Daily Investment Tips

The high cost of litigation across the US makes it financially difficult for those without financial means to sue through US courts. It is even more daunting going against corporate defendants with deeper pockets.

According to a NYTimes article, Pursuing a civil action in federal court costs an average of $15,000, the Federal Judicial Center reported last year. Cases involving scientific evidence, like medical malpractice claims, often cost more than $100,000.

Hedgefunds and Investors for hire

If you don’t have money to hire an attorney you can get someone to finance your case. From the same article in NYTIMes

Large banks, hedge funds and private investors hungry for new and lucrative opportunities are bankrolling other people’s lawsuits, pumping hundreds of millions of dollars into medical malpractice claims, divorce battles and class actions against corporations — all in the hope of sharing in the potential winnings.

It is that simple, outside investors finance your case and if you win they share in the spoils.

“If you want to use the civil justice system, you have to have money,” said Alan Zimmerman, who founded one of the first litigation finance companies in 1994, in San Francisco, now called the LawFinance Group.

Another group in the business of financing litigation is Counsel Financial, a Buffalo company financed by the giant Citigroup,

written by Constantine Njeru \\ tags: Buffalo Company, Cash Money, Citigroup, Civil Justice System, Class Actions, Corporate Defendants, Corporations, Federal Judicial Center, Finance Companies, Hedge Funds, Hedgefunds, Lawsuits, Litigation Finance, Lucrative Opportunities, Medical Malpractice, Nytimes Article, Pockets, Private Investors, Spoils, Zimmerman

Loan modification enables distressed mortgage holders to reduce their principal and interest. But statistics show many American mortgage holders cant tap into the benefit of loan modification.

According to a Wall Street Journal piece on mortgages,

Most delinquent mortgages aren’t available for sale because they are locked up in so-called private-label securities (the ones packaged by Wall Street during the boom) or in the hands of Fannie Mae or Freddie Mac.

What this means is, Although a mortgage company has issued the loan, the loan is owned by third parties. The rules governing this arrangement prevent the issuer from modifying the loans. A modification would subject the servicing firm to the risk of lawsuits by the owners of the securities.

Because of this tight arrangement the mortgage companies find their hands tied and they cant help their borrowers.

written by Constantine Njeru \\ tags: American Mortgage, Boom, Borrowers, Delinquent Mortgages, Fannie Mae, Freddie Mac, Lawsuits, Loan Mortgage, Mortgage Companies, Mortgage Company, Mortgage Holders, Mortgage Loan Modification, Principal And Interest, Private Label, Qualify For Mortgage, Tap, Third Parties, Wall Street, Wall Street Journal, What This Means