Denbeaux & Denbeaux

09/20/2024

OK, it’s starting.

“Shares in Trump Media closed at a new low of $14.70 Thursday ahead of the lockup provision expiring, though the company enjoyed a 25% surge last week after Trump announced his plan to hold his shares.”

That was last week.

“Shares of Trump Media sank more than 7% Friday morning, hitting a new 52-week low one day after lockup restrictions expired,” CNBC reports.

“Trading volume was heavier than average on Friday morning, but it will likely be several days before public filings with the Securities and Exchange Commission reveal whether this volume is due to early investors selling shares now that the lockup period is over, or merely a higher than average number of retail investors trading the stock.”

That’s today.

ABC has a quote from an investor who, in my opinion, has been deluded and is about to be the victim of fraud: "When he's promised to do something, he's kept his word," said Jerry Dean McLain, a shareholder who purchased a hundred additional shares after Trump's pledge. "He's loyal to his followers -- to his people -- so I don't have any reason not to believe him."

Trump has 115 million shares. And he is free, now or very shortly, to sell. The present value is about $14.00.

He could not sell 115 million shares because there is not that much activity in the market, and because if he did try the stock would absolutely tank. He might sell a percentage at $14.00 but once he sold even a fraction of his holdings the stock is going to plummet in value.

The stock has dropped 80% already because the company makes no money, or sense as a traditional financial investment, so I think it is likely to go to zero anyway. Not guaranteed, I suppose. Maybe there is a market for a tiny company alternative to Twitter/X.

Maybe.

Is he going to guarantee the destruction of his company by selling?

My bet is yes. After propping up the stock by promising his followers that Dear Leader will never, ever sell. Never leave them behind.

And I will then be interested in the excuses that Trump, and poor Mr. Jerry Dean McClain make for his actions.

Trump will blame Haitian-Americans, and Biden, and Harris (if he can recall who he is running against in the moment). I wonder if Mr. McClain is going to blame Trump?

Or Haitians.

It is really difficult to find the strength to admit that you have been wrong about something you clearly hold so dear to your heart. I hope that Mr. McClain and people like him find their inner strength.

02/24/2022

Freedom is not free. We need to be involved in this European war, because America is the land of freedom. It is going to hurt, though.

Our willingness to shoulder this burden is what makes America the greatest country in the world.

But I can tell you the Russian invasion of the Ukraine is going to cause a lot of problems for homeowners, especially homeowners coming out of CARES Act forbearance ... and those who continue to have their source of income affected by Covid.

The problems that the war is going to cause are legion, but they certainly include an increase in interest rates.

One would think that the interest rate increase would affect new home buyers ... which it certainly will, but it will also affect loss mitigation because modified mortgage loans will be at higher interest rates.

We have had a generation of nearly free money. That is about to change.

Right now, I can have a homeowner come to me with a terrible interest rate on an existing loan - 8% sometimes - for which they have fallen behind. I can do the math, explain how the modification process works, determine from a review of their servicer and investor (collectively thought of as their 'bank') and tell them:

"Great news! I can get you out of foreclosure and you will end up with a new loan payment on a current mortgage loan that will be $x LESS THAN the payment you fell behind on!"

That's good for me ... because I can get paid to help someone. It is good for the homeowner because their kids get to stay in the same school district.

But what is going to happen if the interest rates to TO 8%?

Everyone who fell behind - usually through the vagaries of life and based on no fault of their own - on a 4% mortgage loan? How are we to solve that in a way that puts them back in a place where the home is affordable?

Add to that the fact that the servicing and investor modification guidelines in nearly all circumstances require that the new mortgage payment be LESS THAN the mortgage payment that went into default.

It is going to go back to a war with the servicing industry. The only way to win these cases is going to be tricking the servicer into violating federal law (RESPA) and then suing the snot out of them in federal court.

Bottom line: This is likely going to develop into a right mess.

Make sure you are talking to an attorney who actually knows how to sue banks. Otherwise, you are spinning your wheels.

Or worse.

02/15/2022

How Banks Defraud Homeowners, Part 2: Fraudulent Late Fees

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This is the second part of a series about the most common ways banks fraudulently make money when handling home mortgages.

If this topic is important to you, please consider liking and subscribing, because I am going to explain what I am talking about and how banks mis-state the amount actually due on a mortgage loan by fraudulently including late fees when they are not permitted.

So, like always, let’s start at the beginning:

What are late fees, and when are banks allowed to charge them?

It sounds like a simple question, right?

You miss a payment, or you miss a payment deadline, then the bank charges you a late fee. So why make a video about this?

Because a late fee is only allowed to be imposed when a payment is not timely made … and after a bank ‘accelerates’ the debt, there are no more monthly payments due.

OK, so what does ‘acceleration’ mean?

A bank ‘accelerates’ the debt when it announces that you are in default because you have not (allegedly) made all the payments on the loan as agreed.

You see, if you are current on the payments a bank can’t say ‘boo’ about anything. Let’s say you have some crazy amount of equity in the house (meaning the value of your home is greater than the amount of debt against the home) like a half million dollars or something.

You might think a bank would prefer to file foreclosure to try to get at that equity, but they cannot. First, because it is not generally their business model, as long as you are actually dealing with a legitimate bank, and Second, because the bank is only entitled to collect the money they say you owe against the home.

So, if the bank claims that you fell behind on the mortgage and they determine that a foreclosure action is appropriate they will notify you that you are in default … and that they have ‘accelerated’ the debt. That means that the bank is taking the position that because the monthly payment schedule was not met you have to pay the entire amount remaining on the loan in one shot.

Hence, ‘acceleration’ of the mortgage monthly payment schedule and collapsing it down to a single payment.

Starting to get the problem yet?

No? Don’t worry. I got you.

So let’s say the bank thinks you did not pay in January, February or March of some year. Each month, at about the 10th day or so, the bank imposes a late fee of some non-trivial amount and your next payment, to bring the loan current to the scheduled payment period, has to include that late fee.

Fine, so after three months of non-payment, how many late fees is the bank allowed to charge?

The bank cannot charge you a late fee for not paying on time in January, and another late fee in February for not payment the January late fee … so the bank can charge you ‘only’ three late fees.

It is not often that banks try to double charge late fees for failing to pay a month on time … what more often happens is a bank tries to impose late fees AFTER acceleration of the debt.

Why is that wrong?

Because remember what acceleration means? The bank has collapsed all the monthly payments down to a single payment of the whole mortgage. They can charge a late fee for not coming up with the whole loan, but since the monthly mortgage agreement has been reduced to a single payment … no more monthly payments are actually due.

So the bank cannot charge any more late fees because by not paying the next month, you have not missed a payment because nothing was due to have been paid in that month.

I know it sounds convoluted and crazy, but it is actually quite simple … and easy for banks to sneak in multiple late fee charges than they are actually allowed to collect.

So what can you do about it?

Charging double or additional late fees is a violation of federal law … it is a violation of the Truth in Lending Act. A Truth in Lending Act violation, or a TILA violation, is a defense to foreclosure and it is a basis to sue your bank for fraud, for violation of the TILA and for attorneys’ fees and expenses.

So … watch your mortgage statements carefully and reach out if you find any charge that you think might be wrong. If you really think it is an incorrect charge, it probably is.

Hope this helps.

02/11/2022

How Banks Defraud Homeowners, Part 1: The Frequent Flyer Program

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This is the start of a part series about the most common mistakes that banks make when handling home mortgages.

These mistakes are fraudulent actions by the bank, but they often – unless properly identified and prosecuted by the homeowner – end up with a bank improperly taking a property.

I’ve seen it happen.

Not under my watch and not for my clients, but I’ve seen it happen. I’ve been brought in to other foreclosure cases too late to take action.

So here’s the first one: The Frequent Flyer Program.

I have been told that the industry has its own name for it, which is a bit infuriating, and it works because there is little court oversight of the industry … except by good, aggressive defense attorneys who know what they are doing.

Everyone knows what a mortgage modification is by now. If you don’t, you can watch my video about the differences between mortgage modification, repayment plan and forbearance agreements, link below.

Everyone watching this video probably also knows that the standard in the industry is to provide a two stage process for modification:

First, if the borrower meets the guidelines for modification the bank sends a Trial Payment Plan. That is sometimes known as a TPP or a trial modification agreement.

Whatever it is called, it requires the borrower to make three on time payments, and sometimes to also sign and return the TPP.

After the three payments are made (and the signed agreement returned to the bank if required), the bank must issue the Final Modification Agreement.

That is a document that must be signed and returned and as soon as the document is returned to the bank, and the homeowner makes a single payment on the modification, the default is cured, the new loan current and all is well in the world.

At least for this homeowner and this morning, anyway.

So how is this a bank mistake? What’s the problem?

Here is how the Frequent Flyer Program works:

You are all aware that banks buy and sell mortgage loans all the time, and that mortgage servicers (that company that sends you your monthly mortgage statements every month) change even more often.

Well, when a mortgage loan is sold during the TPP or final modification process, the new mortgage servicer often ‘forgets’ to log the modification into its records.

Usually, this is just a mistake, but sometimes it is done on purpose. Either way, the bank is wrong and the homeowner has a right to sue.

But, many attorneys don’t know how to do this. Each state is different in how its laws work with regard to foreclosure and real property, and attorneys have to be knowledgeable as to each state’s practices, but this is also a violation of US Federal Law.

So, if you are a homeowner who applied for a modification and the servicing changed during the application during the TPP or shortly after the final modification agreement was sent to you, you probably shortly after the new servicer got involved were told that your loan was in default.

It isn’t.

The Bank is in default of the contract. And the bank has violated federal law.

And that violation is a Big Fat Deal, that will lead to federal litigation in which the bank is the DEFENDANT.

When I catch this kind of fraud, I can pretty confidently tell my client that the house will be saved, credit will be repaired and the bank will pay money in damages and counsel fees.

01/30/2022

Your bank is legally sharing your personal information with whoever will buy it ... the CFPB is going to stop them. Here is what is going on and how YOU can help.

01/30/2022

What happens to your personal financial and other personal data when you give your bank access to your information by checking a box (on a form attached to many, many pages of indecipherable information) that the bank requires you to check before you can access your bank’s online portal?

Does your information remain with your lender?

The short answer: No.

Once you give up control of your data, your financial company then sells your data to FinTech and third party aggregators who then use your data in ways you never intentionally permitted.

This is a bipartisan problem because it is just out of control.

The D is the party far more interested in consumer protections, but there are some things (like this) that are a bridge too far for anyone of any political stripe:

Rep. Blaine Luetkemeyer, R-Mo., said his constituents were “aghast” and “absolutely horrified” that third parties lacking authorization from a consumer were gaining access to bank account transaction data.

“Let’s be honest here, this is all being done without the consumer’s knowledge,” Luetkemeyer said at the hearing. “This is not OK. The first way to protect people’s privacy is to be honest with them upfront and say ‘this is what’s happening with your information, and people are accessing it unbeknownst to you.’ We’re approaching this from the wrong angle.”

Good for Representative Luetkemeyer. I hope others in his party join him because the problem is simply insane.

At a conference of state attorneys general last year, [the Biden CFPB Director] Chopra voiced concern about violations of consumer privacy laws by large technology firms and their impact on consumers.

“What is the connection between data and democracy, between data and consumer protection, between data and fair markets?” Chopra said. “I think that's going to be top of mind for us.”

Well said.

The Consumer Finance Protection Bureau is approaching this problem with new rulemaking, and the CFPB needs your comments. The initial announcement of the rulemaking was made in October of 2020 and everyone should read it: https://www.consumerfinance.gov/about-us/newsroom/consumer-financial-protection-bureau-launches-initiative-to-save-americans-billions-in-junk-fees/

They are now seeking comments from the public. You can – and you SHOULD – send your thoughts and concerns to [email protected], and include ‘Docket No. CFPB-2022-00 in the subject line of your email.

The new rules are going to limit third party access of your financial and other data without clear permission granted by the owner of the data. (Hint … that’s YOU!)

The FinTech industry is pushing back, hard. There is a well-written article by Kate Berry (a very good reporter) for the American Banker (not my favorite publication) and the thrust of the FinTech industry’s pushback is: “We are putting in place internal guidelines to the industry to protect consumers, so you don’t need to regulate us.”

I am certain that this argument will be seized upon by certain knuckledraggers in Congress and the Senate to create a hew and cry about how government is taking over our lives, but that will be nonsense. Also nonsense is the idea that we should trust the FinTech industry.

If the industry had put real controls into place BEFORE the Biden administration and its CFPB started the process of imposing them, then maybe the industry would have some credibility. Claiming now that the industry is safe and secure because it has started the process of putting into place unenforceable (by the consumer) ‘controls’ is complete and absolute rubbish.

I can clearly recall the mortgage servicing world prior to the passage of the Real Estate Settlement Procedures Act (RESPA), again by the CFPB, that gave consumers the right to sue when the mortgage servicing industry violated the regulations already in place. There was much wailing and gnashing of teeth when RESPA was enacted and imposed by the CFPB, but the right of the consumer to sue when a mortgage servicer screwed its own customer is the ONLY THING that protects consumers from mortgage servicing abuses.

FinTech is similar, but worse. Everyone knows that their mortgage is being serviced … not everyone knows that their financial data is being stolen by third parties.

And you should be able to control your own financial and personal data, and you should be able to sue for damages and other relief when some company seizes your data without you giving permission first.

Sounds obvious, right?

So send your comment, tell your story and help us all protect each other.

I am committed to Consumer Protection, and my law firm is dedicated to your rights. www.denbeauxlaw.com

Contact me if you have been abused by a financial institution and let's see what we can do to make things right.

Denbeaux & Denbeaux Attorneys at Law help protect homeowner rights in foreclosures, loan modifications, debt collections, and more. Contact our foreclosure defense law firm today to learn about your options.

01/30/2022

If you are a consumer bankruptcy attorney, handling 7s and 13s, you are leaving money on the table. And I can show you how to go get it.

I am going to show you now how to improve your practice, make more money and get your clients a better result.

And I’m not talking about chasing down FDCPA and bankruptcy Order violations. You should be doing that on your own anyway, I am talking about the fact that your clients are coming to you after they have been exposed to every kind of financial pressure … and predator … that can be imagined. You have given them a lifeline, a do-over, and they deserve it and need it.

But what if you could do better, for your clients and for you? Would you do it if you could?

Of course you would.

It is really, really simple:

*Learn to identify consumer claims*

That’s it. Issue spotting. That is all you need to do.

You want even better news?

You don’t even need to do it.

You don’t need to go learn an entire new area of the law. You probably have been honing your craft and your expertise for years, if not decades. Why should you spend your time learning your state’s UDAP laws?

You have any clients who have been paying money to these fraudulent debt consolidation companies? I am certain that those companies just annoy you to no end … did you know that many of those companies are acting in violation of the Telemarketing and Consumer Fraud and Abuse Prevention Act, and the Federal Trade Commission Telemarketing Sales Rule?

And that that statute, and that regulation, provide for mandatory counsel fees, costs and many times, also treble damages?

How many clients have come to you with really sketchy loans they owe to car finance companies, or to these online Pay Day lenders? Did you know that with the new CFPB Rules, these finance companies if they violate the TILA have to pay damages, offset claims AND counsel fees?

How many clients have come to you complaining that their mortgage servicer refused to give them relief after the CARES Act forbearance, or ‘forgot’ to transfer their modification paperwork to the new servicer that just took over. Did you know that that is a classic violation of the Real Estate Settlement Procedures Act? And that damages and counsel fees are MANDATORY under that Act?

But that’s OK if you do not know these statutes, because you don’t HAVE to.

I do.

I am Joshua W. Denbeaux, Esq. a consumer protection attorney with over two decades of experience and the managing partner at Denbeaux & Denbeaux. https://denbeauxlaw.com/

I am also part of the leadership in Advocate Attorneys, https://lnkd.in/euEm3Qw7, a national group of consumer protection attorneys who cover almost every state. We work with bankruptcy counsel to review potential claims and enter into co-counsel or referral retainer agreements based on the ethical requirements of each jurisdiction, and whereas I practice only in New Jersey, we as a group litigate in nearly every jurisdiction.

About Us Who We Are Advocate Attorneys represents individual clients in claims against Debt Collectors, Credit Reporting Agencies, Mortgage Loan Servicers, Banks, Credit Card Companies and other financial predators in individual and Class Action matters. What We Do Advocate Attorneys co-counsels wit...

01/28/2022

How to protect yourself from scammers - hot tip of the day! Cold callers are scammers. Watch below for more.

If you do get a cold call, or a suspiciously amazing unsolicited letter, contact me to give me the name of the predator contacting you. I am preparing multiple class actions against these companies. These predators are sprouting up like mushrooms after a rainstorm, and as far as I know I am the only attorney actively chasing them down.

01/25/2022

How to find out which is the right lawyer for your New Jersey foreclosure lawsuit ... learn the three questions you must ask.

There are three questions you must ask any lawyer offering to represent you in a New Jersey foreclosure lawsuit.The reason why most New Jersey foreclosure de...

01/25/2022

There are three questions you must ask any lawyer offering to represent you in a New Jersey foreclosure lawsuit.

The reason why most New Jersey foreclosure defense attorneys are ineffective and do not save their client’s homes is because they do not litigate in federal court, do not understand the intricacies of the Real Estate Settlement Procedures Act and are unable to hold banks and mortgage servicers to account when they defraud homeowners.

The three questions you must ask an attorney you are selecting to represent you in a New Jersey foreclosure case:

1. How often do you sue banks and mortgage servicers in federal court?

If the answer is: we don’t do that (which will often be the case), the attorney you are talking with is not going to be an effective advocate for you.

Denbeaux & Denbeaux sues mortgage servicers every time there is an actionable violation of our client’s rights. We pursue our client’s rights in the foreclosure litigation, and through proper and multiple duly served Requests for Information and Notices of Error when violations are identified.

Which is very, very often, if you know how to spot the violations.

2. Can you tell me what modification terms I am eligible for before you ask me to pay you for a full modification retainer?

This is a difficult question for attorneys who are not expert in mortgage servicing. The vast majority of the time it is possible to determine what modification programs are available for a homeowner, down to the amount of the deferral, principal forgiveness, interest rate and term of the to be modified mortgage loan.

But to get to this answer, the attorney you are talking with really has to understand the details of the mortgage servicing industry and the RESPA regulations.

Until you know what your loan is going to be after modification, it makes little sense (most of the time) to pay for expert assistance to modify your mortgage.

This is why Denbeaux & Denbeaux has a two part loss mitigation (loan modification) retainer agreement: We charge a small fee to do the research necessary to identify the programs available to our clients (even in privately held mortgage loans) and analyze the client’s financials against the guidelines so that we can tell the clients exactly what modification terms they are going to enjoy after the full modification is complete.

This allows us not only to help our clients save their homes, but to strategically plan for the modification process to allow us time to help our clients to clear up other debts, resolve outstanding lien issues and turn a foreclosure filing from a disaster to a financially beneficial event.

3. How long have you been practicing consumer protection law?

We have been civil rights and consumer protection attorneys for over two decades. Joshua W. Denbeaux has represented thousands of homeowners in foreclosure, has argued over 100 appeals in the Superior Court, Appellate Division, has won before the New Jersey Supreme Court in the GMAC v. Willoughby case, https://denbeauxlaw.com/denbeaux-wins-in-supreme-court-on-behalf-of-homeowner-with-loan-modification/, and has filed multiple federal lawsuits holding mortgage servicers, banks and foreclosing attorneys to account.

The Denbeaux & Denbeaux firm also has represented dozens of consumers victimized by other consumer financing frauds, including used car purchases from disreputable dealers and financiers, and has been active in civil rights litigation for over 20 years.

This area of the law is nuanced, complex and very, very challenging. You need an attorney in your corner with experience and who is not afraid to actually fight for your rights.

Homeowners with Loan Modifications No Longer at the Mercy of Banks NJ Supreme Court unanimously rules a loan modification agreement is a permanent agreement and cannot be unilaterally altered by mortgage lenders WESTWOOD, NJ (August 15, 2017) – In a major victory for distressed NJ homeowners, th...

01/24/2022

This blogger has things exactly right ... the higher home prices are great for homeowners, but they expose homeowners to debt collectors.

I blogged recently about how secondary mortgage loans are being foreclosed upon again ... this is why. This vlog is definitely worth the listen.

Episode Details What is Mandelman Matters? Financial strategies you won't hear anywhere else for your house, your mortgage, and your future. Always accurate. Occasionally entertaining. Listen to the Mandelman Matters Podcast.

01/23/2022

CARES Act forbearance is over, but mortgage servicers are NOT protecting homeowners as required by Federal Law. Watch the video to find out how to protect yourself, your family and your home as you come out of CARES Act forbearance.

Wondering what should you do if you can’t pay when your CARES Act mortgage forbearance ends? Learn in this video about the end of the CARES mortgage forbeara...