J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization

This last week I had a couple come in, that had paid $5000 to some "group" that they found on the internet, to help them fight with their mortgage company. They had the "group" whoever that is, prepare a lawsuit or complaint and they filed it in state court trying to stop their foreclosure.

The "complaint" is trash, I mean it's ridiculous, mumbo-jumbo. A first year law student could have done better. The defendants, including the mortgage company and the other parties that were sued, immediately moved the case to federal court and filed motions to dismiss based on "failure to state a claim." It will likely get dismissed soon, and these folks will lose their house.

This 5th Circuit Wigginton case looks like a very similar situation, and the 5th Circuit Court of Appeals, which is the top appeals court other than U.S. Supreme Court in the states of Texas, Louisiana and Mississippi, affirmed the lower court's dismissal of the suit.

I think the courts, at least in Texas, are getting sick and tired of some of these lawsuits. There are some legitimate issues, but where people try to do it themselves, and just file bogus pleadings that don't even allege any facts or make any sense, well, it's pretty apparent that the people are just trying to stall, or extort some kind of concession like a loan modification out of the defendants.

Judge Edith Jones of the 5th Circuit stated: "Winning a free house simply because the mortgage lenders sought to use normal means to recover it from a defaulted debtor would indeed be a lucky strike. But such windfalls are the province of the sweepstakes, not of the federal courts. Dr. Wigginton has apparently enjoyed years of free housing while pursuing this meritless litigation. The judgment of the district court is AFFIRMED."

Again, if you feel you've been done wrong by your mortgage company, or if you have complaints concerning the securitization process, robo-signing, or whatever, there are attorneys that will bring these claims. But if you hire non-lawyers or try to do it yourself, and you don't have the ability or competence to do it correctly, then you are only going to make bad law, and hurt the other people that are trying to fight for their homes.

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