The Importance of Having a Loan Modification Lawsuit History
In the past, homeowners who feel that their mortgage lenders are unreasonably charging them higher fees and/or have violated the Fair Debt Collection Practices Act can file a mortgage lawsuit to force the offending parties to correct the problems. However, there are cases when filing a lawsuit is not even advisable. There are certain circumstances where pursuing such a lawsuit may not be beneficial to the borrowers.
For example, in a lawsuit for violation of FDCPA, borrowers do not have to prove actual damages. They only need to show that the lending party has violated the law. Therefore, if borrowers already have a judgment in hand or know they may soon receive one, pursuing a mortgage lawsuit against the lender for any other reasons may be premature. In most states, lenders are required to pay legal fees unless the court rules in favor of the borrower. The legal fees for such actions will be recoverable by the lender.
Even if you can afford to pursue a mortgage lawsuit against your lender, do so only after consulting with a qualified attorney.
Hiring an attorney can be quite expensive, and many borrowers mistakenly believe that they can avoid paying attorney fees by ignoring the legal process. But in most states, an attorney is required to sign the complaint. Moreover, unless you are represented, you will have no chance to be reimbursed for the legal fees. If you hire a lawyer to represent you in the class action lawsuit, he or she can help negotiate a reasonable settlement with your mortgage servicer that satisfies your needs without having to go through the lengthy process of a traditional lawsuit.
Sometimes, the best option available to a borrower who feels his/her mortgage rights have been violated is to reach a pre-settlement agreement with the mortgage lender.
Mortgage lenders are usually willing to reach mortgage settlements with borrowers because they face stiff competition from subprime lenders who have recently received relief from the government’s stimulus plan. A pre-settlement arrangement allows a borrower to stop foreclosure before the lender files a lawsuit in court. (A pre-settlement agreement is also beneficial for borrowers because the lender will have less of a liability for a default on a mortgage.) Before reaching a mortgage settlement, however, borrowers should consult with an experienced attorney to ensure the legality of the agreement.
If you or one of your surviving spouses is struggling to make the mortgage payments and fear that your house may be heading toward foreclosure, now is the time to act!
The date of the U.S. March of Foreclosure notice is fast approaching and it’s not too late to save your home. While many people know that the date of the Notice of Default is just a few weeks away, many more are completely unaware of what exactly happens two months before the due date. To make the most of your opportunity to save your home, act now!
The success of the lawsuit does not depend solely on whether the plaintiff receives any compensation.
The settlement also hinges on the mortgage lender’s ability to demonstrate the legality of the debt under the circumstances described in the complaint. While many attorneys offer free consultation in foreclosure defense, only a few pro Bono plaintiffs have been successful in their efforts to collect compensation from the lenders. In most cases, the litigation service provided by the law firm is limited to the borrowers’ immediate family and friends.
Therefore, if you have not yet received notice of default, you will not be able to build a strong defense case for the lawsuit. However, if you have already received a notice of default, or are on the verge of receiving one, a good loan modification attorney can help you to negotiate a reasonable settlement that will ultimately increase your chances of stopping the sheriff sale and preventing further damage to your credit.