Dear Randy Kelton:
Rumor has it that you referred to me as a “Mean Son-of-a-bitch” on Talkshoe. I write this in response. Feel free to promulgate it to others.
First of all, I have never met you in person, but when I mused over the spanking a Texas judge gave in a foreclosure defense effort, and you said you lost the case intentionally, I concluded that you are a better enemy than friend to foreclosure victims, and I wrote something similar on the LivingLiesTheTruth.com blog. Maybe that’s why you think I’m mean. As I see it, anyone who would lose a foreclosure case on purpose is mean.
I used to put on seminars to teach foreclosure defense. I quit after I concluded that NEARLY ALL foreclosure defenses fail utterly because borrowers agreed to allow foreclosure for failure to make timely loan payments. At best, most typical foreclosure defenses have standing as their basis, and ultimately the right party with standing will come forth, foreclose, and force a sale of the property, OR the borrower might convince the creditor to take a keys-for-cash or other deed-in-lieu-of-foreclosure deal. And sometimes the borrower can arrange for the creditor to approve of a short sale.
In any case, foreclosure defense efforts result in the borrower LOSING the house, LOSING all the cost of the defense, LOSING at least part of opponent’s attorney fees and costs, and LOSING in terms of the emotional wear and tear on the family. A temporary dismissal of a foreclosure action is NOT a win. It’s a dilatory ploy that violates bar rules, and actually just prolongs eventually losing the foreclosure defense effort.
I concluded after some investigation that fraud and other tortious conduct, legal errors, contract breaches and regulatory violations underlie MOST home loans of the past 15+ years, and that gives salient causes of action to borrowers who choose to go on the attack and seek damages in court or in negotiated settlement. So I created the Mortgage Attack web site to teach people to ATTACK the perpetrators of those causes of action. As you will see from a careful examination of the web site, I explain why foreclosure pretender defender attorneys (and similar practitioners) are nothing more or less than SCAMMERS trying to bilk their feckless clients out of money while leading those clients inexorably into the jaws of foreclosure. And I do not charge any money for giving people that education.
I do, however, recommend to all mortgagors that they enlist the services of a competent mortgage examiner who will find all the causes of action underlying the loan transaction and related events throughout the life of the loan, including litigation. I know only one firm competent enough to do that job, and I refer interested parties to that firm at NO CHARGE. Sure, the company charges a fee for that service, but it is about 1/3 of what a lawyer would charge IF the mortgage victim could find a lawyer competent to do the work, which he cannot.
It takes a monumental amount of knowledge and skill to find all the causes of action underlying the loan transaction. An investigatory team must know cold and have a profound WORKING KNOWLDGE of all the regulatory state and federal laws including FDCPA, FCRA, HOEPA, TILA, RESPA, ECOA, HAMP, HARP, etc., all the typical means of cheating borrowers, the intricacies of appraisal and lending practice and scams, mortgage lending processes nationwide, meticulous details of uniform lending instruments, contract law, tort law, statutes of limitations, unique laws, rules, and binding court opinions of various jurisdictions related to mortgage/deed-of-trust lending, the intricacies of mortgage loan servicing, loan modifications, forebearances, bankruptcies, foreclosure actions, non-judicial foreclosure process, note assignments, Federal and State rules of evidence, civil procedure, and LITIGATION PRACTICE. The team must examine the appraisal, loan application, note and allonges, security instrument, closing documents, escrow statements, servicer/creditor correspondence, legal notices, AND court filings, pleadings, petitions, motions, notices, transcripts, rulings, opinions, judgments, and orders.
WHO, Randy Kelton, DO YOU KNOW with that kind of knowledge and skill? Certainly none of the pompous pretenders pontificating about mortgage litigation on TalkShoe beyond the point of embarrassment.
Let me tell you what I consider constitutes “HELPING” a mortgagor facing foreclosure:
- Tell him the truth that he deserves to lose the house for failing to make proper, timely monthly payments and/or maintain the property in accordance with the loan security instrument.
- Tell him the truth that his best way of negotiating a loan mod favorable to him OR of winning MONEY DAMAGES is to get a competent loan examination team to examine all the documents and circumstances having anything to do with that loan from day zero to present time, including litigation documents, to FIND the proof of his injuries, present the statement of injuries with evidence to the creditor and other injurious parties, then demand settlement or sue.
- Tell him the truth that hiring a team to do that can easily cost $5,000, and if he cannot afford that, then …
- Tell him the truth that the honorable thing to do is to sell what he doesn’t need, rent another dwelling, call 800-689-8684 (Allied Van Lines) to schedule the family’s move, pack the household belongings, hand the keys to the creditor/servicer, shut off the utilities, and MOVE.
- Tell him the truth that attacking standing through responsive pleading or declaratory judgment / quiet title action will at best prolong the agony of loss of the property.
- Tell him the truth that short sale or deed in lieu of foreclosure are the best options if he cannot go on the attack, because those will minimize the damage to his credit rating.
- Tell him the truth that foreclosure defense through the courts will cost him money that he needs to save for moving his family, that he will ultimately lose, and that he will end up having to pay not only his own legal fees and costs, but also his adversary’s legal fees and costs.
- Tell him the truth that a loan modification is ONLY for people who can actually pay their mortgage payments fully and timely, and it is not for mortgagors who must struggle to pay because the balloon that comes due will put them right back into foreclosure if they are typical.
- Tell him the truth that a foreclosure battle can damage him and his family emotionally, and even cause the family to break up.
If you sell your mortgage rescue services to people WITHOUT telling them all the above, then how does my warning people to beware of your service make ME a “MEAN SON-OF-A-BITCH?”
Oh, you want to know WHO does that mortgage examination service that you cannot do because of your paucity of technical knowledge and meager experience?
I have yet to find ANY comparable service anywhere.