction, that plaintiffs no longer owned the property and that they (meaning the unnamed persons) were interested in buying the house from the bank."

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 join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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 that discusses how Jefferson County, Alabama has ended up owing JP Morgan billions of dollars for "for crappy interest rate swap deals it entered into to ease the debt burden of a flawed sewer project." The county ended up owing millions in fees alone; JP Morgan settled for $50 million.

The whole thing seems to have started after the sewer system spilled waste into the Cahaba River, which triggered environmentalists to lobby and made the EPA pressure Jefferson County into repairing the sewer system. The county decided to go ahead and repair the whole system. The project was originally slated to cost $250 million, but thanks to politics and corruption the final price tag ended up being about $3 billion. The county went too far into debt and entered into several swap agreements with JP Morgan, hoping to alleviate some of the debt, but that ended up costing more than what was originally owed.

Now that you've got the gist of it, here are some choice points from Taibbi's piece, which is appropriately titled "Looting Main Street":

Birmingham, Alabama resident Lisa Pack had to talk other laid-off coworkers out of suicide. "I'd be on the phone sometimes until two in the morning," she says. "I had to talk more than one person out of suicide. For some of the men supporting families, it was so hard — foreclosure, bankruptcy. I'd go to bed at night, and I'd be in tears."
Total cost: more than $3 billion due to pay-to-play contracts and political padding.
Synthetic interest rate swaps to ease debt repayment ended up costing the county a lot of money. It just ended up postponing the problem rather than actually dealing with it. County officials wanted to make sure they weren't tarnished in the next election year.
A wheeler-dealer named Bill Blount took bribes to allow deals to be pushed through. Compensation from this fiasco netted him about $3 million. Says one JP Morgan banker who worked with Blount: "It's a lot of money, but in the end, it's worth it on a billion-dollar deal."
JP Morgan paid Goldman Sachs $3 million just to "back off" so they could be the sole firm in the county doing business, an apparent violation of pro-competition laws. Blount took in $300k from that deal.
Everyone was in on the bribery and illegality of these deals. A bunch of investment banks including Lehman and Bear, contractors, politicians, city planners.
Advisor on deals was a firm called CDR Financial Products, which came under hot water for signing off on shitty financial products and being a "big-league version of Bill Blount."
Jefferson County at one point had more swap deals than New York City and had done at least 23 of them.
When Jefferson County defaulted on its swap payments, JP Morgan canceled the deal and charged a termination fee of $647 million. The SEC ultimately canceled the fee after charging JPM with fraud. Blount has since been found guilty of bribing officials and is now in jail.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Shamethebanks.org has posted an article about "the most dangerous man in America," but it isn't who you would expect. Jamie Dimon, CEO of JPMorgan Chase, has been dubbed the most dangerous man in the country. The article says that Dimon is only dangerous because "the people in charge let him be." Even so, Chase is responsible for creating 15 long months of loan modification chaos through something that looks similar to a monopoly.

Chase is worth something like 2 trillion dollars. Why does any corporation need to be that big, and what do you think their influence can be on our country, let alone the world? Money brings power, and this is too much power. We have already seen the abuses it can wreak, from the unfettered raping of the American Dream to the influence on the committee in Washington that recently proposed a financial reform bill that is essentially lackluster.

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 join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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Good morning,

I hope your week is going well. I received a lot of good feedback on the video last week - everyone that wrote in said they liked it. One person said my head was too big which reminded me of the Seinfeld episode (the "Andrea Doria" episode) where everyone kept saying Elaine's head was so large.

I don't think my head is too out of whack with my body - but I have taken the good advice and moved the camera a bit further away. :)

Speaking of video, here is this week's video.

So I took this negative - having the camera too close - and turned it into (hopefully!) a positive. Let's talk about this today for a moment . . .

We all face adversity in life but I read a quote years ago that has stayed with me and really has been helpful as I go through difficult times. It's from Napoleon Hill and it goes like this:

"Within every adversity, there is a seed of an equal or greater benefit."

The idea is that in every tragedy or difficult time, somewhere (and sometimes its hidden really well!) is something that will turn out for our benefit.

It can be something major - loss of a job or a broken relationship . . . this is bad but it leads to a better job or better relationship. You know the expression - we look back and say "Wow, that was a blessing in disguise."

Or it can be a more minor issue.

I'm not saying it is always true or easy - I understand from years of representing families who have lost loved ones through some company's negligence how tough some situations can be . . . but . . . we have to go through these difficult times anyway and if we have the asumption there is some hidden benefit, then we very often will find it.

OK - what in the world does this have to do with our newsletter on consumer issues?

Well, it applies to most situations our clients find themselves in . . . Facing some difficulty and having the choice to make - do we just wallow in self pity or do we find some way to turn this bad situation into a good one?

You are dealing with an abusive debt collector. One that calls your family members. Calls your neighbors. "Blows up your cell phone" with multiple calls a day. It's affecting your job - your mood - your work.

Bad situation? Absolutely. Is there a hidden benefit? Perhaps.

Maybe you reach the threshold and say "Never again will I be put in this situation where I have collectors calling."

Maybe you can sue the collector and receive compensation. That compensation allows you to pay off some debt.

Or like one client I had who owed no-one in the world but had a collector that would not take him off an auto dialer (robo calls) after he repeatedly told the collection agency they had the wrong person.

He finally sued because it was the only way to make the calls stop. He didn't need the money but I mentioned that obviously that collection agency wanted to give him money and he could take a vaction on them or donate it to charity. The point is - very annoying what he faced but he was able to turn this around and get a benefit out of it.

We have represented over a 100 clients who have been sued by debt buyers. Debt buyers who could not prove they owned the debt or that our clients owed the debt.

Bad situation being sued? Of course. But we won those trials. Now - but not before being sued - now we have a court order that we did not owe the debt buyer any money.

Ahhh.... now we have a benefit "greater than" the adversity.

We take that court order and tell the credit reporting agencies (Equifax, Experian, and Trans Union) that we do not owe the debt and to get the debt buyer's account off of our credit report.

Sometimes they would not remove it. Bad? Sure.

But then we sued the debt buyer and the credit reporting agencies. We generally received compensation and we had it removed from our credit reports.

All because of this bad situation of getting sued by a debt buyer and a bad situation of the credit reporting agencies not following the law.

One last example. We get behind on our mortgage payments. We are facing foreclosure. The mortgage company lies to you about what it will take to stop the foreclosure. You believe the lie (who else would know better than the mortgage company?) and because of that you end up with your home foreclosed.

Bad situation - adversity? Absolutely.

But because of the fraud and arrogance of the mortgage company you sue the mortgage company . . . and now facing a fraud jury trial the mortgage company decides to finally treat you with respect and honor.

Now the mortgage company agrees to modify the loan and compensate you for lying to you.

Bad situation you were in? Sure. But now you are in a better situation and you know better how to protect yourself in the future.

I'm not saying every situation turns out like I described above. Sometimes we lose if we are sued. Sometimes we lose when we sue the bad guys. Sometimes our health problems don't change for the better overnight.

That's life. But we have to look at the bad situation we are in and say "That stinks . . . but . . . what is the benefit I will find?"

Maybe its simply the life experience.

Maybe it prompts changes in how we handle our money or our health or whatever the case may be but my suggestion to all of us (talking to myself certainly!) is to have the assumption - to suppose - that somewhere we will find that benefit. . . and that benefit will be equal to or even greater than the adversity we are going through.

Or we could just say life is terrible.

Nah - let's not do that. :)

This reminds me of something my father told me when I was a kid - he said "Remember the 50:20 principle."

"What's that?"

"Genesis 50:20 -- when Joseph was sold into slavery. Then he became a ruler in Egypt and saved his family - who had sold him into slavery. He said to them 'You meant it for evil but God meant it for good.'"

A pretty good assumption to have don't you think?

Have a great weekend and next week I'll have a shorter newsletter (smile) - this one just kind of grew on me....

Best wishes . . .

John Watts

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The BKBlog has posted an article that discusses whether or not filing for bankruptcy is grounds for your employer to fire you. The Bankruptcy Code calls termination for this reason a type of "employee discrimination" based on a bankruptcy filing if:

You are, or have gone through a bankruptcy proceeding You are insolvent either before filing a bankruptcy or while your petition is pending; You have not paid a dischargeable debt

The Code goes on to say that

a governmental unit may not deny, revoke, suspend, or refuse to renew a license, permit, charter, franchise, or other similar grant to, condition such a grant to, discriminate with respect to such a grant against, deny employment to, terminate the employment of, or discriminate with respect to employment against, a person that is or has been a debtor under this title or a bankrupt or a debtor under the Bankruptcy Act, or another person with whom such bankrupt or debtor has been associated, solely because such bankrupt or debtor is or has been a debtor under this title or a bankrupt or debtor under the Bankruptcy Act, has been insolvent before the commencement of the case under this title, or during the case but before the debtor is granted or denied a discharge, or has not paid a debt that is dischargeable in the case under this title or that was discharged under the Bankruptcy Act.

Private employers are also covered:

No private employer may terminate the employment of, or discriminate with respect to employment against, an individual who is or has been a debtor under this title, a debtor or bankrupt under the Bankruptcy Act, or an individual associated with such debtor or bankrupt, solely because such debtor or bankrupt—

(1) is or has been a debtor under this title or a debtor or bankrupt under the Bankruptcy Act;
(2) has been insolvent before the commencement of a case under this title or during the case but before the grant or denial of a discharge; or
(3) has not paid a debt that is dischargeable in a case under this title or that was discharged under the Bankruptcy Act.

The Bankruptcy Code also protects job applicants from discrimination by prohibiting denial of employment or termination of employment because of a bankruptcy filing. However, employers don't have to explain why they don't hire you. Certainly most of them wouldn't want to tell you it was because of credit issues on your part.

We don't cover bankruptcy, but if you have questions or further concerns feel free to contact us through our website or by calling 205-879-2447.

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Here is a recent consumer guide I wrote which describes the three broad categories of FDCPA violations:

1. Lying to consumers;
2. Unfair conduct towards consumers; and
3. Treating consumers with a lack of respect or lack of dignity.

We have a Frequently Asked Questions (FAQ) on the FDCPA which you are welcome to review.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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I have published a short consumer guide to the Four Benefits Of Suing Under The FCRA.

The four basic benefits are:

1. Actual damages;
2. Statutory damages;
3. Attorney's fees and costs; and
4. Punitive damages.

Let me know what topics or questions you have and I'll be glad to post a video or article about it.

Best wishes

John Watts

If you would like more information on credit reporting issues, please check out our articles "Disputing False Information Through The Credit Reporting Agencies (Equifax, Experian, TransUnion, etc)"
and "Your Right To Accurate Credit Reports".

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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DSNews.com has posted an article that discusses the continuing problem of home foreclosures. Despite numerous government instigated programs to curb foreclosure through loan modifications, the numbers continue to rise. The number of delinquent loans at the end of February of this year was 21.3% higher than the same time last year. The national delinquency rate stood at 10.2%.

Although delinquencies remained relatively level, the nation’s foreclosure inventories reached record highs in February. Based on LPS’ analysis, the foreclosure rate of 3.31 percent represented a 51.1 percent year-over-year increase.

New problem loans are also at their highest numbers in five years. In January of this year, 1.1 million mortgages were at least 30 days delinquent.

LPS noted in its report that as a result of the federal government’s Home Affordable Modification Program (HAMP), delinquent loans that were modified and that remained current through HAMP’s three-month trial period – called “cures-to-current” – have increased. Advanced delinquency rolls, however, remain elevated from a historical perspective, the company said.

Both delinquency and foreclosure inventories remain bloated, LPS said, thanks to high volumes of problem loans in combination with prolonged loss mitigation efforts and foreclosure moratoria.

With 10.2 percent of borrowers delinquent and 3.3 percent in foreclosure, the nation’s total rate of non-current loans has hit 13.5 percent, LPS said.

Freddie Mac's economic team has released a statement saying that it may take two years or more for the housing market to calm down and return to normal.

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 join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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The Western Mass Women Magazine has posted an article that gives helpful information about identity theft. There are several types of identity theft: medical, business/commercial (used to gain credit in the name of the person's business), criminal (used by identity thieves to avoid being caught and prosecuted), and financial (when a thief uses a false identity to receive products or money in your name). 10 million Americans were victims of identity theft in 2008 and the numbers are still growing.

There are three common techniques that identity thieves readily use: phishing, smishing, and vishing.

All of which attempt to contact the potential identity theft victim through email, voice messaging and texting (respectively) in order to collect as much personal information as possible. These forms of communication re usually sent from a seemingly legitimate source, such as one’s bank or credit card company, and often state that an immediate response is required to resolve an “urgent matter” regarding one’s account.

The identity thief counts on people to respond to such messages and provide details about their account as well as personal information. After obtaining that, it becomes very easy for them to set up fake accounts in the victim's name.

Still, there are more "traditional" methods. Shoulder surfing (listening in on conversations and piecing together personal information), dumpster diving (obtaining information through discarded bills and paperwork), and mail theft.

Mail theft relates to dumpster diving in the sense that the identity thief equates discarded mail items to a goldmine in terms of uncovering information. Mail thieves, however, do not limit themselves to merely picking through another’s trash, for they will pilfer directly from the ultimate source: the mailboxes themselves.

There is no guaranteed way to prevent being a victim of identity theft, but there are measures you can take to decrease the likelihood. You need to be familiar with your credit report so you will notice if anything unexpected changes. Be careful to check the URL on any website where you enter personal information to make sure it's the actual site you think it is. Also, be wary of phone scams and if a strange number calls you claiming to need information because of problems with your account, you should research the number for yourself. Your Caller ID can be fooled by identity thieves.

Some of the advice in this article comes from our friend Denise Richardson, of givemebackmycredit.com, who was also a victim of identity theft. In 2001, her credit card was charged $9,000 for plane tickets that weren't hers. And again, in December 2009, her credit card was charged by a cable company she doesn't use.

Despite her ill-fated circumstances, Richardson finds a silver lining and now takes a proactive approach to protecting her credit history and identity by currently focusing on advocacy and education in relation to identity theft and fraud. In addition to running a very successful blog (www.givemebackmycredit.com), she also published a book, Give Me Back My Credit!, in 2006 that shares the details of her personal story as well as advice.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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The Fair Debt Collection Practices Act (FDCPA) is a powerful law that can be very effective at fighting back against abusive debt collectors.

But it doesn't always apply - even if you are being abused by a collector.

In this guide we discuss the four requirements for the FDCPA to apply:

1. You are a consumer;
2. The debt (or alleged debt) is a consumer debt - not a business debt;
3. The collector is a "debt collector"; and
4. The debt collector has violated the FDCPA.

You can check out our other guides under my Avvo profile.

You can also look at our FAQ on debt collector abuse.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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I have published a short consumer guide here that explains the difference between a "note" and a "mortgage" in the context of an Alabama Foreclosure.

Basically the Note is the debt - the amount you owe and it tells us who you owe the debt to while the Mortgage is the thing that ties the debt to your home - that makes the debt secured rather than unsecured.

I will be publishing additional guides under my Avvo profile on a variety of consumer issues.

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 join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

As an Alabama foreclosure defense lawyer I talk with a lot of consumers about "foreclosure."

People will call me and say "I'm dealing with a foreclosure" but I don't always understand what they mean.

The reason is sometimes they mean their house has already been foreclosed. Sometimes they mean the foreclosure sale was today. Other times they mean they are behind on their payments and foreclosure is coming.

I made this short video to explain the big picture of the three stages of foreclosure. I'll shoot some additional videos to explain each stage in more detail but here are the three stages:

1. Before the foreclosure sale date;
2. The actual foreclosure sale date; and
3. After the foreclosure sale date including the ejectment lawsuit to eject (or evict) you from your home.

If you would like more information about foreclosures in Alabama, here are some resources:

1. Our detailed blog post on 7 questions to ask before hiring a foreclosure defense lawyer;
2. Our articles section of our website (AlabamaConsumer.com);
3. Avvo.com consumer guides; and
4. Our two books on foreclosures - Stopping Wrongful Foreclosures and 5 Most Common Mistakes Alabama Consumers Make When Sued For Ejectment. These are available for free for Alabama consumers.

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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:

Hiring a foreclosure defense lawyer is a very serious matter. It should not be based upon a billboard (drive through Florida and you'll know what I mean) . . . it should not be based upon a television ad . . . or what your know it all brother in law says . . . or even a website.

Instead you need to find out if the potential lawyer you are looking to hire to advise you and represent you in your foreclosure case is the right one for you . . . not the right one for anyone else but the right one for you.

Here are seven suggested topics or questions to ask prospective foreclosure defense lawyers. You will think of other things but hopefully this will give you a good start:

1. How many foreclosure cases have you handled in court where you are actually litigating against the mortgage company (and filing a bankruptcy does not count as litigating)?
There is nothing wrong with being a new lawyer or being a lawyer that has never handled litigation cases against mortgage companies. But, you might want to know the level of experience your potential forecosure defense lawyer has so you can decide if he or she is right for you.

Ask if the lawyer has actually been in court. If the lawyer has actually sued a mortgage company or merely has thought about suing a mortgage company. Has the lawyer ever defended an Alabama consumer against an ejectment or eviction action after the foreclosure sale of their home.

You get the idea - get a feel for what the lawyer has experienced.

The advantage of experience is not being as easily surprised when facing situations. Litigation is notorious for bringing up surprises and if your lawyer is not prepared for the tricks of mortgage companies in litigation, then you may be disappointed.

This is not to say an experienced litigation lawyer is the best or an inexperienced lawyer is bad but this is an area of discussion you should consider exploring . . . .

2. How often do you attend training classes and seminars to learn the latest about new tactics and strategies of mortgage companies?
I've been handling car wreck cases for 15 years. There has not been much change in the law. The area of foreclosures and the way that home loans are structured has changed significantly. Foreclosure cases I handled five years ago are different than the way they need to be handled now.

We have a company called MERS that has fundamentally changed the way mortgages and notes are handled in this country. . . for the worse I might add . . .

Instead of mortgage companies holding mortgages for 30 years or until the home is sold or refinanced, we now have companies that immediately sell the loans to a company called a "depositor" who then supposedly sells the loans to a Trust. . . . but . . . The Trusts normally do not actually own the loans so the threatened foreclosures and actual foreclosures are improper if the Trust does not own the loan.

I say all of this point out that there is great change in this area of the law and one way (not the only way but one way) to learn and stay on the cutting edge is by attending seminars and conferences where your lawyer can brainstorm with other foreclosure defense lawyers.

Stan Herring and I have spent a great deal of time and money to attend conferences and seminars to stay on the cutting edge. This is not required to be an effective lawyer but this is something you might want to ask about as you interview potential foreclosure defense lawyers.

3. What type of materials do you have for me to review - books, videos, audios, etc. - so I can learn more about foreclosures and how you operate?
Some foreclosure defense lawyers believe that you do not deserve "free information" - instead you should simply trust that the lawyer knows the best way to represent you. Some lawyers do not want to share written or video information with you.

Why? Because of fear that you will take the information and then not hire the lawyer. This is a scarcity mentality.

You have to decide if you like this approach or if you prefer to learn more information about the foreclosure situation you are facing . . . if you would like to read a book or watch videos or read blog posts or articles about foreclosures, then you should seek that information out.

I won't say whether it is best for lawyers to offer information or if it is better to hide it . . . but I will tell you that my approach and the approach of Stan Herring is to share information. You can read a large number of articles on this blog about foreclosure and by looking at our website article section. You can also look at consumer guides that I have written on Avvo.com and many of these concern foreclosures. You can also look at our videos on Youtube.com which include videos on foreclosure.

You can request our books on Stopping Wrongful Foreclosures In Alabama and Mistakes Consumers Often Make When Facing An Alabama Ejectment Suit.

Decide which approach you prefer - to have information or to have information withheld - and let that influence your decision on what approach to take in your own situation.

4. Are you licensed in Alabama?
This may seem to be a silly question but here is why I suggest you ask this . . . there are so many lawyers around the country that are viewing the foreclosure crisis as a wonderful opportunity to scam and cheat people.

One classic way is for lawyers not licensed in Alabama to promise that they can "get a modification" or that they can "scare" the mortgage companies into stopping your foreclosure. They say this even though . . . they can't even practice law in Alabama!

If you search online you will see all sorts of groups that either are or claim to be lawyers that make amazing claims to be able to help you in Alabama. It is a legitimate question to ask:

"Are you a licensed lawyer in Alabama?"
"Can you represent me in Alabama to stop the foreclosure?"
"If the foreclosure happens and I get sued for ejectment, can you represent me in Alabama?"

If out of state lawyers can't represent you here, what about all of the non lawyers that are sending you advertisements or bombarding you with online ads? What about all of these "audit" or "TILA analysis" groups?

These groups will say that they will analyze your loan documents and then they will prepare a report that will intimidate your multibillion dollar mortgage company into being frightened by some group out of California or Chicago that can't do anything in Alabama.

You must make your own decision but do consider bringing up this question or topic with whoever you are looking at hiring as you face this difficult hour of your home being in jeapordy.

5. Is there only one way of doing things in your foreclosure defense efforts or do you have a variety of approaches?
There's the old expression that "to a man holding a hammer, everything appears to be a nail." The idea is that if you have only one way of doing things, you think that's the best way.

Some lawyers only have one approach. Other lawyers have more than one approach.

Its important for you to find out which group your potential lawyer falls into so you can decide what is the best.

Keep in mind that every person has different interests and desires.

Do you want to stay in your home?

Do you want to obtain a modification?

Do you want to file bankruptcy and pay your normal monthly payment as well as an amount more than that to the bankruptcy court?

Do you want the foreclosure to be stopped?

Do you want a foreclosure to be reversed?

Are you the victim of bogus charges and fees that drove you into foreclosure?

Have you been sued for ejectment because of fraud that led to the foreclosure?

For example, we do not file bankruptcies for Alabama consumers as we do not believe that for most people this is a good option. Instead we litigate cases in the court system to persuade the mortgage companies that it is in their best interest to compensate our clients for the bad conduct of the mortgage companies. Or we discuss before a foreclosure what would be a fair and reasonable settlement of our client's potential case.

We don't do everything - you won't see us file bankruptcy - but we do offer several options. You might prefer bankruptcy - if so perhaps you should consult a lawyer that only offers bankruptcy.

The point is that I suggest that you talk with a potential foreclosure defense lawyer to find out what approaches and options they can offer you so that you can decide on your own best course of action.

6. Is litigation the best way to deal with a foreclosure?
Not necessarily in my opinion.

Let me explain. Perhaps you are behind on your house payments but now you make plenty of money and can afford to pay your normal payment plus an "arrearage" - the amount of back payments you owe - so filing bankruptcy might be the best option.

But if you are the victim of fraud or bogus charges and fees, and if you plan on staying in your home, then litigation might be the best option.

By litigation I mean sometimes suing the mortgage company to stop the fraud. Other times this means when the mortgage company sues you for "ejectment" or eviction that you fight back by answering the lawsuit and filing a counterclaim.

I would suggest you ask this question of any lawyer you are talking to about helping you with saving your home. I personally don't always feel litigation is the best method - but normally I think it is the best option.

Let me explain.

When you are in litigation, you are not dealing with some unhappy disgruntled employee in a cubicle somewhere who really doesn't care about you. Instead, you have the company paying its lawyers hundreds of dollars per hour and those lawyers are telling the mortgage company that if it is guilty of fraud or bogus charges and expenses and the other things that we often sue mortgage companies for - then the company is going to have some serious issues facing a jury of Alabama consumers.

It tends to make the company escalate the process so someone with some real authority is making decisions on your loan - not the cubicle guy who won't return your phone call.

So, yes, I am not embarassed at all about feeling litigation is normally the best option if you have legitimate claims you can bring. In the month of April Stan and I filed ten foreclosure lawsuits against a variety of mortgage companies because in those cases we felt the best approach (and sometimes the only approach) was to file suit to best represent our clients.

You need to talk with a potential foreclosure defense lawyer to find the best answer for you.

7. How do you get paid - I'm not sure I can afford to pay a lawyer an hourly rate?
I understand this concern. Its a very legitimate concern.

My hourly rate (and Stan's) is $350 per hour. Several federal court judges in Alabama have ruled this year that this is a fair and reasonable hourly rate.

These cases - whether in litigation or not in litigation (i.e. in court) - take up a lot of time. Even if we just work five or ten hours a month on your case . . . a very low estimate . . . that's still a lot of money.

But if we handled the case on a pure contingency, it would be difficult to settle the case as we have had consumers who became used to "living mortgage payment free" while the case proceeded and then it was hard to accept paying a mortgage payment again.

So we offer a combination approach to most consumers. A flat monthly fee that is affordable and also a contigency portion that is fair to everyone.

But our approach is not the only approach. You may find a lawyer that will represent you for nothing except the contigency fee - if that is the best for you then that's wonderful. Or maybe you find a lawyer who will represent you for $150 per hour. If that is best for you - great.

But do understand that there are different approaches and find the one that gets you the right lawyer for you at a level you can afford.

Conclusion
By discussing these topics with a potential foreclosure defense lawyer, this will give you more insight into whether the particular lawyer is the right fit for you. No one lawyer is perfect for everybody . . . and any lawyer that says he or she is the best for everyone should next be asking "Hey, where are you going?" as you run out of his or her office!

But which one is right for you. Which one do you feel comfortable with - which one inspires confidence in you? Which one has shown you they know what they are doing?

I hope this blog post has been helpful to you.

Best wishes in your situation with your home.

John Watts
Birmingham, Alabama

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

You can join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

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: