Now, this is somewhat interesting. Spam, but interesting.
This "sue your lender now" stuff
is put out by a law firm. Under New York ethics rules, both the site and the above post would have to be marked "attorney advertising" - especially since it's not at all clear that it is - but let's ignore that for the moment.
This stuff is the creation of two California lawyers
. The page on this "mass joinder"
fails to make it clear at all what they will do. It starts, "The end-result of this litigation could be that 62 million homes become foreclosure-proof". "Could be"? I suppose that it's equally possible that none will. They continue: "As each client joins the Mass Joinder action the lender will receive a pre-trial settlement offer per the following terms. We are not negotiating. We are using Legal Document Demands on Form 998. Principal loan balance reduced to 80% of current market value Interest rate reduced to 2% fixed for life of loan." I don't know if that makes any sense to anyone else here, but it's gibberish to me. "Legal Document Demands"? And the only "Form 998" I know of is part of a Freddie Mac / Fannie Mae application
. I can't imagine how they intend to use it for a "pretrial settlement offer".
They continue: "Counsel will be working with legislation to create a potential amnesty program. The results will likely be a universal modification approach." Once again, that makes no sense. "Counsel" don't "work with legislation". And, if legislation were to result, it would of course apply universally, not just to these guys' clients.
On one of the commercial pages
, they make the following claim:
Litigation against the following banks will be filed shortly.
[Snip list of large banks.]
All lenders are now being targeted and litigation will be filed as client files are accepted.
Didn't you get the impression that this "mass joinder" litigation already existed? And what can these two CA lawyers do for me in NY? They talk about a "national lawsuit", but the only transcript
to which they link - curiously - is a hearing which results in the USDC CACD remanding the matter to CA state court. And just filing a lawsuit does not halt a foreclosure in the absence of an order specifically directing such.
It's fun to beat up on banks. It sounds good to write:
In short, the banks have been exposed as liars and cheats, and it is now clear that they will not restructure loans or agree to any loss mitigation solutions without the threat or the engagement of actual litigation. As some of the nation's top trial lawyers, they have banned (sic) together and are beating the banks. These are the lawyers who previously represented these very banks; the lawyers who -- for years -- have gone to Court and "ended the madness" for many clients; the lawyers who know their way around the courthouses better than anyone. They have been at the front lines of this unprecedented banking fraud, and are now ready to assert your legal rights. This is not loan modification.
But how they will accomplish "national litigation" which is not a class action - and, more importantly, how a "one size fits all" approach can possibly be successful - they don't explain.
I'm curious to read the reactions of the other lawyers here, especially those who deal with this stuff. Prof? JRB?