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!

NY Courts Apply New Foreclosure Rules

Supreme Court Justice Meyer, sitting in Rockland County, New York, had an order of reference on a foreclosure action in the matter of City Mortgage Inc. v. McGee. Justice Meyer, upon reviewing the new administrative orders of the chief judge of the New York State Courts, took note that City Mortgage’s lawyer must file an affirmation in a form prescribed by the new administrative order.

The administrative order stated that attorneys for financial institutions involved in foreclosures must include in all such filings a mandatory affirmation that they have communicated with the financial institution’s representative. The representative must have advised them they have personally reviewed the documents and records relating to the case. The personal representative from the financial institution must also have confirmed the actual factual accuracy of the paperwork and filings. Furthermore, they also must confirm that the notarization of the documents submitted by the financial institution was proper and correct.

Justice Meyer stated that “the clear intent of the new rule was to assure accountability for and accuracy of all court filings in foreclosure actions”. The Judge’s position was that after October 20, 2010, the attorney for the financial institution must file an affirmation concerning all applications made at any and all stages of new and pending foreclosure proceedings. Justice Meyer didn’t believe the documentation submitted in this case complied with the administrative judge’s order. Justice Meyer took the position that if he discovers any wrongful filing or any wrongful prosecution of a foreclosure action, it may cause him to institute a disciplinary action and/or other sanctions against the attorney submitting these documents.

Justice Meyer’s position regarding the accuracy and truthfulness in foreclosure proceedings gives defense counsel a very important tool. Now the financial institutions and their attorneys are under the gun to see to it that they have all the correct paperwork before they can institute foreclosure proceedings.

Foreclosure Defense Attorneys

The foreclosure defense attorneys at the Law Offices of Schlissel DeCorpo have been representing homeowners in foreclosure proceedings for more than twenty years. Our office takes an aggressive stand in these proceedings. We often counter sue the financial institutions because of their failure to fulfill all of their responsibilities to comply with various statutes and regulations. Our office attends foreclosure conferences in court on behalf of our clients. We assist our clients in mortgage modifications. We discuss with our clients the problems concerning mortgage modification programs. We actively pursue foreclosure defenses for our clients. We also discuss with our clients defective foreclosure lawsuits and issues concerning predatory lending.

If your house is being foreclosed, we are the foreclosure defense attorneys for you. Call us at 1-800-344-6431, 516-561-6645 or 718-350-2802.

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