United States Government Sues Deutsche Bank Over Improper Loan Practices

In May of 2011 the Justice Department filed a lawsuit against Deutsche Bank. They asked for hundreds of millions of dollars in damages from Deutsche Bank. The lawsuit alleges that Deutsche Bank improperly charged it’s customers for bad loans issued by the bank. The lawsuit was filed in the United States District Court in New York.

U.S. attorney Preet Bharara stated upon filing the lawsuit, Deutsche Bank “ignored every type of red flag and breached every duty of due diligence before underwriting thousands of federally insured mortgages.” “While the homes the defendant’s issued loans for may have been build on solid ground, the defendant’s lending practices were built on quick sand. Ultimately prudence was trumped by profit, and good faith took a back seat to good fees.”

A representative from Deutsche Bank stated the charges against them were “unreasonable and unfair”.  The governments complaint stated that more than forty thousand loans were issued by Deutsche Bank during a ten year period from 1999 to 2009. These loans have a face value of more than five billion dollars.  The government alleges that as a result of Deutsche Banks loan program, there was numerous defaulted loans which have cost the United States taxpayers more than one billion dollars.

New York Foreclosure Defense and Bankruptcy Attorneys

There are a variety of ways to fight foreclosures. They can be litigated in the State Court where the lawsuit is brought. Defenses such as predatory lending, defective foreclosure lawsuits, defective mortgages, violation of federal laws related to foreclosure and other real estate defenses can be raised in the state courts. Applications can also be made for mortgage modifications to entice the financial institution to back off on the foreclosure proceedings.

In addition to the state based actions, families whose homes are in foreclosure can file foreclosure related bankruptcies. The bankruptcies filed are either a Chapter 7 or Chapter 13 bankruptcy. These are two types of bankruptcy that apply to consumers. Filing the bankruptcy stops foreclosures from moving forward, ends debt collection and sometimes eliminates second mortgages. At the end of the bankruptcy the individuals filing can re-establish their credit.

Should you have questions as to the best route for you to take to save your home, call us, we’ll provide you with a free consultation and discuss your foreclosure defense options. You are on the Elliot Schlissel foreclosure blog and we thank you for visiting with us.

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.