Real Estate law scam?

Asked over 2 years ago - Mission Viejo, CA

I recvd letter in mail from lg RE law firm mentioning I qualified as a plaintiff in a mass tort litigation against one of the largest banks for fraud & misrepresentation on my interest only loan. I met with this law firm recently. A "banking specialist" vs a RE lawyer, met with me.
bottom line: If I paid them $7200 for analysis, legal fees, etc., up front, I would be part of this litigation. Probability based on new laws etc., would put them in favor in presenting to a federal court. When I asked; contingencies? If winning, just take it off the back end, etc. I was told; "my parents lost their home, or no ... we can't because we have bills to pay, or who's going to fund the lawyers up front time". COMMENTS??? ....

Attorney answers (5)

  1. Frank Wei-Hong Chen

    Contributor Level 20

    6

    Lawyers agree

    Answered . Yes, it is. So many California homeowners have fallen victim to scams involving loan modification scams, foreclosure rescue, and "mass joinder" plaintiff lawsuits.

    Each borrower's facts are unique to them, so there is no way such lawsuits could possibly be joined with hundreds or thousands of other similarly situated plaintiffs in the same lawsuit.

    I agree with my colleagues comments, and suggest that you report this alleged RE law firm to the State Bar.

    Frank W. Chen is licensed to practice law in the State of California. The information presented here is general in... more
  2. Jeannette Charlotte Christine Darrow

    Contributor Level 13

    5

    Lawyers agree

    Answered . Sounds very shady to me. Get the attorney's name who will be in charge of representing the class, make sure they practice law in California (and have for a while) and have a clear bar record (no discipline). You can check this out on www.calbar.ca.gov under "Attorney Search."

    Most "mass tort litigation" or "class actions" select a class representative and a class of similarly situated people makes up the class which sues the defendant. Reputable class action law firms take these cases on a contingency basis, which means the plaintiff class pays nothing up front.

    While it is true that attorneys have bills to pay, the answer to the question of "who's going to fund the lawyers' up front time" is: the lawyers/law firm...if they are reputable, have the funding to handle this type of litigation, and believe they have a valid case and anticipate winning.

    I would be extremely suspicious if I were you.

  3. Tai Christopher Bogan

    Pro

    Contributor Level 18

    4

    Lawyers agree

    Answered . Sounds like a scam to me. Call California Bar to check it out.

    Please read this article from the California Bar to see if it rings any bells.

    http://www.calbarjournal.com/April2011/TopHeadl...

    The above information does not establish an attorney client relationship nor is it meant to provide legal advice.
  4. Timothy Steven Brown

    Contributor Level 3

    2

    Lawyers agree

    Answered . Unfortunately, this sounds exactly like many of the real estate scams that folks across the state have fallen victim to. Please avoid this and report the entity appropriately. There's no reason why such a fee would be necessary to participate in a class action or mass tort lawsuit.

  5. Michael F. Brown

    Contributor Level 7

    Answered . There are different routes you could consider, including possibly reporting this entity to authorities, as suggested by others. There could also potentially be a civil lawsuit and claims, depending on the full circumstances of what happened to you. I have represented individuals with fraud claims and related claims in different states (and work with colleagues who do the same), and these can be strong legal claims depending on the details of what happened with you. But the first step on that would be for you to consult with an individual-rights attorney, which I'd be happy to do for free (you can contact me at mbrown@pbclaw.com) or with another attorney who represents individuals with potential fraud issues.

    To contact me directly, please email me at mbrown@pbclaw.com. My website biography is here: http://www.pbclaw.com/... more

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