Posted by John Merchant on August 13, 2003 at 20:47:29:
There is a lot of this going around.
Their underlying reasoning is that there HAVE been some decisions killing the mortgage deal, as having been not quite legally adequate, as required by FHA, HUD, etc…all of which have lots of fine print involved, with lots of chances for screw-ups by lender.
And, generally, courthouse-wise, it’s well known that of all the kinds of corporate defendants that one might sue, the most gutless and least likely to fight to the death, are big banks, big life insurance companies, title companies.
I’d guess that they probably settle shy of Judgment, probably at a higher % than most any other kind of civil defendants.
And they have some good reasons for this: First, a huge courthouse defense might cost WAY upwards from $100K! Second, the adverse publicity, should they lose, (even from being sued) might cost them way more than they might save by fighting.
So it’s really, frequently, a financial decision, made by the co. accountants & board of directors, who just want it to go away.
Probably a lot of different outfits doing this, and I’ve heard of a couple of MLMs based on it.