Frequently Asked Questions

Q. Is it possible to do litigation while in bankruptcy?
A. Yes. A bankruptcy filing can actually help your situation because the attorney can litigate your case in bankruptcy court where judges seem to understand securitization better than state courts.

Q. Is litigation possible if I am current on my mortgage?
A. Yes. In fact one of the many requests filed with courts is to get the judge to grant all payments cease while the loan is being disputed. Your good credit could remain in tact using this strategy.

Q. I am facing foreclosure. Can suing my lender still help me?
A. Yes. In an emergency filing, the attorneys can expedite your case and file it in as little as 48 hours. There are many actions that are filed immediately. The lender's attorney is notified of your lawsuit and typically does not want to face additional legal damages associated with a wrongful foreclosure or eviction. It is always best, however, to be proactive with this and allow ample time for the attorneys to review and prepare your case.

Q. What happens to the missed payments not being made during litigation?
A. In the settlement, the entire loan can be wiped out along with any missed payments or  a new loan based on a principal reduction is granted to the homeowner with a fixed interest rate for a term the homeowner agrees to.

Q. What about suing based on "Predatory Lending" practices?
A. This has gotten a lot of press lately. But under these parameters, the majority of the predatory lending violations responsibility falls on the loan broker that originated the loan - not the lender.

Q. What about "Produce The Note"? Can that work?
A. This is merely an urban legend. The theory is that your mortgage has been resold three times to different banks and the bank that now holds your mortgage can't find the original mortgage note that proves they own your loan and has the right to foreclose. The problems with this defense are 1) It creates very little leverage; 2) Most courts are throwing these out because a copy of the original note along with proof of payments being made on the note is evidence enough to show that the borrower understood they owed this money and have validated the debt; 3) Courts are not taking this defense seriously.