No Recourse? A No-Brainer!
18/02/12 16:13 Filed in: Texas constitution section 50 | home equity loans
Since Texas home equity loans are "no-recourse," which means that a lender may not pursue a borrower for any deficiency following a foreclosure sale, why doesn't everyone who worries that defaulting on their home loan could threaten them at some point in the future go out and get a home equity loan? Borrowers acting in good faith would never be on the hook for a deficiency judgment if they default! Read More...
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The Chickens are Coming Home to Roost
11/02/12 09:56 Filed in: Texas home equity loan modifications | Texas constitution section 50
The more calls I get and cases I take in as a result of word getting out about the Hawkins and Pennington class actions, the more convinced I am that the chickens will soon come home to roost. I believe that many lenders and loan servicers set up shop in Texas after 2007's mortgage bust without walling off Texas home equity loans for separate handling. The result of this, in my opinion, will prove catastrophic for lenders that don't quickly get a handle on how many loans they've modified in violation of the Texas Constitution's art. XVI section 50 -- and then start systematically fixing them under court supervision to bring them back into compliance with the law. Read More...
HAMP Trial Period Plan (TPP) Agreements May Violate the Texas Constitution in the case of Texas home equity loans
05/02/12 19:04 Filed in: Texas constitution section 50 | Texas home equity loan modifications
In the appeal of the federal district court dismissal of the Pennington class action, the plaintiffs whom I represent are arguing that HAMP TPP agreements violate the Texas Constitution's homestead provisions insofar as the TPP agreement creates an express schedule of payments that is insufficient to pay all interest and principal coming due each month. This blog post is a REDACTED, SUMMARY section of the plaintiffs' brief in Pennington. If you have a Texas home equity loan and made payments under a HAMP TPP agreement that put you further behind on your loan, you should read this material. I have removed all citations to case authority, representing a hundred hours of work, but if you have retained counsel and are facing these issues, have your lawyer get in touch with me. Read More...
Hitting the Wall: Forbidden Modifications of Texas Home Equity Loans
27/11/11 19:45 Filed in: home equity loan modifications
This article examines the process of modifying or refinancing a Texas home equity loan. The short answer is: if you're behind on your home equity loan, there are very specific ways to legally modify that loan. It's not "illegal" or "prohibited," as the big lenders are now telling their desperate borrowers. But it is very difficult for borrowers already in arrears. Borrowers who are substantially behind on a Texas home equity need to be prepared for foreclosure. Read More...
Abusive Texas Home Equity Loan Modifications
The Texas Constitution forbids certain lending practices as regards home equity loans and modifications to those loans. If I'm right that many major lenders have been issuing illegal loan modifications of Texas home equity loans for years, and in some instances then trying to conceal that by misrepresenting to borrowers that foreclosure is imminent, the potential liability of these lenders is staggering. A penalty for such misdeeds under the Texas Constitution is FORFEITURE of the loan by the lender. Read More...
MORE HOA Leasing and Renting Crackdowns
23/09/11 16:16 Filed in: HOA's
HOA's Boards are unilaterally deciding to clamp down on short-term rentals even when the governing documents don't allow that or the HOA has been allowing such rentals for years or even decades. There are good defenses and counterclaims to such suits. Read More...
Wells Fargo Class Action - Texas Home Equity Loan Mods
21/09/11 12:21 Filed in: Real Estate | mortgage foreclosure
Wells Fargo is alleged to have (1) modified Texas home equity loans illegally by including past-due interest and exceeding an 80% loan-to-value ratio, and (2) when it discovered this, covered it up by pressuring homeowners to do a short-sale or deed-in-lieu of foreclosure. My class action takes aim at these practices. Read More...
Leasing Cap at Downtown Austin High-Rise Condo Invalid
27/05/11 14:50 Filed in: hoa
Where the filed condo declaration explicitly granted owners the right to lease, and a condo board enacted a rule that denied 70% of unit owners that right by means of a "lease cap," an arbitrator has declared the rules inapplicable to plaintiffs, who purchased prior to the effective date of the lease cap. The arbitrator's award states that amendment to the declaration is required to impose a lease cap. Read More...
Downtown Austin Condo Buyers, Beware!
16/05/11 17:35 Filed in: Condomimium law | hoa
Some downtown Austin condos assert they can impose leasing caps without getting a super-majority of owners to amend the filed declarations. Their arguments don't stand up to scrutiny. Read More...
Relief For Texas Home Equity Borrowers Sucked Into the Foreclosure Spiral
18/04/11 14:29 Filed in: Real Estate | foreclosure
I recently filed a federal class action lawsuit against big lenders Wells Fargo and HSBC Bank on behalf of Texas home equity borrowers in financial distress and being threatened with foreclosure. The suit alleges a catch-22 where the defendants dangled home equity loan modifications that they couldn't legally offer and didn't intend to give. Read More...
HOA Restrictions Against Home-Based Businesses and Commercial Activities Are Outmoded and Unfair
20/02/11 12:17 Filed in: HOA's
HOA's often forbid "commercial" activities or "non-residential" activities. The new reality of the internet-connected world is that home-based business are important to the new economy, can be compatible with the residential character of a neighborhood, are usually lower-impact on the environment, and offer new freedoms for individuals. HOA's need to re-think their approach to this issue and stop bludgeoning homeowners with lawsuits that threaten their livelihoods. Read More...
Foreclosure Defense
01/11/10 10:36 Filed in: foreclosure
Home mortgage borrowers have emergency court injunction relief available where the big mortgage lenders and mortgage loan servicers refuse to engage meaningfully in the loan modification or short-sale process. Read More...
HOA's, the CAI, and Gaming the System
18/09/10 16:04 Filed in: HOA's | Real Estate
Under Texas HOA law, the one sure winner in every dispute is the lawyers. One particular provision of the Texas Real Estate Code is particularly pernicious in driving HOA's and homeowners into litigation. Say it ain't so, Texas Legislature! Read More...
Lawyering In the Good 'Ol Boy State
26/07/10 14:46 Filed in: Collections
Handling collections cases, whether on the debtor or creditor side, is hardball. It's hard to make friends with the opposition when they have your money. Read More...
Austin Construction Update
24/06/10 10:32 Filed in: Construction Law | Real Estate
At last, the Austin residential construction market is showing signs of life. But that means falling contractor profits. Read More...
The Fundamental Flaw with HOA's
23/06/10 17:09 Filed in: Real Estate | HOA's
The governing documents (CC&R's -- covenants, conditions, and restrictions) and governing laws for the running of homeowners associations (HOA's) are too legalistic, abstruse, and technical for non-lawyers (i.e., your neighbors) to understand and enforce. That's why lawyers and property managers are getting rich at the expense of homeowners stuck with HOA's. We elect local governments and hire local officials to handle the complexities of property rights. HOA's should handle parties, beautification, and gripe sessions, not foreclosures and restrictions on others' freedoms. Read More...
HOA's and Freedom
30/04/10 11:15 Filed in: Real Estate | HOA's
HOA's are scary, and their trade group is even scarier. Read More...
The Texas "Consumer Exception" To Arbitration
09/04/10 10:01 Filed in: Consumer Protection
Some arbitration clauses contained in contracts that consumers sign are not enforceable. This article discusses a unique Texas law that favors consumers in certain circumstances. Read More...
FSBO Tips
23/03/10 16:28 Filed in: Real Estate
For Sale By Owner Real Estate Sales: Not for the faint of heart, but a big money saver. Allocate a bit of the savings for attorney review of the documents. Read More...
The Real Estate Crisis Ain't Over
15/02/10 11:57 Filed in: Real Estate
If the attitude I’ve seen from the big mortgage lenders is any indication, they’re running scared. A tsunami of residential foreclosures lies ahead. Read More...
Resubdivision and Its Discontents
11/02/10 16:00 Filed in: Real Estate | Construction Law
Seeking resubdivision of urban oversized lots is not the only way to divide and develop your property. There are alternative strategies for developing such properties. Read More...
The Perils of Auto Shipping
02/11/09 16:22 Filed in: Consumer Protection | Cars
It's easy to arrange interstate and international shipping of automobiles on the web, and it's easy to have a bad result. Read More...
Internet Puppies: Don't Buy Them
30/10/09 11:54 Filed in: Consumer Protection
Looking for Puppies on the Internet? Don't do it. Buy locally, face-to-face, from a trusted breeder.
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Family vacation home joint ownership headaches
When a family with multiple children has a vacation house, all sorts of title, tax, and administration issues arise. The tool of choice right now is the Family Limited Liability Company, involving the creation of a business entity and a well-written operating agreement. Read More...
Why the residential construction fixed-price bidding model is fraught.
21/10/09 11:07 Filed in: Construction Law | Consumer Protection
Fixed-price bidding rewards builders who hire unqualified subcontractors. There are better ways to contract for residential construction. Read More...
Another Way Uninsured Consumers Pay Through the Nose for Health Care
19/10/09 15:35 Filed in: Consumer Protection
Your doctor ordered a test but couldn’t tell you how much it would cost you. You get a bill for $500 from a company you’ve never heard of. If you don’t pay, they wreck your credit. Read More...
Apple MagSafe Class Action
19/10/09 15:17 Filed in: Consumer Protection
Sutton Kleinman represents the named plaintiffs in a proposed nationwide class action against Apple, Inc., filed in California federal court, relating to expensive laptop power adapters that catch fire, spark, or otherwise go kaput. Millions of consumers are at risk. Read More...