Mass Joinder Lawsuit Update –Bar moves in on Attorney operation
Mass Joinder Lawsuit Update – Bar moves in on Attorney operation
Posted by Foreclosure Defense Attorney Steve Vondran on August 19, 2011
Many clients have called our offices asking us to discuss the mass joinder lawsuit. This was a new phenomena that started about a year ago or so. Some lawyers decided to start a service whereby they would charge advance fees to join a “mass joinder lawsuit.” According to the link on this site the mass joinder solicitations were designed to look like official government mail pieces.
Many people (at least that I spoke with) told me they were informed they would get to stay in their houses for a long time without making a mortgage payment, and would have a good chance to get their mortgages reduced to market value. This approach works because it is EXACTLY what a homeowner is hoping for. So they request several thousand dollars to have you join the lawsuit and away you go.
Several months ago we told you the California State Bar was investigating these practices, but at the time we mentioned to just be vigilant, as there was no clear proof this was a mortgage rescue scam, or foreclosure rescue scam.
Now, the State bar of has raided the offices in where some of these attorneys and lawyers were operating. Apparently they collected millions of dollars in advance fees for loan modifications. We have highlighted other attorneys on our sites that think they can do whatever they want when it comes to accepting advance fees for loan modifications. These people who prey on California homeowners should be very concerned. It is coming home to roost in a big way.
At any rate, these attorney sent out approximately 2 million mailers, (according the complaint filed by California authorities), and facebook pages were also being used. 19 people were being investigated.
Hundreds of thousands of people paid between 5k-10k for these services. Some persons had not even been joined to the lawsuit, and others had their homes foreclosed on after advance fees were paid. What a mess.
For more information you can view our Foreclosure Radio show here which discusses the topic.
If you think your loan file may be contained in one of these boxes you may need to consult with a real estate lawyer to see what your rights are.
CALIFORNIA STATE BAR SAYS BEWARE OF PAYING ADVANCE FEES (CONSUMERS ARE ADVISED TO REPORT SUSPICIOUS ACTIVITY IMMEDIATELY).