A Shellpoint mortgage lawsuit is a lawsuit that was filed against an individual for violating the FHA’s Loan Insurance Guarantee Act. The complaint states, “A number of plaintiffs have received letters from their banks notifying them that they are liable for violations of the provisions of the Loan Insurance Guarantee Act of 1994.” The complaint further states, “Many plaintiffs have been instructed to stop making payments on their mortgages or face foreclosure and are being threatened with other legal action.” The goal of these lawsuits is to force the offending bank to settle the claims made against it or face tremendous fines. The lawsuits themselves serve as warning to other lending institutions.
The United States government has introduced new laws in hopes of stopping the rampant abuses of shellpoint mortgage lawsuit plaintiffs.
The Fair Debt Collection Practices Act (FDCPA) was enacted in order to provide guidelines and limits to how debt collectors can conduct their collections activities. As previously mentioned, a Shellpoint lawsuit is essentially a legal tactic used by the plaintiff in an attempt to coerce the offending entity into settling the case before it goes to court. According to FDCPA, any collection activity carried out by a debt collector that “is in bad faith” is not covered. This includes threatening to report the borrower to a credit bureau or otherwise publicly reporting the borrower’s non-payment to the credit bureaus.
The purpose of these lawsuits is to bully the negligent party into settling the case without defending against the plaintiffs’ claims.
The Florida shellpoint mortgage litigator, John S. Kornmeister, III, explains the process this way: “Once the lender receives notice of the complaint, it is usually obligated to provide an opportunity for in-person legal defense. If it does not, it must either ‘defend’ its actions or pay the plaintiff.” If it does neither, the lender is required to dismiss the complaint. Failure to do so results in a default judgment, which is issued by a judge in Florida.
Florida shellpoint cases like the one filed against the borrower of the note in question are very common.
They account for roughly thirty percent of all mortgage lawsuit filings in Florida. While there are many similarities to lawsuits filed in other states, there are also many differences as well. Many homeowners who file such lawsuits are often subjected to the same traps used in other states, such as threatening letters, automated phone calls, and even legal threats via mail.
Florida shellpoint lawsuits fall under the category of fraudulent conveyance.
This term pertains to when a third party has intentionally tried to deceive another party into signing an agreement or contract. This can be done in a number of different ways, such as: o Taking advantage of the homeowner’s lack of knowledge by offering a different, less expensive home than the one that was initially offered; o Making false promises regarding terms of repayment and modifications; o Failing to disclose important information about the property or the risks associated with it; or o Using intimidation tactics to try to get homeowners to agree to the terms.
As you can see, homeowners facing foreclosure in Florida may benefit from filing a state or federal shellpoint lawsuit to protect their homes from foreclosure.
This type of lawsuit is similar to other lawsuits against mortgage lenders and involves similar techniques. While it’s possible to learn more about these lawsuits through a simple online search, you should consult with a qualified lawyer who can answer any questions you might have. While it may not be immediately apparent when you start looking, a bad mortgage is a dangerous trap for all homeowners, so filing a lawsuit against the wrong lender is often your best way to get the compensation you deserve.