It's no secret that the real estate market has been devastated by foreclosures, which has caused a domino effect of unemployment and market turbulence that our country still hasn't figured a way out of.
The sometimes unseen victims of this whole collapse isn't the homeowners themselves, who have missed payments and caused their homes to go into foreclosure, but the investors who were fooled by banks into buying loans that were bad from the start. Often, this requires litigation in order to recover money that was taken through unethical and unlawful means. In other cases, businesses may be facing foreclosure of commercial property for a variety of reasons.
In cases like this, contingency business litigation lawyers can be helpful for investors who don't have expendable income left to spend on lawsuits, but who want justice done. With this set up, clients pay nothing up front, but only pay if they've won.
Right now, we're experiencing a time when lawsuits are flying from every direction. We're seeing banks suing homeowners to foreclose on homes where payments have been missed. Then, there are homeowners suing back, alleging that banks used robo-signing tactics -- where documents were signed and authenticated by people other than the signature -- as well as created false documents in support of a foreclosure.
On the other hand, there are investors suing banks because the mortgage-backed securities they bought were flawed from the start and fraught with bad documents, but those facts weren't revealed up front. As housingwire reports, more and more mortgage bond investors are filing legal actions. In fact, the Patton Bogs Mortgage Litigation Index, which follows mortgage lawsuits, rose to its highest level in four years recently.
According to the news article, there were only 23 cases of mortgage litigation in the third quarter of 2010, but that number doubled to 50 in the second quarter of 2012 and 82 in the third quarter.
News recently came out that bankers were encouraged by their bosses to funnel minorities into high-risk subprime mortgages even though many of the people were qualified for regular loans. This has sparked a new round of lawsuits against banks.
Foreclosure tracking company RealtyTrac reported that there were 1.4 million homes in foreclosure nationwide in November, with the average foreclosure sale price at $169,451. California and Florida continued leading the way in foreclosures. In California, there were nearly 64,000 foreclosures filed, while Florida checked in at 24,739. Six other states had more than 10,000 foreclosures filed that month.
And then there's a couple in Florida who is now facing a foreclosure lawsuit on a house they have already paid off because of a typo filed nine years ago. The couple sold their home and paid their mortgage in full in 2003, but because the legal description on the deed is incorrect -- the house has been sold three times since then -- and the current owner is going into foreclosure, this family is being forced to defend themselves.
These are examples of the major problems that are arising in the real estate market right now. They are problems that happened years ago and people are looking to the court system to fix the wrongs. Our contingency business litigation attorneys are prepared to handle any aspect of the real estate collapse.