Labor Day "Greetings" To The Clerks Toiling In Anonymity At The Various Document-Manufacturing, Foreclosure Mill Factories
For the column, see Lyons: Overworked clerks of foreclosure mills.
Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
For more, see Notice requirements (subscription required; if no subscription, TRY HERE - then click for the story).
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For more, see Avoid deed scams - go straight to county site.
For the story, see Jacksonville Woman Fights Wells Fargo on Foreclosure - and Wins.
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For the story, see Norfolk homeowner narrowly averts foreclosure.
For the story, see Nearly 30 Brownsville families to lose their homes.
See also KRGV-TV Channel 5: Some Brownsville Families Fighting for Their Homes.
For story follow-up, see KRGV-TV Channel 5: Brownsville Neighborhood Saved:
(1) My surmise is that the builder used a land contract/contract for deed arrangement with each of the unwitting homebuyers where they agree to make a downpayment and subsequent monthly payments directly to the builder. The builder, in turn, transfers possession of the homes to each of them subject to his gigantic construction (or possibly, acquisition) mortgage that's owed to the bank and agrees (either explicitly or implicitly) to apply the payments collected from the buyers to said loan until fully paid, at which point each homebuyer gets the home title. They, in all likelihood, were unfamiliar with real estate transactions, presumably failed to obtain a title search and title insurance protection, and were all caught flat-footed when the builder decided to pocket their payments, stiff the bank, and allow the lender to foreclose on the land out from under everyone.
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For the stories, see:
For the story, see Charges refiled in "Monster House" case.
Go here for earlier posts on the "Monster House" fixture stripping case.
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For the story, see Roseville tenant: Bank ignoring foreclosure law.
(1) The Federal Protecting Tenants at Foreclosure Act of 2009 provides important federal protections for tenants in foreclosed properties, including the right to receive 90 days' notice before being required to leave the property and, in many cases, the right to remain for the length of the tenant's existing lease term. The law's expiration date has been extended and is now set to expire on December 31, 2014.
See also:
(2) Reportedly, Pierce said she was threatened with eviction by the bank's real estate agent unless she accepted a $5,000 "cash for keys" offer to move out after the house was repossessed in May. Pierce said they were given 15 days to move, which she found unacceptable, the story states. Pierce provided News10 with a copy of the agent's email. "As of right now you do not have an eviction on your record. If you agree to move ... then the eviction would be put on hold," the agent said. "It's threatening," Pierce reportedly said. "They wanted us out of the house and that was that. I called them and said I had a lease that was good until next year and they said it didn't matter."
For more, see Know Your Rights, Stand Your Ground!
(1) The Federal Protecting Tenants at Foreclosure Act of 2009 provides important federal protections for tenants in foreclosed properties, including the right to receive 90 days' notice before being required to leave the property and, in many cases, the right to remain for the length of the tenant's existing lease term. The law's expiration date has been extended and is now set to expire on December 31, 2014.
See also:
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For a rundown on the unpleasant surprises that Erin and her husband discovered after moving into their home, see Fairfield Couple's Dream Home Purchase Becomes Nightmare.
(1) If the potential title trouble arising from sloppy and fraudulent paperwork-handling during the foreclosure process isn't enough to scare away those homebuyers looking for a good deal by buying recently foreclosed homes, then certaintly the sloppy and fraudulent "facelifts" masquerading as "rehabs" that some real estate investor-flippers (and possibly some lenders and loan servicers as well) are giving to some of these wrecks might.
And, to the extent that the homes being flipped were built before 1978, you can bet that these flippers, lenders and loan servicers are probably not complying with new Federal rules regulating the repair and maintenance of these homes (effective as of April 22, 2010, and which impose certain training, certification and work practice requirements on activities that disturb lead-based painted surfaces). See EPA's New Lead-Based Paint Renovation, Repair and Painting Requirements Take Effect, which provides one law firm's overview of the new Federal rules, which generally apply to those pre-1978 homes where repair or maintenance activities will disturb 6 square feet or more of interior paint per room or 20 square feet or more of exterior paint. Note that the renovation activities subject to this rule could include electrical work, plumbing, carpentry, and other work that disturbs painted surfaces.
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For the story, see Neighbors Say Abandoned Springfield Home Is Infested With Rats And Snakes (Springfield residents want someone to take responsibility for an abandoned home that is making them worry about their health and safety).
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Source: Framingham auction postponed; landlord faces criminal charge.
For the story, see Court rules against big Manhattan landlord (Judge finds Laurence Gluck unlawfully deregulated rents in the 1,331-unit Independence Plaza North complex in TriBeCa; appeal seen as likely).
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For the story, see Retirees might lose home in land scam (Oregon attorney general bars Florida firm from doing business in the state).
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For the story, see Family Loses Home With 1 Day's Notice (Couple Blames Loan Modification Company).
(1) By using the word "legal" in the name of their business, Premier Legal Advocates arguably misrepresented that consumers would receive professional services associated with legal counsel. The Ohio Attorney General has recently taken this position in an unrelated lawsuit involving an outfit allegedly running a racket targeting the infirm elderly. See Cordray Sues Duo who Targeted Seniors with Medicaid Ploy.
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For more, see Dodd-Frank reform law invites new litigation opportunities against mortgage lenders.
See also Lexology: Mortgage Reform and Anti-Predatory Lending Act for an overview of this new consumer protection law (requires subscription; if no subscription GO HERE; or TRY HERE - then click link for the story).
For more, see Couple confused about bank's request for deed to home.
(1) Bank of America has stepped up its solicitation for "deed-in-lieus" this year, according to its quarterly impact report, the story states. Citibank also reportedly is doing the same. See Citibank Says If Borrowers Return the Deed of Their Property, They May Stay on For 6 Months.
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For the story, see 7 Indicted in Valley Mortgage Fraud Conspiracy.
(1) The others indicted were:
For more, see Conflict of Interest? ABC 4 investigates judges' ties to Bank of America.
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Source: HOA groups in Arizona cutting services, raising fees (Homeowners associations facing own crisis amid foreclosures).
(1) See Chicago Sun-Times: A cure for crumbling condos for the kind of horror stories that have resulted in Chicago, Illinois as a result of financially strapped associations going under.
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For more, see Homeowners association battle threatens homes.
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For the story, see Developer Charged With Grand Theft (Man Accused Of Taking $410,000 In Condo Sale).
Source: Hollywood title attorney gets four years after embezzling $1.6 million.
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For more, see Schaumburg man regains access to padlocked home.
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For the U.S. Attorney press release, see Chicago Man Convicted of Posing As Federal Official in Scheme to Obtain and Sell Area Properties he Did Not Own.
For the story, see Former Gretna Councilman Jonathan Bolar, rogue public official, goes to jail.
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For more, see Judge fines major legal firm for foreclosure conduct (Lawyers to pay $49,000 for not showing up at scheduled hearings).
(1) The homeowner may also be able to recover any legal fees paid or due to his/her attorney by asking the judge to order the foreclosing lender to cough up the cash. See Landry v. Countrywide Home Loans, Inc., 731 So. 2d 137 (Fla. 1st DCA 1999):
In Florida, where an agreement allows for an attorney fee award to one of the contracting parties, state statute mandates an award of prevailing party attorney's fees to the other party under the reciprocity provisions of section 57.105(7), Florida Statutes; Landry, supra. (Mortgages almost always contain a provision that allow a lender to tack on its legal fees to the amount owed by the borrower when bringing litigation to enforce its rights. Accordingly, by reason of section 57.105(7), the homeowner likewise would be entitled to a recovery of his/her attorney's fees from the losing lender).
See also Attorney Fee Awards For Successful Foreclosure Defense In Florida.
For the latest (as of 9/8/2010) Florida court ruling involving the application of section 57.105(7), which turns contractual provisions allowing only one side attorney’s fees into bilateral provisions that allow both sides fees under Florida law, see Florida Hurricane Protection and Awning Inc. v. Pastina, No. 4D08-4641 (Fla. App. 4th DCA, September 8, 2010) (en banc). See also, Abstract Appeal: Fourth District: Fees, and “Blog” Arrives In The Case Law.
In addition, in this case, the law firm possibly may also be ordered to ante up part of the homeowner's legal fees by reason of section 57.105(1), Florida Statutes:
In a peripherally related article (added 9-22-10), see The Florida Bar: Pleading Requirements for a Claim for Attorneys' Fees.
(2) The Court reportedly awarded Barrington Ridge Homeowners Association, Inc., the association in which the property in foreclosure is a part of and which presumably holds a lien (subordinate to the foreclosing lender's mortgage) for unpaid HOA fees, its attorneys' fees from the filing of its Motion to Compel the Bank to Proceed with Foreclosure to the present, according to a press release issued by the association's law firm. See Becker & Poliakoff Applauds Manatee County Circuit Court Judge's Order Imposing Fines Against Bank's Foreclosure Law Firm.
For more, see Texas Attorney General Sues Mortgage Servicing Company.
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From the Office of the Texas Attorney General:
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For the Texas AG press release, see Attorney General Abbott Charges Home Loan Servicer With Violating State Debt Collection Laws (American Home Mortgage Servicing Inc. failed to properly process requests).
For the lawsuit, see State of Texas v. American Home Mortgage Servicing Inc.
For the story, see Three Indicted in Foreclosure Scam.
For the Nevada AG press release, see Three Indicted In Foreclosure Rescue Scam.
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For the Wisconsin AG press release, see Van Hollen Announces Judgment Against USA Loan Auditors.
For more, see West Palm Beach man charged with grand theft, real estate fraud; allegedly sold same house twice.
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For the U.S. Attorney press release, see Former Mortgage Originator Indicted for Scheme Misusing Former Clients’ Personal Information (Woman Allegedly Obtained Loans in the Names of Past Clients for New Novice Purchasers).