From CBS Detroit – Banks In $25B Deal To Settle Foreclosure Abuses

Banks In $25B Deal To Settle Foreclosure Abuses

February 9, 2012 4:07 PM

BINGHAM FARMS (WWJ) – Michigan is among 49 other states to receive a chunk of cash from a landmark $26 billion settlement from five banks for alleged foreclosure abuse.

Some borrowers in Michigan could get between $1,500 and $2,000.

“States across America have worked hard to present a united front in the fight to help stabilize the housing market in the aftermath of harmful mortgage lending and foreclosure practices,” said Michigan Attorney General Bill Schuette. ”As a result, Michigan residents who were hit hard by this crisis will now receive assistance.”

Attorney Kenneth Gross with Thav Gross in Bingham Farms, who represents homeowners going through the foreclosure process, said the settlement is disappointing.

“We’re very disappointed with it, because I think the banks did a lot that they should be called upon to pay for, and I don’t think they are,” Gross said.

How will borrowers get their hands on the cash?

“I’ll research it and once it’s out there I’ll put it up on our website,” said Gross. “It certainly isn’t going to be something that somebody goes to hire an attorney to try and get this $1,500 or $2,000. I don’t see how they’re gonna come out ahead after paying attorney fees.”

“So, it’s gotta be something where you can exercises self  help and get it done.” he said.

The five banks in the settlement include Bank of America, Citi Group, J.P. Morgan Chase and Wells Fargo.

“I’ll research it and once it’s out there I’ll put it up on our website,” said Gross. “It certainly isn’t going to be something that somebody goes to hire an attorney to try and get this $1,500 or $2,000. I don’t see how they’re gonna come out ahead after paying attorney fees.”

“So, it’s gotta be something where you can exercises self  help and get it done.” he said.

The five banks in the settlement include Bank of America, Citi Group, J.P. Morgan Chase and Wells Fargo.

Your Credit Score – Don’t Sweat the Small Stuff

I know you’ve heard it before – “Don’t sweat the small stuff.” This truism applies to every facet of our lives. We often make the mistake of over dramatizing issues in our personal relationships – between spouses, between partners and between parents and children. Most of the time – it’s a situation where for one reason or another, we allow the moment or the event to take on greater significance than we should. In personal matters – this often gives rise to hurt feelings, family quarrels and anguish. From one event to the next, the mistake is commonly repeated until we learn or experience a greater trauma that causes us to snap back to reality. We say to ourselves – “Gee, I have to chill out and just be thankful for the boring, mundane days when there is nothing monumental and adverse going on in my life.” The lesson – don’t let the “small stuff” govern your life.

I find this issue also arises frequently in the context of how people assess their financial situation and the options presented to them when it comes to strategies to shed debt and preserve future income. In this instance, what is the “small stuff?” The “small stuff” in the context of shedding debt and preserving future income is “your credit score.” Let me repeat – the “small stuff” is your credit score. There are differing views. The banking industry wants you to believe that your credit score is “your most valued asset” – and that your world will crumble if your credit score tumbles. It is true that if  you short sale a home, go through a foreclosure, file a bankruptcy or settle your credit card debt for pennies on the dollar – your credit score will take a hit. The fallacy is – in the context of the gain you will realize by getting out from under debt and the outrageous never ending interest – the credit score is a short term decline that is insignificant in the context of the big picture.

I tell clients, over and over, “When you’re 75, would you rather have lived your last 30 years with a 790 credit score and have $40,000 in the bank to retire along with the paltry social security you will receive or would it be better if your credit score took a 75-100 point hit for about  1 ½ years, and at 75 you have $950,000 in saving to live off of with social security? The numbers are simple – if you pay off $100,000 of debt at $2,500 per month with interest at 26%, you will pay $235,000 over the 94 month period.  Instead, if you could settle this debt for $30,000, by using the$ 2,500 per month you would pay the first year, and then invest $2,500 per month for each of the next 82 months, tax deferred at 6%, you will have $300,566. If you then allow this savings to accumulate for another 10 years, you will have $546,849. Better yet, if you continue to save $2,500 per month during the last 10 years, you will have $958,596. This is “big stuff.”

Being afraid to make the right move because of concern over your credit score, is worse than “sweating the small stuff” – it’s letting the “small stuff” steal your future. You still need to plan. For example, if you have a short term need for credit – such as buying a car – then buy the car before making your move. In all events, you should  resist the effort to be brainwashed by an industry that earns billions advancing this myth. Simply look at the numbers – that’s the big stuff and plan your future.

Ken Gross is an attorney with Thav Gross and host of The Financial Crisis Talk Center, a radio program that airs weekly at 10:00 AM on Saturday mornings on Talk Radio 1270 WXYT AM.Don’t Sweat the Small Stuff (2.1.12)

Ken Gross – STOP House Rep. Olson’s Attempt to Brings Unfair Foreclosure Reforms to Committee

The Financial Crisis Talk Center urges you to take the steps listed below to help STOP this deplorable action. There is no justification or rationale to Mr. Olson’s bill. His action represents a callous disregard of a problem that has reached epidemic proportions. Beyond that – why would we shorten the 6 month redemption period that has been the law of the State of Michigan for the last 50 years? What on earth happened to the concept of our legislature doing something designed to help its constituency? Is the banking industry the new constituency? If so, where does that leave the residents of the State of Michigan? I urge you to read the below post from Michigan Forward and make the calls and pass the word. Bottom line – if we remain quiet – the train will run us over. — Ken Gross on Thanksgiving Day – 11/24/11

Michigan State House Representative Rick Olson (R) from Saline has introduced more unfair housing policy before Michigan’s homeowners. Olson’s HB 5176 reduces the 6-month redemption period to 3 months. As anticipated this legislation is designed for loans where the “original mortgagee has never assigned the mortgage or the indebtedness secured by the mortgage and has not transferred the power to service the mortgage.” We expect this bill to be taken up at a meeting of the Housing Banking &Financial Services Committee  on either November 30^th or December 7^th.

The Michigan Foreclosure Task Force anticipated this action in a previous post. This administrative nightmare for Michigan’s housing industry and homeowners. MFTF opposes the changes made to Michigan’s foreclosure redemption period by HB 5176. HB 5176 presents a fundamental unfairness to homeowners who don’t know whether or not their loan meets the above criteria and more importantly have no choice in the matter. This bill will further delay the loan modification process Michigan homeowners rely on to preserve their homes. HB 5176 creates a paper log jam for the big lending institutions that hold approximately 90% of Michigan mortgages.

Michigan Forward is asking your help in gaining public support for our position which will require all of us  to act quickly!

Please immediately, call or email  the following House Banking Committee Members:

Rep. James Womack –(517)373-0589 –JimmyWomack@house.mi.gov
Rep. Paul Clemente –(517) 373-0410 –PaulClemente@house.mi.gov
Rep. Jon Switalski –(517) 373-1772 –JonSwitalski@house.mi.gov
Rep. Woodrow Stanley –(517) 373-8808 –WoodrowStanley@house.mi.gov
Rep. Rick Olson –(517) 373-1792 –RickOlson@house.mi.gov

When you call these State Representatives give them this clear message:

• Shortening the 6-month redemption period on any residential mortgage is bad news not only for Michigan’s at-risk homeowners but for all of us in terms of reducing our property values,increasing the number of vacant properties,eroding the local tax base that pays for basic services and further slowing the housing market and our overall economic recovery.
• Specific to HB 5176,shortening the redemption period on loans as  defined in the bill is fundamentally unfair to homeowners who don’t know whether or not their loan meets the criteria and more importantly have no choice in the matter.

“Mad as Hell” On Orchard Lake Road – by Ken Gross, appearing in the JNews on 11-10-11

Is Our Nation’s Future in Jeopardy?

Nation’s Future 10.13.11DetroitJewishNews-1 (Column appearing in Jewish News – 10-13-11)

Is Our Nation’s Future In Jeopardy?

Ken Gross

October 13, 2011

Many of us marvel at and are frustrated by the troubling economic problems of the era. Without question, these are serious problems and the prospect of a short-term solution is dim. We have suffered horrific losses to our net worth — by virtue of the real estate freefall and a recession that, for all intents and purposes, is starting its third year. We wonder and debate — what should we do as individuals and as a nation?

In recent weeks, I’ve pondered the future of our nation as I witness a deploable commitment to partisan politics and deadlock among our elected representatives. I say to myself,“As a nation we are only 235 years in existence. The Roman Empire lasted more than 2,000 years before its arrogance claimed its lifeline. What chance do we have?” At first blush — my conclusion — “It’s not looking good.” Last week, I happened to watch the newly released miniseries The Kennedys and gained a different perspective. I was reminded of the turbulent ’60s — the fight against communism, the battle over civil rights, the Bay of Pigs, the Cuban Missile Crisis, Vietnam and our loss of cherished leaders who stood for principle beyond economics — Jack, Bobby and Dr. King. I realized that other than the era beginning post-Vietnam and abruptly ending on Sept. 11, 2011, we have been at war, on its verge or just beyond its conclusion, or in the midst of some form of economic trauma or civil rights controversy for our entire history. Ultimately, we face and overcome these problems, and it is usually because leaders emerge that have the guts to stand for what is right and are able to overcome those who seek to perpetuate the mistakes of the past.

As we age, we gain the benefit of experi-ence, as well as the knowledge that our insight and what we know is limited by our experience — which also applies to our elected representatives and pro-claimed political leaders. So what do these revelations mean and how to they bear upon the financial crisis? Since controversy is part of our American way of life, we should embrace it rather than fear it. We must question those in authority that demonstrate an unwillingness to seek new solutions and simply continue to preach unsupported claims of the past. We need to take such action that we can to improve our situation — and we need to take such action based upon the current times without regard to what others think is the right thing to do. Individually, this means looking at opportunities to recoup the losses sustained as a result of the economic disaster that has ensued, by shedding debt and seizing opportunity. As a country, the time is now for leadership — for someone to emerge that fears not what to say because of political expediency — a leader who can reach to our nation’s soul and carve a path that addresses what is best for our future.

Ken Gross is an attorney with Thav Gross and host of the Financial Crisis Talk Center, a radio program that airs weekly at 10 a.m. Saturdays on WXYT 1270 “Talk Radio.”

Mr. President – You Need to Deal – By Ken Gross

Mr. President – You Need to Deal

The big speech came – and went. Another speech offering that which we anticipated but not that which America needs. A proposed $447 Billion program – and the President neglects to mention the price tag in the speech. I suppose that is the prerequisite to avoid addressing in specifics a realistic plan to pay for it. After witnessing Congress’s infantile behavior last month on the deficit cap – it is a certainty that the President’s program will go nowhere – other than causing another slow burn of intransigence by Congress.

Sometimes you need to make a deal that your adversary cannot refuse. You do this carefully – but when you need something done  – if it’s important enough – you do it. In this case, the President needs two things – he needs to stimulate jobs and the economy and he needs to garner support for next November. Instead of offering a plan the Republican’s will now have a field day complaining about – he should have taken the podium and laid out a program the Republican’s could not refuse. First – tell us it’s going to cost $447 Billion. Second – that though he doesn’t like it – we’re going to pay for it by shelving Obama Care for 5 years – with the exception only of keeping the no pre-exisiting condition requirement and providing coverage for dependent children to age 26. Third – acknowledge what everyone already knows –without a housing market the economy has no chance. To stimulate housing, tell us that mandated principal reduction on homes underwater will occur and that you will mandate easing the credit restrictions to refinance and purchase a new home. Top this off by telling us that the cost will be charged to the banking industry who caused this fiasco.

Mr. President, if you went in this direction,– the Republican’s could not say no – because the cost would be covered, we all want economic growth and the banking lobby would be handcuffed to protest. If you want four more years – you’re going to need to be a much better deal maker.

Ken Gross is an attorney with THAV GROSS PC (www.thavgross.com) and hosts The Financial Crisis Talk Center (www.fctalkcenter.com), a radio program that airs weekly at 8:30 AM on Saturday mornings on WDFN “The Fan” 1130 AM.

Don’t Balance the Budget on My Back – Ken Gross

We all understand we have a massive deficit. The Iraq War was costly – but the rescue of the banking and financial industry from the economic recession along with the Economic Recovery Act and the trillion dollar bailout of Fannie Mae and Freddie Mac are, without question, the major causes why our country is so far in the red.

Having the benefit of over 2 years since the Great Recession tumbled Wall Street and our country in the latter half of 2008, it is commonly accepted that the cause of the debacle rests with the greed and avarice of the banking and financial institutions. Had President Bush and President Obama not rescued the banking industry at the pinnacle of the crisis, most economists agree that the world economy would have totally unraveled. So on this point, let’s give credit where credit is due and compliment our government for having the guts and willingness to take dramatic action in a short term  urgent situation.

That being said, let’s roll the clock forward to today. We just witnessed over the last two weeks Congress bogged down in gridlock on approving the budget so that a shutdown of the federal government could be avoided. In the end, they were fighting over $40 Billion of funding and the biggest event that occurred was Washington D.C’s right to spend its own funds on abortion funding was blocked in a compromise between the Republicans and Democrats to avoid the shutdown. Immediately after, the focus has now shifted to the fight over raising the $14.294 trillion debt ceiling and arriving at an acceptable agreement to resolve the budget deficit, which is currently estimated at $1.5 trillion for 2011.

So far – whether the discussion is about a State’s economic woes or the Federal deficit – every proposal I hear has one common thread. The cost of deficit reduction is to be borne by the U.S. citizen – through higher taxes (assuming the Bush tax cuts are not continued), Medicare, Medicaid, Social Security, Health Care and on and on. Now don’t get me wrong – somewhere and somehow you have to either increase revenue (i.e. taxes or and expanding economy) or cut spending to restore fiscal integrity to the system.

My question is this. If the Great Recession was caused by the greed of the Financial Industry, which was saved from economic death by the Government and the taxpayers and the recession is the cause of the deficit problem we now face, shouldn’t those responsible for the problem be called upon to bear the expense of resolving the problem? After all, as reported in The Wall Street Journal on March 25^th, U.S Finance Profits are soaring and have jumped back to $426.5 billion in the 4^th Quarter – nearing their high levels in 2006. Isn’t that nice? They get bailed out, saved from falling off the face of the earth – and now they are back to where they were before the recession. At the same time, the Administration and the Republican platforms are advocating budget restraints on the backs of the U.S taxpayer. My question is why us – and not them? Whatever happened to the notion of laying blame where blame belongs and making those at fault bear the cost of their actions? It doesn’t seem that difficult to me. The corporate profits of the Financial companies are presently running at an annual rate of $810 Billion. Here lies a simple solution. For the next 10 years, impose a 30% financial sector “Get Well Tax.” Assuming growth rates of 10% annually for the financial sector, the revenue increase would be $3.868 Trillion over 10 years. As a measure of protection so that the financial wizards that rule our great nation cannot weasel out from the tax, Congress needs to assess the tax on financial institution profits before officer compensation in excess of $250,000 per officer.

So what do you think – is it reasonable to make those responsible pay for resolving the problem – or should we just let our representatives continued to be influenced by the greed of Wall Street and saddle the U.S Taxpayer with the cost of resolving the problem created by the financial sector?

Ken Gross is an attorney with THAV GROSS PC (www.thavgross.com) and hosts The Financial Crisis Talk Center (www.fctalkcenter.com), a radio program that airs weekly at 9 AM on Saturday mornings on WDFN “The Fan” 1130 AM.Tweet

THAV GROSS – Seeks MERS Class Action Members from Western Side of Michigan

“The Class Action is gaining momentum day by day. We are looking to reach victims of foreclosure throughout Michigan and in particular in the Western side of the State,” said Ken Gross, managing shareholder at THAV GROSS. Anyone who knows of a friend or family member who suffered through a foreclosure in the last 6 years is requested to contact Thav Gross at its offices via email or calling direct at 888-235-4357. “Anyone who has been foreclosed by advertisement should investigate whether their claim falls within the class,” said Gross. “They owe it to themselves and their family.”

THAV GROSS – issues statment of purpose behind MERS Michigan Class Action Foreclosure Lawsuit

This lawsuit is about leveling the playing field. The financial institutions caused the housing bubble to be created by pursuing profit motives with no regard to realistic underwriting criteria. When the bubble burst and they were one week from collapsing (going out of business) and causing a World Wide end to financial markets – we, the taxpayers, bailed them out. The government then directed them to pursue policies designed to modify mortgages and avoid foreclosure. Instead, the industry gave lip skink to the requirements – ignoring the directives and choosing to cause millions of homeowners to be played like fish in the process of attempting to modify their mortgages, only to be told at the last minute, “Your paperwork was incomplete, or you didn’t respond timely.” Then bang – the house is sold at the foreclosure sale 2 to 4 weeks later. Motives – it’s easy. The banks, in our perverse world – are better off foreclosing because Fannie Mae and Freddie Mac – have to buy back the mortgages and end up covering the loss – not them. That cost was already at $148 Billion in November, 2010 and is estimated to exceed $280 billion. Guess who is paying for it? The banks, instead of appreciating the fact that we allowed them to stay in business, have simply continued to push the costs of their failure business practices to the taxpayers. Ms. Boser is the Class Representative of those Michiganders – who are the victims of the banks wrongful conduct. If successful, the banks, not the taxpayers, will be forced to absorb the losses they caused and some (but not all) of the people harmed will benefit. Ms. Boser’s and all future class representatives’ actions deserve our best wishes and applause.

Guest Article – The Effect of U.S Debt Crisis Affects theGlobal Economy

The Effect of U.S Debt Crisis Affects the Global Economy

By Kevin Craig

Even after recession, the United States is still considered to be the financial ‘safe heaven’ by investors across the globe. It has become a deeply ingrained myth that America is an exceptional nation having a special motto. So, whatever be its financial state of affairs and its increasing national and public debt, investors always tilt their focus on this country. We know how China and Japan have huge investment in U.S debt market. However, this over-complacency got a jolt as Standard and Poor reviewed its long term credit rating on U.S economy. It suggested on Monday, April 25, 2011, that America may be downgraded from its ‘stabilize’ status to ‘negative’ status. However, this does not in any way indicate that the country is on the brink on debt crisis. If any negative sign erupts in the U.S economy, its immediate shockwave hits the global economy. After Standard and Poor circulated the report, investors immediately retreated from risky asset and rushed to the secured items.

We should not get apprehensive considering the magnitude of U.S debt amount. Japan’s debt is greater than America in respect to its GDP. Until recently, European countries were scrambling for debt aid to bail out of sovereign debt crisis. If Portugal or Spain falls in debt crisis, it may generate a wave of uncertainty among global markets. But this will never prove to be catastrophic. On the contrary, if the U.S economy stumbles, it can shake the very foundation of the global economy.  The role it plays in global economy is so crucial and indispensable that if it crushes, it will suspend the operating system of the global economy.

The U.S dollar is still the dominating currency in most of the transactions of foreign exchanges. When uncertainty stirs investors, most of them prefer to take recourse to the U.S dollar. America may have increased its percentage of national deficit, but until now there has never been any difficulty for America to obtain huge foreign credit at a low interest rate.

However, if this positive perception among global investors starts to alter after the report issued by Standard and Poor, the U.S will no longer be able to retain its prestigious status among nations. Its currency could sink. Its national treasury security would no longer entice the investors. The government will be forced to pay higher rates of interest on its debt and this will create difficulties in stabilizing the budget deficits and mitigating the burden of debt.

Kevin Craig is a financial writer associated with Oak View Law Group. He has been providing advice on debt relief since 2007. With his advice, many people are now living a debt free life.