Justice Plan. Johannes Stein JUSTICE PLAN. 782 Crosswind Dr. Sacramento, CA INSTRUCTIONS:

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1 INSTRUCTIONS: Please begin with this packet that explains the Justice Plan with Avid Law Center. Justice Plan CREATED FOR: Johannes Stein 782 Crosswind Dr PREPARED BY: Sacramento, CA 95838

2 65 Enterprise, Suite 455, Aliso Viejo, California T: F: E: Dear Frustrated Homeowner, Thank you for your interest in joining our battle against the banks. As more information is becoming known about the financial melt-down, it appears that our nation s biggest lending institutions have been involved in a massive fraud on the American public. Many of the banks have lied, manipulated, and even engaged in wholesale forgery for their sole benefit. Consumers, homeowners, and taxpayers have even been forced to foot the bill for the financial recklessness of the big banks. The misconduct of the banks has been breathtaking. They have set up strategic roadblocks and hurdles for consumers; created a system of securitization that has lost required legal documents; clouded the property titles of millions of homes; created false trial modifications to get more money even when they knew they were going to deny a permanent modification; and have knowingly used false documents in foreclosure proceedings with Robo-signers to hide their illegal paperwork. Most consumers had no idea that the lender they trusted had no intention of keeping a financial relationship with them. Instead, consumers found that their homes were being traded to secret Wall Street investors who only cared only about maximizing profits at the expense of the homeowner. But who can hold them accountable? We believe that it is only the individual American citizen. It is the citizen who is willing to stand-up, refuse to take the fraud any longer, and who is willing to bring the fight to the banks using the very legal system that the banks have used to perpetrate their fraud. We are here to help in that fight. AVID Law Center is now taking the fight to the banks. Resorting to a court action is not an easy decision. That is why we believe in first trying to resolve legal disputes informally. Sometimes during early negotiations, the banks are willing to accept responsibility for their part in the financial mess. In these cases, they can agree to a loan restructuring, modification, reduction in payment value, or return to homeowner equity through principal reduction. In many other cases, despite getting billions in taxpayer bailouts, the banks still refuse to work in good faith leaving homeowners to seek relief through the courts. The time to act is now. The banks and their lobbyist are working hard to get our legislators to forgive their massive fraud by paying penalties, not to you the consumer, but instead to government coffers. We believe that only those consumers and homeowners who are willing to act before the banks get their way, will have a chance of recovering their losses, damages, and clearing their clouded property titles. The remedies we seek for our clients can include a principal write-down of the mortgage to 80% of current market value, a reamortization to a 40 year term at a 2% fixed interest rate, and monetary damages. While each case is different, we have obtained these types of results for other clients, and whenever the banks refuse to be reasonable, it is a legal action that will allow the courts to decide what is fair and right. AVID Law Center is working to bring cost-efficient, affordable solutions to help average homeowners who are finally ready to take action. Whether you are considering an action before things get worse, or whether you are just trying to protect your home as a final option, now is the time go after those who created this mess. We all trusted the banks to follow the rules: they didn t. The American legal system may be the only real way for consumers to hold banks accountable for their actions. Throughout our nation s history litigation has been a tool used to right the wrongs in our society. We want to help you take your fight to the banks. Our experienced litigators are currently preparing cases and getting ready for our day in court. We only need you to help join us in this fight. Sincerely, Aron P. Rofer, Esq. President and CEO of AVID Law Center

3 ABOUT US AVID LAW CENTER Avid Law Center is a full service Real Estate Litigation Firm based in California. We practice in both state and federal courts in a variety of practice areas including litigation and transactional matters. Avid s Credit Crisis Solutions Team assists consumers dealing with financial issues through a variety of creative legal solutions. Consumers are struggling now more than ever with obligations they can no longer manage because of their financial hardships. We take a sincere approach to helping our clients manage things in their life that have become unmanageable. Our experience and expertise in various industries allows us to overcome obstacles with proven solutions. Our firm is driven by a desire for excellence and commitment to provide quality personalized service with integrity. We zealously advocate our client s interests by applying practical and effective representation, while conserving client resources wherever possible. Our approach assures client needs are placed at the forefront of any engagement and assures our clients receive the highest legal services. AVID LAW CENTER 65 Enterprise, Suite 455, Aliso Viejo, California, AVID Law Center: JUSTICE PLAN 3

4 WHY MODIFICATIONS AREN T WORKING In the wake of one of the worst financial recessions the United States has ever experienced, many Americans were left scrambling to protect themselves and their most important investment, their homes. Wall Street was also scrambling to protect their assets, and the government was there to help with billions in TARP money to make sure they wouldn t fail. In propping up the financial sector, the government implemented a plan to help homeowners as well, the Making Homes Affordable (MHA) program. However, homeowners haven t fared as well as the bailed out banks. The MHA program set standard guidelines for how loans should be modified, with the intent on keeping the homeowners in their homes. However in the two years since the program began, it has helped far fewer than its goal. But the fault lies with the Banks. Banks were not forced to participate in the program, but those that did participate were not prepared for the volume of consumers that needed help. The banks were overwhelmed, and instead of investing in the infrastructure to support the volume of requests, many wrote policies to intentionally delay the modification process so that consumers would become discouraged and frustrated with the system. The consumers that did brave the process and made it through with a modification soon learned that what they had received was temporary. Many of the modifications were Trial Plans and could revert to the original terms of the loan should the bank decide that they actually didn t qualify for a modification. In fact, only 42% of the modifications granted turned into permanent modifications as of March Some other interesting results from the modifications. Were that they often yielded higher loan balances than the original loans, and left most of the homeowners still underwater in regards to the value of their home. Because many lenders add up unpaid interest and fees to the loan balance, homeowners often walk away with more mortgage debt than they signed up for. A study by a professor of law at Valparaiso University found that an average of $10,800 was added to mortgages when they underwent modification on an average loan amount of $210,000. With the hurdles involved in the modification process, there is risk that the modification will be temporary; or worse yet that the modified terms are worse than the original terms, many consumers are choosing the court system to help their situation. Although there s no guarantee what the result will be through litigation, consumers feel that taking the power away from the Banks and forcing the courts to decide what is fair is the best option left. AVID Law Center: JUSTICE PLAN 4

5 YOUR CURRENT SITUATION A Home Loan That Works For You. Current Loan ORIGINAL PRINCIPAL LOAN BALANCE DOWNPAYMENT ON HOME $23, INTEREST RATE 6.1 % MONTHLY PAYMENT AMOUNT $2, AMOUNT OF PAYMENTS MADE $124, TOTAL AMOUNT INVESTED INTO HOME $297, The intent and spirit of our Single-Plaintiff lawsuits are to create enough leverage and settlement value to effect an offer and compromise that will return California homeowners back to a position of equity in the home as well as long term financing that is meant to make sure that the home will continue to be the hub of the family for many years to come. We took the liberty to assemble this illustration to outline the potential settlement values we are seeking along with a reflection of the investment you have made into your home to date. Investment: The first stage of our analysis was to get a sense of what you have invested into the home in the form of house payments made, down payment and any home improvement dollars. Based on our first conversation you stated that when you purchased the home your initial down payment was. $23, The estimated value of payments made to date is approximately. $124, Lastly, you have estimated that you have invested about $150, in home improvements. Your total investment into this property is approximately $297, DISCLAIMER: The examples and calculations detailed on this page are for illustrative purposes only. Avid Law Center does not guarantee a successful outcome or particular result in any way, shape or form. *The potential case results specifi ed are based on proposed settlement demands and/or relief sought in the lawsuits. There are no guarantees of result and litigation is unpredictable. Settlement terms and/or judgments may vary for each plaintiff involved in the lawsuits, and may also vary from case to case. AVID Law Center: JUSTICE PLAN 5

6 YOUR CURRENT SITUATION A Home Loan That Works For You. Your Potential Settlement NEW INTEREST RATE 2% NEW TERM 40 years NEW MONTHLY PAYMENT $ SETTLEMENT PAYMENT VALUE $375, SETTLEMENT PRINCIPAL VALUE -$128, TOTAL POTENTIAL SETTLEMENT VALUE $247, Payment Value: The next step in our analysis is to determine the potential Payment Value we are seeking in our lawsuit. If the lender is amenable to our settlement offer of a 40 year term at 2% interest rate for Payment Restructuring of your existing debt obligation, we estimate that your new payment would be approximately $ per month and a settlement value in excess of $375, over the life of the contract. Principal Value: The final analysis we looked at was the Principal Value we are seeking in our lawsuit. If the lender is amenable to our settlement demand of a return to equity in the home for our client at an 80% Loan to Value based on current market value at time of settlement. We estimate the Principal Forgiveness to be approximately -$128, Total Payment Value / Principal Value: As you can see the value of the settlements we are seeking are measurable and impactful. We estimate the combined value of the settlement attempt is approximately. $247, Your home loan should be working for you and not against you. The time for you to take back your investment is now; and AVID Law Center is here to help. Please consult your Credit Manager if you have any questions about this illustration or how you can get started in exercising your legal rights. DISCLAIMER: The examples and calculations detailed on this page are for illustrative purposes only. Avid Law Center does not guarantee a successful outcome or particular result in any way, shape or form. *The potential case results specifi ed are based on proposed settlement demands and/or relief sought in the lawsuits. There are no guarantees of result and litigation is unpredictable. Settlement terms and/or judgments may vary for each plaintiff involved in the lawsuits, and may also vary from case to case. AVID Law Center: JUSTICE PLAN 6

7 MORTGAGE PAPERWORK MESS: THE NEXT HOUSING SHOCK? The news program 60 Minutes recently discussed a new problem hitting consumers as they face foreclosure. As more and more Americans face foreclosure, new discoveries are being made that the banks themselves are possibly committing fraud on an unprecedented level. Caught in the whirlwind of defaults and delinquencies, many banks were unprepared to handle the volume of foreclosures heading their way. In an effort to protect their interests, many began to fraudulently execute ownership documents related to the notices sent to delinquent borrowers and then filed with the courts to process foreclosures. With no consideration of right or wrong, the banks have bypassed the laws in place to protect homeowners and processed possibly hundreds of thousands of foreclosures with forged and phony paperwork. It s only through thorough research of documents in lawsuits and court filings that these activities came to light, and it is unknown the extent of the fraud. Watch the link listed above for 60 minutes in depth story of what has transpired. AVID Law Center: JUSTICE PLAN 7

8 SOMETHING IS BROKEN Watch as a Congresswoman gets the run around while attempting to go through the bank s modification process. paper/nightlinevideo.html Taking the fight to them. Lawmakers like Congresswoman Maxine Waters (D-Ca.) have taken the mortgage problem personally and have tried to help constituents in any way they can. ABC News cameras were rolling as the Congresswoman was repeatedly put on hold for long stretches, disconnected, transferred to extensions that did not work and ultimately switched to a recording which directed her to the bank s website. The average American trying to negotiate a loan modification will not be able to get it done, said Waters. It will be impossible for them to get in touch with the right person, and even if they get in touch with a so-called counselor, they have a cookie cutter kind of direction that they go in. It may be time to stop playing by the banks rules. Banks have lied, forged documents, discarded documents, lost paperwork, robo-signed, illegally foreclosed, taken billions in bailout money, only to put borrowers through the mill when they are in need of help. Maybe it s time to start demanding resolution. AVID Law Center: JUSTICE PLAN 8

9 ARE YOU RUNNING OUT OF OPTIONS? Litigation Having to go to court is a scary thought for anyone. Even big banks fear it. Why, because it takes away their power, their control and puts it in the hands of our judicial system without a guarantee of an outcome in their favor. As consumers, we should use their fear of the unknown as leverage to force the hand of the banks reluctant negotiators. If you have tried for a modification and got the run around, or if you have tried all other available options, it may be time to escalate the matter. Litigation allows the American public to voice the wrongdoings of greedy Wall Street bankers and present evidence in front of a judge and jury. The jury will decide what is fair and just. No longer will we be forced to play by the rules of the banks. Those rules were written by the banks for the banks. Consumers that can benefit from Litigation: Consumers that have been previously turned down for a modification. Consumers with multiple properties. Consumers that are current on their mortgage. Consumers that received previous modifications. Consumers facing foreclosure. AVID Law Center: JUSTICE PLAN 9

10 WHY ISN T THERE A GUARANTEE? It is unlawful for any firm to make a guarantee and/or predict an outcome - Jerry Brown, Governor of California When you are considering representation from a law firm, it is important for you to understand that reputable law firms do not and will not offer a guarantee of outcome because it is against the Rules of Professional Conduct set forth by the State Bar. The Rules of Professional Conduct set by the State bar were enacted to protect the public and to promote respect and confidence in the legal profession. These rules together with any standards adopted by the Board of Governors pursuant to these rules shall be binding upon all members of the State Bar. Litigation is a calculated decision based on various case and legal precedence. AVID Law Center: JUSTICE PLAN 10