Update January 2011

posted Jan 3, 2011, 9:51 PM by Terry Bongers

On behalf of KRAMER STEIN & ASSOCIATES (The Law Firms of Kramer and Kaslow and Mitchell J. Stein and Associates) we are pleased to announce the expansion of the services of KRAMER STEIN & ASSOCIATES to include Mass Jointer litigation cases. Kramer & Kaslow has agreed to work in concert with MJS & Associates in a joint effort to achieve through litigation the results we were unable to achieve through the process previously designed by the banks and by the Government. That approach (ask and re-ask and hope and re-ask) has proved to be a waste of time and money.
As homeowner frustration mounts during these challenging times, and as they make every effort to navigate, according to the bank’s rules and procedures, in an effort to achieve a restructuring of their obligation, without resorting to litigation , there is a sea change in strategy to breach the maze.
Frustration has grown over the past many months as banks continue to claim that they have lost documents (despite the fact that we have undisputed proof of their receipt), are understaffed to address our requests, cannot gain approval from so-called “unknown” investors, need to obtain substantial “catch up” payments before they will engage in discussions, require participation in a “trial” program designed to drain the last few dollars from a homeowner before the bank decides to foreclose (simply to get more money during a time when the bank – for FDIC reporting or other reasons – strategically delays the inevitable foreclose and wants to get some cash flow at the borrower’s expense during the delay), and the now-familiar lies that sales dates have been postponed, only to have the banks strategically foreclose without giving notice to borrowers, or to anyone.
In short, the banks have lied, and they have manipulated the process. This has happened over and over, and this continues to occur on a daily basis.
If this recitation of the facts as observed on a daily basis sounds harsh, actually, it is lenient. We now know that the banks have lied, forged documents, robo-signed, intentionally shredded and discarded borrower documents, engaged in campaigns to lobby for protective legislation, spent million of dollars in “smear campaigns” to make lawyers look ineffective and dishonest, taken Billions (Billions with a B) of dollars in TARP money, and they still refuse to restructure loans.
In short, the banks have been exposed as liars and cheats, and it is now clear that they will not restructure loans or agree to any loss mitigation solutions without the threat or the engagement of actual litigation.
Enough is enough. “Business as usual” is no longer an option. We now know that the banks will never do the right thing with respect to a homeowner’s situation as long as we employ the same methods of asking and re-asking for relief.
Our New Approach: We are ready to take action against their lenders and bring the fight to the lender.
The springboard for these cases has been the extensive work and case precedence established via the Ronald ET all V. Bank of America case. Litigation against the following banks will be filed shortly.
Wells Fargo / Wachovia
Indymac / OneWest bank
Bank of America
JP Morgan Chase
All lenders are now being targeted and litigation will be filed as client files are accepted.
Ronald ET all V. Bank of America/Countrywide
This case was filed in the Los Angeles complex litigation department Case # BC409444. Currently there are close to 1400 clients (growing daily) represented in this case. The following updates to the case occurred as recently as the October 19th 2010 via the: Plaintiffs Status Report”.
Claims include:
Statutory Violations
3rd Party Beneficiary Claims
Phantom Investors and Beneficiaries
Unfair Business Practices

He is not prosecuting class action cases, since those seem to benefit the lawyers more than the clients. In the Ronald case alone, MJS and Associates has prevailed in remarkable “wins”, including:

Five injunctions.
  • The order of Judge Chaney RESCINDING 9 notices of default (never before done in California legal history.
  • An order ordering BofA to submit to discovery.
  • An order kicking BofA out of federal court when they tried to "run and hide.
  • Countless additional orders stopping foreclosure sales and
  • An order that Ronald is not "Preempted by Federal Law."
Litigation Case Criteria:
The following criteria summarizes the current mass jointer approach taken by KRAMER STEIN & ASSOCIATES. These issues are fundamental in the construction and substantiation of legitimate claims against the nation’s largest lenders. Much of this information has been supported throughout the Ronald et al V Bank of America case. Many similar claims and investigations have begun throughout the US by private firms as well as joint task force effort by the majority of State Attorney Generals.

Over 62 million mortgages are now held in the name of MERS, an electronic recording system devised by and for the convenience of the mortgage industry. A California bankruptcy court, following landmark cases in other jurisdictions, recently held that this electronic shortcut makes it impossible for banks to establish their ownership of property titles- and therefore to foreclose on mortgaged properties. The logical result could be 62 million homes that are foreclosure-proof. Mortgages bundled into securities were a favorite investment of speculators at the height of the financial bubble leading up to the crash of 2008. The securities changed hands frequently, and the companies profiting from mortgage payments were often not the same parties that negotiated the loans. At the heart of this disconnect was the Mortgage Electronic Registration System, or MERS, a company that serves as the mortgage of record for lenders, allowing properties to change hand without the necessity of recording each transfer.

MERS was convenient for the mortgage industry, but courts are now questioning the impact of al of this financial juggling when it comes to mortgage ownership. To foreclose on real property, the plaintiff must me able to establish the chain of title entitling it to relief. But MERS has acknowledged, and recent cases have held, that MERS is a mere “nominee” – an entity appointed by the true owner simply for the purpose of holding property in order to facilitate transactions. Recent court opinions stress that this defect is not just a procedural but is a substantive failure, one that is fatal to the plaintiff’s legal ability to foreclose.

That means hordes of victims of predatory lending could end up owning their homes free and clear- while the financial industry could end up skewered on its own sword.

Proof of Note Security

When Wall Street banks securitized, packaged, sold, and resold our mortgages, they created a system where it is often impossible to figure out who actually owns mortgages notes and therefore has the authority to foreclose on properties. But the big banks are getting tangled up in their own web. Recent events have exposed a handful of banks that are throwing families out of their own homes even though they don’t have the mortgage note that proves they actually have a legal right to do so. There have been instances of two banks trying to foreclose on the same home, and in at least one case, of a bank trying to foreclose on a house where the homeowner had never even taken out a mortgage with anyone in the first place.
Proof of Funds (Patriot Act Violation)
Not only do banks have to prove the documentation of the original note they must show proof of the actual funding on each specific note transaction. Banks have attempted in court to provide evidence of a securization pool as proof of funds but courts have ruled this as inadequate evidence. The two major challenges this cause is:
A) The sheer impossible of banks able to unwind mortgage pools down to individual investors tied to individual property
B) Banks unwillingness to disclose the participating entities within the investments pools.
Potential Case Outcomes While we will not make any guarantees, and we recognize that litigation is unpredictable. However, we know that the current process of “ “negotiating” is not working. We have a new and better approach, and the only downside for the homeowner is that they will transition away from the current platform of
begging the banks to do something that they have already decided they will not do and the homeowner will become a joined plaintiff in a national lawsuit that will seek, among other things, to void their note(s), and to award relief and monetary damages.
KRAMER STEIN & ASSOCIATES feels the proceeding cases carry extreme merit that may carry the following potential outcomes:
Pre-Trial Settlement: As each client joins the mass jointer action the lender will receive a pre-trial settlement offer per the following terms. (Note we are not negotiating we are using legal document demand letters form 998)

Principal loan balance reduced to 80% of current market value
Interest rate reduced to 2% fixed for the life of the loan
Amnesty Program: Counsel will be working with legislation to create a potential amnesty program. The results will likely be a universal modification approach. This process will indemnify the lending institutions from multi trillion dollar litigation while providing homeowners universal term reductions. Counsel anticipates our clients “having a seat at the table” will be offered increased settlement options.
FULL LIEN STRIP: This is the intentional outcome of each of the 6 suits. Counsel has stated they are seeking a complete dismissal of the lien.
Litigation of this size is a complex time consuming process. The following is a VERY brief outline of the litigation process:
1. Attorney Retainer Agreement Executed
2. Supporting documentation as needed submitted with file
3. Initial Demand Letter sent from paralegals to lender/ servicer (30 day wait)
4. 998 Offer and Compromise (30 day wait)
5. Seek foreclosure injunction/ moratorium
6. Plaintiff update from counsel every 30 days
7. Settlement Offer
8. Case Resolution

Philip Kramer: Has settled individual cases for sums in excess of One Million dollars, and has prevailed in over 100 unlawful detainer cases. And has obtained judgments for clients totaling millions of dollars….some by jury trial, some by bench trial, some by arbitration, and some by default. He litigates, arbitrates and try’s cases in various States As a Martindale AV rated 5 star litigation firm, that has been at the forefront of case law for over 26 years, he has now joined forces with MJS and Associates, a National recognized litigation force, and formed a Strategic Litigation Alliance to take the homeowners fight directly to the courts.

Mitch Stein- ( M.J. Stein & Associates), is a 25-year award-winning litigator, trial lawyer, financer, and entrepreneur. He has represented many of the world’s largest companies in State and Federal Court, and has been involved in some of the highest profile cases in the Nations history. At MJS & Associates, you will find a level of layering that is among the best in the profession. We are one of the few to guarantee your satisfaction.

The Litigation Alliance formed by these two powerhouses are now filling, in concert, Mass Joinder cased against the nations leading and largest lenders, and servicers.

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