Legal Question in Real Estate Law in California

Yes, indeed you can, but before you jump in and file a lawsuit, think about the following:

1. The right (legal standing) to file a lawsuit does not mean success is assured, nor even that it is likely.

2. Very few lawyers would take this kind of case on a contingency basis. Maybe if there were a "smoking gun," but not for careless mistakes. You are probably looking at a lot of legal fees and expenses before you get to trial.

3. Lenders are facing a lot of such cases, and their law firms have developed a lot of defenses including the statutes of limitations. How old is your loan?

4. A lot of these cases involve so-called Federal questions and may end up in Federal court, which can be more distant, more formal, and harder to find a qualified lawyer to handle. In your case, however, I guess the courthouse would be in San Diego in either court system.

5. Loan modifications are voluntary. Being sued by a modification applicant could have some effect on the lender's willingness to modify the loan. There is a risk that the lender would terminate negotiations, fight your lawsuit, and win.

6. Even if you win in court, the remedies for whatever harm you can prove or any other relief to which you are entitled may not have the effect of discharging your obligation to pay the loan balance. Discuss potential damage awards with the attorney before pushing the "go" button.

7. The pendency of your suit may not stall or prevent foreclosure. Discuss this with your attorney also.

If you file after a foreclosure sale, you can continue to stay in your house so long as you pay the entire balance of your mortgage to the court. If you file before the foreclosure sale, you can stall the foreclosure so long as you deposit the entire amount of arrears and accrued fees with the court. If you don't have the kind of cash lying around, you may want to consider other options, like bankruptcy, which might be a little more realistic.