Bank Acts in Bad Faith Regarding Mortgage Foreclosure

Posted by Elliot. S. Schlissel, Esq.

Justice Spinner, sitting in the Supreme Court in Suffolk County, recently had before him the case of U.S. Bank National Association v. Mathon.  In this case, the bank had offered homeowners a three-month trial modification to their mortgage.  The homeowners accepted the agreement and made the payments.  The bank advised the homeowners, in writing, that a final modification would be forwarded to them in the very near future.  The homeowners waited, and waited, and waited.  They waited for an entire year.  After a year had passed, they received notification from U.S. Bank National Association that their mortgage modification request had been turned down.

During the course of the one-year waiting period, the homeowners made ten additional mortgage payments.  These payments were made on a timely basis and they were all accepted by the bank without protest.  Thereafter, the bank made an application to the court to obtain a judgment in the foreclosure proceeding and sell the homeowners’ property.  The homeowners brought an application by Order to Show Cause which motivated the bank to withdraw their request for a judgment of foreclosure and sale.

Hearing Held by Judge Spinner

Judge Spinner ordered a hearing regarding what had happened on this mortgage.  The focus of the hearing was to look into whether the bank had acted in good faith or whether they acted in bad faith.  If the bank acted in bad faith, the court was going to consider sanctions and other remedial measures against the financial institution.  The court noted in its decision that the conduct of the bank in this matter was “rife with bad faith”.  They had accepted twelve payments on a three-month trial modification.  There had made the homeowner wait a year to find out that even making the twelve payments in good faith, they were getting turned down for their mortgage modification.  There were both written and verbal assurances by the bank that the homeowners would receive a permanent loan modification.

Long Island and New York City Foreclosure Defense Lawyers

We defend homeowners whose homes are in foreclosure.  We assist homeowners in obtaining mortgage modifications.  We litigate bad faith procedures by financial institutions.  We attend foreclosure conferences in court.  We are familiar with the problems concerning mortgage modification programs that, instead of helping the homeowner, simply don’t work.  We deal with predatory lending situations and defective foreclosure lawsuits.  We are the New York Foreclosure Defense Law Firm that has presented innovative defenses for our clients.  If your house is in foreclosure or you have financial problems related to your mortgage, call us at 1-800-344-6431, 516-561-6645 or 718-350-2802.  We can help you save your home! Call us now!

Valley Stream, Lynbrook, Baldwin, Malverne, Freeport, Oceanside, Long Beach, Elmont, Lakeview, West Hempstead, Hempstead, Merrick, Bellmore

We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

Copyright © 2017 By The Law Office Of Elliot Schlissel. All Rights Reserved. Concept, Design and Hosting by GetLegal Web Development Team.