Have you seen what Eric Dunn is passing around?

He’s created a continuing legal education package called, “Fighting Predatory Lending in Washington.” Well, at least he and his partner have, both of them being listed as authors of the CLE materials.

I called Eric and asked about it, leaving a voice mail. That was a couple days ago and he’s never called back . . . and I’m done waiting.

Squeal

Regulars will remember Eric, the attorney from NJP. He originally came on board with this . . .

As one of the people who helped draft HB 2791 and get it passed, I am loving watching you guys squeal.

Eric Dunn – staff Attorney at Northwest Justice
Project and co-author of HB 2791

I found it offensive and asked him to apologize to my readers. So far, no apology has arrived.

bizarro world

Later, Eric, for who knows why, left a half dozen comments in the guise of one Ignacia Ramirez. Why he pretended to be a coy, innocent latina we’ll never know, but the fact he did took his participation into the realm of bizarre.

Turns out Eric was just getting started.

What Eric said

I’ve scanned and uploaded the first page of Eric’s materials, the Table of Contents of his presentation Fighting Predatory Lending in Washington.

Now, remember, Eric, in his own words, helped draft HB 2791, the foreclosure rescue scam law that today is crippling Washington’s real estate industry.

And, we know how Eric feels about investors from his original comment, the “loving watching you guys squeal” thing, as well as his subsequent “put on a dress and call me Sally” comments as Ignacia.

Here’s what we didn’t know, and I’ll let Eric describe his beliefs in his own words (the front page footnote from the CLE materials) . . .

The author acknowledges here the probable superiority of the view, most closely associated with the Muslim faith, that the making of any financial gain in return for the advancement of funds is inherently, “unjust.” Yet the balance of this discussion presumes that Western laws will continue to lag behind their Islamic counterparts in this regard.— Eric Dunn & Abbas Rizvi

Kinda takes your breath away, don’t it?

Thunk tank

This, Rob, is who you’ve included in your foreclosure “think tank?” You’ve allowed him and his radical Islamic beliefs to influence your effort to create laws for the rest of us uncivilized Westerners?

So, Eric Dunn and Northwest Justice Project (they even sponsored the thing) was there to “help draft HB 2791,” where his Muslim based belief that Westerners are backwards and unenlightened to think they should make any profit is allowed to take root and spawn our own state’s foreclosure law?

Are you kidding me?

This is nuts, Rob.

Co-authored

Now, there are two authors named in the CLE, so I can’t be sure if these are Eric’s words or his associate’s. I asked him to confirm one way or the other, indicating I would attribute the words to him if he chose not to respond.

He didn’t.

But, to be fair, the words may in fact be those of his co-author, Abbas Rizvi. In either case, it doesn’t matter. As co-author, Eric is responsible for the presentation materials and since he takes to the podium and teaches from this material, attributing the words to him seems fair.

And, even if the words are actually from his co-author, it changes little. This is the mentality of at least one local attorney teaching other Washington attorneys about Fighting Predatory Lending in Washington, and that, in an of itself, is just plain wacko.

Excuse me?

So, excuse me for being a Westerner, for being backwards and uncivilized, and for not accepting the “superiority of the view” that making a profit by advancing funds is unjust.

Eric’s views only confirm the “investor bad” notion that’s behind all of this nonsense, Rob, and allowing and encouraging his participation in the creation of your foreclosure rescue law was a terrible mistake.

Financial gain unjust?

Good grief, Rob, your office is out of control.

In the arena,

Joe

I thought I’d go through the Northwest Justice Project’s Foreclosure White Paper and provide a critical analysis.

Except that, it never occurred to me I’d get stuck on the very first page.

Oh well, it’s time someone who knows a thing or two about foreclosures steps up and takes a long, hard look at it because it’s got its share of problems, beginning with page 1, paragraph 1.

Equity

First paragraph:

The first key to understanding Foreclosure Rescue Scams is the concept of “home equity.” Home equity is simply the difference between the market value of a home and the sum total of liabilities (i.e. debt) on the property. For instance, a home that is worth $250,000, but is subject to a $100,000 mortgage, will have $150,000 of home equity (assuming there are no other liens or debts against the property). — The Foreclosure White Paper
Page 1, Paragraph 1

Well, at least its author, attorney Eric Dunn, by attempting to explain the concept of equity (though why he calls it “home equity,” I don’t know), understands it exists. That’s a significant improvement over what we’ve previously seen from your office.

Except that, Eric, it turns out, has it all wrong.

Vacuum

What Eric is describing is the concept of equity in a perfect world, on a perfect day, in a vacuum. And, if that’s the sort of equity we’re talking about, then Eric’s explanation is certainly fine.

However . . . the white paper is addressing the issue of properties in foreclosure.

In doing so, he cannot honestly talk about the concept of equity without mentioning the very real effect of foreclosure on equity. To do so is, to use Eric’s word (or was it Ignacia’s?), is disingenuous.

Situation #1

It’s a perfect day, in a perfect world, and John and Mary owe $100k on their $250k house, per Eric’s example above. Not only that, it’s a sellers’ market where properties are fetching top dollar (sweet!).

How much equity do John and Mary have?

Although Eric would argue $150k, that’s a bit of a stretch, but close enough, I guess.

And if John and Mary decide they want to cash out by selling, what can they expect to walk away with?

Closing costs in my area are 10% or so to the seller. With a full price offer, John and Mary walk out of closing with a check for $125k. Again, close enough.

Situation #2

It’s a less than perfect day, in a less than perfect world. John and Mary still owe $100k on their $250k house, but the market has shifted. Now, homes aren’t selling nearly as fast as they used to, and full price offers are few and far between.

Even worse, property values are beginning to tumble.

Sound familiar?

How much equity do John and Mary have today?

Not $150k, and not $125k.

More than likely, if they want to sell, they’ll have to take a discount. And if they really want to sell, like anytime soon, they’ll probably have to take a considerable discount to guarantee offers comes in.

So, when their agent calls after months of inactivity and says they’ll need to come down to $235k, they agree instantly. And a month later, when no offers have come in and the market continues to weaken, they reduce it once more, this time to $220k, crossing their fingers all the while.

Thankfully, that does the trick because a couple offers finally show up and John and Mary accept the better of the two, $210k. It’s less than what they’d hoped for, but they’re glad just the same.

How much do they net at closing?

The same 10% closing costs are in effect, so they’re already down to just $89k.

Only this time around, the buyer also asked for a 3% contribution from the seller, to be used toward the buyer’s closing costs. And, though John and Mary didn’t want to take an additional 3% discount, they were sufficiently motivated to do so.

That’s another $6,300, and now we’re down to $82,400, which turns out to be the amount of their settlement check.

They took a big hit, but at least it’s over and they can move on, which was their goal all along.

Situation #3

It’s a terrible day, and John and Mary’s home is scheduled to be foreclosed in just a couple days. They owe the same $100k, including all the back payments and foreclosure fees, and their house is said to be worth $250k, but no one can really say for sure.

A ton of equity?

Well, not really.

They risk losing everything at the foreclosure auction and are looking at offers from local investors. The last few days have been crazy with no less than four guys knocking on their door and making offers to buy their home.

One offered “U-Haul money,” $2,500, to walk away. John told him to get lost and threw him off the porch.

Another said he’d go $30k if John had a title report showing he and Mary actually owned the place and there were no other liens against it. Unfortunately, John hadn’t thought to order a title report because he assumed he’d be able to come up with the money to stop foreclosure on his own. With no title report, the guy said, “thanks, but no thanks, I’ll just buy it at the sale for what you owe.”

One investor said he’d buy it for what they owe, too, only he’d allow them to stay and rent it, giving them an option to buy it back within 3 years. But John was too smart for that. He’d read all about foreclosure rescue scams and didn’t want to be screwed out of his equity.

The last offer was from a guy who worked for Bobo, the world’s only real estate buying chimp. He’d pay $25k, in cash, and give them 10 days to vacate. He’d give them $5k upon signing over the property, and the balance once they were gone, with a $250 a day penalty for every day they were still in the property beyond 10.

He also suggested they might do better by letting the property go to the foreclosure sale and hope a bidding war ensues, but they decided that was far too risky and didn’t want to ruin their credit, so they rejected that route.

And so, with fewer options than they’d have preferred, they took the chimp’s offer of $25k, the best of the bunch (no pun intended).

Circumstances matter

Three situations, all influenced by circumstance, resulting in vastly different values.

And, because the circumstances go from one extreme to the other, John and Mary’s equity is worth either $125k or $25k, or somewhere in between.

What it’s not is . . .

. . . simply the difference between the market value of a home and the sum total of liabilities . . .

Not hardly.

Can you imagine, Rob, what consumer advocate attorneys will say when they learn John and Mary were paid $25k for the $150k equity?

I’m guessing, “scam!”

When, in fact, John and Mary weighed their options and, in light of their circumstances, accepted what they considered the best offer available.

Was $25k a really bad offer, and were they somehow ripped off or tricked out of their hard-earned equity?

On a perfect day, in a perfect world, in a vaccum, probably yes.

But on a terrible day, with foreclosure looming, absolutely not.

Certainty

That $25k represents a lot more than some people not about to lose their homes imagine. With foreclosure just around the corner, $25k is nothing less than salvation.

It’s a guarantee foreclosure never happens, nor does eviction. It means money to move, to pay first and last rent, to make deposits for phones and utilities, and to be able to start all over without a lot of pain and suffering.

It means no attorneys, lawsuits, process servers or life-long foreclosure scars.

It means no more worrying about how things turn out. That $25k in hand is almost priceless and because of it, they’re certain to come out okay.

No, it’s not the perfect solution (see perfect day, perfect world, above, for perfect solution), but it’s not disaster either, and at the moment, avoiding a total disaster is Job #1. $25k does exactly that.

And frankly, Rob, unless and until the Office of the Washington State Attorney General can guarantee they’ll net more than $25k at the foreclosure auction (it can’t), it’s indisputably fair.

Certainty

Equity in a vacuum, as described in the Foreclosure White Paper, never happens except on shows like “Flip This House,” or whenever consumer protection attorneys want to scream “my client is a victim.”

More likely, that client of theirs received 100% of what was reasonable at the time, considering the circumstances.

Attorney Eric Dunn, as the ample-breasted latina Ignacia Rameriz, once commented, “If you just pay John & Mary a fair price for the house with no strings attached, then you have nothing to worry about.”

What’s fair?

I know you probably hate this idea, Rob, but I suggest we let John and Mary decide.

They determined fair to be $25k (though Eric, no doubt, would argue otherwise). And no, they’re not poor, sick, elderly, delusional, depressed or any of those other things you like to claim.

What they are, Rob, is hours away from losing their home.

You see, it’s circumstances that determine equity and what it’s worth in terms of real dollars, not simply market value less debt. And circumstances like, I don’t know, FORECLOSURE, must be factored into the equity equation.

You folks never seem to remember that. Instead, you talk about equity as if foreclosure wasn’t just hours away from stripping it all, and that’s a lie of omission if there ever was one.

The Key?

The first key to understanding Foreclosure Rescue Scams is the concept of “home equity.” — Attorney Eric Dunn

Translation?

I really don’t think Eric understands foreclosure rescue scams.

In the arena,

Joe Kaiser

P. S. I just looked at page 1, paragraph 2. It’s going to be a very long night. Thanks for nothing, Ignacia!

In the latest version of your lawsuit against me (more on that later) you’ve included the nonsense about me writing a book “to protect investors when being sued for using his investment methods.”

As you know, the actual point of the book is to thoroughly document our foreclosure transactions so the seller and some clever attorney can’t lie about what took place down the road.

Why be concerned about the seller claiming we’d unfairly taken advantage, or the seller saying he thought it was a loan, or any of the other phony arguments typically made?

The Northwest Justice Project, and it’s Foreclosure White Paper, that’s why.

Bulletproofing Required

The white paper describes virtually every known method to unwind a sale and provides example after example of case law that might be useful to the attorney in that effort.

The existence of this widely-shared Foreclosure White Paper is proof positive my course, 37 Ways to Bulletproof Every Foreclosure Deal should be required reading for every investor considering transacting with anyone in foreclosure.

Because if the strategies described in my course aren’t implemented, attorneys armed with the Foreclosure White Paper will turn your “fair and square” deal into a scam, and that once perfectly delighted seller into your latest victim.

Oddly Familiar

The paper is some 77 pages, and you’ll have to read it yourself (and you should) for the complete story. Trust me, it’ll be interesting.

Here’s one paragraph that caught my attention . . .

Certainly no reasonable homeowner would enter willingly and knowingly enter into a transaction of this kind. Therefore, it should not be surprising that foreclosure rescue scam artists tend to prey upon the most vulnerable homeowners, such as the elderly, people with cognitive or mental disabilities, and so forth. — Foreclosure White Paper
Northwest Justice Project

Sounds oddly familiar, doesn’t it?

I seem to recall a letter to the Seattle Post Intelligencer editor with much the same tone . . .

Not only are these deals inherently unfair, but since no rational homeowner would knowingly enter into one of these transactions, the scam artists target vulnerable homeowners, such as the elderly, persons with disabilities, and persons with limited English language proficiency. — Attorney Eric Dunn

Confirmation

So, while Eric isn’t mentioned by name in the white paper, it’s clear he had a hand in developing it.

Just for fun, lets check out the “Properties” tab in the Word doc to see what info it has . . .

Turns out Eric wrote the damn thing.

No surprises there, and explanation as to why he’s here posting his extremist views (though why he chooses to do so as a wide-eyed latina, we’ll never know).

Why I wrote 37 Ways to Bulletproof Every Foreclosure Deal?

Attorneys like Eric Dunn, who, when dealing with real estate investors at least, don’t believe the rules or the truth matter all that much.

In the arena,

Joe Kaiser

I attended the Foreclosure for the Rest of Us seminar held by the King County Bar Association this afternoon.

And, in the lobby before his presentation, I happened upon Eric Dunn, the NW Justice Project attorney who sometimes plays a latina on the internet.

Long hair, some sort of puka shell necklace thingie, unbuttoned shirt collar, absolutely perfect.

The conversation went like this . . .

the conversation

Me: Eric, Joe Kaiser, nice to meet you.

Eric: Ugh . . .

Me: I enjoy your comments on my blog

Eric: Huh?

Me: Okay, well, see you around.

Eric: I doubt it.

Me: You doubt it?

Eric: Yeah, I haven’t been back to your website since you sent me that email.

Me: No? Not even as Ignacia Rameriz?

Eric: Ugh, who’s that?

Me: Have you seen the website this morning?

Eric: Ugh . . .

Me: You’re an entertaining fellow, Eric.

Reality bites, Eric

Eric’s definition of the truth?

. . . I haven’t been back to your website since you sent me that email. — Eric “Ignacia Rameriz” Dunn

Good grief, Rob, do you all just make things up whenever convenient?

Live Update

Eric just finished up. He did a good enough job, but has obvious blind spots when it comes to the role we investors play.

It turns out we investors are completely unnecessary in the real estate marketplace. Attorneys, it seems, provide all the services anyone in foreclosure could possibly require.

And me?

I’m a bad bad guy.

A couple questions from the audience left him looking helpless (I actually felt bad for him), and his answers sometimes made almost no sense, (that’s how it works when you deal in hypotheticals), but that was to be expected.

Reality, especially when facing tough foreclosure questions, Rob, sometimes bites. Just ask Eric Dunn.

In the arena,

Joe Kaiser

They’ve been a little strange of late, the comments I’ve been getting from one Ignacia Ramirez.

Clearly, Ignacia isn’t a fan, and from the comments, isn’t particularly intelligent, either.

But, I let them come in and to be fair, didn’t try to make her look foolish. She was doing a good enough job of that on her own.

Ignacia Ramirez?

Here’s a comment from yesterday . . .

You don’t have a constitutional right to rip people off.

These people who’s pictures you are putting on your website — it seems they are all consumer protection lawyers. Why would they be against these foreclosure deals if the transactions weren’t so bad?

Also, I’m not sure you should be putting their pictures on your blog. I can’t image you have their permission to do it, based on what you are saying about them. Where did you get the pictures from, anyway? — Ignacia Ramirez
2008/04/23

Odd?

I think so. And what’s the weird “I can’t imagine you have their permission . . . Where did you get the pictures from, anyway?” stuff?

My BS detector tells me this is a bogus post, but I let it go through anyway.

There’s more

Today, two more comments from Ignacia. Here’s one . . .

Here’s why it’s very simple: if you don’t want to violate the new law, don’t do foreclosure rescue scam transactions. — Ignacia Ramirez
2008/04/24

And the other . . .

If there was one lawyer out there in left field with some odd-ball complaint about these scams, then maybe you would have a point. But it’s not just one lawyer you’re attacking. You’re going after a whole bunch of lawyers, from the attorney general on down. You’re also attacking a state representative.

These are government people, so it’s not like they have a financial interest in this matter (like you do). And it’s not only Washington where these deals are getting banned — a lot of states are passing legislation to stop these scams. Are the consumer protection advocates in all those states crazy too?

What’s “pretty silly” is your suggestion that anyone should believe you — a guy with a clear and direct financial interest in the subject matter — over an entire group of consumer protection experts who are probably just calling it like they see it. Also, since most of them are attorneys, at least they have some apparent expertise and educational background. Your only apparent credential is that you’re being prosecuted for consumer fraud by a state attorney general.

Oh, and generally speaking, a person whose home is sold at a foreclosure auction generally does better than a person who is swindled out of the home in a rescue scam. So Rep. Lantz was right. — Ignacia Ramirez
2008/04/24

Email notices

I also get emailed a copy of the comment whenever anyone posts. Here’s what the first post from today looks like when it arrives in my email inbox . . .

A new comment on the post #522 ""A Very Simple Bill"" is waiting for your approval:

Comment: Here's why it's very simple: if you don't want to violate the new law, don't do foreclosure rescue scam transactions.

Tukwila?

I’m guessing tukw.qwest.net is local, perhaps Tukwila, WA, but I dont’ know for sure. Still, it does make me wonder who I know in Tukwila who might be yanking my chain.

Ignacia, what are you up to?

But hey, there’s an IP address attached to the post – 65.102.114.35.

See it up there?

Gotcha

I wonder what happens when we search for other comments from that IP address?

Well, we find four from Ignacia, and we also find this one . . .

A new comment on the post #474 "It's Official" is waiting for your approval:

Comment: As one of the people who helped draft HB 2791 and get it passed, I am loving watching you guys squeal.

And to whom does that one belong to?

Eric, you putz

None other than our friend . . . Eric Dunn

As one of the people who helped draft HB 2791 and get it passed, I am loving watching you guys squeal. — Eric Dunn – staff Attorney at Northwest Justice
Project and co-author of HB 2791

Why am I not surprised?

Disgusting

Rob, please let this little scamster know we’re on to him and his alter ego, Ignacia Ramirez. His deceit is contemptible, and I hope the Washington Bar sits up and takes notice of his unethical behavior.

Here, again, is his now entirely laughable comment . . .

Also, since most of them are attorneys, at least they have some apparent expertise and educational background. — Eric “Ignacia Rameriz” Dunn

That expertise and education doesn’t make Eric better than the rest of us, Rob . . . it only makes him that much more dangerous.

Now, Eric, we get to watch you squeal. And btw, I so call Bullshit.

In the arena,

Joe Kaiser

Eric Dunn has decided to join us. Unfortunately, so far at least, his insights have been few and far between.

Maybe he can do better next time.

Eric Dunn – staff Attorney at Northwest Justice
Project and co-author of HB 2791

His first contribution to the site is this comment . . .

As one of the people who helped draft HB 2791 and get it passed, I am loving watching you guys squeal.— Eric Dunn

Is it just me, or does the word “putz” come to mind to you, too?

We’re bad?

Having had the misfortune of spending the last couple years dealing with the guys and gals from the Office of the Attorney General, I’m familiar with the “investors: bad” mentality.

I’m guessing it comes from running into enough dishonest investors you automatically assume we’re all bad. Well, we’re not.

The vast majority of us are in this business to provide a good and valuable service at a fair price to people who need it the most – people in foreclosure.

We make promises we deliver on, and we pay every last nickel, as agreed.

And when the dust settles and everyone is on their way, more often than not we’ve all come out for the better and are happy to have transacted.

It should be obvious to all that investors play a vital role in preventing foreclosures. Unfortunately, it’s not. Some people just don’t get it and sadly, like Eric and Rob and David and Cheryl, they never will.

A bad thing

We’re concerned, as Eric should be, with the effects of this new law. We’re also concerned that he and his co-horts don’t understand what it is they’ve done.

When someone loses his home (and he will) because you came up with the bright idea that using a power-of-attorney is a bad thing, (among a half-dozen other cockamamie ideas), I hope you’ll take full responsibility for the harm this law has wrought, Rob.

And you can be sure I’ll make certain of it.

Nice job

Eric says you’ve created “the nation’s strongest, most sophisticated protection against foreclosure scams.” (clck here to see Eric’s letter to the editor, near the bottom of the page). I’ll give you that much (although “sophisticated” is about the last word I’d use to describe it).

And if that was your objective, well done.

Unfortunately, in doing so, Rob, you’ve cripped people in foreclosure who, unable to jump through the countless hoops your new law puts in front of them, will lose their homes.

How do you not get that?

The last thing people in foreclosure need are more things to deal with. Having little time to spare, they already have enough to do to save their home.

Making saving their home an impossibility by dumping more problems on them isn’t “sophisticated protection,” it’s insanity.

HB2791

You didn’t shut down dishonest investors, Rob, or stop even one foreclosure rescue scam. In case you haven’t noticed, scam artists don’t play by the rules, anyway.

All you did was make it harder for desperate people to save their homes. Now, without investors to help, they must fend for themselves. Now, there’s little we can do to save them.

Musings

The new law strips homeowners of their rights.

Some of us grow concerned when governmental agencies steal our rights, but not Eric Dunn. Instead, he muses about “loving it” as we voice our outrage.

Why am I not surprised?

Eric, that’s not the sound of squealing you’re hearing.

It’s the sound of wailing fathers and mothers and their children, husbands and wives, brothers, sisters, aunts and uncles, who, because of your ignorance and your stupid, stupid law, have needlessly lost their homes and are being escorted to the curb.

I wonder if they’ll be able to appreciate the sophistication of HB2791 from their seat on a Pioneer Square park bench.

Not to worry, the daffodils are lovely this time of year.

In the arena,

Joe Kaiser