Saturday, July 19, 2014

How to Win $16 Million in the Loan Mod Lottery

You Can Win Colossal Damage Awards in a Jury Trial by Proving the Lender Injured you at the Inception of the Loan

by Bob Hurt, 19 July 2014.  Distribute Freely

The Linza v PHH case shows the good sense of MORTGAGE ATTACK (http://mortgageattack.com) as a methodology for dealing with foreclosure.  It shows how to win $16 million if the mortgagee cheats you in the loan modification process.

In a nutshell, mortgage company PHH agreed to a loan modification to reduce Phillip Linza's payments about $500, then jacked the payments higher than before, then demanded over $7000, and then refused to accept payments, and THEN foreclosed. Linza hired a lawyer, sued, and after 3-years of legal combat the jury awarded $16 million to Linza because of egregious lender behavior including credit rating damage.
If a lender/servicer has jilted YOU in a loan mod,  you might see something familiar in this scenario.  If so, you should do what Linza did:  SUE.
This does not exactly constitute a Loan Mod Lottery, but it might as well because so few mortgagors sue the lender for cheating them in the loan mod.  You can easily see why.  In a lottery you pay a dollar for a ticket and have a slim chance of winning.  In a loan mod lawsuit, you must find an attorney willing to take the case on contingency, or have enough money to pay for a 3-year litigation, but you have a HUGE chance of winning IF your lawyer has sufficient skill and perseverance.

I see a major problems with Loan Modifications.  To begin with the interest rate goes sky high in 5 years and you have a balloon you can never pay off.  Most loan mod agreements require the borrower to agree to an indemnity clause which waives the right to sue for prior injuries in the loan.  I see THAT as INSANE because lenders and their agents have injured 90% of all single family home mortgagors in the past 12 to 15 years.  

Yuba jury awards homeowner $16 million in mortgage case
Published: Friday, Jul. 18, 2014 - 2:43 pm
It started out as a simple loan modification for a troubled homeowner. It turned into a $16.2 million jury verdict against a nationwide loan-servicing company.
A Yuba Superior Court jury this week awarded $16.2 million in damages to a homeowner who nearly lost his home to foreclosure after the loan servicer botched his mortgage modification, the homeowner’s lawyers said Friday.
Phillip Linza, a homeowner in Plumas Lake, was awarded the damages after a three-year battle against PHH Mortgage Services, a loan servicer based in Mount Laurel, N.J.
Linza’s attorneys, Andre Chernay and Jon Oldenburg of the United Law Center in Roseville, said the award included $514,000 in compensatory damages and $15.7 million in punitive damages.
... 

Call The Bee’s Dale Kasler, (916) 321-1066. Follow him on Twitter @dakasler.

If you need help unraveling the weirdness of your mortgage and loan mod, and finding the causes of action underlying either, visit http://mortgageattack.com to learn the basics, and then call me for a discussion.  I don't practice law or give legal advice, but you might appreciate my business perspectives.
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Bob Hurt            Blog 1 2 3   f  t 
2460 Persian Drive #70
Clearwater, FL 33763
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1 comment:

Ed Val said...

Excellent work Bob. Keep it up.