Demand Letters Claiming Damages for Errors and Omissions, Negligence and Malpractice

Demand letters are one of your opening tools in putting the parties on notice that you have a claim and you intend to pursue it. AN ATTORNEY’S DEMAND LETTER CARRIES FAR MORE WEIGHT THAN ONE FROM A HOMEOWNER.

Most of the participants in your loan closing have malpractice or errors and omissions insurance policies. You must couch your claim as negligence or malpractice, an error or omission and not as a crime or intentional tort if you want to invoke insurance coverage.

You should also include a provision that they should forward a copy of the letter to their insurance carrier. Most carriers say that if you don’t notify them within thirty (30) days they won’t defend or cover the claim. So you put the receiver of the letter in a bind of either settling with you without insurance (so his premiums won’t go up or his coverage dropped) or letting the insurance company know there is a problem.

The carrier will instantly understand that this is one of thousands of claims that they are going to be hit with, so they will likely try to either intimidate you out of the claim or offer minimal settlements. Depending upon what you have decided as your goal (getting money or getting rid of your mortgage) you might accept the offer or negotiate something higher.

This adds to the war chest you can mount up to pay for more expensive litigation. It also increases the likelihood that an attorney will take your case since there are so many insurance companies involved (including the insurance purchased from AMBAC, AIG, or credit default swaps, over collateralization and cross collateralization).

BEWARE OF THE RELEASE HOWEVER, SINCE THEY WILL TRY TO GET YOU TO RELEASE EVERY CLAIM OR DEFENSE YOU HAVE IN SETTLEMENT. DO NOT SIGN SUCH A DOCUMENT UNLESS YOU INTEND TO STOP THERE. INSIST ON CHANGES TO THE RELEASE DOCUMENT SUCH THAT YOU WILL STILL BE ABLE TO CLAIM THAT THE NOTE AND MORTGAGE ARE VOID, INVALID, NON-NEGOTIABLE, FRAUDULENTLY OBTAINED, ETC. GET COMPETENT LEGAL ADVICE BEFORE YOU SIGN ANYTHING.

PARTIES TO SEND DEMAND LETTERS TO FOR ERRORS AND OMISSIONS AND MALPRACTICE:

1. Appraiser and Appraisal Company

2. Mortgage Broker and Mortgage Brokerage Company

3. Escrow Agent and Escrow Company

4. Title Agent, Title Agency and Title Insurance Company claiming cloud on title

5. Lender who appears on paper as payee on note and as mortgagee on mortgage or beneficiary under Deed of Trust

6. Trustee under deed of trust and add challenge to authority because of successive Trustees named in pooling and services agreement and in the issuance of the mortgage backed securities.

7. Mortgage Servicers — each of them that you know of for misapplication of funds and demand that they show a full accounting for all funds received and all funds disbursed. How do you know the holder of the note received the payment? Who is the holder of the note?

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22 Responses

  1. If you need assistance against your ‘Servicer’; please contact us. I cannot guarantee that, we can help the situation but I can say that, WE HAVE NOT LOST YET…

    There are No magic bullets but our process has had multiple successes and with that said, we will continue to use our proprietary process to, assist as many Home Owners as, is possible.

    The ONLY real ‘Wins’ will from a Judge and in a Court of Law. We work with some of the best Foreclosure Litigators (as according to national foreclosure victories). You WILL be in good hands from start to finish.

    Please shoot us a message and we will give you a free consultation. We will present you with some options based on our findings which will help you and your family, make the most informed decisions about your foreclosure situation).

    We look forward to hearing from you. God bless.

    Dan Moss
    lowecommunityresourcepartners@live.com

  2. A.g, did you find an atty in michigan to work with you on your problem,

  3. I would like to meet with a lawyer in the Detroit, Michigan area regarding the filing of a ” Substitution of Trustee, and a Revocation of Power of Attorney”.

    also, one to work with me on a “Demand letters Claiming Damages for Errors and Omissions, Negligence and Malpractice. Thanks for being there.

  4. I need an attorney for a NC property. Have had 5 qualified buyer for a short sale, and everytime, EMC cant manage to close the deal. I dont think they have the note since it has changed hands so many times. It has been over 2 years since I have made a mortgage payment, the house is sitting and I cant find out whats going on. Any suggestions/advice would be great! Was thinking about going to the Title company to see if they know if EMC has the note? They wont foreclose, I cant get it sold. Please help klmanion1@hotmail.com

  5. NO FAMILY LEFT BEHIND! BUDGET PLANS FOR EVERYONE.WE CAN HELP YOU STAY IN YOUR HOME. POSSIBLY GET PRINCIPAL REDUCTION AND IN SOME CASES INTEREST RATE DEDUCTIONS. THE BANKS MADE A LOT OF MISTAKES IN THE PAPERWORK AND WE OFFER TO FIND THEM.FREE CONSULTATION ON ANY LEGAL MATTER.CALL KIM THOMAS 401-352-5609 or 401-274-1905. WE CAN HELP THE LAW OFFICES OF GEORGE E.BABCOCK ………………………………………………………………………ESQUIRE. CHECK OUT OUR WEBSITE: http://www.facebook.com/l.php?u=http%3A%2F%2Fwww.babcocklawoffices.com%2F&h=911e4
    IF YOU HAVE A MERS WHICH STANDS FOR MORTGAGE ELECTRONIC REGISTRATION SERVICES WHICH WOULD BE IN MOST CASES ON THE 1ST PAGE OF YOUR MORTGAGE PARAGRAPH C OR YOU HAVE A MORTGAGE WITH INDYMAC OR ONE WEST BANK CALL KIM THOMAS OR GEORGE BABCOCK AT 401-274-1905 AND GET RELIEVE FROM YOUR PROBLEM!

  6. Indymac Notice of Sale Problem:

    As everyone who has a loan owned or serviced by Indymac knows, the bank has had a long, troubled history. When the bank failed to meet FDIC guidelines, the government agency was forced to take over to ensure that the bank did not fail completely, which could have cost depositors all of their money. In early January, the FDIC then decided to sell off the mortgage-backed securities portfolio to a company comprised of a group of strong investment companies called IMB Management Holdings, LP. Indymac has now become One West Bank. The basic terms of the purchase allowed IMB to purchase the $16 Billion dollar portfolio for $13.9 billion. IMB also received $7 Billion in other securities and 33 branches making the acquisition terms very favorable for IMB.
    The sale of the portfolio is now complete which puts homeowners, who were hoping to modify their loan in a more compromising position compared to when the FDIC was in control. While the FDIC was heavily understaffed, they were there to help modify loans to favorable terms for qualified homeowners. The process was very slow but the results were strong. Homeowners generally received a step program that would start at a very low interest rate (1%-3%) then gradually go up over the years until it reached a low fixed number. In addition, they would also stretch out amortizations to lower payments and capitalize delinquencies. This enabled homeowners to keep their property even when they were seriously delinquent causing the bank to make less money than when the property was purchased.
    Now that the sale of the portfolio is complete and there is a new regime controlling the fate of the mortgage backed securities, these programs seem to be much harder to get. IMB basically bought the portfolio for around $0.40 cents on the dollar, meaning that if they foreclose on a property and only regain half of the note amount, they still make 20%. This is scary for homeowners. Foreclosing on homes is supposed to scare banks because it results in catastrophic losses. In this case, these losses have already been realized and dealt with, meaning that the homeowners have little leverage.
    Along with the fear of foreclosure, Indymac is using unethical tactics to collect past due balances from homeowners. It has been seen where Indymac will offer a modification to a troubled homeowner looking to keep their house. The terms look great and the homeowner now believes that they can keep their home. They send Indymac the required ‘Good Faith’ reinstatement payment and the signed documents. Indymac cashes the check then issues a denial upon further review. This practice is becoming very common, so if you are an Indymac customer, understand what you are going up against.
    Another important new addition to the ever changing guidelines is that anyone who is on Notice of Sale (NOS) now is required to pay up to 50% of their delinquent balance to delay the foreclosure. This does not guarantee a modification or reinstatement, just delays the sale date. Make sure that you consult an attorney before you make this move. There are other ways to delay the foreclosure without paying 6-8 months of missed payments, fees and taxes. Bottom line is that Indymac borrowers need to beware. They are not playing fair and definitely do not care about you as a homeowner.
    Indymac is taking back homes in the thousands.

  7. For further conversation on this matter contact the writer.
    Andrew, on August 13th, 2009 at 10:44 pm Said:

    To homeowners and the like who are facing same situation as quoted by “Diane on December 31st 2008, need to do two very important documents;

    1: File a Substitution of Trustee

    2. File a Revocation of Power of Attorney

    Both of these are done filed by the Trustor (who is the Borrower). They and they alone have signatures on the Trust Deed, and because there is no signatures from a Trustee, Beneficiary, Lender, Bank Official or for that matter anyone else…. This is deemed a UNI-LATERAL CONTRACT which in layman’s terms means the Homeowner may change theses above named documents, in addition to others.

    All Contracts to be enforceable by any form of law are required to be signed by two parties and in the Real Estate, in most states require 2 – 3 witnesses as in Florida.

    Hope this helps another Lay-person. For further non-legal, non lawyer nor financial advice, they may call 503 342 2817 or email cci_andrew@hotmail.com
    I again state that this is my opinion, and not a legal statement, cannot be relied upon, and is subject to the Terms and Conditions found at the website http://MaverickVisions.com

    If the Power of attorney given to the Title Company/Lawyer/Closer was to be renounced and rescinded then all this madness against homeowners and their properties would stop, since the lenders would no longer have authority to conduct business using the homeowner/grantor/ supposed borrowers authority. The Trustee also needs to be rescinded and a substitution trustee appointed.

    Don’t be Timid!

  8. As to my opinion:

    As it looks from the outside, as the lenders never registered the properties in the “trusts” that were created for the purpose of holding the real estate, the real estate will be in most instances still registered in the Grantor/homeowner name at the land records.

    Therefore the supposed note, deed of trust and or alleged mortgage that was to be registered against the real estate in the trust [ that is vacant] has no security. “Does this make any sense to anyone?”

    Now here is the other opinion continuing from above, if this was not a loan, since banks don’t lend money unless they have “Investments / CD’s in the bank as Matching Finance to loan against, this must have been an INVESTMENT in the homeowner, since the lenders issued securities against an “Note” that was to be an investment, and this is a form of a Bankers Acceptance [ BA] endorseable note, except that the creator of the note was not privy to the makings of other transactions. Not so!

    All companies proposing to sell the investment, market a prospectus or in any way be involved in securities have to be registered at the http://www.SEC.gov/index.htm website.

    Anyone seeking to find a company registered to transact securities HAS to be registered here.

    Oh! yes this is the link to MERS, INC/VA for the official registration of the company and all the addresses and officers.
    http://sec.gov/Archives/edgar/vprr/03/9999999997-03-033079
    [paper entry :- http://sec.gov/Archives/edgar/data/1079796/999999999703033079/9999999997-03-033079.txt ].

    If you are seeking the pictures of the officers behind the names in the legal application this site http://www.mersinc.org/about/exec.aspx

    The SEC has their hands full litigating complaints, take a look at this link. http://www.sec.gov/litigation/litreleases.shtml

    “JUST ONE LAST THING, IF YOU READ THE FORMATION DOCUMENT YOU WILL SEE THAT FREDDIE MAC, FANNIE MAE, AND MORTGAGE BANKERS ASSOCIATION OF AMERICA ARE BENEFICIAL OWNERS OF THE COMPANY MERS, INC/VA”
    Didn’t the public of America just invest heavily in Fannie Mae and Freddie Mac?
    http://freddiemac.com/avoidforeclosure/
    http://sec.gov/Archives/edgar/vprr/03/9999999997-03-033079

  9. I have been trying since April 2009 to get Indymac to do a modifaction on my loan. I am in an arm and will lose my home if interest start to rise. I have good credit and have never been late. MERS is the servicer of my loan. How can I get them to respond and do a modifaction. They also are applying a prepay until 4/10. I ask them to send me a copy of my Deed of Trust and the Note. They send DT but no note.
    Melba Ford

  10. I need help! I was named as a creditor in Accredited Home Lenders Bankruptcy… I have till Oct 6th to submit my proof of claim – I do not know what to do – Please help with an attorney contact information. I would also like an attorney that does quiet title actions. Any help will be greatly appreciated.
    Thanks & Have a Great Day!

  11. Food for thought.

    Our signature created the funds on the Promissorry Note; which is a Commercial instrument. Bank cannot loan their assets, where does the funds for the mortgage comes from. Your signature. Four elements of a contract must be satisfied to be legal. Offer,Accepteance, Consideration, and Disclosure.Consideration must be given by each party, what did they supply. We should ask for the original wet ink signature Promissory Note, Fr 2046 balance sheet, 1099 OID report, S-3/a registration statement, 424-BS propectus and RC-S and RC-B Call Schedules. Research and understand the documents, they will help you achieve victory.

  12. I am two months behind with payments and do want to get rid of the mortgages in both cases if possible. Most of all I want to learn these processses so that I can assist others. I have already assisted in several pro se situations.I have the lawyer’s handbook and wondered whether it would be possible to purchase a CD with all those step by step forms: the attorney demand letter and the discovery motions or whether I need to enter them into the computer myself? I am ready to go on that, but felt I would like to discuss it with someone knowledgable so that I did not neglect a follow-up step.

    Thanks for any information you can forward to me. FAX: 509\927-4093 and phone 509\701-3125

  13. Would you provide a sample DEMAND LETTER for violations of Errors and Omissions to the site ?

    Or please email one to me directly.

    I paid BK for intitial evualuation of my situation, and he reviewed all my documentation, I sent in everything he requested, and his suggestion was to file for quieting the title, however, I have no idea what that process is or the forms and procedure. I have been unable to communicate with him since. I understand him traveling with the seminars, but if not him, someone else who is knowledgable assistance would be appreciated. I need help in the process of quieting a title. I have done your QWR, and I have ran a legal notice twice giving notice to Sun Trust Mortgage requesting verification of rights. Please advise,
    My number is 863-967-0660

  14. Hello, I need a attorney to help me to submit settlement letter. I filed a TILA Violation lawsuit lender failed to comply to tila laws. The lender’s attorney called us 3 weeks ago and said for us to pull out the lawsuit and send a letter what we want. I want a settlement letter damages according to tila statues. The propety is in chesapeake, Virginia. Can you help me find a lawyer that can help me to the settlement letter?

  15. I need an example of a Demand Letter for Errors and Omission insurance for attorney misrepresentation.

    Any example would be nice to see.

  16. Please contact me regarding your materials and seminars in Florida.

    We are working with many clients and have stopped numerous foreclosures. I believe that there is a 3 step process: 1) stop the foreclosure – TRO 2) petition for discovery 3) sue for false claims, fraud, civil RICO, etc

    (941)822-4663
    Darren-James: Michaels
    Private Attorney General – 42 USC 1988
    Qualified Criminal Investigator – 18 USC 1510
    Federal Witness – 18 USC 1512,13, 1964(a)(b)(c)(d)
    Ordained Minister/Ambassador – Protected Foreign official -18 USC 11, 112
    Absolute Immunity as a Corporation 28 USC 1608
    FSIA(1976,1997), Secured Foreign Party – 28 USC 1602-1611
    Florida Notary – F.S. 117
    Florida Insurance Broker: licenses – 215,216,218,240,266

  17. I live in Ca and would like to find a attorney to help me. I am currently 3 months late and have been told by ASC servicer that they have nothing to offer me per the investers…. I would like to try the provide the original note method and verify what I can do next.. Any suggestions please email me at eyefocus_mg@hotmail.com

  18. Our investment property was sold at trustee sale 2 months ago and we have been working with a private party “loan negotiator” who we now suspect as a fraud. Our original note was with GMAC in Pasadena, CA. Can the trustee sale be reversed?

  19. Layla: Don’t stall, attack! Whether the sale occurred or not go after them. We have many many cases reported to us where the sale was reversed.

  20. I have an auction date tomorrow afternoon Jan.13. 2009… on the courthouse steps of the Baltimore county courthouse…,,,,,currently have an application in with lendAmerica for the H4H program… what the hell can i do to stall this sale?

  21. Are there any lawyers working with you that can practice law in Michigan? If so please forward information.
    Thanks

  22. I need an Atty or someone that specializes in this ASAP. I am in Massachusetts and I need a name and number. My number is 781-878-7042

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