It was only a matter of time before it became common knowledge. My guess is that tens of thousands of homeowners have successfully litigated their foreclosure cases only to come to a fork in the road where they must make a decision: (1) finish the case at trial or (2) accept an incredibly “generous” offer from the pretender lender. My choice is option #1. But Homeowners understandably most often choose option #2.
By way of example, and not to disclose any of the details in the hundreds of cases I know have been settled to the satisfaction of the homeowner, pick a number. Let’s say you have a mortgage and note that you are successfully litigating — i.e., showing that the origination was false, that the payee and mortgagee were falsified, and that the assignment was fabricated based upon a fictitious sale of the loan because no money ever exchanged hands.
Let’s say the original note and mortgage was for $500,000 and the property was only worth $300,000 and now the property is worth $250,000. The foreclosing pretender lender sat on the case and now is claiming that the total owed, with accrued interest, fees, costs etc. is now $700,000. Assume you know you have them right where you want them.
Suddenly the attorney for the bank or someone from the back of the courtroom whom you didn’t realize was there, proposes that the case be settled. The settlement terms are that the balance due will be $100,000, the interest rate 2% fixed, and the term is 40 years. So your choice is getting rid of that last $100,000 or accepting a mortgage and note of dubious legality for $100,000 and taking the risk of title problems later when you try to sell or refinance.
Most people, faced with the possibility of losing even when they are confident of success, take the deal. And the fact that it comes with all kinds of confidentiality and gag clauses doesn’t stop them. But lawyers and homeowners take note: if you are well informed and litigate aggressively, these results are frequently and most likely in reach.
The reason why you don’t hear about success in defeating the banks is because people are under gag orders not to talk about it.
Filed under: foreclosure