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(480) 342-9595 or Toll Free (888) 720-0003
Caveat: In providing this Q&A United First, Inc. is not providing or offering legal advice, and the reader is warned that he or she cannot rely upon anything in this document as legal advice. United First, Inc. does not practice law or offer legal advice. Nor is United First, Inc. offering any services as a Foreclosure Consultant as that term is used in California law.
1. Is this a scam or fraud?
No. Almost always, scammers will trick the homeowner into signing the property over into their name. With United First, the property remains in your name throughout the whole process. Plus we work with a very reputable lawyer, Mitchell Roth, a former law professor, who has 30 years of experience as an attorney, and has written a couple of books. (Mr. Roth's profile) A lawyer of his status wouldn't risk his good name working with a fraudulent company. If you're still not convinced this is legitimate, please visit this website.
2. Why are you the only company doing this?
Because as of yet, nobody else has figured out how they can profit by doing what we do, which is buy time for most property owners at an acceptable cost and in some cases to wipe out the loan. We didn't come up with our business plan just by chance. We paid our attorney many, many thousands of dollars to research the loopholes in the law that allows us to proceed confidently with our approach. We wouldn't invest that much money if we didn't think it was going to work.
3. Are there any precedents for what you're doing?
Yes. In October 2007 a federal judge named Christopher Boyko tossed out 14 foreclosures filed by Deutsche Bank. What was the basis on the ruling? The judge said Deutsche Bank couldn't show it had the ownership required to initiate foreclosure. (read the entire Boyko ruling here) Four other Ohio judges have since dismissed dozens of foreclosure cases brought by other trustees on similar grounds. Once these rulings were made, it gave us the precedent to pursue a similar course of action for our clients.
4. Have you won any cases in court?
Since lawsuits take such long time, perhaps 2 years or longer, we haven't had any judges decide completely in our favor as of yet. However in almost every case, we have been successful in getting a temporary restraining order, or a temporary injunction, or both to stop the foreclosure.
5. What happens if we win in court?
If we win, then you have 2 choices. You can either decide to sell your house, and you then walk away with 20% of the sale price in cash. Or if you want to stay in your house, you can use that 20% as a down payment, and you get an 80% loan to pay us off. This would be a conforming 80/20 loan.
6. How can I get a loan if my credit report shows a foreclosure?
Once we win in court, anything related to the foreclosure will be wiped off of your credit report. You can't have a 30-day late for a loan that was thrown out.
7. What is the worst that can happen?
As in all court cases, there is a chance that we could lose. The judge may simply rule against us. If that happens, then foreclosure proceedings will start again just as it is now. But basically you're back to square one. You haven't lost anything. You're in the same position you are in now. If anything, you've been able to live in your house at a reduced cost for at least 2 years, or if your property is a rental property, you've had an income stream.
8. How do I know if my bank has lost my note or not?
We won't know until we obtain the temporary injunction. If the bank has it, they will likely show us early on. However often they are so disorganized, it surprises even us.
9. I took my loan out through Bank of America. They're a respectable bank. They probably have my note, right?
Just because a bank or lender is big and well respected doesn't mean they're organized. The fact is that almost all loans taken out in the last few years were sold off to other banks and investment banks 30 minutes before the ink dried on the paper. Your loan has probably been divided into dozens if not hundreds of pieces, and your original note was either boxed away and is inaccessible or just plain lost because of carelessness. As far as the respectable part, well frankly the mortgage industry is not very highly regarded right now. Just ask the Senate subcommittee that's investigating several mortgage lenders for fraud, predatory lending practices, and other serious infractions. If your original loan was made by one of the many sub-prime lenders that have gone out of business it is quite possible that no one can find your original note.
10. Who qualifies for this?
Anyone with a residential property who has received a Notice of Default or expects to do so shortly, and has at least 11 days until the Trustee Sale takes place.
11. Does it work on commercial properties?
No.
12. Does it work with rental properties?
Yes.
13. What states do you work in?
California, Nevada, Arizona, and Florida.
14. Can I do this on more than one property?
Yes.
15. How do I sign up?
Fill out a Foreclosure Worksheet, (call us 480-342-9595) and fax it in, along with your property tax bill, and your Notice of Default, or your Notice of Trustee Sale. Once we have received those papers, we will draft a Joint Venture Agreement for you to sign. When we have a signed Joint Venture Agreement in our possession (which includes the Attorney Retainer Agreement with MW Roth, PLC), we now have permission to fight for you in court.
16. I can't afford the Joint Venture monthly payment. Is there any way to lower the payment?
Yes. Since your monthly payment is based on your property taxes, the best way to lower your monthly payment would be to go to the County Assessors office, and get your property re-assessed. Since almost every home's appraised value has dropped recently, it is almost certain they will also decrease the tax amount owed. You have to remember that whatever the monthly payment is, it will likely be far less than your mortgage payments or the rent you would have to pay if you moved somewhere else.
17. How much does it cost?
In order to enter into the Joint Venture Agreement with us, you have to provide a payment each month throughout the whole process. However, this monthly payment will likely be far less than your mortgage payments or the rent you would have to pay if you moved somewhere else.To calculate how much your monthly payment will be, divide your annual property taxes by 3. The minimum payment is $1,250 per month.
18. Do I have to pay my taxes, insurance, and HOA fees?
We pay your property taxes for you. However you are responsible for your homeowners insurance, and any Homeowners Association fees.
19. What if I haven't paid my taxes since last year?
That's no problem. We will slowly bring your taxes current. The only issue would be if there is a lien on the property. If there is, contact us, and we will see what we can do to help you.
20. Are there any other fees?
The only other fee comes at the very beginning. There is a one-time processing fee of $500, which is attached to your first month's payment. However if you have received a "Notice of Trustee's Sale", then the processing fee is $1000. However, if you have received a "Notice of Trustee's Sale", then you would be charged an additional rush fee of $500.
21. How do you make your money from this deal?
United First is an investment company. We are not doing this because we are nice guys (although we are). Our incentive, in significant part, comes from the 80% of the home's value once we win. Once we win, we get paid when you either sell the home, or if you get a loan to pay us off.
22. How long does the process take?
Nothing in the legal system is quick. We figure the initial lawsuit may take as long as 2 years. If the initial suit is successful, we will have to file another lawsuit to clear title, and this will take approximately four years measured from the date of our initial JV agreement. In the meantime, you can continue to live in your property, and we will provide you with updates relating to your case.
23. Do I ever have to come to your offices or appear in court?
If you wish to visit us you may. However it is not required. You will likely not have to appear in court, but you may have to participate in the litigation discovery process.
24. Can I stay in my home throughout the process?
Yes.
25.I am having difficulty making my mortgage payments. Can United First help me prevent Foreclosure before I start missing payments?
No. United First only helps homeowners who have chosen to miss mortgage payments and voluntarily enter the foreclosure process. However we strongly recommend that if a homeowner can prevent the foreclosure before they start missing payments, that they do so, whether it is through refinancing, a short sale, renegotiating with the lender, or some other means. When the homeowner has first exhausted all other options, only then do we recommend that they sign up with United First.
26. There is going to be a Trustee Sale soon. Can I still sign up?
Yes. We accept applications up to 11 days within the Trustee Sale date. However there still is a chance that the temporary injunction will not go through. The reason is that if we try to enjoin (prevent) the sale at the last minute, we arrange what's called an ex-parte hearing. Basically it's an emergency hearing that forces the judge to rearrange his schedule and make hasty decisions on complex factual and legal issues. As you can imagine, they usually don't like that. That's why the sooner you sign up, the better. If you are already within that 12 day window, please contact us to see what you can do to save your house.
27. Can I do this if I haven't received a Notice of Default?
We can still draft a Joint Venture Agreement for you. The JV's attorney will prepare the lawsuit and filings for injunctive relief. However he will not actually file for you in court until we receive the Notice of Default which will list the name of the Trustee as a defendant. You can sign the Joint Venture Agreement and send it to us. Once you do get the NOD, send it to us right away, and we will immediately get into action.
28. What if I have a 2nd or HELOC?
We only focus on the first loan. Since the 2nd and HELOC won't foreclose because it would require them to reinstate and service the payments on the first mortgage, we don't really need to be concerned about them.
29. I am current with my payments, but I am upside down on my loan. Should I sign up with you?
It depends. If you have excellent credit, you may not want to stop paying your mortgage and then have 3 30 day-lates on your credit report. However if you feel like the loan balance of your mortgage is too much, it may be the only way you can ever get a new loan for an appropriate amount relative to the value of your property.
30. What if my loan is a refinance?
That is no problem. This is an even greater need to challenge the rights of the foreclosing party because in opting to foreclose by non-judicial sale (Trustee's sale) the lender gives up the right to a deficiency judgment.
31. During the process can I still pursue a short-sale or negotiate with the bank?
Yes, although it is highly unlikely you will be successful. We must work with the short sale to protect everyone's interest.
32. If I sign up, can I still file bankruptcy?
Yes. But, if you file bankruptcy, the joint venture will terminate and representation by M.W. Roth, PLC will end.
33. I know a lot of people in foreclosure. Can I work for you, referring clients?
Yes. United First has openings for those that would like to refer us clients. Please contact us for more information.
34. I am a real-estate agent. Can I do the transaction at the end?
The Joint Venture Agreement does not involve a real estate transaction and has no application regarding your license. There is no change of ownership in the property – it stays in the homeowner's name and we do not refinance at this or any time. Once and if the encumbrances on property are cleared the homeowner will need to refinance or sell the property.
35. I think your taking 80% of the home's value is too much. Can we negotiate for a lower percentage?
No. United First has committed to risk many, many thousands of dollars to fight your case in court. We are on the hook for all of the legal bills, plus we take the risk that the judge will rule in our favor. If we lose the case, we never ask you to pay more for the legal expenses. Also, you have to remember that when we do win, you automatically earn 20% equity in your house. Let's say for example your house is valued at $250,000 at the time we win. That means you have just earned $50,000. What did you do to earn that money? Nothing, except sit back, wait, and continue to live in your home. You do have to pay a monthly payment, but you would be paying the same amount in rent to live someplace else.
However, let's say that instead of signing up with United First, you pursue a short-sale, and you are successful in selling your home. It's true, in that scenario you are out of debt. But now you are only back to even. With United First, not only are you out of debt, but you may wind up positive $50,000 or more, plus your credit is restored, something that doesn't happen in a short-sale. It truly is a win, win situation.
