Mortgage Litigation

Lender Liability Lawsuits or Mortgage Litigation are legal actions undertaken against lenders for some violation of existing laws. Such violations of the law can include, but are not limited to, fraud, predatory lending, and statutory violations (TILA, RESPA, etc.). Remedies and damages vary according to the specific cause of action and circumstances of each case, which can include rescission of your loan (Rescission means “unmaking” or “unwinding” your mortgage).

There are several types of violations that may be actionable in law, and may be grounds for filing a lawsuit. These include, but are not limited to:

• Truth-In-Lending (TILA) Violations
• Real Estate Settlement Procedures Act (RESPA)
• Bait & Switch (For Example, loan broker or lender's first quote on interest rate was 5.5 % but ended up being 6.5 %)
• Disclosure violations
• California Civil Code 1632 violations (if a "contract" is negotiated in a foreign language then that contract needs to be written in that foreign language)
• Breach of Contract
• Breach of fiduciary duty

WHAT IS THE REALITY OF THESE LAWSUITS?

You may have seen legal advertisements claiming that you may be able to sue your lender for some or all of the violations above.  The reality is, that many of these filed lawsuits are going nowhere.  Based on our experience and contacts in the industry, we understand that these types of lawsuits are not being considered seriously by the courts.  In fact, many of these lawsuits are being dismissed for being "de minimis" or in other words, for being too little of consequence to be actionable in law.  That is not to say that there is no actionable violations, but the courts do not seem to be looking at these lawsuits too favorably.  Thus, before you start believing what you see in advertisements, be sure to speak to at least 3 different real estate or bankruptcy attorneys who may be able to assess your case properly and you can compare their assessments of your case.

If you do believe you have been defrauded by your lender, please contact our office and we will assess your case.  In the alternative, we can discuss other options by which you may be able to save your home, such as through a bankruptcy petition.  You may call us toll-free at the number above, or you may submit the form on your right.