Most Foreclosure Defense Attorneys Are Commiting Malpractice and Cheating Homeowners Out of Victory
Mortgage Fraud Examiners, the investigative firm who warned the public about loan modification scams, “securitization/forensic/chain of title audit,” 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.
- (1888PressRelease) January 19, 2020 - When asked why homeowners keep losing their homes to foreclosure, Storm Bradford of Mortgage Fraud Examiners gave a haunting reason: "Most supposed 'foreclosure defense' attorneys are giving the homeowner false hope, because their only strategy is making refuted arguments and filing useless pleadings to drag out the inevitable foreclosure. Moreover, these legal charlatans charge their hapless victims tens of thousands for the privilege of losing their home. They tout themselves as winners using dismissed cases as wins. Eventually, the cases get refiled and the homeowner eventually loses. Unfortunately, legal incompetence and legal malpractice is one of the major reasons so many homeowners have lost their homes."
Some industry pundits muse over whether foreclosure defense lawyers commit legal malpractice by failing to examine the mortgage transaction. Bradford explained the issue: "Bar ethics counsel has made clear that attorneys commit malpractice by failing to examine contracts when there is an allegation of breach. A foreclosure is basically an allegation the homeowner has breached the contract by their failure to make timely payments. The servicer sends a notice of default and accelerates the loan pursuant to contract. Doesn't it make sense for the foreclosure victim's attorney to examine the contract and related documents to determine whether the lender breached first and if there are any errors that may void it, and/or fraudulently induced the homeowner into the contract? Common sense dictates that attorneys should be checking whether the mortgage contract is even enforceable before tackling a foreclosure."
When asked how the mechanism works, Bradford explained: "It's very simple; appraisal fraud, other tortious conduct, contract breaches, errors, setoffs, statutory/regulatory violations, etc., underlie over 90% of mortgage transactions. These abuses give homeowners leverage to beat the banks. When we examine mortgage transactions (contract) and find misconduct, our clients use our "Mortgage Transaction Analysis" to draft and send a contractually mandated 'grievance letter' to the Servicer, which mandates they take 'corrective action.' Since the damage has already been done, the only "corrective action" they can take is to settle with the homeowner."
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.
“Finding problems within the mortgage transaction is relatively easy, we find appraisal fraud in eight out of every ten mortgage transactions we examine, which coincides with the findings of the FDIC, and that doesn’t include all of the other types of tortious conduct and contract breaches that are usually present. So, in most cases, the homeowner has a ninety percent chance or better of having something viable that puts them in the proverbial ―driver’s seat. And in our experience, most often the demonstration of a strong cause of action will lead the bank to ask for a settlement. The settlement or the lawsuit could result in getting the house free and clear, and/or money for the foreclosure victim, plus fees and costs for the attorney.” https://www.wvrecord.com/news/233771-quicken-loans-on-losing-end-of-3-million-predatory- lending-verdict
Thomas K. Plofchan, Jr., an attorney specializing in foreclosures who employs the services of Mortgage Fraud Examiners explains as follows: "Mortgage Fraud Examiners is the 'go-to' firm if you want your lender to negotiate on your terms not theirs. They provide a meticulous analysis of the whole mortgage transaction, identifying breaches, errors, and/or fraudulent conduct, which helps me prepare a legal strategy to force a financial settlement and in some of our cases, free title to the property."
"The first line of action for any homeowner or attorney should be the examination of the mortgage transaction. 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 that a judge is willing to accept as a valid reason to slam the bank, such as contract breaches, tortious misconduct, 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. Regrettably, everything else is just wishful thinking or a scam.
Mortgage Fraud Examiners is a project of Legal Solutions, LLC. For over 40 years, Legal Solutions, LLC has provided litigation support to attorneys, helping them break into new areas of practice, or providing specialized advice for complex cases requiring novel approaches to the law. Due to the recent housing crisis, Mortgage Fraud Examiners, a team of specially trained legal professionals, was created to provide borrowers and the legal community with comprehensive assistance to help keep them in their homes.
For Interviews, please contact us.
Mortgage Fraud Examiners
Phone: 844-920-7200
amicusman ( @ ) mortgagefraudexaminers dot com
https://www.mortgagefraudexaminers.com
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