Case Spotlight:

In re Nosek, 363 B.R. 643 (Bkrtcy. D. Mass.2007) theBankruptcy Court awarded:

$250,000.00 in EMOTIONAL damages
$500,000.00 in PUNITIVE damages

Servicer failed to correctly apply payments: plan payments to pre-petition arrearages (POC), post-petition payments to post-petition balance.

Internal accounting alone not sufficient: externalhistory, shared with Debtor and outside world, must be correct.

Servicer simply unwilling or unable to conform its accounting Bankruptcy Code, thus punitive damages to encourage conformity.

Recap Nosek

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Litigation, Risk & Default Servicing Mitigation Products, Solutions and Services

News July 2008 - Credit Card Debt In Need of Special Modifications!

1st Loss in 3 Years! Citi Bank Lost $176 million in credit card securitizations (Q2) as reported on 8/4/08 by Erik Schatzker of Bloomberg. Like mortgages, predictable credit card receivables are securitized into tradable (debt) bonds. Citi had some $9B in such writedowns on previous deals; as BofA and JP Morgan each carry about $3B in securitized credit card debt as of March 2008.

Solutions:

Consumer Debt sDirt™ Solution
 

Credit Card Debt Workout Solutions:
Suspended Debt Incremental Reporting™ Sdirt™

Industry members may opt-in to the Suspended Debt Incremental Reporting Treatment Program™ wherein consumers and consumer credit counseling organizations may enter consumers into the program to resolve potential and default payment and credit distress situations by avoiding bankruptcy or negative credit reporting at the outset of the rehabilitation of the consumer’s debt and credit situation.
 

ShortPayCreditCard™ | shortpaycreditcard.com

Voluntary optin device that reduces the principal of the outstanding debt, interest, rate and resets the payment schedule, all in suspense while protecting FICO scores and working out a credit short pay off by using sDirt™.

ShortPayCreditCard™ and Suspended Debt Incremental Reporting™, Sdirt™ All Rights Reserved in Copyright, Trademark, Competition, etc. 2008, HotNeutral™ and/or Richard I. Rydstrom

ProCouncil™Advisory
Litigation, Risk & Default Servicing Mitigation Products, Solutions and Services
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* CMIS Launches Four Task Forces:
Mortgageorb - Oxford,CT,USA
The AFN has chosen Richard Ivar Rydstrom, chair of CMIS,
to co-chair its CLAPT, which will focus upon identifying federal, state, local and practice ...

CMIS Summit Success!
* On June 17, 2008, The Coalition for Mortgage Industry Solutions held its
Executive Leadership Summit in DC. Click here for more info.

AFN Conference July 2008:
* On July 18, 2008, Richard Ivar Rydstrom, Esq. spoke at the
AFN Annual Mortgage Conference in Lake Tahoe.
To read the Keynote Speech, Click Here. 

ALL RIGHTS RESERVED, COPYRIGHT, TRADEMARK, COMPETITION, ETC. 2008