Only Serious Torts Timely Challenged Justify Undoing the Mortgage Loan
For months I have patiently and repeatedly explained that ONLY exposure of tortious conduct underlying the mortgage loan will defeat foreclosure permanently while allowing the foreclosure victim to walk away with the house and some pocket money.
Pretend-Defenders Only Delay the Inevitable and Cheat the Client
Meanwhile, "pretend-defender' law firms charge an up-front fee of $1000 to $5000, then charge $500 to $1000 monthly to stave off foreclosure for as long as possible. In the end, the forecloser succeeds and the victim loses the house. Thus, the pretend-defenders cheat their clients out of victory.
How?
How to Delay Foreclosure without an Attorney
Simple. Foreclosure victims (home "owners") don't need a lawyer to stave off or delay foreclosure.
Loan Mod Process Stops Foreclosure
They stop the foreclosure by asking the lender for a loan modification. This delays for several months, during which time the owner can save money or pay off other debts.
In my opinion it makes no sense to accept a loan mod. Typically the realty has collapsed in value, but the loan mod leaves the loan balance the same. Furthermore, most restructure the loan to a 30 or 40 year term with a huge balloon payment in 5, 10, or 15 years. Only an idiot would borrow more money than the value of the house, and stay in the same old house.
So, the owner can ask for a loan mod, string the process out as long as possible
Walk with Deed in Lieu
Then the owner should ask the lender for a deed-in-lieu-of-foreclosure. Typically, the lender will accept such an offer and give $5,000 to $10,000 move-out money. A smart owner can pocket that money, add to it from savings, and buy a new house at a foreclosure auction. At many auctions one can purchase a foreclosed house in decent condition for 10% to 15% of the loan balance.
Many Owners Should Move Anyway
In many, if not most cases, it makes sense to move anyway. Most families have out-grown or in-grown the present house and need either more or less space for the family. Most current houses need maintenance work costing $20,000 or more. Because most houses have an actual value 40% to 60% of the loan balance, it makes no sense to continue paying for it. Strategically, it makes more sense to toss the place.
Effect of "Not Paid As Agreed" on FICO Score
Remember that a "not paid as agreed" loan mod, deed in lieu of foreclosure, or short sale drops the FICO credit rating score only 100 points, relatively easy to correct within 2 or 3 years if the borrower does not default on other credit obligations . On the other hand, a foreclosure (the ultimate goal of most pretend-defender lawyers) stays on the credit report for 7 years and lowers the FICO score for at least 2 or 3 years.
How to Get Help with Short Sale
Note that even a short sale makes more sense than a foreclosure. If the note holder refuses to approve the short sale, contact the mortgage insurance agent and explain the situation. If the foreclosure proceeded to auction, the mortgage insurer would certainly lose much more money than in a short sale because auctions bring a smaller sale price. The agent will probably remind the holder that witting failure to mitigate the insurer's loss constitutes a federal crime because it cheats the FDIC out of money. And the holder will then approve the short sale.
Litigation Delays Sanctionable
Remember also that any delay in making payments which delay the pretend-defender can and should prevent amounts to sanctionable legal malpractice. Suppose the pretend-defender delays a year wrongly. Who owes all the interest and penalties, court cost, and lawyer fees accrued during that time? The borrower, of course. Unless the borrower complains to the court, the pretend-defender will not have to pay it. So, when the foreclosure happens, the clerk will deduct the deficient amount from the proceeds of the foreclosure auction, and that will come right out of the borrower's pocket. These days that means the borrower will owe a judgment lien because most foreclosure sales don't produce enough revenue to satisfy the note and discharge the loan. Thus, the delay really cheats the foreclosure defendant.
What the Pretend-Defender SHOULD Do
Pretend-Defenders should actually defend against the foreclosure by trying to undo the loan for fraud. You see, almost everything that delays a foreclosure, such as complaining about robo signing, bad notarizations, bad or missing assignments of beneficial interest in the note, note separated from mortgage, securitization fraud, and so on, does NOT CHANGE THE FACTS:
Undisputable Facts
1. The borrower signed the note promising to pay according to schedule
2. The borrower signed the mortgage transferring legal title in the realty to the lender and agreeing to give up the house in foreclosure for defaulting on loan payments
3. The lender loaned the money
4. The borrower bought the house with it
5. The borrower took possession of the house and benefitted from it
6. The borrower failed to make payments according to schedule.
Many who furtively seek escape from foreclosure try to test the law or find loopholes to no avail with arguments like these:
Frivolous Arguments Doomed to Fail
- I didn't have a loan at the time I signed the note
- I didn't have seizen of the estate at the time I signed the mortgage or deed of trust
- Only I, the maker of the note, own the note
- I didn't get a chance to read, understand, and change bad provisions of the note and mortgage
- I didn't have an actual contract with the lender
- Real money doesn't exist except in US minted gold and silver coins
- The use of Federal Reserve Notes in the transaction cheated me and violated Article I Section 10 of the US Constitution
- The note got separated from the mortgage
- My note got put into the security after the REMIC cutoff date
- My note got indorsed in blank
The undisputable facts enumerated above justify the foreclosure, REGARDLESS of all the other arguments like those enumerated above…
…UNLESS the borrower got injured by tortious conduct related to the purchase or mortgage loan.
WHAT tortious conduct?
Typical Tortious Conduct
· Over-appraisal that caused the borrower to pay too much for the realty.
· Change in family income on the loan application by the mortgage broker.
· Excessive broker fees or other loan origination costs.
· Egregious misrepresentation about the realty itself which the buyer could not detect.
…. to name just a few.
Unfortunately, pretend-defenders don't have the skill, patience, time, or will to accomplish such discoveries. They have so many clients whom they have conned into delaying the foreclosure that they just cannot devote the time to such discoveries. So they forego them in favor of cheating their clients into buying their service which the clients could accomplish themselves by other means.
Settle or Sue
If the defender (now not a pretender) actually discovered such fraud, the foreclosure victim (or any other mortgagor so cheated) would have grounds for a
massive winnable tort lawsuit against the lender, lender's agents (appraiser, mortgage broker), title company, seller, and/or seller's agents (Realtors). The defender could then approach those defendants for a settlement offer. Most times, the culprits would cave in rather than face the possibility of punitive damages. In this instance, the plaintiff might walk away with the house free and clear, the lawyer paid off, and some pocket money left over for anguish suffered.
Or, the defender and plaintiff could sue anyway and win treble damages, court costs, lawyer fees and punitive damages of God-knows-how-much.
THAT would NOT constitute cheating the client, would it?
Note that documentation proving tortious conduct like that above could by itself force a settlement. For that reason many attorneys would willingly prosecute the tort claim on contingency, so the litigation would not cost the client anything out of pocket, except perhaps for the cost of finding the tortious conduct.
What the Foreclosure Victim Should Do
Clients of pretend-defenders should
1. Dump the pretend-defender lawyer,
2. Hire an expert to find the torts, then
3. Hire a personal injury attorney to settle with or sue the foreclosure plaintiffs or other parties.
TO accomplish step 2 above the foreclosure victim should gather up $1500 and a copy of the following documents, then call the below phone number to FIND THE FRAUD UNDERLYING THE MORTGAGE LOAN.
1. Appraisal,
2. Loan Application,
3. Purchase Agreement,
4. All the papers signed at closing, particularly including the
a. Note,
b. Mortgage,
c. HUD1 settlement report
The Ombudsman there will give you confidence about the benefit of the comprehensive professional mortgage examination service and tell you where to send the documents and fee. Then the examiner will find the tortious conduct, contract breaches, and legal errors, if any, document them thoroughly in a report, and send you the report within 7 business days.
Why Foreclosure Victims Should Go to Mortgage Attack and NOT to Some Loser Loan Audit Service
Most operators of loan audit and securitization audit services are former or current mortgage brokers or effete attorneys who will scam you by running computer software brokers or lenders use to prepare mortgages. They enter your details and compare them with your HUD1 report or look for TILA and RESPA violations which do you no good. You see, such violations for most people will net them only a thousand or so dollars, not undo the whole transaction. Such scammers DON'T find the contract breaches and other tortious conduct underlying the transaction. They simply take your money and give you a useless report that will make you MORE of a FORECLOSURE VICTIM. The report will typically do NOTHING to undo the mortgage or realty purchase.
Mortgage Attack's service can find and will find any evidence of torts, breaches, and legal errors underlying the mortgage, and, for added cost, draft the tort complaint for the foreclosure victim's attorney, crafted for the victim's state of location of the realty in foreclosure. Thus, Mortgage Attack arranges services few if any competitors can or will do.
One More Point – for Home Owners with Mortgages NOT in Foreclosure
If you bought your home more than two years ago, and you make your payments just fine, you might still justify undoing the loan and purchase because of fraud at its base. Appraisal fraud operated like a rampant rot for decades in America. Realtors and home sellers would conspire to jack up the price of realty way beyond the actual combined value (replacement cost, income capitalization, market value), and the government and finance industry made it worse by encouraging people who couldn’t repay to get loans. Appraisers gladly gave the home industry the prices they wanted for fat, juicy loans loaded with commissions and profits for brokers, lenders, and home sellers. They nearly always cheated the buyer in the process,
Furthermore, anyone having purchased a home in the past ten years might now owe more for the property than its actual value today because of the collapse of realty values as a consequence of the
financial crisis. You might want a way to unload the house. Many people (I included) believe that the realty values only collapsed because the industry had falsely inflated them for decades, and as of this writing they have not yet collapsed to their true value. Thus, the industry has cheated most home buyers for decades.
So, for you, it could make sense to look for the fraud in your home purchase and mortgage, and then approach the lender for a settlement, or mount a tort lawsuit against the lender and the lender’s agents for the fraud.
Mortgage Attack's service can and will find any such relevant tortious conduct underlying your purchase and mortgage.
Give Mortgage Attack just 10% of your trust.
You will receive a 100% result within 7 business days.
Incidentally, if you cannot find an attorney who “gets it” about the above principles, ask Mortgage Attack for a recommendation. They might know the perfect attorney to help you WIN instead of delay.
Summary and Conclusion
I see a lot of internet ads for lawyers who only delay the inevitable foreclosure and gouge their clients for services the clients can do themselves. Foreclosure victims can thus save money to use in buying a house at auction and prevent terrible damage to their credit scores, without a lawyer's help, then move to a more suitable home.
On the other hand, Foreclosure victims and other mortgagors can find the fraud underlying the mortgage transaction and use it as the basis for a settlement request or tort lawsuit against the foreclosure plaintiffs. Many personal injury attorney will take the case on contingency upon seeing hard evidence of the fraud.
I know of only one service that can reliably and quickly find the tortious conduct and prepare a report with the affirmative defenses or elements of the cause of action within 7 business days: Mortgage Attack. So I heartily recommend the service. Get your money and mortgage docs together and call Mortgage Attack during East Cost business hours ASAP.
Oh, by the way: Mortgage Attack does not operate under contract to any company or individual. The mortgage examination service IS THAT GOOD, and constitutes a TREMENDOUS VALUE you won’t find elsewhere.
