August 23, 2011

Things to Consider if You’ve Thought of Filing Suit Against Your lender

By Timothy Stull (http://www.fresh-start.co)

Since the collapse of the housing market in 2007, many Americans have scrutinized the integrity of their home loans. Especially, as we step back and observe the never ending horror stories we read about every day. It is true; the negligence of the “Subprime Market” has us all paying the price in one way or another. From the “Mounting MERS issues”, to Robo Signing, Dirty Brokers, Toxic Loans the list goes on and on.

If you are current on your payments and the property is upside down on your home loan, “You have been affected. Obviously, if you are behind on your payment and the bank, which placed you into your dirty loan, refuses to offer any assistance, “You have been affected”. Whether it is your neighborhood plummeting in values, causing your family to put future plans on hold; or you face losing your home. We all know someone or are at risk ourselves of losing from many of the toxic loans originated during the “Subprime Market” Fact: 1 of every 10 families is more the 60 days late on their mortgage payments. It’s not surprising, that many Americans have decided to fight back by way of Law Suit Against their Lenders. Furthermore many families are winning; take a look at some stats from a large litigation firm out of California.     

Mortgage Litigation Index reported that national litigation against servicers rose 88% in the first quarter of 2011

  • JPMorgan Chase: $1.1 billion in litigation expenses during the first quarter
  • Bank of America: an increase of $558 million in one quarter to total $940 million in litigation costs for three months
  • Wells Fargo: civil charges of $85 million

These are some pretty hefty pay outs by Lenders that I’m sure you are familiar with. It’s also a fact that loans originated by Country Wide, contribute to the largest number of DEFECTIVE LOANS, hands down throughout the subprime market. Bank of America has been servicing all Country wide products since a 2009 buyout.

Here are some distinctions between what type of law suits have been successful in battling the lenders. We will need to establish “Merit” of the law suit first identifying the issues surrounding your home loan, severity of the violations, etc.

Mass Tort Litigation involves joining other homeowners who have been wronged by their lender. Although it is a single action, each homeowner can get individual relief. These types of law suits are funded by the litigants, which is why most of what is awarded goes to the Homeowners. You may also need to qualify for this type of suit because your loan needs to carry very specific mutual elements and often similar infractions, as the others named in the Mass Tort suit. This can be a cost effective way to file suit, as long as your loan fits the criteria’s of the others involved.    

 

Class Action Law Suit is another type of law suit, which allows for multiple people collectively bringing suit against the mutual lenders. This type of group law suits are different in the sense of how the attorneys are paid. With a class action law suit, the attorneys are paid from the courts and this normally leaves the class members receive minimal awards once success has been achieved in the case.  

 

Individual Law Suit can be more expensive, however has been known to be a very effective defense; resulting in monetary damages, principal reductions, and other forms of aggressive relief to the Homeowners. This range of concessions can be well worth the cost for long-term gratification. The home loan for most of us is the Biggest Investment of our entire lives. Under the wrong terms this loan can adversely affect the very fiber, of our family’s financial future existence. Do not continue to allow your family to be victimized by these toxic loans; which will continue to cripple our housing market for years to come unless we take control.

The Fresh Start Legal Network has direct connections with foreclosure prevention attorneys across the USA.  We offer a free foreclosure prevention case evaluation & we can connect you with the right attorney to help you.  All of our attorneys have 10+ years’ experience in foreclosure / real estate law and have a winning track record   Feel free call us at 877.297.7011 or visit us at www.FreshStart-LegalNetwork.com.

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