Alabama Consumer Law Blog

Every Thursday we send out our popular newsletter Consumer Power but it occurred to us that we should put our older issues online.

We are in the process of doing this - if you would like to read our June 2010 issues you can read them here

We talk about debt collectors, credit reporting, and foreclosure issues in our newsletters.

We'll put up all of the old issues but the best way to get them is to subscribe to them right here so you'll get them every Thursday morning.

We would love to include you! Just fill out the form below:

No. You should not.

In this article we talk about who the foreclosure lawyer represents and why he or she cannot advise you and why you should not look at the foreclosure lawyer as your friend. These lawyers are good lawyers but they represent the mortgage company - not you.

[By the way we have many articles on wrongful foreclosures, abusive debt collectors, being sued by debt buyers, and credit report issues that are available for you to read - no charge.]

If you have any questions, and you live in Alabama, call us at 205-879-2447 and we'll set up a time to chat about your questions.

Best wishes

John Watts
Birmingham, Alabama

Debt collectors and mortgage companies (including mortgage servicers) often use fraud against Alabama consumers.

In this video I give you an overview or big picture look at what fraud is in Alabama and what you have to prove in order to be successful in a fraud lawsuit or counterclaim.

We have found the fraud law to be a powerful weapon against debt collectors who lie (for example to obtain a payment from you) and especially against mortgage companies who lie about stopping a foreclosure, etc.

The four basic requirements include:

*Mis-statement or a lie;
*Concerning a material (important) fact;
*Your reliance upon the lie is appropriate (you did not close your eyes to the truth); and
*The fraud actually damaged or harmed you.

I hope this has been helpful - we will include more information on fraud but hopefully this is enough to give you a quick overview.

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 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.

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:

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

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.

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.

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

PS - 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 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:

This is a copy of our Consumer Power Newsletter today as we know some people like to read blog posts on their Google Reader or other newsreader and since we are including a video we thought it might be helpful to have everything in one place. So, here is our newsletter this morning:

Good morning . . . I hope you are having a nice week and I appreciate you allowing us to visit with you for a few minutes this morning.

I decided to shoot a short video that covers the same material as this email so if you would like to see that you can watch it below. I did shoot this video late one day so I'm a little bit scruffy and don't have on a tie so you'll have to overlook that . . . :)

Let me know if you find the video helpful and if so I'll include one for each week's newsletter.

OK I have two main topics for the day.

The first is to document calls from collectors and I want to share with you a reason why.

The second is to let you know about three books that you can request at no charge.

Importance Of Documenting

This week Heather and I met with a nice lady who is dealing with collection calls. She was very thorough in documenting the calls and as we looked through the calls she pointed something out to us. The calls came approximately every 30 minutes. So the two or three calls a day would be something like this: 10:18; 10:48; 11:18.

This is significant because it shows that we are probably dealing with computer generated calls as few human collectors would be able to call exactly thirty minutes apart day after day.

If you have been reading our newsletter you know that computer generated calls (or pre-recorded messages) to your cell phone is a big red flag. Unless you gave permission to the company calling - either the collector or the original creditor - then whoever is making these calls to you is likely violating the Telephone Consumer Protection Act (TCPA). This exposes that company to potential damages of $500 or $1500. Per call.

I share this story with you of this pro-active consumer to remind you to carefully document calls. Document who called, when they called, keep voicemails, keep a picture of your caller ID, etc. This is true whether you are dealing with a mortgage company, a credit card company, a bill collector, a car finance company, etc.

If you would like some more information about the TCPA - calls to cell phones - you can read our article here. You can also read a short article on how to use a simple collection log to track calls.

The system you use is not important - what's important is that you do have a system for keeping up with the calls as it may reveal options to you that you otherwise would not see.

Three Books

As you may know, we have held several tele-seminars on debt collection and foreclosure issues. We have started the process of getting those recordings transcribed and put into book form. That process is finished on three books and they will be available by Monday.

If you would like to receive a copy of any of these books, let me know. You can call us at 205-879-2447.

If you live in Alabama, let us know if you would like only the ebook format (PDF) or if you would like a printed version. If you live outside of Alabama, we are happy to send these to you in PDF. Do keep in mind these are focused on Alabama consumers which is where Stan Herring and I practice so you'll need to consult with a local lawyer in your area to see if the general information we provide in these books is applicable to you.

Our books that are available now include:

1. Little Known Ways To Stop Abusive Debt Collectors;
2. Four Secrets To Stopping Wrongful Foreclosure In Alabama; and
3. Five Mistakes Consumers Make When Facing An Ejectment Action In Alabama.

Next Tele-Seminar - Questions To Ask Your Potential Alabama Foreclosure Defense Lawyer

Our next tele-seminar will be in a few weeks (exact date coming next Thursday) and it will be on the Seven Questions You Should Ask Any Potential Alabama Foreclosue Defense Attorney Before You Hire. There are more and more lawyers who say they are foreclosure defense lawyers which is good as there are so many foreclosures and most foreclosures that we have seen have been improper. But how do pick the right one for you? What questions should you ask before you make a decision on your home and who will help you save your home?

If this is of interest to you, plan on joining us for our next tele-seminar where we will discuss these issues to offer you some suggestions on what you might ask about.

Final Thoughts

I'll close this email today and I want to thank you for being interested in consumer issues and taking the time to read this (or to watch the video).

Best wishes and have a wonderful weekend as we (amazingly) start a new month on Saturday....

See you next week!

John Watts

PS - 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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Homeowners often wonder "Why won't the mortgage company (or servicer) agree to modify my loan so I can avoid foreclosure and still make payments every month? It just doesn't make any sense."

There are many reasons but I'll just give you . . . oh . . . say . . . 10,000 reasons . . . .

Once a loan is 90 days or more overdue, servicers charge processing and foreclosure fees along with markups for attorneys, appraisers and other services. That’s on top of monthly late fees that can run as high as 5 percent of the mortgage payment. A foreclosure on a $200,000 mortgage may result in $10,000 or more of income for servicers, who get paid before mortgage investors, according to Glenn Russell, a real estate attorney in Fall River, Massachusetts.

“Servicers can easily make 10 times any of the government stipends being offered by simply foreclosing on the house,” Russell said.

To put it bluntly and accurately without any fluff:

“Servicers love loans that are in default for an extended period of time,” McDonnell said. “They are cash cows.”

These enlightening quotes are from a fantastic story by Kathleen M. Howley entitled "Mortgage Servicer Profits May Threaten Obama Housing Programs"

So, if you ever wonder why your mortgage company seems so unwilling to help . . . so dead set on seeing you lose your house in this market where your house is not worth what you owe . . . remember -- $10,000 is what the servicer makes. As people often say - "follow the money". . . good advice here.

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:

In Alabama the foreclosure is a private matter without court intervention. Then if you don't leave, you get sued. Its called an "Ejectment" suit because the mortgage company is trying to eject or evict you from your home.

Let's look at this and see if this is smart or dumb for most mortgage companies to do and how getting sued (not normally a good thing!) for ejectment can actually be a blessing in disguise.

MORTGAGE COMPANY - YOU BETTER HAVE BEEN RIGHT WHEN YOU FORECLOSED
There are actions we can take in life that "magnify" or "multiply" the good or the bad of previous actions. Take foreclosure in Alabama. The mortgage company forecloses.

Let's say it did not have the right to foreclose (a common occurrence in Alabama). This is bad enough, right? An improper and illegal foreclosure. This leads to damage to your credit report. Public ridicule as the false foreclosure is advertised to everyone in your county through 3 weeks of public newspaper articles.

But, if the foreclosure was wrong, and then the mortgage company has the audacity to sue you. The audacity to try and kick you and your family out on the street. The complete lack of shame and remorse for doing an illegal foreclosure.

Well, this makes a bad situation for the mortgage company much . . . much . . . worse. It amplifies or magnifies the damage to you. It exposes the mortgage company as being an arrogant . . . unrepentant . . . hypocrite as the mortgage company all the time screams in the media about consumers following the law and their obligations but this does not apply when the mortgage company wants to break the law and then sue to kick your family out on the street.

SO IS IT ALWAYS BAD FOR A MORTGAGE COMPANY TO SUE FOR EJECTMENT AFTER AN ILLEGAL FORECLOSURE?
No.

Sound odd after what I just said above?

Well, let me explain. Most people who get an ejectment lawsuit . . . do . . . nothing. Except start to pack their bags and then leave. They give up on their home and they let the mortgage company win.

You see - when there has been an illegal foreclosure and then the mortgage company sues you ("adding insult to injury") but you do nothing except give in . . . then the mortgage company does win. It does make money. It does profit from its evil conduct.

And since most people do this . . . it actually is good business for mortgage companies to act in this evil way.

Unless.

Unless you actually stand up for your family, for your self respect, for your neighborhood . . . and say "I'm not going to take this from Bank of America or Wells Fargo or Deutsche Bank or whoever it is. I'm not going to let them get away with stealing my home. I'm not going to have my family life turned upside down. I'm not going to have my neighborhood start to fall apart with empty houses as a monument to the arrogance of these mortgage companies."

YOU STAND UP BY TAKING ACTION AND FIGHTING BACK AGAINST ILLEGAL FORECLOSURES
Take action.

First step. Find out if the mortgage company had the right to foreclose on your home. Here are some examples - but ultimately you will need to meet with a foreclosure litigation lawyer to know the answer to this question.

1. Were you really behind on your payments?
2. Did the mortgage company follow the terms of the note and mortgage in "accelerating" the amount due?
3. Were the advertisements and the mailed notices regarding the foreclosure sale date handled properly?
4. Was there any fraud or breach of contract as you discussed your situation with the mortgage company prior to the foreclosure?
5. Did the foreclosing company have the right - or the "standing" - to foreclose on you? Or did they not own or otherwise have the "capacity" to foreclose?
6. If your note was owned by a Wall Street Trust (as close to 80% of loans this past decade are) - or "supposedly" owned - was the note properly transferred to the Trust? Often it is not and that destroys the ability of the Trust or anyone acting on behalf of the Trust to foreclose on you.

Now, if everything was done properly in the foreclosure sale then you have nothing to do except to discuss with the mortgage company how and when you will move out.

But.

If it looks like the foreclosure was improper - as so many Alabama consumers have faced - then you need to take the next step.

The next step is to fight back by counterclaiming against the mortgage company in the lawsuit it has filed against you. You will often want to add other defendants to your counterclaim - maybe the servicer - maybe the "asset preservation company" that tried to steal your property by breaking down your doors - maybe some other entities.

We can't go over all of the possible counterclaim defendants but the point is . . . sue the responsible parties who acted so irresponsibly towards you.

Now you have a court looking at the actions of the mortgage companies. Judges who are not amused by fraud. Not amused by companies trying to steal homes without any basis to do so.

HAVE YOU REALLY TAKEN ACTION? HAVE YOU REALLY MADE A DECISION?
"A real decision is measured by the fact that you've taken new action. If there's no action, you haven't truly decided." Anthony (Tony) Robbins.

This is the ultimate test. You can say "I've decided I'm going to stand up for my family. I've decided to not let these mortgage companies run over me."

But.

Have you really? The test is if you take action. If you do - wonderful! Congratulations! There are no guarantees you will be successful but since when do we test things by whether there is NO CHANCE of failure? Something about taxes and death are guaranteed. Nothing else.

But if you fight back, you give yourself and your family a chance to save your home. To save your dignity. To hold the bad guys responsible for how they have tried to run over you and steal your home.

OK I UNDERSTAND I NEED TO TAKE ACTION. BUT HOW CAN AN EJECTMENT LAWSUIT IN ALABAMA AGAINST ME BE A GOOD THING?
Part of what we do is figure out ways to turn a bad situation into a good one. Or to find the positive in a negative situation.

About 80 years ago one of the "fathers" of the "self help movement" named Napoleon Hill coined an expression that is very true - when you face adversity (and being illegally foreclosed on and then sued would qualify as "adversity") . . . here's what you should do - remind yourself that "within every adversity is the seed of an equal or greater benefit."

Let's be honest. Being sued is lousy. But if you have faced a wrongful foreclosure and you have been sued, there are advantages to being the defendant:

1. It means the mortgage company has to explain to the jury why it sued you after it had no right to foreclose.
2. You normally will stay in your home while the suit and countersuit are pending.
3. The plaintiff mortgage company has to bring its representative here for deposition instead of trying to make you go to its home office to take the deposition. This makes a big difference in the expense of taking the deposition. It also is a psychological factor to make some New York "suit" come down to Birmingham or where-ever your case is pending to raise his or her hand and testify.
4. The mortgage company normally cannot remove the case to federal court - it is stuck in state court which these mortgage companies like when suing to kick you out . . . but they hate it when they are being sued.
5. You have the moral high ground because not only was the foreclosure wrong, but then the mortgage company went to court to try and have a judge order you out of your house.

There are other advantages but the bottom line is from these difficult situations - foreclosure and being sued - there are times when you can turn this to your advantage to obtain justice from a mortgage company that has illegally foreclosed.

FINAL THOUGHTS
Being sued is a difficult situation but there are ways to take this tough break in life and turn it to your advantage. But the only way to do this . . . the only way to transform something bad into something good . . . is by taking smart and decisive action.

If you know all of your legal rights then this is wonderful. USE that knowledge and take action. You can be a law school professor or a judge and if you don't take action, the knowledge is worthless.

If you don't know all of your legal rights - start learning them. You can research all of this on your own or you can consult with a lawyer who does this type of work.

If you live in Alabama, feel free to contact us at 205-879-2447 or through our website. If you live out of state, contact a lawyer in your area - here is a good place to start.

I wish you the best of success in your difficult situation.

John Watts

PS - 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 you may know, foreclosure litigation is much more frequent in Florida than here because Florida is a "judicial" state (all foreclosures have to go through court) and here in Alabama we are a "non judicial" state (foreclosures are private and don't involve the court). I want you to read a blog post - link below - that discusses the sloppiness of foreclosures by the banks.

Here's a bit of background. . . .when we have opposed bogus debt buyer lawsuits, the lawyers say "But Judge we must truly own the debt or we would not have brought the suit!" We point out that not only can they not prove they own it but sometimes multiple debt buyers try and collect the same debt . . . and they all argue they own it . . . at the same time!

In foreclosures, it is even worse. These banks can't figure out if they own the note or not. They just like to say "Well, the borrower didn't pay so don't worry, Judge, that we can't prove we own the note."

We've had multiple lawfirms in the same case (where we sue to stop a foreclosure) because the bank has hired two different competing firms to file different answers to our lawsuit. They can't even figure out which lawfirm is supposed to represent them. Different banks (or Trusts) will claim to own the loan . . . at the same time. That's impossible folks....

Read this blog post from Florida - it has a transcript and is mind boggling. The Judge talks about the problems with foreclosures in Florida and gives a startling example.

Two different banks sued on the same note. . . different cases . . . But each had an affidavit "proving" each bank owned the debt.

The affidavits were identical . . . except they said two different banks owned the note.

That's horrible.

That's bogus and gives you insight into what is happening in the world of foreclosures.

But guess what - the person who wrote and swore to the first affidavit - that Bank "A" owned it . . . and the person who swore in the second affidavit that Bank "B" owned it . . .

Yep, the same person!

At the same foreclosure law firm.

Ridiculous.

[Much thanks to Michael Alex Wasylik who handled this case so well!]

So, if anyone ever says to you "Do you really think these banks - who took billions of our tax payer dollars - would ever lie to you? Would ever commit fraud?"

Uhhh.... yes.

If you want to read about some options to stop foreclosures in Alabama then read our article about bogus and legitimate defenses to foreclosures.

Amazing stuff, isn't it?

John Watts

PS - 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:

You have come to this blog post because you are searching for ways to defend against a foreclosure in Alabama. First let me say if you are not willing to take action . . . to do something . . . then there is no defense that I know of that will help you save your home. Those who are looking for a magic bullet will not like this post and should move on.

But if you are still reading then this shows me that you are interested in taking serious action to defend yourself against the foreclosure that you are facing.

But here's the catch - many of the defenses that people talk about are not real defenses . . . they don't really help you the vast majority of the time. So let's deal with these false defenses first, and then we'll pick up with legitimate defenses.

What about bankruptcy?
Some think of this as a magic bullet. But let me tell you - its not . . . unless you think paying more than your mortgage payment is a magic bullet . . . and wrecking your credit is a magic bullet. Something like 95% of all people who start a chapter 13 - what bankruptcy lawyers use to "defend" against a foreclosure - fail. . . they can't make the payments.

What does this mean? You not only have a bankruptcy on your credit report, but now the lender forecloses against you and you have that on your credit report also. You literally just paid an incredibly high price to buy yourself a few months but you still end up losing your home.

OK, but what about these companies that promise a "loan audit" or "Truth In Lending Act (TILA)" analysis?
These companies are notorious for promising to find errors in your loans and then they claim they will be able to intimidate your mortgage company into giving you a great deal out of fear of being sued.

Here's the problem . . . the mortgage companies know these places are normally scams and they don't live in fear of these audit companies. Normally all that happens is the audit company tells you to stop paying your house payment. You get further behind. And then as you face foreclosure, the audit place stops taking your calls. Instead of the paradise they promise (lower the amount owed and no foreclosure) - you find yourself out of the several thousand dollars "fee" and with a home being sold at foreclosure next week.

OK, but what about a HAMP modification?
This is the big dream of our government - that all of the servicers and alleged owners of our loans will gladly and voluntarily agree to help you out when you are in a bind on making your mortgage payments. Occasionally we have seen this work but it is rare. I encourage you to try it - because you "never know" - but don't stop seeking other answers.

Here is my advice - keep a signed copy of everything . . . and I mean everything . . . that you send to the mortgage company. Carefully confirm everything - receipt of the modification package, when a decision will be made, that the foreclosure sale has been postponed (if they promise you this), etc. This is because the mortgage companies are infamous for throwing away your package so they can say you never sent it. They will keep you on hold for an hour at a time to discourage you from calling. You have to protect yourself by documenting all of this.

(This might surprise you) - what about making a deal with the mortgage company?
The mortgage companies hate seeing our name on lawsuits against them. We'll talk more about this later but trust me when I say I have no love for the mortgage companies. So it might surprise you to find out that I think it is a good idea to talk to your mortgage company to see if you can work out a deal with them.

Often they will promise to work out a deal or promise that you do have a deal. That's great! Either they will, amazingly, honor their promise - keep their word - or they won't. If they do, fantastic. You have worked things out and you don't have to worry about a foreclosure or lawsuit or bankruptcy (if you wanted to dive into that mess). But if the company promises you one thing - the foreclosure sale is canceled - and then does the opposite, you likely can sue the dishonest company....

Final option - suing the mortgage company that is breaking the law....
If you are dealing with a loan made in the last ten years, and if you are dealing with a national bank, then in my experience there will either be fundamental problems with the loan itself and/or with the way that the loan servicer (the company sending you bills, paying escrow, etc) has treated you. If that is correct, then an option to defend against foreclosure or to stop a foreclosure, or to use as a counterclaim in an ejectment action (ejectment is after foreclosure - the lender sues to "eject" or evict you) may be the best choice for you.

We don't do "loan modifications" . . . but we do sue mortgage companies for wrongful conduct and usually they come to us and ask about settling a case while making modifications to the loan. Rather than some uncaring person in a cubicle who is miserable with his life trying to make you miserable also, we deal with companies who are paying 300-400 an hour to their lawyers and who have an interest in coming up with a fair and reasonable settlement to the case. When a company faces a jury trial, they usually get more serious about resolving a case.

Bottom line - which method is best for you?
You want to rearrange the deck chairs on the Titantic? Then choose bankruptcy. Maybe you'll be the unusual case where it actually saves your home long term but for most people it does not.

You want to pay some out of state company a thousand bucks or two thousand bucks to give you a bogus "TILA analysis" that is worthless? All the while losing your home to foreclosure?

How about putting your hopes and dreams in a HAMP modification? I hope it works for you and recommend that you try it but I would not let that be my only efforts to save my family's home.

Talk to your mortgage company about modifying the loan or entering a forebearance or doing something to get you back on track. If they say "No" then you haven't lost anything. If they say "Yes" then either they will honor it (and obviously you must honor the agreement) or they will break it. Either way you will have stopped foreclosure or you will have a potential lawsuit for breaking the agreement and lying to you.

Finally, on suing - remember we sue when we have a legitimate basis to do so. When we do that, we can create an incentive on the part of the mortgage company to finally do the right thing . . . not out of any concern for you - they don't care about you - but solely out of concern . . . for themselves. Any settlement will be purely and utterly selfish . . . on the part of the mortgage company.

That's ok. We don't care why they suddenly start treating you with respect and dignity . . . as long as they finally do treat you that way.

So, if you are facing foreclosure, carefully explore your options and make the best short and long term decision for you and your family when it comes to your home.

Best wishes . . .

John Watts

PS - 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:

The lure of a Chapter 13 Bankruptcy can be very tempting for homeowners facing foreclosure. Bankruptcy lawyers bombard homeowners with advertisements to use bankruptcy to save your home.

We will discuss whether chapter 13 is a good option for most homeowners in a future post but those who take the plunge into bankruptcy often do so thinking they will not be facing foreclosure. When it hits them while in a bankruptcy, it is very upsetting and jarring.

Here is how this works. Once you file chapter 13, the mortgage company (and all other creditors) are under an "automatic stay" which means they cannot take collection action against you. But if you don't make your regular mortgage payment and you don't make your bankruptcy court payments, you will be faced with a "motion for relief from stay" from your mortgage company. This motion asks the bankruptcy court to "relieve" or "lift" the stay so that your mortgage company can foreclose.

Here's the bottom line - chapter 13 bankruptcy can be effective if you can afford your regular mortgage payment PLUS paying off the arearage and other debts you have but if you can't afford all of these payments, you are just re-arranging the deck chairs on the Titantic.

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:

Please remember every case is different and no one can tell you the result you will receive or what your options are until we sit down with you to discuss your case in detail.

If you would like to talk with us, please call us at 205-879-2447 or you can fill out a contact form on our website.

Joseph mentioned our foreclosure defense seminar - you can read some of our articles on foreclosure to get a sense of what consumers learn at our seminars. The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

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:

We have published a short consumer guide on Avvo that discusses the three stages of an Alabama foreclosure. This is a shorter version of our long article on our website.

There is so much confusion out there on when a court does or does not get involved in foreclosures in Alabama and what your options are after foreclosure that we want to continue to spread the message of the three stages of foreclosure.

We hope you are not facing foreclosure but if you are and want more information, feel free to look at our article on frequently asked questions of wrongful foreclosures in Alabama. Another resource for you is to 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:

Feel free to contact us through our website or by calling us at 205-879-2447. We look forward to hearing from you.