Mortgage Fraud Examiners, the investigative firm who warned the public about loan modification scams, the “criminal loan modification trap,” “securitization/forensic audits,” scams and the “Mortgage Elimination” scam is now warning that foreclosure “pretense” attorneys may be cheating homeowners out of victory by ignoring contract breaches and tortious acts underlying their mortgage transaction.
When foreclosures started arriving in mass many attorneys chose an easy method of making money. This method is ignoring any real dispute and analysis of the mortgage transaction and instead filing copycat generic defenses that have no merit and may not even delay a foreclosure. Most of these copycat defenses involve “standing,” “MERS,” “securitization,” “assignment,” or other stall arguments. This is the most profitable way for an attorney to defend a foreclosure. Pay 5 cents a page for a copy machine formulaic defense, which does nothing to help the borrower, while lining their pockets with thousands the borrower paid, basically to stall the foreclosure. Because this is the most profitable way for the attorney to defend a foreclosure, this is what the majority of blitz advertisements and “stall” attorneys you will find doing.
“If homeowners had a choice of stalling the foreclosure or getting a monetary settlement, does anyone really believe homeowners would choose to stall? And yet, many do because they were misled. Some of these lawyers bill their clients anywhere from $1500.00, to $5000.00 or more upfront, followed by monthly fees until foreclosure. In the end, the client not only loses their home, but wasted upwards of $40,000.00 on arguments not designed to win, but to line the pockets of some greedy lawyer, who knew or should’ve known that attacking the contract is the ONLY approach that wins cases.” So says Storm Bradford, Founder of Mortgage Fraud Examiners.
“The fastest way to sort these attorneys out is to simply ask them for a copy of their last three filed defenses and look at them side by side. When they are more or less identical, and ignore any detailed disputes or events, you will know in advance what type of attorney it is and likely how that attorney will prepare your defense. Or, ask them how many homeowners they’ve represented received financial compensation and/or free title to their property. This is a lot faster when time is a concern than hiring the attorney and finding out months later that a copy machine defense was given in your name. Courts generally only give you a single chance to present your case, so be careful about having an attorney waste it.”
Bradford adds: “It appears misleading homeowners is quite common amongst the “stall” crowd. There’s an attorney who claims to have had millions come to his blog, and declares he’s won hundreds of cases. Regrettably, we couldn’t, nor could others, find one foreclosure case where a homeowner received financial compensation from a bank, or free title to their property. However, what we did find was all losses. Another attorney, who has his own radio show, and claims to have won hundreds of foreclosure cases as well, when asked: “provide me any cases that prove your client received financial remuneration and/or free title”—his answer, “I only wish I had the time to accommodate you.” So, when you hear such claims like these, to include “I’ve saved thousands of homeowners their homes,” it’s time to grab your wallet and run to an attorney who is willing to have your mortgage transaction thoroughly examined.”
“Matter of fact, we haven’t been able to find one case where a homeowner received financial compensation and/or free title to their property, where their attorney argued, securitization, MERS, standing, produce the note, assignment, or the other many arguments they’ve concocted to stall. Conversely, homeowners and their attorneys who have followed our methodologies of thoroughly examining the mortgage transaction for contract breaches, errors, setoffs, statutory/regulatory violations, fraudulent appraisals, and other fraudulent conduct, depending on the egregiousness of the misconduct identified, have won dozens of multi-million dollar awards, free title to their property, and every conceivable settlement one could imagine.”
This brings up a pressing question. How often do attorneys miss valid defenses that may help homeowners? A Federal Deposit Insurance Corporation report found that of the nearly 2,000 financial institutions they assessed the previous year, 1,607 (or 83%) received citations for “significant” compliance violations. The FDIC also examined appraisals and found out of the 259 appraisals reviewed for accuracy, only SEVEN fully complied with professional standards. A whopping 194 of the 259 contained “multiple egregious violations” of regulations and industry standards. See, Staying Alert To Mortgage Fraud.
Homeowners need to understand a promissory note; mortgage/deed of trust is a contract—Period! Foreclosure defenders should be identifying contract breaches, errors, setoffs, statutory/regulatory violations, fraudulent appraisals, and other fraudulent conduct, which cause most mortgages to be legally problematic. In most cases the homeowner has over a ninety percent chance or better of having something viable that puts them in the proverbial driver’s seat. Most often the demonstration of a strong cause of action will lead the bank to ask for a settlement. If not, a lawsuit could result in getting the house free and clear, and/or money for the foreclosure victim, plus fees and costs for the attorney. See, WV Judge Grants Homeowner Damages.
About Mortgage Fraud Examiners
Mortgage Fraud Examiners provides services for attorneys and their clients who face foreclosure and for homeowners who suspect problems underlie their mortgage transaction. They discover appraisal fraud, loan application fraud, other tortious conduct, contract breaches, errors, set offs and a myriad of other violations systemic in these mortgage transactions. They provide a report of the findings within 7 business days, and, as a service to attorneys, may provide it styled as a complaint ready for filing or for settlement negotiations.
“The first line of action for any homeowner or attorney should be the examination of the mortgage transaction first. There really are many legal options available to homeowners facing foreclosure,” Bradford concludes. “However, the only process that works is to find a REAL legal dispute such as contract breaches, tortious conduct, errors, set offs, etc. Every mortgage transaction has unique facts, every claim has different applicable law, and only by properly examining the mortgage transaction is one going to find the answers.
Mortgage Fraud Examiners