Mortgage-Related Litigation on the Rise

Mortgage-Related Litigation on the Rise
The National Law Journal

Mortgage-related lawsuits are on the rise, with homeowners and investors alike suing over allegedly being duped by the mortgage industry. According to a litigation report from MortgageDaily.com, an online mortgage news analyst, the number of mortgage-related lawsuits filed in the first quarter of this year jumped to 81, a more than 50 percent increase from the 50 cases tracked during the same quarter in 2008.

"You are seeing folks say, 'Look. I know where I stand. Now I need to essentially go out and mitigate by proportionately setting out allegations of blame elsewhere," he said.

On the foreclosure front, Waldron said that the lawsuits share a common thread: " 'The loan was unlawful, and it shouldn't have been made to me in the first place. It was made knowing that I was not in the position to understand the terms. And even if I was in the position to understand the terms, I was not in the position to make good on those terms.' " [more]