Real Estate attorneys bring law suits

In case in which a couple said it did not understand the terms of the negative amortization loan,  a Maryland Court found against the bank and then certified a class action lawsuit against the bank.   

"The bank said it clearly spelled out the loan terms, but the judge found that Chevy Chase violated the Truth in Lending Act (TILA), which mandates that mortgage documents must be clear and understandable. Chevy Chase is appealing the judgment, and did not respond for comment for this article.

The Andrews' victory is just an early skirmish in what could be a prolonged battle between borrowers and lenders in the mortgage meltdown mess."

http://biz.yahoo.com/cnnm/070821/081607_here_come_the_judgements.html?.v=5&.pf=loans

From what I can gather California Real Estate attorneys are getting deluged with situations like this.  Our office reviewed a similar case involving a San Diego homeowner over the weekend.  The homeowner had even gone to the trouble of having the case reviewed for evidence of predatory lending by a govt endorsed agency.    

When there are enough disgruntled homeowners everyone is going to be a target.  Realtors will not get a pass. Keep those files and make sure all your documents are in there.  Pay particular attention to the TILA paperwork and the HUD.  Make sure all the charges were disclosed. 

If I were reviewing the closing docs I  would also focus on garbage fees.  The more garbage piled on to a closing the less sympathetic the party.