Mortgage Attack recommends finding reasons and ways to attack the lender and lender’s agents for injuring the mortgagor (home loan borrower). See the Defend topic for reasons why.
Research has shown that lenders and their agents have injured more than 90% of the single family home mortgagors since the year 2002. We believe they injured many prior to that time also. The injuries take the form of tortious conduct, contract breaches, and legal errors.
Such injuries include appraiser fraud, mortgage broker fraud, loan officer fraud, Title Company errors, lender errors, and lender complicity in the torts, breaches, and errors. Differences exist between all mortgage loans and borrowers, so one cannot predict what injuries exist without carefully examining all of the mortgage loan related documents to discover the injuries. See the Exam topic for details.
A competent strategy for using the examination report effectively has emerged over the years. We discuss it in the following paragraphs.
After completion of the mortgage examination, the borrower should write a Notice of Grievance to the servicer and original lender or owner of that lender’s liabilities, and demand correction of each injury. The Real Estate Settlement Procedures Act and Regulation X explains the procedure in detail.
If the lender and servicer do not perform as required and to the satisfaction of the mortgagor, then the mortgagor should file a written complaint with the Consumer Financial Protection Bureau (CFPB). The mortgagor might also bring in a competent attorney to assist in negotiating a settlement.
Lenders have settled many times to the satisfaction of the mortgagor upon prompting by the CFPB. Settlements can take the form of setoffs from the loan balance, a permanent reduction in the loan balance and interest rate, and sometimes forgiveness of the debt and giving claim to the house to the mortgagor. The settlement nearly always requires the mortgagor to sign a confidentiality agreement. For that reason, we do not hear about such settlements through the news media.
If the lender and servicer still won’t correct the injuries, the mortgagor should obtain a competent attorney’s assistance in preparing and filing (complaint, counter-complaint, or cross-complaint) against the injuring parties, including the original lender and whoever owns that lender’s liabilities. We do not recommend that mortgagors unskilled in this type of litigation attempt to do battle against their adversaries in court by themselves.
The adversary will often settle soon after the mortgagor files the lawsuit because bankers and their lawyers know the courts (judges and juries) have the duty to redress the borrower’s injuries, and might award substantial compensatory and punitive damages plus legal fees and costs to the mortgagor.
If the adversary still makes no effort to settle, the litigation could drag on for two or three years. But the damages awards can justify it. The mortgagor can come out with enough money to buy several houses and go on a year-long cruise around the world. Yes, the awards can get quite large.
Now, compare this in your mind to what a mortgagor would have upon winning a foreclosure battle. At best the mortgagor will have the house free and clear. But the mortgagor will still owe a huge debt with accrued interest, the house will still need repairs, and the mortgagee’s wallet will be substantially emptier after paying legal fees.
Mortgage Attack believes only a fool would defend against foreclosure of a valid mortgage AND fail to attack the lender and agents after competently examining the mortgage for evidences of torts, breaches, and errors.
It’s pretty simple and clear:
- Defend against the foreclosure and LOSE (even if you “win” a temporary dismissal), or
- Examine and Attack the mortgage. Then have a chance of winning BIG.
You Can do Mortgage Attack Even if You Do NOT Face Foreclosure
Who says you must face foreclosure to justify attacking the lender and agents for injuring you? If you have a mortgage, you have a 90% likelihood that you suffered meaningful injuries. A mortgage examination could reveal those causes of action (reasons to sue the lender or agents) underlying your mortgage, whether or not you face foreclosure. And you can obtain the same benefits as a foreclosure victim if you attack the lender and agents for those causes of action.
Visit the Exam topic now if you want to have a hope of winning against the bank.