Suing your mortgage lender might be the last thought on your mind if you’re at odds with them and trying to work out a deal to keep your home. Unfortunately, banks don’t think the same way as homeowners. They want their money and you want to keep a solid relationship. The two don’t coincide.
If you’ve tried all you can to work out a deal and the bank is not willing to cooperate, entering a lawsuit might be the next and best option. When the bank is facing expenses related to a lawsuit they might become a bit more cordial and willing to solve an agreement. Hopefully you both can come to an agreement outside of the courtroom. In the instance where that’s not possible, you want to be prepared for what’s coming. Let’s discuss the benefits of suing your mortgage lender.
You get to be in control of the situation
Loan modification programs are meant to help those suffering from hardship. When you submit for a loan modification (lesser payment) you often submit this through your bank by asking for help in writing the terms of your loan over again. At that point, it’s in the banks hands and they can decide what is best for them. Very rarely does the bank come back with an instant seal of approval and say, “Yes, we agree to these new terms.” It’s often a lot of back and forth.
When you file a lawsuit, you get to be in control of the situation. Your attorney will likely start the suit by filing a temporary restraining order against the lender to avoid any foreclosure or evictions from happening. With this step being implemented, you’re able to stop your lender from selling your home while the lawsuit is in full-force.
You by-pass employees and get decision makers
Its been stated publicly that mortgage employees are taught to deceive homeowners and lie to keep things in a runaround manner. With a lawsuit, the decision makers are who you will be dealing with. Bank employees are no longer acting on behalf of the lender. This gives you access to get something squared away that benefits you and your family.
Attorney fees can be charged to the bank or lender
When a lawsuit has been submitted, you’ll need an attorney to represent you. Seasoned attorneys can cost anywhere from $250-$1,000 dollars an hour. If you’re already having problems financially, how could you possibly afford all the attorney fees?
With a lawsuit, you can put in an order for the lender or bank to be responsible for your attorney fees. In most cases, the lawsuit will be a federal case and by law, the plaintiff can be awarded dismissal of attorney fees. This helps you get the representation you deserve without facing hefty invoices.
Settlements are reached
In most lawsuits, the bank or lender are not looking to spend large amounts of time and money in a lawsuit. They’ll want to settle outside of court which is great for you because you’ll be able to come to an agreement that helps you financially while staying out of the courtroom. In some cases, a quiet title is awarded. With a quiet title, the lender cannot prove their standing with a foreclosure. This means your homes loan will go through a MERS system. MERS systems have been proven to have legitimacy. Therefore, lenders tend to settle instead of going through the court process.
If you’ve tried all that you could with a bank or lender and they are not willing to work with you. A lawsuit might be your next and final option. Do your research to ensure you have a legitimate case before hiring an attorney with a large $250-$1,000 per hour rate. If you’re not sure how to research your case, schedule a consultation with an attorney. The attorney will then review your paperwork and let you know if you should move forward or not.