Lender Litigation Program
Frequently Asked Questions
Below are some frequently asked questions
and answers regarding The Litigation Law Group Lender Litigation Program:
Why work with The Litigation Law Group?
What loans are eligible for The
Litigation Law Group Lender Litigation Program?
What is the timeline for
implementing the Lender Litigation Program?
What modification options will be available to borrowers?
How do borrowers participate in The Litigation Law Group
Lender Litigation Program?
Where should borrowers interested in the program call to
apply?
Why work with The
Litigation Law Group?
Attorney at Law,
Lawrence P. Ramirez, is the lead trial attorney for The Litigation Law Group (www.thelitigationlawgroup.com)
and he is one of the leading attorneys in
Silicon Valley,
California.
Mr. Ramirez has been a practicing trial attorney in real estate,
finance, trade secret and business litigation for twenty (20) years, and he has
a reputation of being a fighter for his clients. He takes his legal duty to represent his
clients very seriously. Mr. Ramirez is
the past President of the Santa Clara County Trial Lawyers Association, former
Trustee of the Santa Clara County Bar Association and Current Member of the
Santa Clara County Sheriffs Advisory Board.
Mr. Ramirez earned his Bachelor of Science Degree from
San Jose
State
University in Accounting and Finance, graduating
with honors and distinction. Mr. Ramirez
obtained his Doctorate of Jurisprudence (Law Degree) from of Santa Clara
University School of Law.
The Litigation
Law Group’s lender litigation program is strategically designed to seek
restructured mortgages through lender litigation by initiating legal action in
Superior Courts throughout the state, that is seeking justice through the legal
system and Courts of law. We cannot
create an affordable solution for borrowers unless we have a strategic business
relationship with companies like yours that are organized and managed in a
manner that efficiently processes and compiles unique and important borrower
information and documents. Wall Street
and lenders have engaged in widespread illegal conduct in originating prime and
subprime mortgages, ignored state foreclosure laws, engaged in illegal unfair
business practices, and violated state Consumer Protection Laws. Indeed, the Courts and Attorney Generals of
various states have found that Lenders acted illegally in originating and
marketing loans to borrowers which they knew or should have known borrowers
could not pay and which loans would ultimately be foreclosed upon. In our view, and view of many, it is this
illegal conduct that has lead directly to the collapse of the world financial
markets and the bankruptcy and closing of many banks in the
United States.
Unfortunately, this conduct and these business practices by lenders have
left many homes “upside down” and “under water” to the extent that the mortgage
debt on the property exceeds the appraised value of the home. The United States Government has promised
help to homeowners, but has failed to do so.
The United States Government recently bailed out Wall Street and Lenders
with approximately $700 Billon Dollars, without the legal requirement to help
homeowners with meaningful loan modifications that involve principal debt
reduction. This result is of no surprise
as the person in charge of the $700 Billion dollars, Secretary of the Treasury,
Henry Paulson, is a former Chief Executive Officer of a major Wall Street firm.
The greed of Lenders will likely continue unabated. They will do everything in their power to
minimize any write-off of the principal balance of the mortgage loan owed by
homeowners. Indeed, instead of requiring
meaningful loan modifications and reduction of the principal balance, the
government has just given Lenders an $800 Billion dollar budget to hire staff
and advertise to the millions of Americans whose homes are “upside down” or
“under water”. We anticipate they will
hire more loan modifiers and will likely start a major advertising campaign to
“help owners”. This “help” will likely keep
as much of the debt on the backs of the homeowners as possible, resulting in
little debt relief to homeowners.
The Litigation Law Group lender litigation program is designed to
achieve affordable and sustainable mortgage payments for borrowers and help
lenders increase the value of distressed mortgages by rehabilitating them from
non-performing or under performing loans.
This will only happen through getting Lenders to the bargaining table
through litigation. Some lenders have
promised to implement meaningful loan modification procedures. However, they have failed to do so because
the banking system is inherently designed to maximize profits and minimize
losses of the banks. This means that lenders want to maintain maximum loan
amounts, maintain maximize interest rates and minimize any principal debt
reductions. It will not solve the
Foreclosure Problem and the long term economic problems in the
United States if the loan modifications by banks leave
homeowners with more debt on his/her property than the property is worth. With mortgage amounts exceeding the value of
the home borrowers will not be building equity for their families for many
years. In many instances, Borrowers
will spend many years paying off this excessive debt before they begin to see
equity in their home.
The ultimate fight is who will be responsible for the amount of
mortgage debt that exceeds the property value? Lenders have the power to write-off
debt. For example, they approve short
sales and by selling their bank owned properties to investors for deep
discounts on the current market value.
Lenders offer some borrower’s principal loan reductions and others
none. The legal team at The Litigation
Law Group will use their experience in litigation and business to put borrowers
in the best possible negotiating position. We will use every litigation
strategy possible to achieve our client’s goals.
What loans are eligible for The Litigation Law Group Lender
Litigation Program?
The Litigation
Law Group has identified 8 Classifications of Mortgages that can benefit from
its services. These Classifications
include the range of mortgages from loans that are currently being paid on time
and whose value is less than the mortgage debt, loans that are currently in
default, and loans that have already been foreclosed upon by the bank and
remain in the possession of the bank or in possession by the tenant. Under our litigation approach, our objective
is to restructure to loans to an affordable payment and reasonable and
affordable loan amount as close to the fair market value of the
properties. Our litigation approach does
not seek restructuring based upon a demonstration of financial hardship or
re-qualification, but restructuring debt on the grounds that the mortgage loan
was procured by the Lender through violation of
California law.
The goals of The
Litigation Law Group Lender Litigation program are to 1) help homeowners keep
their homes, 2) reduce the principal debt to a level agreeable to the borrower
and in amount that it is reasonable to the borrower to keep his/her home, 3)
reduce interest rates, 4) obtain fixed rate loans and, and 5) to obtain a
credit repair letter from Lender. Our
litigation approach however, does not guarantee a specific result for borrower.
The Litigation
Law Group will also submit disputes directly to the mortgage lender credit
reporting department and to credit reporting agencies informing them of the
dispute and will demand lender stop further negative reporting and credit
repair where required until this dispute is required.
What is the timeline
for implementing the Lender Litigation Program?
The Litigation
Law Group will file its complaint in the Superior Court of the County where the
borrower resides as soon as possible.
Typically, this will be approximately 2 to four weeks from the date The
Litigation Law Group is retained by borrower.
Under California Law, Lender is must respond to borrowers complaint
within thirty (30) days of borrowers complaint being filed. Typically, The Litigation Law Group will
receive calls from the Lender or his representative within 2-3 weeks from the
date borrower’s complaint was filed. In
the event foreclosure is imminent, or the Lender refuses to stop foreclosure,
our office will file legal papers (motions for a temporary restraining order
and preliminary injunction) to stop said foreclosure.
What modification
options will be available to borrowers?
Under The
Litigation Law Group Lender Litigation Program, mortgages would be
restructured/modified into sustainable mortgages permanently capped at the
current Freddie Mac survey rate for conforming mortgages (now about 6.5%
interest rate). This restructured mortgage would be designed to achieve
sustainable payments at a 38 percent debt-to-income (DTI) ratio of principal,
interest, taxes and insurance. To reach this metric for affordable payments,
restructured mortgages will require a combination of interest rate reductions,
extended amortization periods, and principal forbearance. These are general objectives. This program is not a hardship request but a
negotiated settlement based upon borrowers complaint for lender fraud and other
lender violations of California Law.
Keep in mind
that Lenders are currently writing off principal mortgage debt in short sales
and through the foreclosure process.
When the property becomes and REO Lenders are writing off additional
principal debt when they sell properties to investors – our litigation and then
negotiation approach factor in these realities.
How do
borrowers participate in The Litigation Law Group Lender Litigation Program?
Thousands of
delinquent and non-delinquent homeowners will qualify to participate in The
Litigation Law Group Lender Litigation Program.
Borrowers may call (408)971-1119 to speak to an attorney and may meet
with an attorney in person to discuss their case. Typically, those borrowers who will decided
to participate in this program are those borrowers who can no longer support a
mortgage payment on a home that has no equity and is “upside down” or “under
water”. Once a borrower has provided the
details regarding the value of the property and the mortgage debt on the
property The Litigation Law Group will evaluate whether borrower is a good candidate
for the Lender Litigation Program, and, if so, attorneys will make arrangements
for filing of a complaint in the Superior Court of California as appropriate. Once The Litigation Law Group files its
complaint in the Superior Court they will likely be called by Lenders legal
representative, typically within 2-3 weeks of the filing as they are legally
required to respond to such a legal complaint within thirty (30) days.
Once a borrower
decides to participate in the Lender Litigation Program designed by The
Litigation Law Group borrower will start the process by:
- Signing and returning Attorney-Client Retainer
Agreement along with a check for their first month’s payment
requested by The Litigation Law Group.
