FAQ

The Right Law Firm

A Banking Litigation law firm is the best offense against irresponsible lenders. Unlike a general law firm, a Lender Litigation law firm specializes in handling these cases. Since the Banking and Mortgage Meltdown imploded, over 200,000 court actions have been filed. A lawyer who is up to date on these rulings and other points of case law pertaining to Banking fraud is better situated to settle the case out of court or try the case in front of a judge and jury…

What does the “right law firm” look like? There is no standard for litigation attorneys suing banks to meet other than those imposed on all lawyers and law firms. However, there are firms that focus only on lender litigation cases. In some general firms a lawyer or team of lawyers has been appointed to handle these cases.

A Lender Liability law firm is perfectly positioned to file and win legal claims against banks, lenders, servicers and those responsible for loan originations, which have put homeowners into financial crises. An experienced legal team will have a vast knowledge of the laws surrounding Loan Origination and Banking Law… These experts can competently steer Homeowners through the entire process.

Choosing the Right Law Firm can be like finding a needle in a haystack.  It seems like there are plenty of lawyers willing to assist homeowners.  However, hiring a Lender Litigation law firm is a homeowner’s best chance to recover against irresponsible and unethical lenders. Unlike a general law firm, a Lender Litigation law firm specializes in handling these types of cases. Since the Banking and Mortgage Meltdown imploded, over 200,000 court actions have been filed across the Country.  Some States have ruled in favor of the “banksters” and others have ruled in favor of homeowners. A lawyer who is up to date on these rulings is better situated to navigate through on behalf of homeowners.  A specialist can position the case to achieve the best settlement of the case out of court, or be prepared and capable of going to trial in front of a judge and jury.

Did They Know What They Were Doing?

As homeowner frustration mounts during these challenging times, and as they make every effort to navigate, according to the bank’s rules and procedures, in an effort to achieve a restructuring of their obligation, without resorting to litigation, there is a sea change in strategy to breach the maze.

Frustration has grown over the past many months as banks continue to claim that they have lost documents (despite the fact that there is undisputed proof of their receipt), are understaffed to address our requests, cannot gain approval from so-called “unknown” investors, need to obtain substantial “catch up” payments before they will engage in discussions, require participation in a “trial” program designed to drain the last few dollars from a homeowner before the bank decides to foreclose (simply to get more money during a time when the bank – for FDIC reporting or other reasons – strategically delays the inevitable foreclose and wants to get some cash flow at the borrower’s expense during the delay), and the now-familiar lies that sales dates have been postponed, only to have the banks strategically foreclose without giving notice to borrowers, or to anyone.

In short, the banks have lied, and they have manipulated the process. This has happened over and over, and this continues to occur on a daily basis.

If this recitation of the facts as observed on a daily basis sounds harsh, actually, it is lenient. We now know that the banks have lied, forged documents, robo-signed, intentionally shredded and discarded borrower documents, engaged in campaigns to lobby for protective legislation, spent millions of dollars in “smear campaigns” to make lawyers look ineffective and dishonest, taken Billions (Billions with a B) of dollars in TARP money, and they still refuse to restructure loans.

In short, the banks have been exposed as liars and cheats, and it is now clear that they will not restructure loans or agree to any loss mitigation solutions without the threat or the engagement of actual litigation.

“Business as usual” is no longer an option. We now know that the banks will never do the right thing with respect to a homeowner’s situation as long as homeowners and attorneys employ the same methods of asking and re-asking for relief.

Leading the fight are those law firms that have taken action against the bank and brought the fight to the banks and servicers.

There are no guarantees, and we all recognize that litigation is unpredictable.

However, we know that the current process of “negotiating” is not working. There is a new and better approach, and the only downside for the homeowner is that they will transition away from the current platform of begging the banks to do something that they have already decided they will not do, and the homeowner will become a joined plaintiff in a national lawsuit that will seek, among other things, to void their note(s), and to award relief and monetary damages.

Lender lawsuit Cost & Process Of Filing

Given the economic reality of these complex mass tort cases, if lawyers cannot be paid to litigate Mass Tort cases against banks, other than through contingency fees, then the banks will out spend, wear down, and make the cost of defending depositions and prosecuting the case so expensive that the banks will win by forging a war of attrition and the homeowners will lose. Complex Tort Litigation is very expensive. These cases require teams of lawyers. Litigation costs are considerable, and include transcripts, depositions, experts and discovery. By pooling the nominal fees of hundreds of clients, a method of litigating and managing these cases is possible through the creation of an economy of scale. As lawyers are highly compensated professionals, some contingency fee may also be a required component of the litigation fee.

Serious and complex commercial litigation disputes involve various levels of risk. Our ability and willingness to share risk demonstrates our desire to provide first-rate trial lawyer service in a manner that gives you confidence in the value The Resolution Law Group provides and the results we deliver.

Risk sharing with clients and innovative fee arrangements are a hallmark of The Resolution Law Group’s practice. We welcome the opportunity to discuss such arrangements and solutions with you.

A key issue, in consideration of all applicable laws and rules governing lawyers in most states, and the nature of the claims alleges by homeowners against the banks and applicable law regarding those claims, is if and how homeowners who were induced to take mortgages from these banks can seek redress for alleged wrongs. Mass Complex Tort Complex cases are not about emergency relief. They won’t stop a foreclosure, or get a wrongfully foreclosed house back.

They may or may not induce the bank to take favorable action as to modifying a loan, or hold on foreclosure actions. Those decisions will most likely be unilateral actions taken by the bank, not actions mandated by the court.

Complex Tort cases are a longer term potential remedy intended to seek financial damages and restitution for wrongs allegedly committed by the banks and other defendants.

To prevail in Mass Tort cases alleging the causes of actions relevant to the banking and mortgage meltdown, plaintiffs must overcome several primary hurdles:

First, plaintiffs must establish that if the banks did and failed to do what the plaintiffs allege, these acts and/or failure to act would give rise to civil liability to the plaintiffs. This hurdle has been, in part, overcome is several filed cases being litigated in various courts.

Next, plaintiffs must establish that the banks actually did and/or failed to do that which the plaintiffs claim the banks did or failed to do, and therefore banks are, in fact, liable to plaintiffs.

In addition, if the plaintiffs prevail as to liability, plaintiffs then must establish how the banks’ acts and failure to act damaged the plaintiffs and the amount of the damages and any restitution.

Mass Tort cases make it more economic than individual actions for homeowners to pursue these claims, because the issues are, to some degree, common to all or many plaintiffs and so the cost of litigating those issues can be spread across many plaintiffs, with full disclosure of the limitations and risks of Mass Tort lender litigation.

The lawyers and the plaintiffs pursuing these Mass Tort cases are “Fighting Back.” They may win or they may lose. If they win, plaintiffs will receive financial recompense and the lawyers will share in those rewards through contingency fees. If they lose, any plaintiffs that paid a retainer will lose that retainer and will be “worse off” for trying. If the litigation effort allowed them to stay in their house longer that would be an ancillary benefit that is unpredictable. The lawyers in these cases will receive very little compensation for their many thousands of hours of work and many lawyers will lose money they invested in litigation costs, in light of the fact that the small retainer paid by these plaintiffs will require the lawyers to supplement substantial litigation expenses with private equity.

As long as the homeowner is fully informed as to the risks and limitations of this litigation, from a full and fair disclosure by the law firm, then they can assess that the risk is too great, or the cost too large, and give up, or hope the Government will step in to provide a remedy. Or…they can invest a few thousand dollars each to fight back and possibly win.

Moreover, these cases with an increasing number of plaintiffs, and each plaintiff with a different claim for damages, must be serviced with informed and qualified attorneys on the team to maintain communications with potential and retained clients. Implicit within this structure of case management is the need to insure that the process of interviewing potential clients, and keeping the existing clients informed.

These law firms are in this fight on behalf of consumers, alongside other lawyers and clients willing to take some risk as to money and time. They hope to win. They expect to win. They believe they are on the side of right, and on the right side of history

One thing is certain: any individual who gives up will not win damages or restitution from the banks.

Complex Tort Plaintive Litigation – Suit Overview

  • Named bank defendants are in the business of origination and/or servicing of residential mortgages.
  • Following origination, the banks securitized the loans and sold them as investments.
  • The banks pooled the loans before sale as a means of inflating their value.
  • This evolved into a comprehensive scheme to inflate property values as a means of inflating their profits.
  • It is alleged that the banks were aware that these practices would create a real estate bubble, which would devastate their borrowers when it burst.
  • At the time the banks originated the loans, they concealed from the borrowers that their loans would be securitized and sold to unknown third parties.
  • Further, the banks concealed that their individual loans were part of a massive, fraudulent scheme to inflate property values.
  • The banks were under a duty to disclose these details to each borrower.
  • The bubble eventually burst, in 2008, and devastated homeowners.
  • The bank defendants thus systematically destroyed home values across [California, and] the nation.
  • Plaintiffs lost equity in their homes, suffered damage to their credit profiles, an incurred other damage.

Causes of Action

Fraudulent Concealment

  • The banks were in possession of information regarding their underwriting guidelines, securitization practices, and the inflation of property values, when it entered into mortgages with the plaintiff borrowers.
  • The banks had a duty to disclose this information to borrowers.
  • The banks made material misrepresentations regarding this information, and otherwise concealed the information from borrowers.
  • The plaintiffs relied on this misinformation in deciding to enter their loans.
  • The plaintiffs were subsequently damaged as a result of these circumstances.

Intentional Misrepresentation

  • The banks made misrepresentations regarding their business practices, as detailed above, with the intent of inducing borrowers to sign home loans.
  • The plaintiffs relied on these misrepresentations in entering the loans.
  • As a result of this, the plaintiffs were damaged.

Negligent Misrepresentation

  • Same cause as intentional misrepresentations, but in this charge it is alleged that, even if the misrepresentations were not intentional, they were negligent in that, a reasonable bank acting in good faith would not have made the same misrepresentations.

Injunctive Relief

Unfair Competition

  • The bad faith business practices of the banks, as outlined above, constitute unfair competition, and violate State law.

Breach of Contract

  • The banks accepted TARP money, and in so doing, were required to use this money to modify home loans, creating a contract.
  • The banks did not perform this obligation, and thus breached this contract

Mortgage Electronic Registration System (MERS)

  • By creating and using MERS, the banks engaged in wrongful conduct and were able to conceal their actions because they avoided public recordings of their transfers.

The Problem

If you are someone who pays attention to current events and the news, it is no secret that the banks are currently in a lot of trouble.  They have made a lot of mistakes and they are beginning to pay the price.  There have been cases where individuals have sued their lenders and have won great rewards.  The problem is, most people cannot afford the tens of thousands of dollars it takes to litigate a case against an institution with endless unlimited resources.  To be clear, the law firms are proposing to sue your lender.  The goal of the lawsuit is to achieve a settlement from your lender in the form of a lump sum cash settlement, principal reduction and/or a loan restructure.  This is not something new to these lawyers.

We realize there is a lot of material for you to review. There is no longer a question of if the banks are wrong.  They clearly are.  The question is, who is going to benefit from it?  There may be some groundbreaking rulings and settlements in the very near future.  This is why it is very important to get a seat at the table and to work with very qualified attorneys.

Mass Tort Litigation is NOT a class action.  The most important difference is that only the enrolled plaintiffs in our cases will receive the benefits of any judgments or negotiated settlements awarded.

What did the banks do?

-We know the banks have lied, forged documents, discarded borrower documents and “lost” critical paperwork

-We know the banks have “Robo-signed” and possibly foreclosed on thousands of homeowners illegally.

-We know the banks have lobbied in Washington for legislation to protect them for being sued for all these mistakes

-We know the banks have spent millions in smear campaigns to make consumer advocate lawyers look ineffective and to make delinquent homeowners look like they created the problem

-We know the banks have taken BILLIONS in TARP money and still refuse to restructure or modify loans

-We know that MERS (Mortgage Electronic Registration System) is an entity invented by the banks to help the banks commit fraud against homeowners

While some of you are aware that the mortgage foreclosure climate is heating up, and the top largest banks have been sued by just about everybody, including the U.S. Government, several States and numerous other persons across the nation, it is only very recently that the entire nation is becoming aware of the bank fraud being committed on a daily basis.

Why won’t your lender work with you?

-Servicers reap high fees from foreclosures, and they actually make more money by foreclosing, rather than by modifying loans.

-Lenders collect private mortgage insurance from foreclosures, and thus they also make more money by foreclosing than by working with struggling homeowners.

-An accounting law change in 2009 means if a bank forecloses, it doesn’t write down the loss until the home sells. If it short sales, it writes it down immediately. This motivates banks to foreclose and retain the house it its inventory as opposed to approving a short sale. This is a big problem.

-It’s all about money.

What did your lender do wrong?

http://www.nytimes.com/2010/10/28/business/28victims.html

New York Times Article about homeowners’ horror stories, about the endless mistakes made by banks, the meat of the foreclosure crisis, and the story of homeowners fighting back.

http://4closurefraud.org/2010/11/28/foreclosuregate-u-s-trustee-taking-on-banks-in-mortgage-mess-nytimes/

Foreclosure-gate.   

http://www.creditslips.org/creditslips/2010/11/securitization-fail.html#tp

The Big Fail:  Why the banks may be in a lot of trouble. 

http://www.dailyfinance.com/story/credit/bank-of-america-mortgage-document-errors-trouble-countrywide/19728402/

Headline: Countrywide’s Mortgage Document Errors May Doom Bank of America. 

http://www.bloomberg.com/news/2010-11-30/bofa-mortgage-morass-deepens-after-employee-says-trustee-didn-t-get-notes.html

Bank employee testimony.

http://financialservices.house.gov/Media/file/hearings/111/Levitin111810.pdf

Georgetown University Professor of Law Adam J. Levitin’s opinion.

Why won’t they modify your loan? 

http://www.nytimes.com/2010/10/25/business/25short.html

New York times article about the banks choosing to foreclose instead of short sale because they have the possibility of making more money. 

http://motherjones.com/politics/2010/07/david-j-stern-djsp-foreclosure-fannie-freddie?page=1

Making money off of foreclosures.

Who is winning already?

http://www.balitangamerica.tv/pinoy-homeowner-wins-against-lender-in-a-wrongful-foreclosure-lawsuit/

California woman who won a lawsuit against her lender, amazingly, after it had foreclosed!  She’s getting it back.   http://www.sanduskyregister.com/2010/oct/23/foreclosurelawsuit102310tjxml

Sandusky, Ohio woman sues over “robo-signing.”

http://market-ticker.org/akcs-www?post=168698

Why You?

Have you received a mortgage loan in the last 10 years? Have you tried to modify your loan and have encountered an endless barrage of problems? Have you been mistreated by your lender? Were you aware of all aspects of your loan before you signed your promissory note? Have you been lied to about your home or mortgage? Have you received a trial period loan modification and then had it ripped away? Have you received a loan modification which had no benefit, or little benefit to your family? Is your first language Spanish and your loan documents were in English? Do you believe you may be a victim of mortgage fraud, predatory lending, unfair lending practices or elder abuse?

If you answered “yes” to any of these questions, then you owe it to yourself to pursue your rights. This is just the tip of the iceberg of the problems the banks have created and the homeowners have suffered.

Why Mortgage Litigation?

  • Modifications are no longer effective; 94% of homeowners are denied.
  • Banks are not providing real help; 4 out of 5 who receive modifications will re-default within 12 months.
  • Banks took over $1 trillion onin government bailout money with the promise and the obligation to use the TARP money modifies millions of mortgages. They have not delivered on their promise, and have instead spent that money on lavish bonuses and other perks for their executives.
  • Millions of Americans owe more on their homes than what they are worth.
  • Banks will not reduce principle balances even though they caused the artificial over valuation of home prices to make more money.
  • Banks make more money by foreclosing on homes than they do modifying the underlying loans on them.
  • Housing prices are expected to decline an additional 20% in 2013
  • Thousands of foreclosures are happening daily with no help for homeowners.

The Cost of Doing Nothing

The reality is banks are trying to make money anyway they can. They want you to pay your mortgage or they will foreclose on you. To add insult to injury – once you are foreclosed upon – the bank may sue you for a deficiency judgment in many States (the difference between their costs of your mortgage and the foreclosure from what they were able to sell your home for at auction).

Then you will need to relocate – and that will cost you more money

  • 1st and last months rent
  • Security deposit
  • Additional deposit due to increased credit risk
  • Pet deposits
  • Utility deposits due to increased credit risk
  • Moving expenses

When all is said and done, this is a very expensive and unthinkable alternative.  Mortgage. Litigation allows you to be proactive and to take more action against your bank by joining filing a pending real lawsuit and can provide you real results.

Loan Modifications Are No Longer Effective Banks Want To Foreclose

Banks do not have a financial incentive to modify mortgages any longer. Banks would much rather foreclose on the property today and get to liquidate it at today’s market value. Their alternative is to most likely foreclosure on the property a year from now at a substantially reduced market value it is projected that property values will decrease an additional 20% in 2013.

94% Denial Rate — Banks are denying 94% of all modification requests. If the bank does give the homeowner a modification, it will most likely save the homeowner only a few dollars a month and will not reduce the principal balance.

Endless Paperwork

Every bank wants updated documents (bank statements, pay check stubs, 4506ts and so on). They will even claim to “lose” your paperwork and set impossible deadlines to make you prepare and get them a new package. This is another tactic they use to discourage homeowners and make them go away.
Misappropriation of TARP Money

Must watch news

60 Minutes aired on April 2, 2011 regarding the bank/mortgage fraud. The banks have finally been exposed in front of 80 million viewers:
http://www.cbsnews.com/video/watch/?id=7361572

Video from Florida Congressman:

Multi‐Plantiff(MP) litigation differs from a class action (CA)
MP – Every plaintiff is named participant
CA – Plaintiffs are not identified as individuals
MP – Causes of action are specific to each participants losses and damages
CA – Individual causes of action are not identified
MP – Client can accept, reject or negotiate settlement terms as offered.
CA – Clients has no say in settlement
MP – Awards are based on the merits of each case, are specific to each case and are awarded to named individuals
CA – Awards are lump sum cash and are divided among the “John does et al” Attourneys collect awards and distribute.

MERS

Over 62 million mortgages are now held in the name of MERS, an electronic recording system devised by and for the convenience of the mortgage industry. A California bankruptcy court, following landmark cases in other jurisdictions, (recently) held that this electronic shortcut makes it impossible for banks to establish their ownership of property titles – and therefore to foreclose on mortgaged properties. The logical result could be 62 million homes that are foreclosure proof.

Mortgages bundled into securities were a favorite investment of speculators at the height of the financial bubble leading up to the crash of 2008. The securities changed hands frequently, and the companies profiting from mortgage payments were often not the same parties that negotiated the loans. At the heart of this disconnect was the Mortgage Electronic Registration System, or MERS, a company that serves as the mortgage of record for lenders, allowing properties to change hands without the necessity of recording each transfer.

MERS was convenient for the mortgage industry, but courts are now questioning the impact of all of its financial juggling when it comes to mortgage ownership. To foreclose on real property, the plaintiff must be able to establish the chain of title entitling it to relief. But MERS has acknowledged, and recent cases have held, that MERS is a mere “nominee” – an entity appointed by the true owner simply for the purpose of holding property in order to facilitate transactions. Recent court opinions stress that this defect is not just a procedural but is a substantive failure, one that is fatal to the bank’s or servicers legal ability to foreclose.

That means hordes of victims of predatory lending could end up owning their homes free and clear – while the financial industry could end up skewered on its own sword.

The Problem with MERS

MERS is foreclosing on people across the country, but MERS never lent anyone any money. The banks made MERS up 15 years ago as a fake company where they can park rights and responsibilities. It allows them to transfer property, foreclose, and among other things just generally fraud homeowners without the proper paperwork and processes. MERS never lent anyone any money. How does that work? We’re not buying it and neither are the courts. Courts are starting to take a close look at MERS. Loans are being voided on a case-by-case basis but the problem is that most homeowners cannot afford the tens of thousands of dollars it takes to fight these cases. Please see the “truth out” article below about why MERS is one of the biggest problems the banks now have. The article speculates that as many as 62 million notes may be unenforceable!

http://www.truth-out.org/homeowners-rebellion-recent-rulings-could-shield-62-million-homes-from-foreclosure62448

Proof of Note Security

When Wall Street banks securitized, packaged, sold and resold our mortgages, they created a system where it is often impossible to figure out who actually owns mortgage notes and therefore it is problematic, both for homeowners and for banks and servicers to establish who has the authority to foreclose on properties. Now, since they have been exposed on 60 Minutes and through court cases, the MERS banks are getting tangled up in their own web. Recent events have exposed banks that are, and have been, throwing families out of their homes even though they don’t have the mortgage note that proves they actually have a legal right to do so. There have been instances of two banks trying to foreclose on the same home, and in at least one case, of a bank’s trying to foreclose on a house where the homeowner had never even taken out a mortgage with anyone in the first place

How do i know if Litigation against my lender is right for me?

The following criteria are general guidelines for inclusion in one of the National Lawsuits:

  • Any loan transaction handled by MERS
  • Clients may be current with mortgage payment
  • Clients whose loan are serviced by the included list of lenders
  • Loans that were securitized
  • No private party, credit union, or other non-traditional lenders.
  • May have a position or negative equity position
  • May have already lost the home due to illegal or premature forclosure

Potential Case Outcomes

Counsel cannot and will not provide a guarantee of any specific outcome. Litigation is a calculated decision based on various case and legal precedence. we feel the preceding cases carry extreme merit that may carry the following potential outcomes:

  • Pre trial Settlement
  • Amnesty Program
  • Full Lien Strip

Pre trial Settlement

After each client joins the mass tort action the lender will receive a customized pre-trial settlement demand, approved by the client. Generally, clients authorize a demand that includes terms like:

  • Principal loan balance reduced to 70% of current market value.
  • Interest rate reduced to 2% fixed for life of loan

Potential Case Outcomes

Full Lien Strip:

This might result only if the lawsuit goes to trial. Remember, banks are villainized in today’s society for leading the economy into this mess. If this goes to a jury trial, banks would be hard pressed to find a jury that would not be sympathetic to homeowners and they would be held accountable for the bad mortgages that were written and the unresponsiveness they had in providing finalcial relief to homeowners.

Beneficial Program

  • Fee is a fraction of the cost of traditional litigation
  • Actual lawsuit filed against your mortgage lender
  • Major law firm experience, skill and resources without sacrificing client-centric focus
  • Responsive and effective customer service
  • Skilled lega council specializing in Real Estate law and litigation
  • Opportunity to participate in multiple-plaintiff lawsuits gives individuals greater leverage over banks and lenders -this is NOT a class action lawsuit
  • Our law firm has the finacial incentive to get you the largest settlement possible
  • Gives you the peace of mind knowing that you are standing up against your bank
  • Experienced, aggressive litigators dedicated to positive results for your case

The Results

With mortgage litigation, the homeowner will have attorneys on their side fighting for their rights in the US court system. Banks will no longer have the power to unilaterally make the decision as to what the homeowner will get. Our attorneys are using the leverage of the lawsuit to get results. Naturally, our attorneys follow the client’s instructions surrounding settlement of the litigation. In the event the client so chooses, TRLG will attempt to settle the lawsuit on terms pre-approved by the client, which could include a principal reduction, cash settlement and interest rate reduction or some other form of restructuring of the underlying loan. If the bank does not settle, TRLG will present your case to a jury and attempt to get the mortgage free and clear. Remember, banks are vilified in today’s society. If bank litigation-matters go to a jury trial, banks may be help accountable for the bad mortgages what were written and the unresponsiveness they had in providing financial relief to the homeowners who were victimized.  It is time to stand up and take control of your future.

The Lawsuit

Discovery Phase
Once it has been determined that client has a securitized mortgage, a Securitization Analysis and Chain of Title Report might, if appropriate be performed to gather the evidence needed to prepare the case filing.

Litigation Phase
The lawsuit will be filed in court and the lender will be notified of the action against them. You will be joined in a lawsuit that has been filed and is pending, and your lender/servicer will be notified that we are prosecuting an action on your behalf.

Settlement Phase
Once a settlement has been reached, the attorneys will carefully go over every detail with the client so they understand if and it can be executed properly.  At different stages of the litigation, we will explore settlement on your behalf.  We may present you a settlement offer from the defendants, which could include a restructuring of your current loan, a principle reduction, a lower interest rate, some debt forgiveness, or other consideration.  We will discuss the pros and cons of any offer, and you will have the final decision regarding whether to accept any offer.

Items needed for pre-approval

  • Copy of mortgage statement
  • Copy of loan modification denial (if you applied and were denied a loan mod)
  • Summary statement –
  • What problems or issues are you having with your lender and loan.
  • What steps have you taken to solve those problems, and what has your lender done not to help you.

Investigative reports

We may do an in depth investigation of your home loan, and situation to determine if you qualify for one of our National Lawsuits. We may break our investigative reports into two reports.

  • Securitization Report
  • Full Loan Audit

Claims Against the Bank

  • Failure to prove a “true sale” of the note – Broken chain of securitization
  • Violation of Home Ownership Equity Protection Act
  • Violation of Fair Credit Reporting Act
  • Fraudulent Misrepresentation of mortgage terms
  • Breach of fiduciary duty
  • Unjust enrichment
  • Civil conspiracy
  • Malfeasance
  • Statutory violations
  • 3rd Party beneficiary claims
  • Phantom investors and beneficiaries
  • Unfair business practices
  • MERS violations
  • Fraudulent forclosure practices
  • Robo–signing

Question: What is predatory mortgage lending?
Answer: Predatory mortgage lending, according to the office of inspector general of the FDIC, is “imposing unfair and abusive loan terms on borrowers.”

Some common predatory lending practices include: brokers that charge higher interest rates, unnecessarily large up-front fees, prepayment penalty, targeting of minority groups, explosive adjustable interest rates, “teaser” rates, negative amortization loans, no-doc or income stated loans, hidden fees that are not included such as taxes and insurance.

Question: My loan was originated with the lender being sued but was sold to another lender, does it qualify?
Answer: Possibly, you must call to find out.

Question: Why the lawsuit?
Answer: Your lender gave you a loan or mortgage that may be predatory in nature. In some instances your lender agreed in a stipulated judgment that certain loans were predatory. The Resolution Law Group believes that your lender may have acted in bad faith by doing little to restructure these “bad” loans. We are using past judgments as a guide to relief of these and other predatory lending loans. These settlements allowed homeowners to get principal reductions as low as 95% of current market value. We are using these judgments as our guide to remedy before the court.

Question: What relief are you seeking in the lawsuit?
Answer: We will be seeking the following on behalf of the homeowners:

  • Principal reduction at/or below current market value
  • Up to 70% reduction in payment dependent upon current market value and interest rate
  • Conversion of adjustable payment to fixed payment
  • Monetary Damages
  • Clean credit report of mortgage late payments

Question: Does a loan that was originated with different lender and later sold to the lender being sued qualify?

Answer: Yes.

Question: My loan was originated with the lender being sued but was sold to another lender, does it qualify?

Answer: Possibly, you must call to find out.

Question: If a client has applied for or is under review or has previously received a loan modification, are they still eligible for the lawsuit process?

Answer: You may qualify, however litigation may affect any pending modification application. We still need you to complete a lawsuit qualification questionnaire.

Question: Can I join the lawsuit even if my house already was foreclosed on?

Answer: Yes, we will seek the return of title to your name and/or monetary damages for wrongful foreclosure.

Question: Can I participate if I sold my property?

Answer: Yes, though your damages and recovery may be limited.

Question: If I have an investment property or multiple properties, does this lawsuit still apply to me?

Answer: Yes, lawsuit applies to residential properties , whether investment or owner occupied.

Question: Can I receive a mortgage/lien strip where I will not have to pay any mortgage?

Answer: This form of relief almost never occurs. This kind of remedy would only occur when extreme fraud, illegality, or bad faith was perpetrated against the homeowner by the lender, or if we can prove at trial that there is a fatal defect in the chain of title that could make your note unenforceable.

Question: Where are the case(s) filed?

Answer: The case(s) are filed in Federal Court (in New York), and in State Court in New Jersey as a complex civil case in the Superior Court in Essex County, Bergen County and Hudson County, as well as other state jurisdictions the litigation team deems appropriate.

Question: Can I be a part of the suit even if I do not live in New York or New Jersey, or my property is not located in New York or New Jersey?

Answer: Yes. Since the defendants had a New York or New Jersey headquarters and significant ties to these states, potential plaintiffs from states other than New York or New Jersey could be added.

Question: Are you applying a loan modification for me?

Answer: No. We do not represent clients seeking a loan modification. We represent clients who seek to sue their lender under a myriad of theories that could provide substantial remedies, if our litigation is successful.

Question: Can I stop paying my mortgage after becoming a client or plaintiff?

Answer: Client should continue paying mortgage if they are able to unless the court issues a stay of payments

Question: Will this lawsuit stop foreclosure?

Answer: No.  Some lenders treat litigants differently from other borrowers.  There are lenders and servicers that unilaterally choose not to foreclose on borrowers in active litigation.   Other lenders seek to offer loan modifications, despite the fact that we do not request them on behalf of clients. We cannot predict how a defendant will treat litigants because each defendant is different and they each change their policies from time to time.

Question: Is there a difference between litigation and loan modification process?

Answer: Yes. They are two completely different processes. The loan modification approach is to submit paperwork to the bank and ask for relief.  The litigation approach is to demand paperwork from the bank and to ask the Court for relief.

Question: Why do I have to pay a fee for a Mass Tort case while Class Action lawsuits are usually free?

Answer: Attorneys fund Class Action lawsuits so attorneys themselves can benefit. If you were ever involved in a Class Action lawsuit you know that plaintiffs rarely benefit. They will get a check for $20.00 or a nominal amount or get free service for a year while the attorneys collect _ millions of dollars.

Mass Tort lawsuits are suits where each plaintiff has an individual claim that is joined together with numerous other similarly situated litigants. It is basically your own lawsuit joined together with other individual lawsuits. Moreover, Mass Tort litigation permits individual plaintiffs to join together to share the cost of the litigation where each plaintiff maintains the autonomy to accept or reject pre-trial settlement terms and their respective case results according to their individual award and/or damages.

Question: Why can I not just individually sue my lender?

Answer: You can but it will cost you potentially ten to forty times more because you are alone. Mass Torts allow you to pool the resources from many clients to keep cost down for each person, by leveraging the economies of scale.

Question: What are the necessary documents that I need to provide to sign up for the Mass Tort?
Answer: You need to provide the following if you intend to sign up:

  • completely filled out client questionnaire
  • copy of loan documents if available; if loan documents are not available, any proof of the violations we are suing for. We need to review your trust deed, mortgage note, mortgage statement, loan modification documents, loan modification correspondence and/or any lender correspondence.
  • Executed retainer agreement.

Question: What is the litigation process after a client signs up?

Answer: The following is an outline of the litigation process:

i.  Complaint is filed

ii. Client name is added as a plaintiff to the lawsuit against the lender, if complaint     has already been filed and is currently pending.
iii. Lender is served or notified that you are now part of the pending lawsuit

iv. Settlement offer and compromise

v. Discovery, including depositions and interrogatories

vi. Settlement conference

vii. Trial, by jury, unless case is resolved at settlement conference

Question: How long do you foresee this case lasting?

Answer: Estimating duration of litigation is always uncertain. Cases could settle early in the process or may last a year or more.

This is a “complex” civil case and per Fast Track Trial Rules, the case must go to trial within strict time limits.  Complex means multiple plaintiffs, multiple defendants and/or multiple causes of action.

The Top Most Frequently Asked Questions about Lender Litigation

1.           Question: Why a lawsuit instead of a modification?

A.          Your lender gave you a loan that may be predatory in nature. In some instances your lender has already agreed, in a stipulated judgment, that certain loans were predatory. We believe that your lender acted in bad faith by doing little to restructure these “bad” loans.

We are using these past judgments as a guide to relief of these and other predatory lending loans. These settlements have allowed homeowners to get principal reductions as low as 95% of current market value.

B.           A lawsuit is superior to a modification or Short sale. It puts you on the offense not the defense. You don’t have to qualify with debt to income or ask for a token favor. In almost ALL modifications the lender will never grant a principal reduction whereas in a settlement it is demanded in the offer and compromise on your behalf.

C.           A short sale provides money to the lender and transfers ownership from you to the bank or servicer more quickly than a foreclosure and has no benefit to you unless you are exposed to a possible deficiency judgment or your loan doesn’t qualify for litigation.

D.           Using a trustee sale delay company may make sense if you plan to move within a few months for personal or financial reasons, however that’s a band-aid and not a permanent solution.

E.           The recent 26 Billion dollar settlement against the big five banks in the country mandated they start making restitution to their borrowers. Many have made token gestures but now a lawsuit has more bearing than ever in the past. This is why the time is now to sue , not later.

2.            Question: What relief are you seeking in the lawsuit?

Answer: We will be seeking the following on behalf of the homeowners:

  1. Principal reduction at/or below current market value
  2. Up to 70% reduction in payment dependent upon current     market value and interest rate
  3. Conversion of adjustable payment to fixed payment
  4. Monetary Damages
  5. Clean credit report of mortgage late payments

3.               Question: Who is a good candidate for the litigation process?

Answer: If the mortgage situation fits any of the following then the individual may be a potential litigant:

–        if the loan is an interest only product

–        if the loan is a pick a payment or negative amortization

–        if the loan has penalty for prepayment

–        if the loan has balloon payments

–        if the loan is an 80/20 loan

–        if the loan is based on stated income

–        the income or the value of the property was inflated to obtain the loan

–        denial of loan modification or termination from the existing trial program

–        borrower had an aggressive broker who charged excessive fees

–        wrongful foreclosure

–        other lender malfeasance not stated

–        if MERS was involved

–        if underwriting standards were relaxed or ignored

–        if the appraisal was incorrect in any way

–        It is essential you have supportable income to show the court you can make payments easily if a settlement is offered.

4.       Question: What are the potential outcomes of a case like this?

Answer: Settlement. The goal is to get a beneficial outcome for all plaintiffs as quickly as possible , however there could be different outcomes for differently situated plaintiffs.

For example, if an individual was wrongfully foreclosed on, he/she may get a monetary settlement while a person who has a pick a payment loan may get a low interest, fixed loan with potential principal reduction.

Ideal settlements could be any of the following:

–        principal reduction to current value or below the current value

–        interest rate reduction to the lowest possible for the life of the loan

–        return of title to mortgagor’s name

–        monetary damages

The potential settlements listed above are only desired and are not guaranteed. If cases are not settled, we will go to trial on your behalf. We do not believe the lender would risk going to trial due to negative press and greater potential damages that could occur.

5.         Question: Will this lawsuit do anything to restore the individual’s credit rating?

Answer: If we prevail, the lender may be required to remove all late payment and other derogatory entries concerning plaintiff’s mortgage on an individual’s credit report with all 3 bureaus. This removal should significantly improve the individual’s credit score if he/she is behind on his/her mortgage payments.

6.        Question: If the candidate has applied or is under review or has previously received a loan modification, are they still eligible for the litigation process?

Answer: Yes. However, litigation may affect any pending modification application.

7.        Question: Can an individual still be a candidate even if the house was already foreclosed?

Answer: Yes, we will seek the return of title to the individual’s name and/or monetary damages for wrongful foreclosure depending on whether the home is still bank owned (REO), or sold to a private individual, and whether a subsequent purchaser was a BFP or an insider.

8.        Question: If the individual has an investment property or multiple properties, does this lawsuit still apply?

Answer: Yes, lawsuit applies to residential properties, whether investment or owner occupied.

9.        Question: What if the candidate has two loans with two different lenders?

Answer: As long as the first loan either originated or is currently with the lender, it qualifies. However, if the second is with a different lender, we will negotiate or litigate separately or present other options available.

10.      Question: Can the candidate stop paying mortgage after becoming a client or plaintiff?

Answer: Client should continue paying mortgage if they are able to [unless a stay of payments is issued by the court. This litigation does not constitute foreclosure defense and will not stop a sale.

11.       Question: Who is the legal counsel litigation our case?

Answer: There are many skilled attorneys involved in The Resolution Law Group.  Their combined experience and their individual expertise bring a flexible and innovative stagey to the issues being litigated.
12.       Question: Where are the cases currently being heard?

Answer: The cases are currently pending in the United States District Court for the Eastern District of New York, and in State Court in New Jersey as a complex civil case in the Superior Court in Essex County, Bergen County and Hudson County, as well as other state jurisdictions the litigation team deems appropriate.

13.       Question:  What if I am still waiting on a loan modification?

Answer:  A settlement may achieve a better outcome than a modification. Moreover, the lender now, knowing they are being sued, may expedite the making of an offer and comprise agreement.

Keep in mind, most people seeking litigation have tried aggressively for months, if not years, to achieve a better solution with their lenders. It shows good faith on your part that you have gone down this road, to no avail.

Cases Of Merit

Case 1:

http://4closurefraud.org/2011/10/12/victimless-crime-banks-obama-administration-pressure-ags-on-fraudclosure-settlement/

Case 2:
IN THE COURT OF APPEALS OF THE STATE OF KANSAS

http://www.kscourts.org/Cases-and-Opinions/opinions/ctapp/2008/20080912/98489.htm

Case 3:
U.S. BANK NATIONAL ASSOCIATION, trustee [FN1]

http://www.universalhub.com/2011/us-bank-national-association-trustee-vs-antonio-ib

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