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bubblesburst
2011 Jul 18, 9:00am
Wow. What a great and interesting story. Thanks so much for sharing with us.
Just out of curiosity, how much did this forensic audit cost you?
This is great news, if this story is for real. Good job sticking it to the banksters. I'm not surprised they settled so quickly. Plenty of corners were cut during securitization, and they do not want these cases and precedents on the books.
I'd love to know who that attorney was too, and thanks for letting us know about Lighthouse.
You should add some more details and send it as a letter to a financial paper. To screw up on LIBOR alone...
bubblesitter
2011 Jul 18, 12:37pm
I got was a principal balance reduction of $400,000; my interest rate was reduced to 4.5% fixed for 30 years.
Without a fight from Chase? Chase must have done something really nasty in the first place to take that loss.
What state was your home in and where? Is lighthouse group in the same area?
Great story, and good on u.
I just googled "forensic auditing Australia" and found many of them. I believe there are plenty of experts in this field everywhere and we just need to google them. I did and am waiting for a reply/quote (I live in Sydney Australia(
Bubblesitter: Assuming you're not familiar with the MERS mess, aside from the above litany of "errors", if that was a Trust under New York law, and the required documentation transfers/assignments were not done correctly, Chase may have an UNSECURED loan, i.e., the right to foreclose may be in some other party. Many of these trusts require timely transfers, which CANNOT be corrected AFTER the deadlines have passed.
Read up on the MERS mess; 4closurefraud.com, foreclosurehamlet.com and nakedcapitalism.com are good places to start. (this's NOT the "robosigning" mess).
PRIME
2011 Jul 19, 2:34am
27.12% IRR Per month Net Net Net
Net, net, net - I guess that includes all expenses. This type of monthly return does not seem possible over a 10 year period.
FV = PV * (1+i)^t
i = 27.12%
t = 120 months (10 years)
PV = starting value of 10,000 for arguments sake
FV = 3.2038052146068924e+16
If your starting value was $50, the FV would still be 160,190,260,730,344.62
If your staring value was 0.05 (5 cents), you would be worth $160 billion, more than Warren Buffett.
PRIME
2011 Jul 19, 2:40am
A $400K principal reduction is nice, but I guess you are still on the hook for a $2.1M mortgage. The principal was decreased 16%, but how much is the property down? Are you still underwater?
@mike2, California, my home was in Newport Beach specifically and the company is located in Santa Ana.
@underwater, yes that is the company that I worked with.
FV = 3.2038052146068924e+16
Looks like repo4sale learned some positive words, but not the math with which they connect. That's a popular strategy for thinking real estate is valuable.
I purchased my investment property in 2006 for $2.5 million dollars. Recently, I’ve had a tremendously high vacancy rate due to the poor economy and it began taking a toll on all my reserves just to maintain the property. I tried to negotiate with my lender (CHASE) for a modification. I went round and round with the bank, submitting documents and so on and in the end, CHASE denied me for a modification. I couldn’t understand why they wouldn’t modify my loan when it was clear that the economy ham-stringed my ability to service the debt. The only thing that CHASE could tell me was that the investor was the one who declined the modification. I asked who the investor was and they would not tell me. It was then that I began to look closer at my original loan and I saw on the Deed of Trust that MERS was listed as the Beneficiary. With all the information about MERS in the news I decided to talk to an attorney. My attorney had an auditing company called Lighthouse Consulting Group review my documents for both a forensic analysis of my original loan documents as well as a Mortgage Securitization Audit. It turned out that my loan was securitized in a trust called “Structured Asset Mortgage Investments II Trust 2005- 8. It was in this trust; there is a pooling and serving agreement, which governs the rules of the REMIC Trust. In my loans pooling and servicing agreement, it said specifically that any loan modified would require a buy-back from the servicer. Now, it was about this time that I began to default on my loan and was looking at ultimately losing my investment property. I was already 6 months in default at this point. The individual I talked to that is an attorney and real estate broker immediately ordered a forensic audit for predatory lending. Commercial properties do not have TILA and RESPA violations. The attorney also ordered a securitization audit to verify if the lender that filed the NOD was actually in proper standing. Both audits reveled several issues about my loan. First, the forensic audit proved that my lender had wrongfully calculated my payment it was overstated by $350 per month. Secondly, the loan itself was an adjustable loan based off the Libor Index, which was dropping, but the loan always adjusted up. This was a major development in a very positive way for me. Then, I had the securitization audit show that my loan was never securitized properly and the note and deed were not even with the same party. My attorney drafted a complaint, outlining everything I have mentioned. As soon as the lender was served, they contacted my attorney and settled without going to court. The settlement I got was a principal balance reduction of $400,000; my interest rate was reduced to 4.5% fixed for 30 years.
#housing