• Death in the Family
• Difficult and costly Divorce
• Lost Job or had to Change Jobs
• Health problems with Expensive Medical Bills

And never before has the expression “If I could just buy some time” meant so much. When facing foreclosure homeowners need time to discover their options, analyze their situation and implement an action plan. The most precious commodity is time…And it’s running out.

However, options are changing because of the magnitude of the housing problem.  There is a chance to work things out with the lender if the homeowner fights for that chance. More banks are willing to work with borrowers today simply because they really can’t manage the huge backlog of homes which have already been lost to foreclosure. If the borrower can present a viable plan, the chances of retaining home ownership are pretty good.

The process can go fairly quickly. Here’s a basic rundown of the mortgage modification process and how long each step takes:

• Obtaining the modification package: Getting a loan modification package in the mail can take anywhere from a few days to a few weeks, depending on how long it takes to get a hold of the right loss mitigation manger, and of course, how many other modification requests being considered at the moment.

• Submission of the loan modification package: It should take a week to fill it out and get it back to the lender with all the requested documents.

• Underwriting and internal auditing: Once the lender receives the modification package, they will check it over for mistakes, and then send it on for an in-depth review. Assuming that no questions arise regarding the paperwork, this should only take a few days.

• Assignment to a mitigation specialist: After being reviewed by the underwriters (which can take another week or two), the matter will be assigned to a loss mitigation specialist who is authorized to make the final decisions regarding the loan modification request.

• Decision and mitigation process: One of the longest parts of the process, this step can take several weeks as the loss mitigation specialist reviews the request and begins negotiating new loan terms. It may take a week or two or even a month or two to complete – that really depends on the specialist’s case load.

• Completion of the new loan: Once the modification request is approved, the lender will send a packet to fill out and sign within 3-5 business days to complete the modification.

Getting a loan modified can take several weeks to several months to complete. The key is being pro-active and patient, all at the same time.

While a lawyer is necessary to handle the foreclosure case, homeowners don’t need to hire an expensive firm to do their loan modification. On the contrary, doing it yourself may lead to a better result and thousands of dollars saved.

In Oklahoma, the maximum dollar amount you can sue for in small claims court is $6,000, so it does not make much sense to hire an attorney who cannot take care of the matter cost-effectively.  I think cost matters as much as legal ability when you are looking to recover your losses, or even if you are looking to defend yourself from such small claims.  I offer services related to failure to repay a loan, failure to repair a car or appliance, failure to return property, breach of contract, breach of warranty, and similar cases.

The Small Claims Procedure Act, 12 O.S. §1751 allows the following types of claims to be brought:

– Actions for the recovery of money based on contract or tort [not to exceed $6,000.00]

– Actions to replevy personal property [the value of which does not exceed $6,000.00]

– Actions in the nature of interpleader [the value of which money does not exceed $6,000.00]

– Actions for forcible entry and detainer of real property (including claims for rent and damages to property) the total value of which claim does not exceed $6,000.00

The small claims lawsuit begins with an Affidavit, containing the name and address of both the Plaintiff and the Defendant, and the amount and basis for the claim.  The Affidavit can be filled out online, or in person at the Small Claims Desk on the 2nd Floor of the Tulsa County Courthouse.

— Brian R. Huddleston

While contingent and fixed-fee models aren’t new, a fresh look at alternative billing may help established small-firm attorneys and solos distinguish themselves from the surge of laid-off lawyers and unemployed law graduates now wading into solo practice.

Alternative fees are very useful marketing tools for consumer clients who like to shop around for deals, Oklahoma-based lawyer and blogger Jim Calloway said Saturday at an ABA Techshow program he co-presented on alternative billing.

“When everyone is doing it on an hourly basis, and I’m doing it for X, that sends a powerful message,” said Calloway, who authors Jim Calloway’s Law Practice Tips Blog and co-produces the podcast The Digital Edge: Lawyers and Technology.

Solo and small-firm lawyers may also find alternative billing models are easier for clients to understand, especially if they aren’t sophisticated legal service buyers, said Natalie Kelly, director of the State Bar of Georgia’s law practice management program.

“I’m from an extremely small town, so hourly billing requires a lot of client education,” Kelly said of clients who may balk at a $300 hourly rate. “Sometimes lawyers offer flat or fixed fees because it makes better sense to the client.”

The predictability of alternative arrangements is more aligned with client expectations from other consumer-based services, which fosters better relationships with clients as well as increased collection rates, especially when clients aren’t shocked by a large legal bill at the close of a matter, Kelly said.

Calloway suggested lawyers slowly delve into alternative arrangements using “bite-sized” steps. For example, a corporate formation package could include minutes for the first year, two hours of phone questions and an advisory letter on running a new business bundled together for a set fee.

“Clients get predictability and free calls to a lawyer, and you get one year to prove how valuable you are,” Calloway said.

Lawyers should also re-evaluate case management to be sure work is billed based on the value provided to clients rather than the expertise of the person completing it. Having a lawyer file a matter versus a law clerk adds zero value to the client and should be billed appropriately.

Closed case files are also valuable resources and should be mined and integrated with knowledge management systems that can improve efficiency and quickly refresh recollections of similar work completed in past cases.

Finally, if a firm rewards attorneys for high billable hours, focus should shift to dollars billed and received, not production alone.

In order to stay up on developments in the law of foreclosure defense, I recently attended a legal seminar called “Defending Foreclosures in Oklahoma” which was jointly sponsored by the Oklahoma Bar Association and Legal Aid Services of Oklahoma. The featured speaker was Florida legal aid attorney April Charney.  Attorneys that practice in the real estate area know that April is at the forefront of the battle against foreclosures.  She is a nationally recognized expert that helps Florida homeowners in particular, and like-minded attorneys in general.  As a condition of attending the seminar, I agreed to donate at least twenty hours of related legal work to Legal Aid Services of Oklahoma.

I left April’s seminar better equipped to advise and help Eastern Oklahoma area homeowners present legal defenses to foreclosure actions even where the loan is in default.  Points to consider:

While you are litigating the foreclosure case, you are not required to make your normal monthly mortgage payments.  The legal process will afford you time to reinstate the mortgage, sell your home, file a bankruptcy or move out.  You may be able to force the lender to completely rewrite the terms of your note and mortgage, enabling you to keep your home.

This may sound too good to be true, but you may actually have valuable defenses and counterclaims against your mortgage company that could actually prevent foreclosure and even require your lender to pay you damages.  Across the country, judges are punishing mortgage companies for incomplete record keeping and for violations of the Truth In Lending Act.  You may be able to allege valid defenses including fraud and Truth In Lending Act violations.

Are you aware that your mortgage company is probably not the same company that actually loaned you the money to buy or refinance your home?  How do you know if the mortgage company suing you has been properly assigned your note and mortgage?  Your mortgage company may have failed to properly assign the note and mortgage before initiating the foreclosure.  Does your foreclosure complaint even have copies of the note, mortgage and purported assignment attached?

Most likely, these documents are not attached, especially the assignments, and may not even be in the possession of your mortgage company.  Your mortgage company may be attempting to substitute your original note and/or mortgage with a purported copy.  This is called a “Count to Establish Lost Documents.”  There are strict legal requirements to establish a lost note or mortgage, and your mortgage company may be unable to meet the requirements if challenged.

If your current mortgage company is not your original lender, it probably has never read your mortgage.  Your mortgage may require that the plaintiff accelerate (i.e. demand) the entire balance of the note.  Your mortgage company may have failed to do that, which may entitle you the opportunity to cure the mortgage by paying the reinstatement amount.  It is also common for mortgage companies to inflate the balance due on the mortgage by charging homeowners junk fees, such as Broker Price Opinions (BPO), property inspections and other “property preservation expenses.”

So, essentially, your mortgage company may have filed an improper foreclosure lawsuit, but your time is limited.  You have or will be served a copy of the foreclosure complaint by a process server.  You typically have only 20 days to respond to the mortgage company’s complaint, so you need to see an attorney immediately if you wish to defend against the foreclosure.  If you are beyond the twenty days, there are still defenses that can be raised.  It may even be possible to vacate a foreclosure judgment and sheriff’s sale.

If you are wondering why you have not heard more about foreclosure defense, consider April Charney’s words: “Lawyers don’t go to law school to fight foreclosures. It’s a special skill set. Even most judges aren’t familiar enough with this because so few homeowners go into court.”

A variety of foot apparel, e.g., stockings, socks, etc., had been affixed by and/or around the fireplace mantle in said house, in a diligent and workmanlike manner, in the hope, and/or belief, that St. Nick a/k/a/ St. Nicholas d/b/a/ Santa Claus (hereinafter “Claus”) would arrive forthwith. The minor residents, i.e., children, of the aforementioned House were situated on or about their individual beds and were engaged in sleep-induced hallucinations, i.e., dreams, wherein visions of confectionary treats including, but not limited to, candies, nuts, and/or sugar plums, did dance, cavort, frolic, and otherwise appear in said dreams.

Whereupon I (hereinafter “the party of the first part”), being the joint-owner in fee simple of the House with Mamma (hereinafter “the party of the second part”), and the party of the second part had retired for a sustained period of sleep and/or rest. At such time, both parties were clad in various forms of sleepwear and headgear, e.g., night gowns, kerchiefs and/or caps.

Suddenly, and without prior notice or warning, there did occur upon the unimproved real property adjacent and appurtenant to said House, i.e., the lawn, a certain aural disruption of unknown origin, nature, cause or circumstance, that did interfere with the parties’ quiet enjoyment of said property, so much so that the party of the first part did precipitously proceed to a nearby window of said House to investigate the cause of said disruption and disturbance.

At that time, the party of the first part did observe, with some degree of confusion, wonder and/or disbelief, a miniature sleigh (hereinafter “the Vehicle”) being pulled, propelled and/or drawn by approximately eight (8) diminutive reindeer. The driver of the Vehicle appeared to be, and in fact was, the previously referenced Claus.

Said Claus did then provide specific direction, instruction and/or guidance to the approximately eight (8) reindeer and, thus, expressly identified the antlered co-conspirators by name: Dasher, Dancer, Prancer, Vixen, Comet, Cupid, Donner, and Blitzen (“hereinafter “the Deer”). Upon information subsequently received, it is believed and, therefore, further averred that an additional co-conspirator named “Rudolph” may have been involved.

The party of the first part witnessed Claus and the Deer as they intentionally, willfully, and with reckless disregard for the safety of the occupants of the House and other neighborhood dwellings, did trespass upon the roofs of several dwellings located adjacent to and in the vicinity of the House, and it was noted that the Vehicle was heavily laden with merchandise, packages, toys, and other items of unknown origin or nature. Suddenly, and without invitation, permission or license, either express or implied, the Vehicle arrived at the House, and Claus did break, enter, and defiantly trespass upon said House via ingress through and down the chimney.

Said Claus was clad in a red, fur-trimmed suit, which was partially discolorured by charred residue from the interior of the chimney, and he carried a large sack with which he conveyed, transported or, otherwise, asported or carried a portion of the aforementioned merchandise, packages, toys, and other unknown items. He lit and began smoking what appeared to be tobacco, or some unknown substance, in a small pipe in blatant, open and notorious violation of local ordinances and public health regulations and, possibly, The Controlled Substance, Drug, Device and Cosmetic Act.

Claus did not speak, but immediately began to fill the afore-mentioned pre-hung stockings of the minor children with toys, and other small objects, however, said items may or may not constitute “gifts” as that term is defined in the applicable provisions of the U.S. Tax Code.

Upon completion of such task, Claus touched the side of his nose and flew, rose and/or ascended up the chimney of the House to the roof where the Vehicle and Deer waited and/or served as “lookouts” to further aid and abet the alleged nefarious enterprise. Claus then immediately fled and/or departed for an unknown destination, apparently to avoid apprehension. However, prior to said departure of the Vehicle, Deer, and Claus from the House, the party of the first part did hear Claus state, exclaim and/or spontaneously utter: “Merry Christmas to All, and to All a Good Night!”, or words to that effect.

Thanks to Ralph Ostermueller of fvginternational.com for this legalese.

Fortunately, the judge saw the facts in a light favorable to my clients, and the judgment ($2,975.00) was for the amount that my clients had already agreed was owed.  Even better, this amount was almost completely covered by their security deposit.  It is great to have satisfied clients, even if the case is not that big.  I know that it was a big case from my clients’ perspective.

I recognize that the legal profession’s traditions – the world’s most respected legal education system, most successful law firms and fairest court system – were once radical innovations.

In this time of economic crisis, I am committed to improving those institutions and creating innovation in the practice of law.  I will question and, when appropriate, change the status quo.  And I will use technology to serve my clients and society.

I’ll help remake the profession I hold dear so it can continue to deliver on America’s promise.

I’m an innovator.  A maverick.  A pathfinder.

I am a Legal Rebel.

via Legal Rebels – Manifesto.