Prelitigation Strategy Implemented to Help Homeowners Receive Loan Modifications

The California law firm Kassas Law has started a prelitigation service to help homeowners who have trouble securing loan modifications from banks.

With the firm’s launch of the Alternate Dispute Resolution, the prelitigation process begins with an in-depth review and evaluation along with a loan disposition analysis of the homeowner to determine their position with the lender. The process also looks at net present value to see if the client is eligible for government programs such as Making Home Affordable or the Home Affordable Modification Program.

After a review is completed, the firm engages the lender on behalf of its client and orders settlement with the threat of litigation. The ADR forces the lender to make a decision because it shows that the client is serious in receiving their proper loan modification.

According to the Costa Mesa, Calif.-based law firm, lenders have failed to use government bailout money the right way when it comes to helping homeowners. Millions of homeowners have tried modifying their loans, but many who had loans modified only received a short-term fix from their lender. This resulted in a later default because of the bank’s unwillingness to underwrite to government modification guidelines.

Kassas Law also said it has heard an increasing number of stories of bank management mishandling customer cases. Recent years are showing a banking industry trend favoring foreclosure, collecting as much money as possible from borrowers, then still foreclosing on the house to maximize return on asset, according to the firm.

By using the firm’s resolution process, a settlement takes place between the lender and homeowner in weeks rather than having a lawsuit that could last multiple years. The purpose of the resolution strategy is to prevent costly litigation from happening for both the homeowner and the bank.

"Why sue when you can settle?" said Anthony Kassas, founder and lead attorney of Kassas Law. "We’ve focused our strategy to force action from the banks to settle on your behalf. The action we’re taking gets the banks’ attention, they recognize our name, know we’re serious, and we’re getting results. If your lender doesn’t settle after we’ve made all possible overtures, then we’ll sue."