While it is true that most of the mortgage crisis falls squarely on the shoulders of banks, and I blog about that often, many homeowners have utterly failed to take simple steps to help themselves.
My husband I have dug ourselves out of many debts. One early example I remember was, when we were very young, being ripped off by a rental car company. Even though the car broke down and the rental car company refused any help, they charged us for all the days the car was inoperable. This was grossly unfair. We had no way to return the car to the rental car agency if it was broken down. At the same time, the rental car agency charged all the days to our credit card, and we did not want to incur interest or late fees. To make things worse, we had to spend two unplanned nights in a hotel on the road and pay a towing fee. The hotel and tow truck wiped out the extra money we had saved for travel.
My husband and I immediately stopped buying groceries. Even though we were in college and only spent about $20 per week on groceries, we pulled in even tighter. We took an inventory of what we had on hand and used those food items instead of buying more. Some of the meals we prepared were not very appealing, but we saved much of our grocery money toward the debt. When we did buy food, we ate even simpler than usual. We purchased little more than dried beans and rice that month. We rode our bikes everywhere, no matter how inconvenient, to save on gas and bus fare. Needless to say, meals out at restaurants, movies, and shopping did not happen.
As it turned out, over the course of a month and many, many hours "on hold" with everyone from the rental car company to the credit card company to the Attorney General, the problem was resolved in our favor. At the end of the month, we had accumulated almost $200.00.
Was our effort wasted due to not needing the $200.00? No. Anything we gave up buying could still be bought, and the $200.00 was a small nest egg. Had the problem not been resolved, we could have paid over half of the unexpected debt instead of accumulating interest and late fees. This will surprise many people, but if you bypass a product in the store, it doesn't die of embarrassment. It is still there for sale when you return with cash. By living simply another month, we could have retired all the debt from the fiasco, had this been needed.
There are a few lessons here that apply to any situation:
1. Stop spending. Just stop. No one guides you by remote control to the mall. While there are necessities of life that must be addressed, much of what we buy is not necessary. To this day, with a far different budget than when I was in college, it is rare that I do not return something to the shelves before leaving the store. As I think about how an item will be used, I realize it is not worth the price--even if the price is "only" a dollar.
I once counseled a couple in foreclosure and went to their home to have papers signed. Even though they had not paid their attorney bill in months and I barely had gas money to get to their lavish suburban home, the couple had everything in their home brand-new. There wasn't a dish towel with a small hole or bathroom towel showing wear in the home. The accessories and furniture were all of a design that was from that very season, meaning it was bought while my bill languished. The cable television was blaring on a large-screen television (my bankruptcy friend has NEVER filed a bankruptcy petition that did not include a cable bill). The family's dinner that night was pizza that was delivered while I was in the home--no on-sale Tombstone for this crowd!
2. Cancel subscriptions. I cannot repeat the anecdote about my friend who represents people in bankruptcy often enough. While it is true the deck is stacked against consumers in our society, there are some things we can do. When the going gets tough, the tough cancel their cable, their magazine subscriptions, reduce their monthly data plan to meet business needs and no more, and find all the extra spending they can possibly stop--and stop it.
I have had many people say to me that they have to stay entertained. However, there are more free entertainment resources than one can ever use. Just taking a walk costs nothing, and my husband and I are big fans of public parks. We often spend an entire weekend day in a park with a picnic lunch. We come home too tired to worry about the fact we don't have cable.
During our financial problem in college, my husband and I found more time to read than ever before. I found old craft supplies in my closet, brushed them off, and completed several projects that were laid back for holiday gifts. We cleaned up our house, went for walks, and generally enjoyed ourselves. It gives away our age to reveal television was free back then, but we did have television. The really happy memory from that time, though, is remembering that I confided in our friend Julia about our predicament. Julia suddenly became unable to cook the right amount for one, and needed help with leftovers at least once a week. I don't think I would have ever appreciated her for the dear friend she was if we had not gone through this struggle.
3. When someone tries to help you, provide them what they need. I spend many hours helping people in foreclosure at low or no cost. One of the amazing things is that people will not do what is needed to solve their problem. As if it isn't enough to take my time to explain legal issues at no cost, I am required to send many, many reminders to get the homeowner to provide simple paperwork in their possession.
I recently had someone forget to send me paperwork for over two weeks of a one-month court deadline. She then mailed it to an address with no relation to me she found on the Internet because I didn't provide her my address. When I pointed out I had provided my address and that it was in the very email chain where she said I didn't email my address, she said she didn't say I didn't email it. Once a person has decided to sabotage themselves financially, there is no statement too ludicrous for that person to believe if it hurts their chances of financial recovery.
I have provided sample pleadings for people to file in court, and had them "not have time" to go to the courthouse. Worse, they accept free help, file paperwork, and get a court date assigned, then miss the court date.
My time is valuable. I show other people I value their time by following through with commitments. During the time I was trying to resolve our rental-car problem, I spent as much time as was needed "on hold" with everyone involved. When the attorney general needed a copy of my contract, I sent it. I rode my bike to a Kinko's, paid my dollar, and faxed the sheet. I did it the day the contract was requested. This is how one behaves when one wants, and deserves, help at no cost.
I cannot account for people who fail to send needed items to me when they are paying for my time. There must be some masochistic pleasure in increasing one's monthly bill by simply withholding information needed.
Whatever the excuse, it cannot be true at the same time that one is in foreclosure due to unemployment and that one does not have time to go to court or provide a pro bono attorney with needed paperwork.
4. Sell your stuff. A few years ago, I took a break from practicing law. Every month for a long time, I paid my mortgage strictly out of revenue from selling books on-line. After finding out how easy it was to sell books, I began cleaning closets and selling all of my unused items. I had several small rummage sales on my lawn--I met my neighbors, cleared out my closets, and made money.
I don't think selling a few books will save most homes from foreclosure (though I did pay my mortgage with mine). But it amazes me when I meet someone who is unemployed and find they aren't supplementing their income with some simple ways to earn money.
During the year or so I was off, I developed a real passion for selling off what wasn't needed. I started baking dog treats to sell, and I enjoyed bonding with my dog. I still had some income from a few clients I kept, but I at least doubled that amount with low-stress, fun Internet selling and rummage sales.
5. Learn to cook. My husband and I truly enjoy meals out. We like trying new cuisines. We are not big fans of cooking and cleaning up afterward. However, through all the financially-tough times in our lives, eating meals at restaurants has been one of the first luxuries to go. Cooking at home is one of the quickest ways to save several hundred dollars per month. Let me repeat that: depending on the number of mouths you feed and the cost of the restaurants, cutting out restaurant meals saves several hundred dollars per month. This includes giving up the odd practice of bringing home restaurant food (Hey! look! I paid for this, but I still get to clean up the mess!) as well as meals eaten in the restaurant.
6. Save. Many people in foreclosure right now tell me, "The bank will not accept my payments, but I can afford to pay."
This statement is not too believable if there is not some money in the bank. If you do have your monthly payment and the bank refuses it, place the money in an interest-bearing bank account. Spend the money only on items related to the house (taxes, homeowners' insurance, condo assessments, fees for a good attorney, and court costs). While it is tempting to pay off unsecured loans or spend freely on shopping, this is not the path to saving your home.
If you cannot afford to save your monthly house payment and earn interest on it, you cannot afford the payment. Even if you hit upon hard times, commit to saving some portion of the payment. It is very simple that it is easier to solve a problem when you have some money to offer the other side. Even if the foreclosure is not resolved, the money saved is a starter fund for a new place to live and moving expenses.
It is true that I was ripped off by the rental car company. The amount of debt was small compared to the debt homeowners assume, but it was huge given the very limited means my husband and I had at the time. We made it through because we were persistent in asking for help, provided our helpers the tools they needed, and took steps to save money to pay if we were unable to resolve the problem.
Sunday, September 23, 2012
Saturday, September 8, 2012
Resistance Legal Clinic
http://resistancelegalclinic.chipin.com/refreshments-and-supplies-for-9242012-student-training
In May of 2012, I began Resistance Legal Clinic in Chicago. We are a small group, with no funding. The time I have devoted to the group is reflected in the fact there have been no posts in this space for several months.
In contrast to the efforts that take $3.5 million or so in government funds and accomplish little, our small group has served many people without using any financial resources.
With 10 student volunteers and 5 attorney-mentors, we served over 50 homeowners over the summer. We staffed 3 Save-Your-Home events.
I am gratified to have a new crop of student volunteers with fall semester beginning. In addition, there are a few returning students. We will have a training for them on September 24, 2012, in space donated by DePaul University School of Law.
I am taking advantage of this space to advertise the opportunity to chip in for supplies and refreshments for our student volunteers. I get a lot of rewarding personal email messages about the blog, some of which ask me to let the writer know what they can do in return. Those who are so inclined can donate at:
\http://resistancelegalclinic.chipin.com/refreshments-and-supplies-for-9242012-student-trainin
In May of 2012, I began Resistance Legal Clinic in Chicago. We are a small group, with no funding. The time I have devoted to the group is reflected in the fact there have been no posts in this space for several months.
In contrast to the efforts that take $3.5 million or so in government funds and accomplish little, our small group has served many people without using any financial resources.
With 10 student volunteers and 5 attorney-mentors, we served over 50 homeowners over the summer. We staffed 3 Save-Your-Home events.
I am gratified to have a new crop of student volunteers with fall semester beginning. In addition, there are a few returning students. We will have a training for them on September 24, 2012, in space donated by DePaul University School of Law.
I am taking advantage of this space to advertise the opportunity to chip in for supplies and refreshments for our student volunteers. I get a lot of rewarding personal email messages about the blog, some of which ask me to let the writer know what they can do in return. Those who are so inclined can donate at:
\http://resistancelegalclinic.chipin.com/refreshments-and-supplies-for-9242012-student-trainin
Sunday, February 12, 2012
Weirdos, Freaks, and Kooks: Is this Foreclosure or Match.com?
A repost from www.kellidudley.com
A few years ago, I was divorced and dating. While I ultimately got back together with my husband, the experience made a lasting impression on me. Finding myself suddenly single in my late 30s was a big life transition. I had the challenge of setting out to find “the one” long after I thought dating was part of my past. Reaching out, I was overwhelmed with advice. Some of it was very good and helped me become a more confident person. Most of it was negative and even the faint memory of it is enough to send me running for the nearest liposuction clinic/eyebrow wax/exercise tape/skin conditioner/make-over counter.
The people with the negative products to sell are not, for the most part, well-meaning bumblers. They are an industry that invests lots of money in teaching us to feel badly about ourselves so we will buy products we do not really need. Even though I have had compliments on my skin all my life, I found myself standing in a lotion aisle and feeling utterly confused. Within the same brand and price-point, I could work on my pasty complexion, even out my red spots, quit looking so shiny and greasy, fight my obnoxious body odor, work on my cellulite, reduce my corns, protect against winter’s drying effects, and so on. If I chose just the right combination, the labels implied, there was a slight chance I might avoid dying old, broke, and alone.
Just as cosmetics companies stand to make money from newly-single, nervous daters, there are lots of people out there waiting for people to make poor decisions based on the fear they feel when they fall behind on their mortgages. Just like a cosmetics manufacturer, a loan “auditor” knows someone who is feeling at the top of his or her game is not the best customer. They wait for weak times in the economy to take hold, forcing people out of their comfort zone to shop for solutions to a new problem. These people feel just as ill-equipped to handle financial and legal decisions as I felt to know whether to answer a Match.com message.
You have potential matches!
1. Hi! I am free-legal-site Amy Attorney. I give glib legal advice on a site that invites me to do so without learning all the facts of your case. There is a disclaimer warning you about this, but you won’t pay attention to that any more than you will pay attention to a first date’s being ten minutes late. The real motivation of the site is to advertise attorneys. It lets anonymous users rank the attorneys, so I had my mom log in ten times and give me kudos. Of course, she SAID I saved her home from foreclosure. (Well, I would if I had to—I live with her, a little perk that helps finance my fancy office and extravagant lifestyle!) But the great part is, you’ll just read the little inaccurate snippet of advice, decide I’m an expert, and call me Monday. You’ll be so eager to hire me, you won’t question why I need a $3,000 retainer or ask how much my fee is per hour. By the time you do, your house will be gone and you’ll have other things to worry about. Since you trust what you read about me on the website, you’ll never check with the state’s real disciplinary authorities to read about how I have been disciplined for taking advantage of people just like you.
2. Greetings! As an experienced Auditor, I, Armand, am eager for our first date. You should bring at least $1,500. I’ll prepare a report for you that sets forth violations your lender may have made based on a review of your loan papers. Then, I’ll refer you to Attorney Amy (you may have seen her on freecrappyadvice.com). By the time Amy soaks you for more money and does nothing, you’ll be out of cash and out of your home. Maybe you will never be able to afford a real attorney who would tell you most of the “problems” I pointed out don’t have a private cause of action, have a statute of limitations that expired months ago, and are certainly no excuse to quit paying your mortgage as Attorney Amy is going to advise. But by the time you figure all this out, if you do, you’ll be broke and homeless. So what do you really think you are going to do to get even with us? (Oh, that $3,000 Amy took from you for attending a single court date? Yeah, just so you know, you aren’t getting that back.)
3. Let’s get together . . . I’m class-action Carl. I file class actions with unfounded allegations. I recently filed a lawsuit stating a loan violated the Anti-Slavery Act and the Homestead Act. By the time you find out those laws don’t apply and don’t grant the relief I’ve requested, you’ll have waived all your legitimate rights to defend your foreclosure. You’ll feel good about having met me because I have a fancy downtown office, spent more on my suit than somebody should spend on a car, and sure do look successful! Happy homelessness . . . . Hey, thanks for the retainer fee!
4. Man, forget those guys up there. I’m Angela Davis. Well, not really, but we have pretty much the same bio—except I never went to prison for something I believed, wrote any books, or took any action designed to do more than line my pockets. I am a disbarred attorney, but that doesn’t matter because I am a community activist. I talk the talk, and that’s what counts. Now, quit all that fuss about your mortgage and vote for me!
5. I’m mortgage-modifying Marty. That’s right, for the low, low price of $1,500, I will negotiate with your bank. I won’t tell you I learned my best business tactics from dating: never call again! That’s right, I’ll take your money and disappear! At best, I won’t tell you that you can talk to your bank for free (I have no special qualifications) or that you can get help from the best experts for FREE through HUD-Certified Housing Counseling agencies at www.HUD.gov Maybe I’m a lawyer, making it seem even worse that I’m not looking out for your best interests, or maybe I’m just a guy off the street. Either way, thanks for the cash!
Just as Match.com offers unlimited losers, there are more variations on the above than I can set forth here. However, it is important to only work with legitimate attorneys. Those who engage in the kinds of tactics set forth above are responsible for the loss of more money and homes than are the banks who caused the foreclosure crisis in the first place.
If you are in foreclosure, that is a fact of life, and you have to deal with it rationally. The freaks and weirdos know you are not at your best right now. Take time to find reliable attorneys and consult with HUD-Certified Housing Counseling agencies (www.hud.gov).
And consider doing something about that dry skin . . . .
Friday, February 10, 2012
Should I hire someone to help modify my mortgage?
This is a repost from www.kellidudley.com.
Generally, you should not hire someone to assist with a loan modification. Free help is available through HUD-Certified Housing Counseling agencies listed at www.HUD.gov.
The Illinois Department of Financial and Professional Regulation, one of the state agencies helping protect Illinois consumers, mandates those providing modification services be properly licensed. More information is available here:
http://www.idfpr.com/Banks/RESFIN/mortloanmodscams.asp
Attorneys may also prey on homeowners in foreclosure or seeking a loan modification. Attorneys should not provide these services unless they have the proper license from IDFPR or are providing the service as part of legal representation. For example, an attorney might file a lawsuit against a lender for violating a law when the mortgage was made and include a modification as part of the settlement. However, an attorney should not generally accept money for doing nothing more than working on a loan modification.
I refer my clients to www.HUD.gov to choose a HUD-Certified Housing Counseling agency. It seems unprofessional and unfair to take money to do a service that someone else can do better and cheaper. I am no more a counselor than I am a cook or a housekeeper, and I certainly do not charge legal fees to cook and clean for my clients.
Attorneys who aggressively seek clients for loan modification seem to be missing the obvious: there are plenty of people who need the help of an attorney in court.
Those who have paid for a loan modification service should contact an attorney to ensure it was done in compliance with Illinois law. This includes a written contract and no payment until the service is complete. Homeowners who have paid for loan modification services may be able to bring a lawsuit and collect damanges.
Generally, you should not hire someone to assist with a loan modification. Free help is available through HUD-Certified Housing Counseling agencies listed at www.HUD.gov.
The Illinois Department of Financial and Professional Regulation, one of the state agencies helping protect Illinois consumers, mandates those providing modification services be properly licensed. More information is available here:
http://www.idfpr.com/Banks/RESFIN/mortloanmodscams.asp
Attorneys may also prey on homeowners in foreclosure or seeking a loan modification. Attorneys should not provide these services unless they have the proper license from IDFPR or are providing the service as part of legal representation. For example, an attorney might file a lawsuit against a lender for violating a law when the mortgage was made and include a modification as part of the settlement. However, an attorney should not generally accept money for doing nothing more than working on a loan modification.
I refer my clients to www.HUD.gov to choose a HUD-Certified Housing Counseling agency. It seems unprofessional and unfair to take money to do a service that someone else can do better and cheaper. I am no more a counselor than I am a cook or a housekeeper, and I certainly do not charge legal fees to cook and clean for my clients.
Attorneys who aggressively seek clients for loan modification seem to be missing the obvious: there are plenty of people who need the help of an attorney in court.
Those who have paid for a loan modification service should contact an attorney to ensure it was done in compliance with Illinois law. This includes a written contract and no payment until the service is complete. Homeowners who have paid for loan modification services may be able to bring a lawsuit and collect damanges.
Sunday, February 5, 2012
A fresh start . . .
No, I didn't hire a scammer to file a cover-page bankruptcy for me (they always advertise, "a fresh start"). I started a new webpage I hope will be a good place to post accurate information related to foreclosure, predatory lending, and related topics.Take a peek . . . at www.kellidudley.com
Saturday, February 4, 2012
Foreclosure. The bank alleges a default on a mortgage. A lawsuit is begun, but due process is not followed. All assumptions are in favor of the bank.
Many years of legal theory are destroyed with each foreclosure judgment. Burden of proof--gone. Due process--gone. Equity--gone.
Where the legal system once recognized allegations in a lawsuit as allegations--matters subject to proof, allegations of default in foreclosure actions are taken as immutable truths. Where service of process--the right to notice of a lawsuit and the right to be heard--once was considered sacrosanct, judgments are entered where "special process servers" lie to rush lawsuits through the system. Where equity once abhorred a forfeiture and rewrote contracts to honor the intentions of the parties rather than punish an allegedly-defaulting party, homeowners accused of mortgage default are stripped of all the equity in their home even though they are no more at fault for the downturn in the housing market than the lender.
Macchiavelli pointed out that taking the offensive is a way to keep ahead of the enemy, to control the course of history. Homeowners have, on the average, not read enough Machiavelli. We have let the foreclosure crisis come to us.
Now it is time to take the crisis to those who would foreclose.
Homeowners have two powerful weapons: the Fair Housing Act and the Equal Credit Opportunity Act.
The Fair Housing Act applies to almost any transaction related to housing. Many may believe this has to do with refusing to sell or rent a home, but courts have allowed suits based on the Fair Housing Act to proceed where the alleged wrong was refusing to sell insurance or other services needed to obtain housing. Standing under the Fair Housing Act is broad. Communities and housing organizations can, in some cases, have standing.
The Equal Credit Opportunity Act applies to lending transactions. The Seventh Circuit Court of Appeals has specifically held it applies to loan modification applications.
Both laws prohibit discrimination based on "protected class." Though there is a slight variation in the classes protected--and state and local law may add classes--the classes include race, national origin, disability, religion, gender, and familial status.
The use of the Fair Housing Act--a broadly-construed civil rights statute that has withstood attempts to weaken its reach--is homeowners' best hope for turning the tide of the foreclosure crisis.
Modification decisions can be attacked under the Fair Housing Act and Equal Credit Opportunity Act. Was a denial based on race? Did the lender refuse to consider income because someone had been on maternity leave? Did the lender ask a woman what she was doing about birth control? Did the lender refuse to alter its modification procedures so they could be accessed by a person with a disability? Is the lender assuming homes in majority-minority communities are worth less than those in other neighborhood and denying modifications accordingly?
Foreclosures can be attacked under the Fair Housing Act. Is the lender foreclosing more rapidly on homes in a minority-majority neighborhood? Is the lender taking more shortcuts, such as filing false affidavits, if the homeowner has a "foreign sounding" name (under the assumption the person does not speak English and will not appear in Court to clarify misrepresentations)?
Post-foreclosure servicing may also provide room for litigation under the Fair Housing Act. Is the lender maintaining homes in white neighborhoods and letting those in majority-minority neighborhoods crumble to the ground? Are people from one racial group offered the chance to rent the home back while others are hustled out on a speedy eviction?
Many of the practices above could also give rise to claims under the Fair Debt Collection Practices Act.
By evaluating foreclosure files to see if claims like the ones above are viable, attorneys and homeowners can turn the tables on lenders. We can serve the summons. We can set the court dates. We can rule the negotiating table.
Oh, yes, we will stay in our homes.
The Romans never allowed a trouble spot to remain simply to avoid going to war over it, because they knew that wars don't just go away, they are only postponed to someone else's advantage. Therefore, they made war with Philip and Antiochus in Greece, in order not to have to fight them in Italy... They never went by that saying which you constantly hear from the wiseacres of our day, that time heals all things. They trusted rather their own character and prudence— knowing perfectly well that time contains the seeds of all things, good as well as bad. -- Machiavelli, The Prince, Ch.3
Many years of legal theory are destroyed with each foreclosure judgment. Burden of proof--gone. Due process--gone. Equity--gone.
Where the legal system once recognized allegations in a lawsuit as allegations--matters subject to proof, allegations of default in foreclosure actions are taken as immutable truths. Where service of process--the right to notice of a lawsuit and the right to be heard--once was considered sacrosanct, judgments are entered where "special process servers" lie to rush lawsuits through the system. Where equity once abhorred a forfeiture and rewrote contracts to honor the intentions of the parties rather than punish an allegedly-defaulting party, homeowners accused of mortgage default are stripped of all the equity in their home even though they are no more at fault for the downturn in the housing market than the lender.
Macchiavelli pointed out that taking the offensive is a way to keep ahead of the enemy, to control the course of history. Homeowners have, on the average, not read enough Machiavelli. We have let the foreclosure crisis come to us.
Now it is time to take the crisis to those who would foreclose.
Homeowners have two powerful weapons: the Fair Housing Act and the Equal Credit Opportunity Act.
The Fair Housing Act applies to almost any transaction related to housing. Many may believe this has to do with refusing to sell or rent a home, but courts have allowed suits based on the Fair Housing Act to proceed where the alleged wrong was refusing to sell insurance or other services needed to obtain housing. Standing under the Fair Housing Act is broad. Communities and housing organizations can, in some cases, have standing.
The Equal Credit Opportunity Act applies to lending transactions. The Seventh Circuit Court of Appeals has specifically held it applies to loan modification applications.
Both laws prohibit discrimination based on "protected class." Though there is a slight variation in the classes protected--and state and local law may add classes--the classes include race, national origin, disability, religion, gender, and familial status.
The use of the Fair Housing Act--a broadly-construed civil rights statute that has withstood attempts to weaken its reach--is homeowners' best hope for turning the tide of the foreclosure crisis.
Modification decisions can be attacked under the Fair Housing Act and Equal Credit Opportunity Act. Was a denial based on race? Did the lender refuse to consider income because someone had been on maternity leave? Did the lender ask a woman what she was doing about birth control? Did the lender refuse to alter its modification procedures so they could be accessed by a person with a disability? Is the lender assuming homes in majority-minority communities are worth less than those in other neighborhood and denying modifications accordingly?
Foreclosures can be attacked under the Fair Housing Act. Is the lender foreclosing more rapidly on homes in a minority-majority neighborhood? Is the lender taking more shortcuts, such as filing false affidavits, if the homeowner has a "foreign sounding" name (under the assumption the person does not speak English and will not appear in Court to clarify misrepresentations)?
Post-foreclosure servicing may also provide room for litigation under the Fair Housing Act. Is the lender maintaining homes in white neighborhoods and letting those in majority-minority neighborhoods crumble to the ground? Are people from one racial group offered the chance to rent the home back while others are hustled out on a speedy eviction?
Many of the practices above could also give rise to claims under the Fair Debt Collection Practices Act.
By evaluating foreclosure files to see if claims like the ones above are viable, attorneys and homeowners can turn the tables on lenders. We can serve the summons. We can set the court dates. We can rule the negotiating table.
Oh, yes, we will stay in our homes.
The Romans never allowed a trouble spot to remain simply to avoid going to war over it, because they knew that wars don't just go away, they are only postponed to someone else's advantage. Therefore, they made war with Philip and Antiochus in Greece, in order not to have to fight them in Italy... They never went by that saying which you constantly hear from the wiseacres of our day, that time heals all things. They trusted rather their own character and prudence— knowing perfectly well that time contains the seeds of all things, good as well as bad. -- Machiavelli, The Prince, Ch.3
Sunday, January 15, 2012
Fraudsters Never Rest
I took a break from this blog and intended to be absent during a career transition.
However, fraudsters do not rest. Fighting fraudsters appears to mean no rest for me.
The latest reason for my frustration: the Illinois Appellate Court issued an an opinion on December 23, 2012. During the course of the holidays, fraudsters have taken the opinion and used it to stir up discontent and confusion among homeowners facing foreclosure. For a fraudster, whether an attorney in the business of charging a lot of money for sub-standard legal work or a real estate agent intent on sleazy deed scams, confusion is currency. A confused homeowner will storm out of the law office or community meeting of an attorney offering solid legal advice and come back only after learning the person who "guaranteed" to save their home and took $3000 never attended a single court date.
This being said, I am not against looking carefully at the facts of each case, every document involved in the case, and the law that applies. However, in litigation as in life, "no" often means "no."
Using a legitimate and final "no" to create confusion is the tactic currently in use by a fraudster circulating materials in Illinois that indicate summonses issued in Cook County are illegitimate because they are not signed by the Clerk.
Cook County is full of people, most of them lawyers. It is the home of largest unified court system in the United States. In the foreclosure area alone, upward of 100,000 cases are filed per year. Each case is, ideally, begun with a summons and complaint. The summons needs to be "signed" by the Clerk of Court. The problem is that the Clerk is an energetic woman, but hasn't yet mastered signing every summons in every case filed in each of Cook County's several courthouses. I mean, she's good--but she's no Linda Green.
A lawyer decided to make a big deal out of this and file some last-minute litigation to try to save the homes of people who admittedly were served with the summons and complaint but did not effectively respond to the lawsuit. The argument was that since the Clerk does not sign each summons individually but allows deputy clerks to affix a stamp and seal, she rendered each summons defective.
It is hard to imagine the scenario where the lawyer advancing this argument believed it was legally valid. Any lawyer who has ever filed a lawsuit in Cook County has seen the very same stamp and seal affixed to the summons he or she prepared. Although I think of myself as fighting on the side of right, I have filed many lawsuits with which someone out there (at least the defendant) disagreed. Time and again, I have walked my stamped-and-sealed summons to the Sheriff's office to be served.
The utter insincerity of challenging such a practice is hard to comprehend. However, the lawyer did not stop at the trial stage, where one of the most thorough judges to ever sit on the bench held the stamp and seal of the Clerk were valid. Instead, the case was appealed. Predictably, the appellate court sided with the plaintiff.
My own tastes aside, the courts exist for litigation, and asking the trial and appellate courts to decide issues is the role of the attorney. It seems the issue in the case was purely imaginary, but lawyers can disagree about these things and it is the role of judges to decide.
However, now, the party is doing the inexcusable: sending out mass email messages and maintaining a website encouraging people to contact the judges through a petition and to order their very own "Clerk Brown" stamp. The implication is that people should forge the Clerk's name.
This is an illegal action. Adding confusion the law and the process with these materials is inexcusable. People in foreclosure need real information, not utter stupidity aimed at causing them to fall prey to fraudsters.
Anyone receiving solicitations about this matter should report it to the Illinois Attorney General.
And, think twice before writing that check to the attorney with the great and novel legal theory. Good legal work is understandable, terms are defined in writing, and the sums charged are set forth clearly. If someone guarantees to save your home, I guarantee you are about to become the victim of fraud.
However, fraudsters do not rest. Fighting fraudsters appears to mean no rest for me.
The latest reason for my frustration: the Illinois Appellate Court issued an an opinion on December 23, 2012. During the course of the holidays, fraudsters have taken the opinion and used it to stir up discontent and confusion among homeowners facing foreclosure. For a fraudster, whether an attorney in the business of charging a lot of money for sub-standard legal work or a real estate agent intent on sleazy deed scams, confusion is currency. A confused homeowner will storm out of the law office or community meeting of an attorney offering solid legal advice and come back only after learning the person who "guaranteed" to save their home and took $3000 never attended a single court date.
This being said, I am not against looking carefully at the facts of each case, every document involved in the case, and the law that applies. However, in litigation as in life, "no" often means "no."
Using a legitimate and final "no" to create confusion is the tactic currently in use by a fraudster circulating materials in Illinois that indicate summonses issued in Cook County are illegitimate because they are not signed by the Clerk.
Cook County is full of people, most of them lawyers. It is the home of largest unified court system in the United States. In the foreclosure area alone, upward of 100,000 cases are filed per year. Each case is, ideally, begun with a summons and complaint. The summons needs to be "signed" by the Clerk of Court. The problem is that the Clerk is an energetic woman, but hasn't yet mastered signing every summons in every case filed in each of Cook County's several courthouses. I mean, she's good--but she's no Linda Green.
A lawyer decided to make a big deal out of this and file some last-minute litigation to try to save the homes of people who admittedly were served with the summons and complaint but did not effectively respond to the lawsuit. The argument was that since the Clerk does not sign each summons individually but allows deputy clerks to affix a stamp and seal, she rendered each summons defective.
It is hard to imagine the scenario where the lawyer advancing this argument believed it was legally valid. Any lawyer who has ever filed a lawsuit in Cook County has seen the very same stamp and seal affixed to the summons he or she prepared. Although I think of myself as fighting on the side of right, I have filed many lawsuits with which someone out there (at least the defendant) disagreed. Time and again, I have walked my stamped-and-sealed summons to the Sheriff's office to be served.
The utter insincerity of challenging such a practice is hard to comprehend. However, the lawyer did not stop at the trial stage, where one of the most thorough judges to ever sit on the bench held the stamp and seal of the Clerk were valid. Instead, the case was appealed. Predictably, the appellate court sided with the plaintiff.
My own tastes aside, the courts exist for litigation, and asking the trial and appellate courts to decide issues is the role of the attorney. It seems the issue in the case was purely imaginary, but lawyers can disagree about these things and it is the role of judges to decide.
However, now, the party is doing the inexcusable: sending out mass email messages and maintaining a website encouraging people to contact the judges through a petition and to order their very own "Clerk Brown" stamp. The implication is that people should forge the Clerk's name.
This is an illegal action. Adding confusion the law and the process with these materials is inexcusable. People in foreclosure need real information, not utter stupidity aimed at causing them to fall prey to fraudsters.
Anyone receiving solicitations about this matter should report it to the Illinois Attorney General.
And, think twice before writing that check to the attorney with the great and novel legal theory. Good legal work is understandable, terms are defined in writing, and the sums charged are set forth clearly. If someone guarantees to save your home, I guarantee you are about to become the victim of fraud.
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