Posted On: September 6, 2007 by Rich

Facing Foreclosure? Bad Loan? Sue Your Broker

salesman.jpgI've talked here before about what you should do if you are facing foreclosure and want to avoid it at all costs.
  • Talk to your lender
  • Talk to HUD
  • Refinance
  • Declare bankruptcy
  • Negotiate a short sale
  • Sell your home fast
    • Well now there seems to be a new strategy developing. Sue your broker/lender for misleading you into an inappropriate loan. Today's Wall Street Journal discusses this new tactic here. A growing number of private lawyers, with help from consumer-rights groups and legal-aid lawyers, are pursuing legal relief for borrowers who got loans they had little chance of repaying and, the lawyers argue, shouldn't have been granted. Taking cases on a contingency-fee basis, these lawyers are giving borrowers the chance not only to stop foreclosure and rescind the loan, but also to seek damages for abuses in some cases. The aim is to prove that lenders granted fraudulent or "unconscionable" loans with terms skewed heavily in their favor, or to fight abuses by servicers such as phony fees that cause homeowners to default. The lawyers handling these cases are taking them on a contingency basis meaning they only get paid if they win. That means that many homeowners who pursue this course of action may not actually get an attorney to take their case unless their particular circumstances are a "slam dunk" win for the attorney.

    Homeowners considering suing their broker for their foreclosure need to remember that once the foreclosure action is filed, there is a limited amount of time to find a solution. Unless you have a remarkable set of circumstances - Don't waste your time trying to get an attorney to take your case. However if you do think that your case has merit, find an attorney qualified to handle wrongful foreclosure claim. This is a new area of law that not many attorney will know how to handle. Contact your local bar association and ask for a list of referrals. Also keep in mind that if you proceed and file a lawsuit against your broker/lender, and you lose, you may be required to pay the other side's legal fees.

    Tags: : : : : : :

Posted by Rich | | Email This Post | Comments (0)

Posted In: Foreclosure , Mortgage , Bankruptcy

Bookmark: Bookmark Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at Google.com Bookmark Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at del.icio.us Digg Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at Digg.com Bookmark Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at Spurl.net Bookmark Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at Simpy.com Bookmark Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at NewsVine Blink this Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at blinklist.com Bookmark Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at Furl.net Bookmark Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at reddit.com Fark Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at Fark.com Bookmark Facing%20Foreclosure%3F%20Bad%20Loan%3F%20Sue%20Your%20Broker at Yahoo! MyWeb

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

Problem Properties Cost
- Clearwater Properties Pays

About Clearwater Properties

Contact Us
(888) 611-0914

Subscribe

Subscribe to the blogs's ATOM feed Subscribe to the RSS feed
Add to your Google Home Page or Google Reader Add to your My Yahoo!
Add to your My MSN Add to your My AOL
Add to your My Feedster Add to your NewsGator
Add to your Bloglines Add to your News Burst
Add to your Rojo Add to your Pluck

Recent Entries

  • October 11, 2007 8:38 AM
    Builders Dropping Prices - Where Does That Leave You? With the way the market is going, builders are...
  • October 8, 2007 2:22 PM
    Are You Behind On Your Mortgage? Are you behind on your mortgage? Are you worried...
  • October 1, 2007 10:55 AM
    Bargains At The Sheriff Sale - Really? Many people believe that with all of these homes going into foreclosure that it is easy to find bargains at the sheriff sale. I can tell you from experience, it is not. I have seen many inexperienced first-time buyers, or novice investors, attend sheriff sales and either pay too much for the property because they didn't do their research before hand to know what the property was actually worth, learn what repairs the place needed or they just got caught up in the excitement of bidding (what is an extra 1, 2, 5 10 thousand+? - I am still getting it at a steal!). The pitfalls of buying at the sheriff sale is not reserved to people looking to buy a home for their family to live in.
  • September 28, 2007 11:35 AM
    Don't Make Your Foreclosure Problems Worse Facing foreclosure is an event that puts an unbelievable amount...
  • September 26, 2007 2:32 PM
    Working Hard and Posting Light Sorry about the lack of posting as of late but...

Related Blogs