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Adversary proceeding by second trust deed lender
I am assuming that the devil will be in the details of the mortgage broker agreement.
>
> No reliance and unclean hands.
> Peter M. Lively, JD/MBA
> Law Office of Peter M. Lively * Personal Financial Law Center I
> 11268 Washington Blvd, Suite 203, Culver City, CA 90230-4647
> Telephone: (310)391-2400 * (800)307-3328 * Fax: (310)391-2462
> A-Bankruptcy-Attorney.com
> Personal Financial Law Center II - Costa Mesa, CA
>
>
> THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH
> IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL
> AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE
> IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR
> DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT
> ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY
> PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US
> IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
>
>
>
>
>
> ________________________________
> To: cdcbaa@yahoogroups.com
> Sent: Thu, October 21, 2010 10:55:34 PM
> Subject: [cdcbaa] Re: Adversary proceeding by second trust deed lender
>
>
> Heads up on this issue.
>
> A mortgage broker client of mine is getting demand letters from a lender to
> cover loans that according to an internal audit were not substantiated or were
> false when made.
>
> So, there are two future issues: first, the mortgage broker who did not verify
> the information properly and represented that they did in the mortgage brokerage
> agreement; and second, the borrower who will be sued by the broker for indemnity
> or lender for possible nondischargeable claims.
>
> Of course, the lenders used the brokers as a shield against due diligence and
> underwriting requirements with the brokers agreement to buy back the paper upon
> demand.
>
> Any thoughts?
>
> Lou Esbin
>
> --- In cdcbaa@yahoogroups.com, Jim Selth wrote:
> >
> > This question reminds me of my former life when I exclusively represented
> >creditors. Back in 1998-2001, I filed over 50 nondischargeability cases for
> >mortgage lender Master Financial, Inc., which specialized in 125% loan-to-value
> >(!) second trust deeds. They had a good-sized bankruptcy department which
> >reviewed every debtors bankruptcy schedules, comparing them with the Loan
> >Applications. We would file Section 523 nondischargeability Complaints based on
> >false income in the Loan Application, failure to list child support obligations,
> >failure to list pending lawsuits, when loan proceeds were used to pay tax debts,
> >and the most common: falsely stating that the property would be owner-occupied
> >when it wasnt. This was a big deal for Master Financial, since they only made
> >owner-occupied loans and could persuasively argue that the loan wouldn> >been made but for the false representation about owner occupancy. Sleazy> >mortgage brokers (yes, there actually were such) would always tell the borrower
> >to just say the property is owner-occupied and youll get a better rate. We
> >settled 90% of these cases and took a few to trial with mixed results.
> >
> > Master Financial went under with all the other sub-prime Orange County lenders
> >such as Ameriquest in 2007, but now as a debtors attorney I always ask clients
> >with rental property if they told the lender the property would be
> >owner-occupied. However until seeing these e-mails from Sujin and Holly, I
> >didnt know any lenders were bringing these actions.
> >
> > Jim
> >
> > NOTE OUR NEW ADDRESS BELOW:
> >
> > James R. Selth
> > Certified Bankruptcy Specialist*
> > Weintraub & Selth, APC
> > 11766 Wilshire Boulevard, Suite 1170
> > Los Angeles, California 90025
> > Telephone: (310) 207-1494
> > Facsimile: (310) 442-0660
> > E-Mail: jim@
> >
> > *Certified by State Bar of California as Certified Legal Specialist in> >Bankruptcy Law
> >
> > NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF
> >THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF
> >YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION,
> >OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY
> >OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM.
> >THANK YOU IN ADVANCE FOR YOUR COOPERATION.
> >
Of Sujin
> >Kim
> > Sent: Sunday, October 17, 2010 10:41 AM
> > To: cdcbaa@yahoogroups.com
> > Subject: Re: [cdcbaa] Need Referral
> >
> >
> >
> > Yes, the AP regarding the 2nd TD is indeed with Pacific Heritage. What's going
> >on? This has never happened to any of my clients.
> >
> > --- On Sat, 10/16/10, Williams wrote:
> >
> > Subject: Re: [cdcbaa] Need Referral
> > To: cdcbaa@yahoogroups.com
> > Date: Saturday, October 16, 2010, 6:49 PM
> >
> > If it's by Pacific Heritage Financial, I would like to talk with you ASAP.
> >
> >
> > Holly N. Williams, JD/MBA
> > LAW OFFICE OF HOLLY N. WILLIAMS
> > 23151 Moulton Parkway
> > Laguna Hills, CA 92653
> > 949-305-5938, Fax: 949-716-8630
> > HNWilliams@
> >
> >
> >
> >
> >
> > ----- Original Message -----
> > To: cdcbaa@yahoogroups.com
> > Sent: Wednesday, October 13, 2010 11:21 AM
> > Subject: [cdcbaa] Need Referral
> >
> >
> > Listmates:
> >
> > I have a client who was hit with an adversarial proceeding. The plaintiff is
> >the client's 2nd TD holder and is alleging the client fraudulently overstated
> >his income on the loan application. Does anyone routinely handle this type of
> >matter? Referrals urgently requested!
> >
> > Thanks!
> >
> > Sujin Kim
> >
>
The post was migrated from Yahoo.
charset="windows-1251"
Lenders are equally at fault - fired all their underwriters during the
heyday.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
L
Sent: Friday, October 22, 2010 8:53 AM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Re: Adversary proceeding by second trust deed lender
No reliance and unclean hands.
Peter M. Lively, JD/MBA
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Blvd, Suite 203, Culver City, CA 90230-4647
Telephone: (310)391-2400 * (800)307-3328 * Fax: (310)391-2462
A-Bankruptcy-Attorney.com
Personal Financial Law Center II - Costa Mesa, CA
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO
WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED,
CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER
OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT
RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE
HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS
COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS
COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY
TELEPHONE. THANK YOU.
_____
The post was migrated from Yahoo.
No reliance and unclean hands.
Law Office of Peter M. Lively * Personal Financial Law Center I
11268 Washington Blvd, Suite 203, Culver City, CA 90230-4647
Telephone: (310)391-2400 * (800)307-3328 * Fax: (310)391-2462
A-Bankruptcy-Attorney.com
Personal Financial Law Center II - Costa Mesa, CA
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH
IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL
AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE
IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR
DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT
ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY
PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US
IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
________________________________
To: cdcbaa@yahoogroups.com
Sent: Thu, October 21, 2010 10:55:34 PM
Subject: [cdcbaa] Re: Adversary proceeding by second trust deed lender
Heads up on this issue.
A mortgage broker client of mine is getting demand letters from a lender tocover loans that according to an internal audit were not substantiated or were
false when made.
So, there are two future issues: first, the mortgage broker who did not verify
the information properly and represented that they did in the mortgage brokerage
agreement; and second, the borrower who will be sued by the broker for indemnity
or lender for possible nondischargeable claims.
Of course, the lenders used the brokers as a shield against due diligence and
underwriting requirements with the brokers agreement to buy back the paper upon
demand.
Any thoughts?
Lou Esbin
>
> This question reminds me of my former life when I exclusively represented>creditors. Back in 1998-2001, I filed over 50 nondischargeability cases for
>mortgage lender Master Financial, Inc., which specialized in 125% loan-to-value
>(!) second trust deeds. They had a good-sized bankruptcy department which>reviewed every debtors bankruptcy schedules, comparing them with the Loan
>Applications. We would file Section 523 nondischargeability Complaints based on
>false income in the Loan Application, failure to list child support obligations,
>failure to list pending lawsuits, when loan proceeds were used to pay tax debts,
>and the most common: falsely stating that the property would be owner-occupied
>when it wasnt. This was a big deal for Master Financial, since they only made
>owner-occupied loans and could persuasively argue that the loan wouldn>been made but for the false representation about owner occupancy. Sleazy
>mortgage brokers (yes, there actually were such) would always tell the borrower
>to just say the property is owner-occupied and youll get a better rate. We
>settled 90% of these cases and took a few to trial with mixed results.
>
> Master Financial went under with all the other sub-prime Orange County lenders
>such as Ameriquest in 2007, but now as a debtors attorney I always ask clients
>with rental property if they told the lender the property would be
>owner-occupied. However until seeing these e-mails from Sujin and Holly, I>didnt know any lenders were bringing these actions.
>
> Jim
>
> NOTE OUR NEW ADDRESS BELOW:
>
> James R. Selth
> Certified Bankruptcy Specialist*
> Weintraub & Selth, APC
> 11766 Wilshire Boulevard, Suite 1170
> Los Angeles, California 90025
> Telephone: (310) 207-1494
> Facsimile: (310) 442-0660
> E-Mail: jim@...
>
> *Certified by State Bar of California as Certified Legal Specialist in
>Bankruptcy Law
>
> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF
>THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF
>YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION,
>OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY
>OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM.
>THANK YOU IN ADVANCE FOR YOUR COOPERATION.
>
Sujin
>Kim
> Sent: Sunday, October 17, 2010 10:41 AM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Need Referral
>
>
>
> Yes, the AP regarding the 2nd TD is indeed with Pacific Heritage. What's going
>on? This has never happened to any of my clients.
>
> --- On Sat, 10/16/10, Williams wrote:
>
> Subject: Re: [cdcbaa] Need Referral
> To: cdcbaa@yahoogroups.com
> Date: Saturday, October 16, 2010, 6:49 PM
>
> If it's by Pacific Heritage Financial, I would like to talk with you ASAP.
>
>
> Holly N. Williams, JD/MBA
> LAW OFFICE OF HOLLY N. WILLIAMS
> 23151 Moulton Parkway
> Laguna Hills, CA 92653
> 949-305-5938, Fax: 949-716-8630
> HNWilliams@...
>
>
>
>
>
> ----- Original Message -----
> To: cdcbaa@yahoogroups.com
> Sent: Wednesday, October 13, 2010 11:21 AM
> Subject: [cdcbaa] Need Referral
>
>
> Listmates:
>
> I have a client who was hit with an adversarial proceeding. The plaintiff is
>the client's 2nd TD holder and is alleging the client fraudulently overstated
>his income on the loan application. Does anyone routinely handle this type of
>matter? Referrals urgently requested!
>
> Thanks!
>
> Sujin Kim
>
No reliance and unclean hands. Peter M. Lively, JD/MBALaw Office of Peter M. Lively * Personal Financial Law Center I11268 Washington Blvd, Suite 203, Culver City, CA 90230-4647Telephone: (310)391-2400 * (800)307-3328 * Fax: (310)391-2462 A-Bankruptcy-Attorney.comPersonal Financial Law Center II - Costa Mesa, CA
THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED, AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED, CONFIDENTIAL AND EXEMPT FROM DISCLOSURE UNDER APPLICABLE LAW. IF THE READER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE EMPLOYEE OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT, YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE RECEIVED THIS COMMUNICATION IN ERROR, PLEASE NOTIFY US IMMEDIATELY BY E-MAIL OR BY TELEPHONE. THANK YOU.
From: californiadebtreliefagency <Esbinlaw@sbcglobal.net>To: cdcbaa@yahoogroups.comSent: Thu, October 21, 2010 10:55:34 PM
The post was migrated from Yahoo.
Heads up on this issue.
A mortgage broker client of mine is getting demand letters from a lender to cover loans that according to an internal audit were not substantiated or were false when made.
So, there are two future issues: first, the mortgage broker who did not verify the information properly and represented that they did in the mortgage brokerage agreement; and second, the borrower who will be sued by the broker for indemnity or lender for possible nondischargeable claims.
Of course, the lenders used the brokers as a shield against due diligence and underwriting requirements with the brokers agreement to buy back the paper upon demand.
Any thoughts?
Lou Esbin
>
> This question reminds me of my former life when I exclusively represented creditors. Back in 1998-2001, I filed over 50 nondischargeability cases for mortgage lender Master Financial, Inc., which specialized in 125% loan-to-value (!) second trust deeds. They had a good-sized bankruptcy department which reviewed every debtors bankruptcy schedules, comparing them with the Loan Applications. We would file Section 523 nondischargeability Complaints based on false income in the Loan Application, failure to list child support obligations, failure to list pending lawsuits, when loan proceeds were used to pay tax debts, and the most common: falsely stating that the property would be owner-occupied when it wasnt. This was a big deal for Master Financial, since they only made owner-occupied loans and could persuasively argue that the loan wouldnt have been made but for the false representation about owner occupancy. Sleazy mortgage brokers (yes, there actually were such) would always tell the borrower to rate. We settled 90% of these cases and took a few to trial with mixed results.
>
> Master Financial went under with all the other sub-prime Orange County lenders such as Ameriquest in 2007, but now as a debtors attorney I always ask clients with rental property if they told the lender the property would be owner-occupied. However until seeing these e-mails from Sujin and Holly, I didnt know any lenders were bringing these actions.
>
> Jim
>
> NOTE OUR NEW ADDRESS BELOW:
>
> James R. Selth
> Certified Bankruptcy Specialist*
> Weintraub & Selth, APC
> 11766 Wilshire Boulevard, Suite 1170
> Los Angeles, California 90025
> Telephone: (310) 207-1494
> Facsimile: (310) 442-0660
> E-Mail: jim@...
>
> *Certified by State Bar of California as Certified Legal Specialist in Bankruptcy Law
>
> NOTICE TO RECIPIENT: THIS E-MAIL IS MEANT FOR ONLY THE INTENDED RECIPIENT OF THE TRANSMISSION AND THIS COMMUNICATION IS INTENDED TO BE PRIVILEGED BY LAW. IF YOU RECEIVED THIS E-MAIL IN ERROR, ANY REVIEW, USE, DISSEMINATION, DISTRIBUTION, OR COPYING OF THIS E-MAIL IS STRICTLY PROHIBITED. PLEASE NOTIFY US IMMEDIATELY OF THE ERROR BY RETURN-E-MAIL AND PLEASE DELETE THIS MESSAGE FROM YOUR SYSTEM. THANK YOU IN ADVANCE FOR YOUR COOPERATION.
>
Sujin Kim
> Sent: Sunday, October 17, 2010 10:41 AM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Need Referral
>
>
>
> Yes, the AP regarding the 2nd TD is indeed with Pacific Heritage. What's going on? This has never happened to any of my clients.
>
> --- On Sat, 10/16/10, Williams wrote:
>
> Subject: Re: [cdcbaa] Need Referral
> To: cdcbaa@yahoogroups.com
> Date: Saturday, October 16, 2010, 6:49 PM
>
> If it's by Pacific Heritage Financial, I would like to talk with you ASAP.
>
>
> Holly N. Williams, JD/MBA
> LAW OFFICE OF HOLLY N. WILLIAMS
> 23151 Moulton Parkway
> Laguna Hills, CA 92653
> 949-305-5938, Fax: 949-716-8630
> HNWilliams@...
>
>
>
>
>
> ----- Original Message -----
> To: cdcbaa@yahoogroups.com
> Sent: Wednesday, October 13, 2010 11:21 AM
> Subject: [cdcbaa] Need Referral
>
>
> Listmates:
>
> I have a client who was hit with an adversarial proceeding. The plaintiff is the client's 2nd TD holder and is alleging the client fraudulently overstated his income on the loan application. Does anyone routinely handle this type of matter? Referrals urgently requested!
>
> Thanks!
>
> Sujin Kim
>
The post was migrated from Yahoo.