Presently not making mortgage payments on my florida property. it is affordable but property value has decreased over 40% thus making this a horrible investment. Paid $440,000-with a down payment of $170,000 balance owed $270,000. Present value less than$250,000.
Spoke to someone at Precision Law Center in CA regarding the “Mass joinder litigation law suit” but would like to know more about the firms history before making a decision, or perhaps finding another firm that has more credibility.
It sounds like you’re employing the “strategic default” strategy. But I’m not exactly sure what you expect to gain by going this approach. As you mentioned you can afford your payments so that will likely rule out modification. I don’t believe that going delinquent is a requirement to join a mass joinder suit, and I can’t imagine how it would improve your odds of winning either. By falling behind on payments you are putting the $170k you put down to buy the property in jeopardy. If you let it go on for too long and lose the house to the bank, they will fire sale it and you will get nothing. It’s very important you understand this and weigh it against what you stand to gain by falling behind. If you can afford the payments and have no problem living there for 5-10 years you may be able to recover some of that equity, you’re not as bad off as many.
I can totally understand if you have given up and don’t care if you lose the home or down payment, and in this case I believe you would be justified in stopping payments. It’s got to be very hard to swallow losing $200k in equity, especially when $170k of it was your own cash. I don’t blame you and I might have done the same thing myself. You can let the home go using 2 different approaches if you go this route. Short sale would help you sell the home quickly, move on with your life and start rebuilding your credit rating sooner. A foreclosure will take some time, you could live in the property and save as much money as possible during that time, but you wouldn’t be able to begin rebuilding your credit rating until it’s over.
As for the mass joinder suits. There is no guarantee that you will ever see a dime, but it is guaranteed to cost you $5k+. If you have that kind of money laying around and feel like gambling with it than maybe, but you could also put that money on the Miami Dolphins to win the 2012 Super Bowl and win $200k. (currently 40:1 odds in Vegas) I can’t give you my legal evaluation of these mass-joinders to accurately gauge the odds of you winning because I’m not an attorney. Before you seriously consider joining though, make sure you get a second opinion. Get all the literature and retainer agreements and bring it to a local real estate attorney to review it for you, before signing anything. Let them tell you what their opinion is, and always weigh that against what the sales guy is telling you. It may cost you a couple bucks but it will be well worth it to get another legal opinion before shelling out the money.
As for Precision Law Center. I can’t comment good or bad, I don’t know them. The incestuous relationships that have been spawned from this mass joinder phenomenon are very tough to follow but they all have one thing in common, none have ever successfully won the type of mass joinder suit they are selling, and that concerns me a lot. Especially since they appear to be selling them like Big Macs, to whoever happens to cruise through the drive through. This website has a ton of information on mass joinder here, check it out and see what you think.
Be careful, do your homework and don’t be afraid to reach out for help. If you ever have any questions or would like to keep us posted with your progress, just post it in the comments section below. I’m subscribed to this post and will always try to respond promptly.
Andy is a licensed real estate broker in Massachusetts and is the founder of Northeast Properties in Norton, Massachusetts. His brokerage is designed to help homeowners in today’s difficult real estate market, specializing in short sales. Andy speaks with Massachusetts homeowners every day, helping them to address their questions or issues with short sale or loan modification. He enjoys helping consumers arrive at the correct solution to their problem, and believes that the only way to correctly do that is by presenting them with all of their options in an un-biased manner.
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