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Here's the HAMMER You Need to Win a Mortgage Dispute

Here's the HAMMER You Need to Win a Mortgage Dispute

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Published by Bob Hurt
Bob Hurt explains how all single family home mortgagors have a 90% likelihood that the lender or lender's agents injured them at the inception of the loan or thereafter, and these causes of action provide a negotiation "hammer" to help the mortgagor pressure the lender into a settlement favorable to the borrower. This article shows how the borrower always loses a foreclosure battle, but when armed with a negotiation hammer, always wins a mortgage battle.
Bob Hurt explains how all single family home mortgagors have a 90% likelihood that the lender or lender's agents injured them at the inception of the loan or thereafter, and these causes of action provide a negotiation "hammer" to help the mortgagor pressure the lender into a settlement favorable to the borrower. This article shows how the borrower always loses a foreclosure battle, but when armed with a negotiation hammer, always wins a mortgage battle.

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Categories:Types, Business/Law
Published by: Bob Hurt on Jan 17, 2014
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01/19/2014

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Here's the HAMMER You Need to Win a Mortgage Dispute
Copyright © 16 January 2014 by Bob Hurt . All rights reserved. Distribute reely.
Law provides litigantsettlement procedure
Florida statute 45.061 (see below text) mightinterest you with respect to settlement of amortgage dispute (or any other inury lawsuit) inFlorida. !imilar statutes might exist in other states. "f you negotiate a settlement from a position of strength# such as by suing a lender or lenders with$alid causes of actions re$ealed in a comprehensi$emortgage examination report# the lender has astrong incenti$e to settle.
Ultimate Negotiating Hammer
 %ote that lenders seem most willing to settle whenyou ha$e a case against them that they &now willcrush them in court# particularly in a ury trial inwhich the urors probably ha$e all suffered inury by (and hate) predatory lenders. 'any lenders will not ta&e you seriously till a competent inurytort attorney files the complaint or countercrossclaim against them. *hen that happens# they might beg the inured party to come to the negotiating table. +hus# the mortgage examination report pro$ides the tort attorney and inured client with a huge ,%egotiating -ammer, with which to intimidate recalcitrant ban&s into settling ,reasonably.,
Notice of Grievance (NOG)
+he mortgagor has a legal duty to the owner of beneficial interest in the note under section 0 of the Freddie 'ac standard mortgage security instrument /010 (Florida example)# to wit xcerpt From !tandard 'ortgage !ecurity "nstrument
20. Sale of Note !"ange of Loan Servicer Notice of Grievance.
 +he %ote or a partialinterest in the %ote (together with this !ecurity "nstrument) can be sold one or more times without prior notice to 2orrower. 3 sale might result in a change in the entity (&nown as the oan !er$icer) thatcollects 7eriodic 7ayments due under the %ote and this !ecurity "nstrument and performs other -ere8s the -3''9 :ou %eed !ettle 'ortgage ;isputes
 
mortgage loan ser$icing obligations under the %ote# this !ecurity "nstrument# and 3pplicable aw.+here also might be one or more changes of the oan !er$icer unrelated to a sale of the %ote. "f there isa change of the oan !er$icer# 2orrower will be gi$en written notice of the change which will state thename and address of the new oan !er$icer# the address to which payments should be made and anyother information 9!73 re<uires in connection with a notice of transfer of ser$icing. "f the %ote issold and thereafter the oan is ser$iced by a oan !er$icer other than the purchaser of the %ote# themortgage loan ser$icing obligations to 2orrower will remain with the oan !er$icer or be transferredto a successor oan !er$icer and are not assumed by the %ote purchaser unless otherwise pro$ided bythe %ote purchaser. %either 2orrower nor ender may commence# oin# or be oined to any udicial action (as either an indi$idual litigant or the member of a class) that arises from the other party=s actions pursuant to this!ecurity "nstrument or that alleges that the other party has breached any pro$ision of# or any duty owed by reason of# this !ecurity "nstrument# until such 2orrower or ender has notified the other party (withsuch notice gi$en in compliance with the re<uirements of !ection 15) of such alleged breach andafforded the other party hereto a reasonable period after the gi$ing of such notice to ta&e correcti$eaction. "f 3pplicable aw pro$ides a time period which must elapse before certain action can be ta&en#that time period will be deemed to be reasonable for purposes of this paragraph. +he notice of acceleration and opportunity to cure gi$en to 2orrower pursuant to !ection  and the notice of acceleration gi$en to 2orrower pursuant to !ection 1> shall be deemed to satisfy the notice andopportunity to ta&e correcti$e action pro$isions of this !ection 0. nd xcerpt ?First of all notice that this section defeats any argument that the mortgagor has a right to &now in ad$ance who shall recei$e beneficial interest in the note. 3nd# ser$icers may play musical chairs without inury to the borrower.7aragraph two imposes upon mortgagor and mortgagee the obligation to issue to one another a ,%otice of @rie$ance, (%A@) and allow reasonable time to ta&e correcti$e action.+herefore# step A% in any negotiation consists of sending a %A@ to the ser$icer# lender# and present owner of beneficial interest in the note. 9!73 re<uires the ser$icer to tell the mortgagor# upon re<uest# the identity of the owner of beneficial interest for the purpose of such notices and of lawsuits.  %ote that the original lender might ha$e gone out of business since ma&ing the loan. ither another  ban& would ha$e purchased the assets and liabilities of that lender# or the F;"B might ha$e administrati$ely dissol$ed the original lender and transferred its assets and liabilities to another entity. 'ortgagors can in<uire about this to the F;"B if in doubt.+his means the mortgagor has potentially two targets of a %A@  the owner of the original lender8s liabilities and the present owner of beneficial interest in the note. 3nd# if in foreclosure# the %A@ should go to the trustee (deed of trust states) or the court (udicial foreclosure states)# and associated attorneys# of course.Aften the targets of the %A@ will play dumb# act confused# treat it as a Cualified *ritten 9e<uest# or send a nonresponsi$e letter bac&# try to discuss a loan mod# or dilate in some way. *hen that happens#the mortgagor can send another letter scolding the nonsensical beha$ior of the target# and demanding -ere8s the -3''9 :ou %eed !ettle 'ortgage ;isputes
 
correction again. " would not grant more than /0 days for correcti$e action.
!all in t"e Gu#munt Hammer $ !%&' and O!!
"n the e$ent of a nonresponsi$e answer as abo$e# the mortgagor should write to the Bonsumer Financial 7rotection 2ureau and Affice of the Bomptroller of the Burrency# delineating the futile interaction# pro$iding copies of the correspondence attached# and as&ing them to ta&e action against thetarget and coerce the target to correct the grie$ance and settle in good faith.+his might suffice to get the negotiated settlement started in earnest. 2ut the mortgagor might not at allfeel satisfied with the offer. 3fter exhausting administrati$e efforts to get an acceptable settlement# the mortgagor must sue. 3nd during that lawsuit the Affer of !ettlement statute of the state might come into play. +he mortgagor might find it prudent to inform the ad$ersaries of the statute# in case they don8t &now about it.
Gra# t"e 'iggest Hammer $ Lawsuit
@enerally# after filing the lawsuit# the mortgagee8s lawyer will analyDe chances of success and failure# and unless the lawyer decides to blow smo&e up the mortgagee8s behind# as in the 2rown $. Cuic&en oans case# the lawyer will recommend settlement. !ome lawyers ha$e such arrogant# ca$alier attitudes that they will recommend fighting a case they will certainly lose# and some ban&s &now their mortgagor ad$ersaries ha$e scant resources and little &nowledge for such a fight. 2ut this constitutes the one fight Foreclosure ;efense 3ttorneys would lo$e if they had the competenceto engage and win on the merits. *hyE 2ecause a mortgage examination will re$eal salient causes of action in 0G of the single family home mortgages. 3nd the mortgagor will not beha$e so stupidly as to fight when no causes of action exist (unless a corrupt foreclosure defender cons the mortgagor into it). "nstead# the smart mortgagor will ust wal& from the house with a short sale# &eys for cash# or deed in lieu of foreclosure deal. +-3+ will sa$e the mortgagor8s credit# compared to a foreclosure final  udgment which will ruin the credit rating for +% :39!.
&ut t"e Hammer in t"e Hand of t"e GH* +ind of ,ttorne-
+his shows why " recommend that mortgagors in foreclosure hire A%: +A9+"%HI9: 3++A9%:! to help them with mortgage battles. 3t least +-A! attorneys ha$e some experience in or moxy about negotiating settlements# and they J%A* the $alue of inuries and damages they can 79AK in mortgagerelated paperwor&.
*"e Onl- Hammer for ,LL ortgagors
+a&e note a comprehensi$e professional mortgage examination has $alue to 3 mortgagors# not ust those in foreclosure. "f you doubt this# read the 15page summary of the 010 Financial Brisis "n<uiry Bommission 9eport. "t shows the collusion between go$ernment and the mortgage industry to engage in widespread predatory lending. 'ortgagors cannot use that in their case because it does not pro$e specific culpability of their lenders for inury to the mortgagor. 2ut the mortgage examination can  pro$e the inury# and that can lead to an analysis of the damages and a specific damages lawsuit. 3 ury-ere8s the -3''9 :ou %eed !ettle 'ortgage ;isputes

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