I am a Real Estate Broker and an appraiser and co tenant an office with some pretty sharp tacks.
Two of my associates are enrolled with an organizatin we call Butler for short.
They have all the hallmarks of con artists but the most experienced in our office has calculated that they are not, and I have now started to believe him.
What this organization claims, and they have only started this year doing this, is to reduce your principal by 50% and get you a 2% home loan.
It now seems for my associates they actually will.
In conversation, it seems that they are using bankruptcy strong arm powers, possibly case precedent, the threat of BK cram down
power or some combination, possibly using the imperfection rampant in documents the lenders have and threatening for us, their client to go BK chapter 7
and listing them as unsecured creditors, requiring them to prove they are secured, which with the rampant imperfect documents they cannot.
Again, I am talking about a first not a second.
This company then issues a new first at 50% of the loan, but it seems, actually gets a 60% reduction, so they pocket the 10% and come off well.
Like I say, we have been skeptical, but our skepticism is starting to go away.
What I am wondering is if we should not refinance, at least I shouldn't, because I have been standing on the sidelines, watching and listening.
One of the associates in Butler said that if you need a foreclosure stay, while they process, use Chapter 7 and list the 1st an unsecured creditor, requiring the lender to bring their documents forward to prove they are secured.
My guess, our guess in the office now, is that they are using this tactic to encourage the lenders to sell the asset to them for their refinance at 60% off.
Possibly using this and the cram down possibility of the BK court to require principal reduction to lower the payment.
They are doing something. I am not sure. But something is up.
We have recieved an invitation from someone else, with documentation, showing they have negotiated with the lenders using the same formula as Butler, and successfully getting a large mortgage principal reduction and rate reduced to 2%.
This in the face of loan modifacations from the lenders which were simple wishful thinking in the past.
Something is up.
I, and now we, are wondering now if we should try and list the 1st on our mortgages as unsecured creditors and try our luck, which should be good, on a lack of good documentation by the lender through a chapter 7 filing.
I have some case law on this in researching this that I can post, showing successful 1st loan stripping.
One is from this site:
"Kebe is one of a long string of cases that finds that defective or improper notarization of a mortgage results in the mortgage being treated as unrecorded under Ohio law. ...Thus the court granted the Chapter 7 trustee
’s request to avoid the lien of the mortgage."
I know that in BK a second can be stripped using the right chapter of BK, this is about the 1st mortgage.
Can you tell me what you think of this.