Settlement Of Mortgages

nope- I think all of those operations are pushing a "produce the note" defense which is not working in my state, California. If they don't charge anything up front I guess you have nothing to lose, but I am dubious.

ball_mich

Did you get to research more about the homeownershipprogram through your mortgage broker. What was his input.

I am trying to research more on this whole concept. I cannot find any successful cases where people ended up with clear title after going through this process. I believe they charge upfront x dollars and have a back end fees if the approach is successful.

Quote:

Originally Posted by Anonymous ball_mich Did you get to research more about the homeownershipprogram through your mortgage broker. What was his input. I am trying to research more on this whole concept. I cannot find any successful cases where people ended up with clear title after going through this process. I believe they charge upfront x dollars and have a back end fees if the approach is successful.

Well, he said he is familiar with the claims that give rise to the strategies employed by thehomeownershipprogram, but that he doesn't know if it works or not. He forwarded me a document or article that he had which basically outlined the same issues and arguments of fraud that is made by this program and the others like it.

I've been doing mega research on it. And I'm not sure if it works. I've found essentially all of the administrative documents they use to complete this process at places online. But does it work? Did they get free & clear title and avoid foreclosure? I don't know. Yesterday I put about five letters in the mail to folks who tried this and am hoping to get a response as to success or failure. We'll see.

But I will say, a lot of this "feels" like a scam. These guys are using multiple websites to promote the same thing. Their recordings on their websites allude to other corporate names (or in the least D/b/a's). They work almost exclusively on a first name basis (maybe more info if you sign up, I don't know). One of the founders goes by Russell on one website and Rusty on another. I can't find any of these businesses on the BBB website. It's just a real web of... I don't know.

Now, having said that, I really like the argument made. Fraud in the factum. In most cases the lender actually never puts any capital at risk, thereby how can they have "loaned" you any funds? If they haven't loaned you funds, the promissory note and thereby the deed of trust are not enforcable. Makes a lot of sense to me.

But I don't know what the court says. And I'm not sure that even if these folks get their home free & clear, that they aren't going to be sued down the road by the bank (probably conveniently after the homeowner pays the 25% backend fee to thehomeownershipprogram).

And one of the key elements missing is what happens after this administrative action? After you strip the security interest and cancel the mortgage and revoke the power of attorney, etc... It doesn't mean the lender agrees, it just means they didn't act on the QWR (with 192 separate requests/questions). It's up to the homeowner to then file a lawsuit in US court to affirm the actions taken. They don't talk much about that, but trust me, the lenders are not going to roll over at the sight of a lawsuit and claims of fraud. But still...

It's risky, but if I find confirmation that this has been successful, I'll probably try to put together a team of like-minded folks who want to try this together on a DIY basis.. and we can all leverage each other's experience as we do it concurrently. I've actually already started a yahoo group (private group) and started uploading some key documents that I've found. But first I want confirmation of success by multiple parties before I get too far along and find a team of defrauded homeowners.

ball_mich

Thanks for your detailed explanation.

I too found that they seem to operate using different websites like createhomequity.com etc. I found couple other which i suspect is from the same individual or group.

I will be happy to participate in trying out this approach and would be great if you can add me to the group. I can send you my email address so that you can invite me to the group when you think you are ready. Also how did you get hold of the 5 people who tried these program. I am trying to find references but have not been successful. Keep me informed about when you receive your responses.

Update on my WF HELOC.

I talked to Stage 7 group (Home Equity Solutions. They called it Pre charge off dept) person name Michael. He wanted all my financial so that they can first try me for modification and then decide if they want to settle. I made them clear that i don't want modification and need only settlement and offered them 7% on my non recourse loan. I told them i am worried about sending my financial. I told them i will call back in another 2 weeks and see if anything has change at their end. So as of now its at stand still and 30 days from charge off.

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Originally Posted by Anonymous ball_mich Thanks for your detailed explanation. I too found that they seem to operate using different websites like createhomequity.com etc. I found couple other which i suspect is from the same individual or group. I will be happy to participate in trying out this approach and would be great if you can add me to the group. I can send you my email address so that you can invite me to the group when you think you are ready. Also how did you get hold of the 5 people who tried these program. I am trying to find references but have not been successful. Keep me informed about when you receive your responses.

ssathan - sign up for an account and send me a private message.

ball_mich,

Another thing to add. I though i did see them talking about filing a federal lawsuit(May be it might have been another site, as you said there seems to be many sites), but did not get what the exact contents included in the lawsuit. They would do an forensic audit on the closing documents for supporting the lawsuit.

Hi,

I have browsed a few pages on this thread but I haven't found a decision on the tax aspect of the HELOC settlement.

Can you shed some light into the tax consequences of the HELOC settlement?

Thanks

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Originally Posted by Anonymous Hi, I have browsed a few pages on this thread but I haven't found a decision on the tax aspect of the HELOC settlement. Can you shed some light into the tax consequences of the HELOC settlement? Thanks

I don't think anyone here is a tax expert or CPA. You should probably seek this kind of advise from someone who specializes in it.

Having said that, I received a 1099-C for the amounts "forgiven", just as you would with a credit card settlement. I do think it is treated as taxable "income", but I had a CPA prepare my taxes so I am not certain.

I believe there is also an insolvency test as well, and if you are insolvent at the time you settle, the amount is not taxable. But again, check with a professional on the matter.

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To tell the truth, it depends on various factors, and I am not in position to reach to any conclusion at the moment.