Banks Escape Foreclosure Class Actions

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"Show us your economic harm", banks tell borrowers. The foreclosure mess has made it possible for some homeowners to sue their banks. However, it will be a tough fight. Don't expect the banks to roll over and start writing checks,

So far, banks have avoided national class action lawsuits. It is difficult to win a case when the borrowers is month's behind in mortgage payments. Homeowners have to show proof that they suffered economically.

In recent months, robo-signing of legal documents, and the question of whether MERS can legally foreclose, have caused many banks to stall foreclosures. Servicers halted foreclosures and evictions until state and federal regulators have completed their investigations.

Some foreclosures were done improperly, but getting a judge to certify a national class action suit is an uphill battle. Each homeowner's case is different. How can we put all these cases into one basket and hope for a judge to rule in our favor?

Plaintiff lawyers are generally paid a portion of the money they recover. So this could be a huge payday for many lawyers who win their cases..

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• Homeowners Say Loan Mods Led Them to Foreclosure (abcnews.go.com)
• The Foreclosure Mess: It's Even Worse in 'Nonjudicial' States (dailyfinance.com)