Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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what are the chances of  CHASE and company settling a complaint for wrongful foreclosure  to avoid an adverse judgment and sanctions?

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I would say zero.

Litigation is simply a routine cost of doing business.


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I was afraid of that

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William A. Roper, Jr.

As usual, Moose gives a very concise and accurate answer.

I would differentiate or distinguish only by saying that the circumstances in which a settlement might be possible would ONLY be after establishing such an insurmountably overwhelming case, usually through effective discovery, that the plaintiff recognizes the likely prospect of an unfavorable outcome.

This almost never happens.

But even where the foreclosure defendant HAS develoed such an overwhelming case, there is the additional matter of recognizing and appreciating these circumstances.

Foreclosure mills are characterized by an assembly line preparation of pleadings and motions which quickly and efficiently obtain foreclosure usually by default and, if not by default, by summary judgment.

Most of the foreclosure mill attorneys have NEVER had to actually TRY a case on the evidence before a judge and jury.  Like bullies who have never been in a fair fight with someone of their own size and weight, they have the false confidence that they are great fighters because they almost always WIN.

Remarkably, this also leads to the circumstance that they are not readily ably to weigh and distinguish the actual merits of the case and probably falsely assess the propsects.

So even if one has beaten the plaintiff hands down through effective discovery, someone has to actually READ THE CASE FILE and properly assess the odds in order for the plaintiff to engage in meaningful settlement discussions.  That is, you need not only be fully prepared to DEFEAT the plaintiff, but the foreclosure mill law firm needs to understand and appreciate this!


There is one other dynamic which also comes into the equation.  This is the perspective of the servicer and/or mortgage investor.

Very often, when a defendant has a great case it is because hte foreclosure mill law firm has made serious legal errors, possibly amounting to legal malpractice.  Which foreclosure mill law firm is going to go to the client and say "we really screwed up this case and you should settle".  Instead, it is easier for them to take the matter to trial and hope for the best from a judge already favorably disposed to the plaintiffs.  If the foreclosure mill firm loses, it does NOT want to call attention to its MISTAKES which might result in a malpractice claim.

In other words, the foreclosure mill law firm's self-interest is going to trump the interests of the clients.

These same distorted incentives are also present with respect to the servicer and mortgage investor.  The servicer isn't going to want to tell the mortgage investor that the investor needs to take a haircut because the servicer screwed up the case.

And finally, the mortgage investor isn't going to want to explain to the certificate holders that it settled for less than full value.  How is this to be explained?  The clarity of a final judgment or order requires less explanation.


In sum, as Moose explains, the likelihood is "zero".  Mortgage foreclosure cases just rarely settle as an insurance or personal injury case might.

Defendants should litigate with the idea in mind that the matter must go to trial and that victory can probably only be obtained directly from the court.
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settlement would be great, but summary judgment with trial to establish damages would be great too
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