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Ocwen’s Net Income Takes a $57 Million Hit in Q2

Stan Burman:

Blog post with some good news. The net income of Ocwen Financial Corporation declined by $57 million from a year ago. That is always good news when a company like Ocwen starts seeing their profits decline.

Originally posted on rogerrinaldi:

Speaking of a job well done…..litigation against these bums works!

This article is from the fine folks at Default Servicing News…..

Ocwen Financial Corp. reported a second quarter net income of $10 million, or $0.08 per share, for the three months ended June 30, 2015, according to the company’s second quarter earnings statement.

Year-over-year, Ocwen’s net income declined by $57 million from $67 million, or $0.48 per share, for the second quarter.

“The company made positive strides on many fronts in the second quarter,” said Ron Faris, president and CEO of Ocwen. “We continue to work closely with our regulators and monitors, and the environment remains stable. Our efforts to build out a strong ‘bank-like’ risk and compliance infrastructure are taking hold. We were profitable and generated strong operating cash flow.”

According to the statement, Ocwen generated revenue of $463 million, down 16 percent from $553 million in the…

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THE END GAME IS TO INCREASE THE VALUE OF THE PROPERTIES WITH CLEAN TITLES…..

Stan Burman:

Good blog post about the top 50 US cities with the most “zombie” foreclosures. It also discusses how the big banks actually benefited from the backlog of foreclosure cases in judicial foreclosure states.

Originally posted on rogerrinaldi:

THE VACANT DEAD: THE 50 US CITIES WITH THE MOST “ZOMBIE” FORECLOSURES

vacant dead

THE VACANT DEAD: THE 50 US CITIES WITH THE MOST “ZOMBIE” FORECLOSURES

Over the past five years, first as a result of the 2010 robosigning scandal and then due to the natural build up of a massive backlog of cases in judicial states, which in some cases is well over 1000 days, America’s conventional house clearing mechanisms of foreclosure and bank repossessions had become clogged up to previously unseen levels.

Which was precisely how the banks wanted it: after all, by minimizing the supply of housing for sale, this served as an aritifical subsidy to the housing market. It achieved two things: it kept housing prices artificially high, and allowed millions to live in their house mortgage-free for years, while also providing a “spending stimulus” to millions who…

View original 659 more words

A Judgment Debtor Examination (JD) Exam for an individual in California

A Judgment Debtor Examination (JD) Exam for an individual in California is the topic of this blog post. Code of Civil Procedure section 708.110 authorizes a judgment creditor to apply to the court for an order requiring the judgment debtor to appear before the court to furnish information to aid in enforcement of the money judgment.

The term JD Exam will be used in this blog post however this procedure is also known by various names including an examination of judgment debtor or order to appear for examination (ORAP).

A JD Exam is basically just like a post-judgment deposition and is used to identify property in the possession or control of the judgment debtor that can be used to satisfy the judgment. The California Courts have ruled that the purpose of the JD Exam is to require the judgment debtor to give information regarding their property and the judgment creditor is allowed the widest scope of inquiry concerning all property and business affairs of the judgment debtor.

Code of Civil Procedure section 708.110 states that,

“(a) The judgment creditor may apply to the proper court for an order requiring the judgment debtor to appear before the court, or before a referee appointed by the court, at a time and place specified in the order, to furnish information to aid in enforcement of the money judgment.

(b) If the judgment creditor has not caused the judgment debtor to be examined under this section during the preceding 120 days, the court shall make the order upon ex parte application of the judgment creditor.

(c) If the judgment creditor has caused the judgment debtor to be examined under this section during the preceding 120 days, the court shall make the order if the judgment creditor by affidavit or otherwise shows good cause for the order. The application shall be made on noticed motion if the court so directs or a court rule so requires. Otherwise, it may be made ex parte.

(d) The judgment creditor shall personally serve a copy of the order on the judgment debtor not less than 10 days before the date set for the examination. Service shall be made in the manner specified in Section 415.10. Service of the order creates a lien on the personal property of the judgment debtor for a period of one year from the date of the order unless extended or sooner terminated by the court.

(e) The order shall contain the following statement in 14-point boldface type if printed or in capital letters if typed: “NOTICE TO JUDGMENT DEBTOR. If you fail to appear at the time and place specified in this order, you may be subject to arrest and punishment for contempt of court and the court may make an order requiring you to pay the reasonable attorney’s fees incurred by the judgment creditor in this proceeding.”

An excellent way to make any JD Exam more effective is to have the judgment creditor request that the judgment debtor produce in court all documents that detail their assets and liabilities. Any person that is a party may be served with a notice to appear and produce documents and other tangible evidence in his or her possession pursuant to Code of Civil Procedure § 1987(b), (c). This notice is also known as a subpoena in lieu of subpoena duces tecum.

The notice to appear and produce documents must be personally served at least 20 days before the examination date (25 days if served by mail.) The notice to appear and produce documents should be served with the examination order (or sooner). See Lee v. Swansboro Country Property Owners Ass’n (2007) 151 Cal.App. 4th 575, 582 (citing text).

Be sure that you always provide the witness with a check for the witness fee of $35.00 per day plus the mileage fee of $.20 per mile each way to and from the courthouse at the time that the notice to appear and produce documents is served. If you do not do so the witness cannot be compelled to appear and produce documents.

Attorneys or parties in California that would like to view a portion of a sample 14 page notice to appear and produce documents at hearing designed for an individual judgment debtor in California including brief instructions, citations to case law and statutory authority, sample list of 29 categories of documents to be produced and proof of service sold by the author can see below.

The author of this blog post, Stan Burman, is a freelance paralegal who has worked in California and Federal litigation since 1995.

If you enjoy this blog post, tell others about it. They can subscribe to the author’s weekly California and Federal legal newsletter by visiting the following link: http://www.legaldocspro.net/newsletter.htm

Copyright 2015 Stan Burman. All rights reserved.

DISCLAIMER:

Please note that the author of this blog post, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this blog post is NOT intended to constitute legal advice.

These materials and information contained in this blog post have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this blog post is not intended to create, and receipt does not constitute, any business relationship between the author and any readers. Readers should not act upon this information without seeking professional counsel.

A Slack Lifeline for Drowning Homeowners

Stan Burman:

Another blog post detailing how HAMP which was billed as a lifeline for many troubled homeowners by the Obama administration that was estimated to help up to 4 million homeowners has actually helped only 887,001 according to Christy L. Romero who is the government official with authority to monitor the HAMP program.

Originally posted on Justice League:

NY Times:

After Lucy Circe became disabled and could no longer work, she applied to Bank of America for a mortgage loan modification on her Vermont home. Over more than two years, starting in 2012, the bank repeatedly requested copies of documents that had already been provided, asked for proof that she was no longer married to a man she did not even know, and made other errors, like asking why Ms. Circe had indicated that she didn’t want to keep her property when she had actually told the bank she did.

None of it made sense. But a disturbing report on the federal government’sHome Affordable Modification Program issued on Wednesday suggests that Ms. Circe’s experience was anything but unique.

Advertised in 2009 as a lifeline for as many as four million troubled borrowers, the program was one of the Obama administration’s signature efforts to help homeowners. But the…

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Free sample legal documents for California and Federal litigation

Free sample legal documents for California and Federal litigation are the topic of this blog post. If you are looking for a bill of sale or other sample legal document be sure to check out the embedded document below that has more details.

 

Recording the Rescission

Stan Burman:

Neil Garfield blog post discussing recording the notice of rescission under the Truth in Lending Act (TILA) with the County Recorder. In my opinion that makes sense particularly in California where judicial notice can be taken of the existence of recorded documents.

Originally posted on Livinglies's Weblog:

Livinglies Team Services: see GTC HONORS Services, Books and Products

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For more information please email us at gtchonors.llblog@gmail.com or call us at 954-495-9867 or 520-405-1688

This is not legal advice on your case. Consult a lawyer who is licensed in the jurisdiction in which the transaction and /or property is located.

===========================
 Every state has its own forms and requirements and fees for filing anything in the public records. It is wise to record any rescission that was sent regardless of the timing, in my opinion, but that would be subject to advice from a lawyer in your jurisdiction. Litigation is expected on numerous issues after the nonjudicial cancellation of the loan contract, note and mortgage. Here are some of the issues that might be presented when the rescission is sent and/or recorded:
  1. Since the rescission is effective upon mailing, the loan contract, note, and mortgage are void (not…

View original 921 more words

Advantages of a Limited Liability Company (LLC) in California

The advantages of a Limited Liability Company (LLC) in California are the topic of this blog post. An LLC has several advantages when compared to a corporation in that an LLC is not subject to the same onerous recordkeeping requirements of a corporation such as corporate minutes, bylaws, directors, and shareholders. An LLC also offers more asset protection as well. These advantages are the reason that forming an LLC in California has become more and more popular.

A California corporation does not offer the same asset protection features as an LLC. This is due to the fact that while the personal creditors of a debtor-shareholder cannot directly take over ownership of the assets of the corporation they can obtain ownership of the stock of a debtor-shareholder in which case they step into the shoes and become a co-owner of the corporation, this entitles them to the share of the debtor-shareholder of the corporation’s profits and to participate in the management of the corporation. And if the creditor can obtain ownership of at least 51% of the stock of the corporation they can have the corporation liquidated and its assets sold to pay off the debt of the debtor-shareholder.

The law in California along with the law in most states is that a creditor cannot take the money or property of a California LLC to pay off the personal debts or liabilities of the owners of the LLC.

In California creditors of a debtor-member of an LLC are limited to certain specified remedies including

Obtaining a charging order requiring that the LLC pay the creditor money distributed to the debtor-member;

Foreclosing on the debtor-member’s LLC ownership interest, or

Getting a court to order the LLC to be dissolved and all its assets sold.

California allows the creditors of an owner of a California LLC to obtain what is known as a charging order that charges the membership interest of the debtor-member. A charging order is an order issued by a court that directs the manager of an LLC to pay to the creditors of the debtor-owner any distributions of income or profits from the LLC that would otherwise be distributed to that debtor-member.

However a charging order has severe limitations as even creditors with a charging order in California only obtain the financial rights to payment of the debtor-owner, they do not participate in the management of the LLC. This means that no creditor can order the LLC to make a distribution that is subject to its charging order. Many creditors who obtain charging orders still end up with nothing because they can’t order any distributions and as a result they are not a very effective collection tool for creditors except in unusual circumstances. And in certain situations the creditor can even be taxed even though they have not received any distributions!

The law in California states that a creditor who obtains a charging order but is not paid by the LLC is allowed to request a court order that the LLC membership interest of the debtor be foreclosed upon. However due to changes in California law that took effect in 2014, namely Corporations Code § 17705.03.b)(3) the court cannot order a foreclosure unless the creditor can make a showing that any distributions under a charging order will not pay the judgment debt within a reasonable time. Basically the creditor will have to show that the earnings of the LLC have been continually withheld for purposes of reinvestment instead of being distributed to the members of the LLC. This means that a creditor will have to wait for some time before any foreclosure can be ordered.

If the LLC interest of the debtor is foreclosed upon the court will order that the financial rights of the debtor in the LLC will be sold. In all likelihood the creditor would be the one purchasing the interest because few if any people would want to purchase those rights at the foreclosure sale. In the event that happens the creditor essentially becomes the permanent owner of the financial rights of the debtor, including the right to receive money from the LLC. However the creditor cannot participate in any way in the management of the LLC meaning that it cannot force the LLC to pay it or anyone else any amount of money. In fact it is possible that before the foreclosure sale the debtor or other members of the LLC will settle the debt with the creditor. If they do not settle the debt that means the debtor will not be entitled to any share of the assets of the LLC in the event it is dissolved.

California law does not allow the personal creditors of an LLC member to obtain a court order that the LLC be dissolved so that its assets can be sold to pay off the creditor.

In order to increase the level of asset protection the operating agreement for the LLC should include a provision that allows the other Members the right of first refusal if another Member wishes to sell their interest in the LLC, or if a creditor obtains a charging order against a Member.

Most authorities recommend that an LLC should have at least two members to increase the potential liability protection from personal creditors. This is due to the fact that it is at least theoretically possible that a California court could agree with what a growing number of courts in other states have done and apply a different rule for a single member LLC.

Attorneys or parties in California that would like to view a portion of a sample 9 page California Limited Liability Company Operating Agreement that includes a provision that allows the other Members the right of first refusal if another Member wishes to sell their interest in the LLC, or if a creditor obtains a charging order against a Member sold by the author can see below.

 

Attorneys or parties in California that would like more information on a super litigation document package that contains over 200 sample documents for California and Federal litigation including a California Limited Liability Company Operating Agreement can click the link shown below.

http://legaldocspro.net/super-litigation-documents-package/

The author of this blog post, Stan Burman, is a freelance paralegal who has worked in California and Federal litigation since 1995.

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If you enjoy this blog post, tell others about it. They can subscribe to the author’s weekly California and Federal legal newsletter by visiting the following link: http://www.legaldocspro.net/newsletter.htm

Copyright 2015 Stan Burman. All rights reserved.

DISCLAIMER:

Please note that the author of this blog post, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this blog post is NOT intended to constitute legal advice.

These materials and information contained in this blog post have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this blog post is not intended to create, and receipt does not constitute, any business relationship between the author and any readers. Readers should not act upon this information without seeking professional counsel.

 

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