twenty days and then you're out of the house just by virtue of having an attorney even if it's not a good attorney and he files you know one documents that that foreclosure automatically goes to the bottom of the pile and in my experience just by having a foreclosure attorney file some of these documents it could delay the foreclosure process substantially i've seen ones go as long as three four even five years and you know you're paying this attorney maybe seven thousand nine hundred thousand nine thousand a year but in the meantime you're not paying your mortgage you're not paying your property taxes you don't have to move out you don't have to rent a new home or buy a new home all of those activities are more expensive than just paying the defense attorney to really stall the process and in the meantime you know the homeowner i've seen homeowners have been able to save up money to where they're finally evicted from the home they've saved so much they're able to buy a new one and are basically made whole and in the same position they were prior to the foreclosure that is hiring an attorney you know you can start the process by

being put at the bottom of the pile to get the rio the courts but if we do find that the documents are faulty and what is the process that the homeowner have to go through to wipe out their mortgage. so one of the new the new developments in foreclosure defense law. has to do with something called quiet title motions quiet tile motions or essentially motions made by a defense attorney to wipe out the mortgage it's a very aggressive strategy whereas normally foreclosure defense is a defensive strategy and is very reactive verses the quiet title motions which are proactive in a quiet title action if it's successful the homeowner can end up with the mortgage wiped out which leaves the note but the note without a mortgage securing the land is basically unsecured debt it's almost like a credit card debts where you could settle it for pain. on the dollar or just

bankruptcy all together so you know if you can get the mortgage discharged through a quiet hot emotion and just have a no it's. a lot better position to be able to keep that home no matter what at that point and are we finding that the banks are quicker to fado and if situation. recently over the past year we have so one defense attorneys have been filing these quiet title motions the first step the bank takes is a motion to dismiss that action. if they lose that action the motion gets set for trial i really haven't seen many or even any of all and yet all of those cases go to trial because the banks you know first of all don't have a very strong legal argument the statutes in the laws go against them there are only argument as public policy and public interest that is it's in the best public it's in the public interest or public policy to allow the banks to take back the

houses and it would be against the public interest for them not now on the chain from strongs week legal arguments strong arguments in statutes and case law the banks argument of public policy and public interest is one of the weakest legal arguments you can have and since they know that argument is weak you know they would prefer to settle rather than lose and one of the big reasons they'd rather settled and lose just one individual case is losing a case can set major court precedent precedent which could be used in laser later cases you know furthermore such a judgment you know. would be would go to the media who would then advertise the fact that the banks you know could be in a lot of trouble that all these mortgages can be attacked and they want to keep that little secret you know they want the only people to know about the fact that you can potentially wipe the mortgage out or the foreclosure defense attorneys that's why they settle in so many. instances because they just don't want to court

precedent and they don't want negative media coverage of such an event well let's try to expose that right now is very interesting that the banks don't want to set a precedent and they don't want people to know that their mortgages can be wiped out if they made a mistake so how many faulty mortgages are how many faulty foreclosures do you think are out there and they could potentially be in this category you know it's interesting that you asked that i saw a report by the office of the assessor or recorder in san francisco he said that ninety nine percent of all foreclosures have at least one year regularity and eighty four percent of those are faulty or illegal now i personally believe that number to be a little inflated in my personal opinion i would say somewhere between twenty and thirty five percent of the loans written between two thousand and two and two thousand and eight you know are going to contain

a lot of these faulty documents especially ones where the homeowners loan has been transferred to the murders mortgage large trunk registration system if you see a transfer demurs that's a big red flag that there's going to be potentially mistakes in the foreclosure i think we give you a whole nother so just on earth but real quickly i wanted to get to one more question are there any other negative consequences that homeowners should be on the lookout for if their home is being foreclosed on or if they're going to be sold in a short sale besides the fact that they're you know taking credit and losing their home. well you identified two of the big issues you know there are going to lose their home and a lot of times you know that credit his negative although you know many times they don't have much credit to begin with so it's not a big issue for them the real big issue that they need to understand especially in a short sale because you can prevent this in a short sale by requesting you know those clauses being the be removed from the

short sale contracts is you've got to look for the deficiency judgment and what many people don't know whether they're being foreclosed on because they can't afford the home or they're being foreclosed on because their home is underwater and they don't think it financially responsible to continue paying it they still could be responsible at a future date for deficiency judgment now what a deficiency judgment is is you have a the mortgage has a price associated with it's the price at the mortgage out at let's say you take a home for four hundred thousand dollars mortgage the bank takes back the home and the bank is only able to sell the home for two hundred thousand dollars or the fair market value is only two hundred thousand dollars at that time technically the homeowner is still liable and on the hook for the difference of the two on two thousand dollars it's not wildly advertise it's not widely known and it's not widely enforced right now but if we get into a situation where the economy starts getting better people are getting jobs

unemployment goes down and people start acquiring assets and having money you're going to see a lot of debt collectors are going to the banks selling these deficiency judgments to debt collectors for pennies on the dollar and people are going to try to collect the deficiency which mean you know what the mortgage was originally bought for and what the house was sold for by the bank and that could be a substantial amount of money and while you might not be able to prevent that in a completed foreclosure if you do have a short sale of the home you want to try to get your attorney to remove any deficiency judgment language or include. language that will remove any deficiency judgments to protect you in the future if the homeowner later has more money or more assets. remember to have your deficiency it doesn't waived in a short sale i was real state attorney matthew o'brien.

it's time for the day we do all this is. ready yes i'm ready now you remember m.f. global right i remember better than the alamo of course i do but maybe the viewers don't so all right so just over a year and a half ago medium sized future brokers and a story. headed by former new jersey senator and governor john announced that it was missing one point six billion dollars in custer's money and then filed for bankruptcy and here is a travesty of the bankruptcy and liquidation process and there are actually two concurrent events the parent holding company went through chapter eleven bankruptcy and the broker unit where the customer funds were went through a securities liquidation the liquidation for securities for the c.r.t.c.

was kind of an absentee landlord in this whole bit which was unfortunate and i guess some senators were asking questions in the c.r.t.c. is no responded right will soon or shall we ask for an explanation of why the c. f.t.c. had gary gensler recused himself and the early days following the bankruptcy now here is what we gathered from the c f d c's office of inspector general they said that the general counsel and designated agency ethics officer instructed that there was no need to recuse given the fact that there was neither a financial conflict nor an appearance problem yes and the important point to stress here why. gary gensler be ques themselves well he used to work at goldman sachs along with john corazon john corazon was his boss when he was c.e.o. of the firm in the late ninety's and poor gary gensler he just didn't want to do the job apparently to protect the futures industry's customers so according to this report he didn't actually have to recuse himself but there is another line here that we have talked about the revolving door. so he way the chairman's

decision to issue a nonparticipation statement ran counter to specific advice on the matter and this regards the same thing that we're talking about basically gary gensler did not have to recuse himself which is unfortunate because like i said the customers were thrown into disarray people had positions on in the futures markets and they did not know what to do with themselves and there were a couple other things that we found to have their gave those out but then they say if they also required m.f. global center go i reviewed by an independent consulting firm in two thousand and nine. guess who this is i'm going to give you one guess because we only we only cover one shadow regulator on the show and i'm the only one person and could be a prominent financial of course and she was instrumental in overseeing an overhaul of global's risk control policies they signed off of it the whole day overstepped in march two thousand and ten only a year and

a half later guess what john corazon blew up and the global good job in tory one point six billion dollars in missing customer funds because they were keeping their ledgers on an excel spreadsheet and how much how much of a debacle. well it will have to get to that in another show so that said for member of the global thanks bob. it was the best of times and the worst of times on prime interest today matthew o'brien had some wisdom to share with those being wrongfully foreclosed on and our very own justin underhill wasn't has a tend to explore the foolishness of predatory lending nor was it hard to believe how judd gregg revolt from senator to goldman to

sephora we were just slightly incredulous when we learned of the world was running out of treasury and dad's so he felt the need to shine a light on gary gensler and the m.f. global saga lest our viewers fall into the wonder of despair finally j.p. morgan is apparently still in the spring of hope and attempts to get ahead of regulatory purgatory and the noisy authority on the street well it's time to sign off with a superlative tale thanks for watching and come back tomorrow and be sure to follow us on facebook at facebook dot com i'm interested from all of us that prime interest i'm sorry and boring a great night. wealthy

british sun all. the time to write in the money is going to go right on out of. market why not. find out what's really happening to the global economy with mike stronger or a no holds barred look at the global financial headlines tune in to conjure reports on our. please. more news today violence has once again flared up. these are the images the world has been seeing from the streets of canada. operations today please.

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. suicide bombings experience drive central doherty's losing control and a great sense of despair in the lack of enfranchise meant not only describing syria but also iraq the recent spate of bombings and terror attacks in iraq have many concerned the country me collapse into civil war as a result of western backed military intervention.

the investigation into the much shaheed murder of a soldier in london and seized two more arrests while the alleged motives behind what's considered an act of terror a spot of controversy among the british public and politicians. caused on buildings to play its windows smashed in unprecedented violence continues for a fifth night in the immigrant suburbs of stockholm questions now looming whether it's time for sweden to stop being so tolerant. take unless the gates they get in a month nine inches deep five inches and say we're making progress but u.s. war on terror rebranded driving to show that efforts are winding down president obama announces steps to speed up one ton of mowbray's closure but defends targeted killings with drone.