How to Sue Your Lender – Legal News Update


Suing Your Lender

Today’s homeowners have had to become more legal savvy as they look at all options that will allow them to save their home from foreclosure. In many cases people are hiring lawyers, in order to negotiate better terms for their mortgage, which results in payments that are more affordable on a monthly basis. This allows them to attempt to regain their financial footing and that’s exactly what the HAMP (Home Affordable Modification Program), presented by the government, is all about. Lenders are encouraged to make modifications to people’s mortgage payments.


As simple as this may sound, it’s actually much more complicated than you may realize. People think that they need only fill out some forms and then they’ll be able to move on. Homeowners who have attempted to do just that, have run up against brick walls as mortgage lenders seem willing to do everything they can to stop this process.


Then there are the lenders who offer you the option of a “temporary mortgage reduction program” and then later disavows the deal and moves forward with a foreclosure. Even though officials from HAMP have been making the rules more binding and harder for mortgage lenders to attempt this type of transaction, it’s still happening.


At one time, the idea of your home being foreclosed on was looked upon as a badge of shame. No longer is that the case! Today, more than ever before, homeowners are taking their lenders to court, contacting their government representatives or doing both. Now, they’re mad enough to start fighting back and are encouraged by those who know them. The badge of shame is now gone, and they’re perceived as fighters against the system.


Many mortgage lenders seem to think they can make more money with a foreclosure of a home, than they can by simply modifying the payment structure. They’ll often give people the run-around with the hope that they’ll give up and allow their home to be foreclosed on.


Some home owners do get a loan modification, make the mandatory 3 payments, and then don’t get approved for a permanent loan modification, or get approved only to have the lender turn around and still foreclose on the home. Many homeowners know their homes were foreclosed on illegally, and it’s a daily struggle trying to straighten things out with a lender.


Not So Fast – Homeowner Are Fighting Back!


Although the process is long, and should be done with a lawyer, many today are fighting back against mortgage lenders, and being hailed as a hero when they win or just attempt to fight back. It’s not an easy process but when people are left with no other choice, they’re suing mortgage lenders for foreclosing on their homes or denying them loan modifications; and it’s working!


Suing Your Mortgage Lender


When you believe that your home is worth saving, and your situation is such that you can afford modified payments, then you should fight on, with legal help from a lawyer. The more persistent you and your legal counsel are, the better your chances will be of winning. If you have a first and second mortgage, consider combining them into one mortgage. You may even be able to negotiate, with the help of a lawyer, a settlement on that mortgage. If your second has been sold it’s possible that you may only have to pay 1%-3% of the remaining balance.


Class actions lawsuits and MERS have so far proven to be unsuccessful in the courts. People who handle their cases on an individual bases have proven to be more successful than the other suits. In these cases, homeowners allege that the lenders acted in bad faith. One such case was Big Bear City, California. The homeowner sued Bank of America successfully.


There are a number of scams making the rounds, and the Better Business Bureau is constantly working to make homeowners aware of it. One scam is to get the homeowner to pay monies for upfront for costs related to mortgage assistance. They will ask you to pay as much as $5,000, as part of the upfront costs to pursue fighting a foreclosure, give you mortgage assistance modification help, lien stripping, and even giving you clear title to your property. Unfortunately many homeowners will fall for this scam, but those with a lawyer will understand immediately what is happening.


Lawyers Help Homeowners Fight For Their Homes


Lawyers are very familiar with those who have been denied requests for mortgage modification and those facing foreclosure. Many homeowners have no idea the amount of power they have, when they are being advised by a legal representative in these cases. A lawyer will look at the complete situation, and if they feel that nothing further can be done, they can then advise you on the different bankruptcy applications that are suitable for your situation. Bankruptcy solutions are there to help people, and in today’s world it no longer comes with any stigma. In fact, a bankruptcy can actually help a person get the mortgage modification, and do so in a more effective and efficient way.


For a free consultation regarding any issue that you might have with your lender, call Legal Solutions 2 U today at 855 – 77 LAW 2 U (855-775-2928)