BY LAUNCHING AN ARMY OF OVER 25 THOUSAND ATTORNEYS TO ASSIST THEM FACING FORECLOSURE CONGRESS COULD
DO THIS BY AUTHORIZING A 250 to 500 million dollar
ATTORNEY'S FUND that would underwrite the
basic costs of attorneys fees for homeowners immediately facing
foreclosure, or who are in foreclosure.
This would apply to all States and that would cover the initiating
fees to ensure that there was not predatory lending, illegal or
fraud involved with either a first mortgage or refinancing.
| There must be a fair to reasonable chance of eventual and successful litigation, or renegotiated mortgage settlement. And only to homeowners of single mortgages, or mortgages held by homeowners for over seven (7) years. Mortgages initiated on speculation would not be allowed. These underwriten fees would ONLY be allowed where there is prima facie evidence, or convincing documentary evidence of wrongdoing by a national lender on a homeowners mortgage, and a certification by the attorney alleging such conduct. See below link. With possible or probable litigation facing the lenders involving questionable loan tactics resulting in mortgages which could be challenged, an army of attorneys representing homeowners backed by real litigation, would obviously cause these lenders to be open to renegotiations before exposing themselves to protracted litigation, and bad publicity. With a 500 million dollar fund underwrite attorney's fees at $20,000 per homeowner, would immediately activate 25,000 attorneys to oversee and protect homeowners who have been the victims of predatory lending, fraud amd risky loans. For a mere 250 million, would unleash an army of 12,500 attorneys, and given the "bailout funds" this figures are mere chump change. Best of all, it will really work! The above actions would virtually launch an ARMY OF ATTORNEYS representing and helping homeowners to seek reasonable resolution of the most critical situation facing this country. Imagine both houses passing the above funds with the speed they did with the 750 billion "bailout" to the banks, our mortgage lenders. Within a week, you would see ads on TV looking for victims of mortgage abuses. The abuses would immediately cease overnight with the lenders facing perhaps 12.5 to 25 thousand attorneys taking up the crusade to protect the homeowners. Right now there is NO ONE, or AGENCY working directly at this time to prevent unnecessary and/or illegal foreclosures. Many of these lenders have set up
deliberate scenarios
on unsuspecting homeowners that will ultimately lead to foreclosure,
enabling the lenders
to help themselves to the equity that the homeowner has earned over the
years
in the mortgaged
premises. This is especially true in refinanced and home equity loans.
If it involves a new recent mortgage that is foreclosed on,
the bank gets all the prior
closing costs, and if there were points involved; interest paid up to the foreclosure (and it is almost all
interest in the first five years of a mortgage); they will buy the
house at auction because they won't get a bid for the amount owed;
they now have title and can turn around and sell it for more than was
owed. Anyone who has earned a high equity in their property,
especially seniors and owners holding property over
15
years are especially at RISK.
Remember, a foreclosure action using what is called a "Lis Pendens"
is a public record on the title of the property, called in the
real estate arena as "the kiss of death" and will affect the selling
price of the property drastically downward, as few buyers want to
get tangled up in a legal mess.
| The lenders make money no matter what, and the homeowner has nothing but a further obligation to make up the difference. In some cases the lender will still go after the homeowner for balance owed between the forced auction selling price and the mortgage balance. in which he dismissed 14 foreclosure actions by Deutsch Bank which stated:
Plaintiff's, "Judge, you just don't understand how things work,"
argument reveals a condescending mindset and quasi-monopolistic
system where financial institutions have traditionally controlled,
and still control, the foreclosure process.
Typically, the homeowner
who finds himself/herself in financial
straits, fails to make the required mortgages payments and faces
a foreclosure suit,
is not interested in testing state or federal
jurisdictional requirements,
either pro se or through
counsel. Their focus is either, "how do I save my home" or "if I
have to give it up, I'll simply leave and find somewhere else to
live."
| "There is no doubt every decision made by a financial institution in the foreclosure process is driven by money." TheOutlawLenders.com |