Start with a title and identification content:

Request for Disgorgement
Plaintiff: (Your Name)

Defendant: (Bank/Lender)

Loan (#0000000000)

Date: <Month/Date/Year>

Enter your name, the bank or lender name, the loan number and the date.

Introduce the purpose of the request and the trigger for filing a case:

This is a formal request for disgorgement of profits associated with a loan made for a residential property. The loan in question was closed out in the aftermath of a "short sale" to the benefit of all involved except for the individual who took out the loan, the plaintiff.

Substitute "foreclosure" if appropriate.

Present a summary description of the legal argument:

The plaintiff in this request seeks to obtain the equity accrued over X.Y years, which the defendant has claimed as profit. The plaintiff recognizes the defendant's right to recover the principal of the loan and a fair profit. What is at stake in this action is the defendant's claim to all proceeds from the short sale of the property securing the loan - i.e., that the plaintiff has no right to any share of the proceeds.

Identify the completed payment period for the loan (accrued over x years).

Establish the date of the loan, the lender, the amount of the loan, the property used to secure the loan, and the total amount of payments made against the loan over the payment period:

In <Month> of <Year>, the plaintiff secured a loan from <Lender> for <Total Loan Amount> to purchase a property located at <Property Address>. Over a period of X.Y years, the plaintiff paid more than <Total Payment Amount> in monthly payments on this loan, and invested more than <Total Additional Investment> in property improvements.

List the month and year that you took out the loan, name the bank and the principal amount, and identify the street address of the property. Provide the sum total of monthly payments and any other investments made in the property.

Describe any special conditions, and any participation in federal programs:

<Original Lender> was purchased by <Current Lender> in <Month> of <Year>, and took over administration and ownership of the loan. <Reason for Terminating Loan> The plaintiff applied for participation in the <HAMP or Other> program immediately, and made several payments under this program between October and December of <Year>, when <Current Lender> also began <questionable practice>.

Identify any questionable practices the lender engaged in.

Tell the story of how and why the loan ended:

In <Month> of <Year>, the plaintiff <describe life-event that spurred sale of home and estimated fair market value>. Over the following <number> months, <describe outcome of sales effort>.
In <Month> of <Year>, <Lender> initiated foreclosure proceedings on the loan. <Describe any complicating factors> A foreclosure date was ultimately set for <Month> of <Year>. <Describe any offers or the court-directed outcome>. The plaintiff received <Amount of Proceed> following closure, and a negative entry on his credit report. <Lender> kept all other proceeds from the sale, with the exception of fees collected by the real estate agents involved in the sale.

Define what drove the change, what happened, and how much money each party collected in the process of closing out the loan.

State your expectations and present the totals from the validation formula:

Given the nature of the property, and the local real estate market, the plaintiff expected to receive a normal and reasonable return on the investment.

<Lender> realized a return of <Total Proceeds> on a <Total Loan Amount> over a period of <Number of Years and Months> (<Total Payments> and <Net Proceeds> from the sale). Their claim of interest, or net profit on the loan totals <Total Return>, less administrative costs. This represents a <Total Gain>on the investment, or a <X.X>% annualized return.

The <Total Proceed> the plaintiff received after the close of the sale represents the entire return on his <Total Payment> investment (a XX.X% loss). In <Month> of <Year>, the plaintiff also received a <Proceed> for participating in the Independent Foreclosure Review. The letter that accompanied the check does not offer a reason for the amount or any admission of wrongdoing on the part of the lender. The letter also indicates there is no process for appeal, which prompted the plaintiff to pursue this action.

Identify any other benefits received, including those received from the Independent Foreclosure Review and the remind the court that a) the banks set the amount of the check, and b) the agencies offered no process for appealing the settlement.

Present the substance of your argument and claim:

It is obvious the outcome of the loan is lopsided in favor of the defendant. As the findings of the Independent Foreclosure Review are not available for review, it is impossible to determine if the defendant violated any specific laws in the conduct of the transaction. The return on the investment for the defendant, however, appears to be a form of unjust enrichment given the specifics of this case. While the defendant is entitled to recover the principal of the loan in a short-sale transaction, and to retain a reasonable amount of profit, to keep all of the proceeds is patently unfair.

The plaintiff seeks a reasonable payment for the equity earned over <Period of Loan>.   A sum of <Claim Amount> is fair, and reasonable as it would allow the defendant a <Net Amount> of net profit, a XX.X% gain on the investment (or a X.X% annualized return). Such an award would provide the plaintiff with a "fair share" of the proceeds from the sale while allowing the defendant to make a reasonable profit.

Remind the court that the Independent Foreclosure Review offered no information to the consumers affected by the lender's practices, and this action is a civil matter (a D.A. or member of the Dept. of Justice would have to initiate criminal charges, which is not likely to happen). Clearly state your claim, and indicate how it would affect the defendant (i.e., how much profit they would retain).

Conclude your argument with salient points and limits to your claim:

As it stands, it appears that the defendant is using the plaintiff's equity to offset losses from other, more significant losses. <Describe market conditions and consequences fo banking practices>. The plaintiff understands that he must bear some of the loss associated with the market conditions, but it is not fair that the plaintiff must bear a complete loss so the defendant may realize a XX% gain on their investment.

Despite the eighteen month delay created by the Independent Foreclosure Review, and the considerable discomfort created by the total loss of equity, the plaintiff is not seeking any additional punitive damages. If the court seeks to include any additional fines or fees to help prevent future acts such as those described in this request, the plaintiff would not object.

Cover motives, larger contextual factors and limit the scope of your claim.