January 26, 2008

Get ready for the lawyers: Subprime Lawsuits Piling Up

The Big Housing Scam will keep lawyers busy for a decade. At least John Edwards will have something to do after the race.

The only problem? Getting money out of bankrupt companies like Countrywide and IndyMac, or realtors whose only asset is a box of ramen.

Subprime Lawsuits Piling Up

A wave of lawsuits is beginning to wash over the troubled U.S. mortgage market and the rest of the financial world. American homeowners are suing mortgage lenders. Mortgage lenders are suing Wall Street banks. Wall Street banks are suing loan specialists. And investors are suing everyone.

The legal battles stretch from Main Street to Wall Street and beyond. Homeowners and subprime mortgage lenders are squaring off in dozens of cases that claim some lenders engaged in predatory lending practices and other wrongdoing. Cleveland and Baltimore are pursuing cases against Wall Street banks, saying local residents are suffering because the banks fostered the proliferation of high-risk home loans.

'What strikes me here is that this a tainted system from A to Z,'' said Tamar Frankel, a law professor at Boston University. ''Everybody blames everybody else. If you look at what is being said, there isn't one who doesn't blame another and there is half-truth in everything.''


Anonymous said...

Jan. 26 (Bloomberg) -- Three New York agencies sued Goldman Sachs Group Inc., Citigroup Inc., JPMorgan Chase & Co. and 23 more underwriters for allegedly helping Countrywide Financial Corp. to defraud investors.

New York's city and state comptrollers and their pension funds added the securities firms, two accounting firms and Countrywide officers and directors as defendants in a federal securities-fraud lawsuit filed against the home lender in August.

3rd Generation said...

"and so it goes, this thing of ours".
- Paulie Walnuts-capo
Soprano Crime Family

"the Fundamentals are strong"
- George W. Bush-Decider-in-Chief
United Arab Emerates (whoops, I mean United State of America)

Anonymous said...

THEFT BY DEGREE : The White Collar criminal who can legally rob you backed by law and now with the full support of the United States Government.

Anonymous said...

Man that Susan Dey was hot. Yumm.

Anonymous said...

Great another round of lawsuits that will add another 40 pages to a mortgage contract.

edd said...

Bad lawyers make us slaves.
Good lawyers make life bearable.

Bad lawyers are not cheap.
Good lawyers not too expensive.

Two sources ...
-- http://www.avvo.com
-- aarp list

Anonymous said...

I have never heard of lawyers lining up to sue poor people. I can't picture them lining up to sue bankrupt companies either.

Toby said...

Not sure how far this can go given the lack of deep pockets and the Supreme Court's recent ruling limiting third party players.

I'm sure that won't stop the lawyers, but they will have to be big law firms with money to play in this game. Could take years and years to litigate.

Frank@Scottsdale-Sucks.com said...

So if I knowingly buy a bunch of crap on credit I know I can't afford, all I have to do is sue the bank and I can get away with it?

Wow, these phony H2-driving, Rolex-wearing homedebtors get a much better deal than bankruptcy. I guess bankruptcy is "so 20th century" now.

Ridiculous. Absolutely ridiculous.

Anonymous said...

uhhhh.... you guys are aware that lawyers represent people right? so if the client wants to sue somebody who is bankrupt a lawyer will do it....but not on a contingency fee!!!

Anonymous said...

Let me tell you how this is going to play out. A bunch of lawyers will make a bunch of money. Everyone else loses.

Anonymous said...

The saying, that 3 out of 4 people in a lawsuit are winners-- "both lawyers and 1 client".
It will now change to, 2 out of 4 people in a lawsuit will be winners--"both lawers".

rbrown said...

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www.iqpc.com/us/subprimemortgage are very informational and provide business professionals with the solutions to arising problems as a result of the Subprime crisis.

Anonymous said...

Anybody ever hear of a Mortgage Recall? I have heard of Auto recalls, Toys with Lead recalled, Medications taken off the market and just recently bad Meat recalls.
You can't market a product that harms people. They made a mistake, but they aren't standing up to fix the problem. They need a mortgage recall letter sent to everyone in this mess and work this out asap.
Let's get one thing straight, You don't need to be poor to get beat up with subprime, you just have to be in it. i had 750 score and a great job and now i have poor credit and no job.
if anyone knows of a good lawyer, i am searching for one.