Thursday, January 06, 2011

Rubber Stamping Florida Judge Changes Public Position On Exempting F'closing Banks From Complying w/ Procedural Rules, Then Lets 'Em Break Them Anyway

AOL Daily Finance columnist Abigail Field writes:

  • Apparently, the judge merely changed his public position: Rather than admit the fact that foreclosing banks don't have to follow the rules on affidavits and loan documentation, he'll say they do, then fail to make them comply. That smells like a cover-up, not a correction.

***

For more, see Florida Is Still Letting Banks Break the Rules in Foreclosure Cases.

(1) See Florida Trial Judges Continue Sloppy Work In Foreclosure Actions; Rubber-Stamped Judgments Tainted By Sewer Service Reversed By State Appellate Courts for more on the apparent crappy attitude of some Florida judges presiding over foreclosure proceedings.

Florida AG Outlines Its Evidence Of Fraudulent Court Filings In Foreclosure Cases With 98-Page Presentation

The Palm Beach Post reports:
  • Sweeping evidence of the case the state attorney general's office has built in its pursuit of foreclosure justice for Florida homeowners is outlined in a 98-page presentation complete with copies of allegedly forged signatures, false notarizations, bogus witnesses and improper mortgage assignments.

  • It is one of the first examples of what the state has compiled in its exploration of foreclosure malpractice, condemning banks, mortgage servicers and law firms for contributing to the crisis by cutting corners. "What we got from this is the state has had the opportunity to see where the laws have been broken, and frankly, it is in large part thanks to the work of the defense attorneys," said Palm Beach County Clerk and Comptroller Sharon Bock. "They've been bringing these defenses up in foreclosure cases for years now."

For more, see State details foreclosure chaos: Evidence of forgeries, bogus witnesses and illegal shortcuts.

For the Florida AG Economic Crime division's 98-page presentation, see Unfair, Deceptive and Unconscionable Acts in Foreclosure Cases (whoever illustrated this presentation had a good sense of humor).

A Mortgage-Backed Security Map: The Fantastic Fate of One Man's Loan

A recent story from PBS Newshour featured the case of homeowner Daniel Edstrom, who is employed by a company who happens to perform securitization audits, who decided he'd look into the history of his own mortgage.

He reportedly spent a year mapping his mortgage, came up with this flowchart showing how his mortgage was ripped apart during the securitization process, and observed:
  • "If someone steals a car, they can make much more money if they break the car up into pieces and sell the pieces individually. That's exactly what happened here [to my mortgage]."

The story concludes with this excerpt:

  • [I]ncreasingly, those who engineered these deals are looking suspect, as Brooklyn Supreme Court Judge Arthur Schack recently explained to us. If a judge were to study Daniel Edstrom's chart of his own wayward mortgage, might his or her honor have even more reason to slow the foreclosure process? Take a close look yourself and see how you might rule.

For the PBS' story, see A Mortgage-Backed Security Map: The Fantastic Fate of One Man's Loan.

Michigan Couple Victimized By Illegal Trashout Linked To Wrongful Bank Foreclosure Of 'Mortgage-Free' Home Settle Lawsuit

In Grand Rapids, Michigan, The Grand Rapids Press reports:
  • A couple who said a bank wrongly foreclosed on their $14,000 fixer-upper have settled their lawsuit. Rick and Sherry Rought of Gowen bought the house near Big Rapids in 2009 for their daughter, Hannah, while she attended Ferris State University. Seven months later, a company allegedly hired to “trash out” the house changed locks and turned off utilities, the couple said in a lawsuit filed last year in U.S. District Court.(1)

  • Their house, bought with cash, was not subject to foreclosure. They sued Deutsche Bank National Trust Co., Field Asset Services and American Home Mortgage Servicing. The companies denied any wrongdoing, and said a contractor, Out in the Woods, “may be wholly or partially at fault.” Out in the Woods was not named as a defendant in the lawsuit.

  • The parties reached a settlement that was not disclosed in court records. The agreement, which results in the lawsuit being dismissed, was signed Monday by District Judge Janet Neff.

For the story, see Grand Rapids homeowners end lawsuit against bank in foreclosure case.

(1) For the lawsuit, see Rought v Deutsche National Trust Company, Trustee, et al.

(2) For examples of other lawsuits involving these illegal lockout cases, see:

For those homeowners who've been screwed over by wrongful lockouts by foreclosing lenders (and their confederates) and seek some possible guidance on how much their cases might be worth if they seek to sue, see:

Wednesday, January 05, 2011

Change In Judicial Mood On New Jersey Robosigning Scandal Reflected In Recent Rulings

The Metropolitan Corporate Counsel reports:
  • New Jersey courts have started clamping down on lenders' ability to enforce mortgage documents by raising concerns when the lender cannot establish that it possesses the original note at the time a foreclosure action is commenced or that it is a holder in due course under the Uniform Commercial Code ("UCC").

  • Two recent decisions, one from the New Jersey Superior Court, Chancery Division, General Equity Part, Atlantic County, and a second from the United States Bankruptcy Court for the District of New Jersey, elucidate this change in judicial mood. The teachings of these decisions, which are discussed herein, are that lenders and their counsel need to determine and be sure of certain facts before they start an action to enforce mortgage documents. The failure to take the simple steps discussed in this article could result in such action being substantially delayed or never getting off the ground.

  • In Bank of New York v. Raftogianis, ___ N.J. Super. ___, 2010 N.J. Super. Unpub LEXIS 2316 (N.J. Super. Ct. Ch. Div. June 29, 2010), the Hon. W.C. Todd, P.J. Ch., issued a lengthy and scholarly opinion addressing many issues relating to foreclosure litigation, including the applicability of the UCC, how the Mortgage Electronic Registration System ("MERS") operates, and the impact on foreclosures of the securitization or pooling of mortgages. In fact, the opinion could be viewed as a treatise on these subjects.

***

  • In Kemp v. Countrywide Home Loans, Inc. (In re Kemp) , 2010 Bankr. LEXIS 4085 (Bankr. D.N.J. Nov. 17, 2010), the debtor filed an adversary complaint seeking to expunge the proof of claim filed on behalf of Bank of New York by Countrywide Home Loans, Inc. as servicer.

For more, see New Jersey Courts Place Roadblocks On Lenders' Ability To Enforce Mortgage Documents (for print version, TRY HERE).

Indiana AG Asks State High Court To Implement Procedural Rules To Address Robosigner Scandal

In Indianapolis, Indiana, WRTV-TV Channel 6 reports:
  • The Indiana attorney general on Monday asked the Indiana Supreme Court to implement new regulations regarding the handling of foreclosures in the state. The proposed changes, which would not require legislative action, are in response to mortgage companies that admitted they improperly filed documents with courts to process foreclosures.

For more, see Court Asked To Toughen Foreclosure Lender Regulations (AG Says New Proposal Will Protect Homeowners).

Fannie, Freddie Score $2.5B+ From BofA To Settle Crappy Loan Buyback Demands; Requests For $10B+ From Other Banks Still Outstanding

The New York Times reports:
  • Bank of America announced Monday that it had paid more than $2.5 billion to buy back troubled mortgages and resolve related claims from Fannie Mae and Freddie Mac — deals that may prompt a wave of such settlements by big banks.

  • The agreements center on home loans that Countrywide Financial sold to Fannie and Freddie at the height of the mortgage bubble. The government-controlled housing giants, which have suffered billions of dollars in losses in recent years, have said that the lender misrepresented the quality of the loans. Bank of America bought Countrywide in 2008.

  • Fannie and Freddie also are looking to collect from other large lenders, including Wells Fargo, Citigroup and Washington Mutual, now owned by JPMorgan Chase.

  • Before the Bank of America payments, Fannie and Freddie received about $9 billion from repurchase claims, according to their financial statements. The two firms still have more than $10 billion of requests outstanding. Banks have a major incentive to cut deals with Fannie and Freddie. The two firms currently own or guarantee roughly two-thirds of all new mortgages in the United States.

For more, see Bank of America Buys Back $2.5 Billion in Mortgage Debt.

Tuesday, January 04, 2011

MD Appeals Court: State Foreclosure Rescue Law Applies To Transaction Where Law Took Effect After Contract But Before Closing Of Sale Leaseback Ripoff

In a recent ruling by the Maryland Court of Special Appeals, the court rejected an accused sale leaseback peddler's attempt to dodge the application of the state's Protection of Homeowners in Foreclosure Act by claiming that the contract for the transaction pre-dated the effective date of the statute, in a deal that didn't actually close until after the law took effect.

In reversing a lower court ruling, the appeals court said that applying the law to this case did not operate as an impermissable retroactive application of the statute to deprive the sale leaseback peddler of vested rights, and found that the trial court erred in concluding that the law was inapplicable to the transaction.

For the ruling, see Kargbo v. Gaston, 195 Md. App. 222; 5 A.3d 1231 (September 30, 2010).

Fed-Up Judge Refuses Further Trial Delays For Ex-Closing Attorney Accused Of Ripping Off Real Estate Escrow Funds In 4-Year Old Case

In Pittsburgh, Pennsylvania, the Pittsburgh Tribune Review reports:
  • The only way a former Fayette County attorney accused of stealing about $99,000 in mortgage-settlement claims from two elderly couples can avoid going to trial on Jan. 3 is if he is hospitalized, according to the trial judge.

  • Judge Steve Leskinen [] told Mark Morrison's attorney that if Morrison fails to appear for trial in the four-year-old criminal case, a bench warrant will be issued for his arrest unless Morrison is "confined to a hospital." Morrison, 53, of Hopwood was charged in 2006 with two counts each of theft by failure to make required disposition of funds, forgery, tampering with records or identification, and misapplication of entrusted property. The state Attorney General's Office alleges Morrison failed to use the money to settle outstanding mortgages on two properties.

  • Citing numerous health problems and questions over competency, Morrison has successfully petitioned the courts to postpone his trial. The case was put back on the trial list [...] when Leskinen, after a 4 1/2-hour long hearing in November, declared Morrison competent for trial.

***

  • "This case has been pending for four years," Leskinen said. "It needs to be resolved."

For the story, see Enough delays, exclaims judge in alleged mortgage scam case.

For a couple of follow-up stories, see

  • Ex-lawyer from Hopwood gets one more day to appear in court ("A Fayette County judge yesterday said he was unconvinced a former attorney couldn't secure an ambulance ride to the courthouse in time for the start of his trial yesterday on theft charges, but he gave the Hopwood man another day to appear."),

  • Broker: Lawyer withheld payment ("A former Fayette County attorney's reputation persuaded a mortgage broker to let him represent two clients at closings, according to a former loan officer who testified Tuesday in the Hopwood man's theft case.").

Florida Statewide Mandatory Foreclosure Mediation Program Off To Sluggish Start

The Palm Beach Post reports:
  • Florida homeowners have had scant success in the state's required foreclosure mediation program with just 6 percent leaving the negotiating table with a resolution. The first statewide measure of the program, which the Florida Supreme Court made mandatory one year ago, was released Wednesday with information from seven of the state's 20 circuit courts.

For more, see Florida foreclosure mediation report shows program is struggling to log successes.

Monday, January 03, 2011

Florida Appeals Court: Presenting Meritorious Defense In Foreclosure Action Unnecessary Where Notice Of Lawsuit Not Properly Served On Homeowner

A recent ruling by a Florida appeals court hopefully serves as a reminder to the rubber-stamping trial judges intent on pushing as many foreclosure judgments through the rocket dockets as quickly as possible to slow down when defects in the process by which notice of the lawsuit was purportedly served on the homeowner are apparent on the face of the affidavit of service filed in court by the process server. Apparently, trial judge Ronald M. Friedman of the Miami-Dade County Circuit Court believed that it is legally acceptable to rubber-stamp a judgment in a foreclosure action when notice thereof was not properly served on the homeowner if the homeowner has not presented a meritorious defense to the lawsuit.(1)

According to the appeals court:
  • Where no in personam jurisdiction is obtained over a defendant, the defendant is not required to demonstrate a meritorious defense to set aside the default. Ubilla v. L&W Supply, 637 So. 2d 994 (Fla. 3d DCA 1994); Gamboa v. Jones, 455 So. 2d 613 (Fla. 3d DCA 1984). The trial court should not have required Ms. Bennett to demonstrate a meritorious defense to the action once it became clear that the summons and complaint were never properly served.(2)

For the ruling, see Bennett v. Christiana Bank & Trust Co., No. 3D09-2653 (Fla. App. 3d DCA, December 1, 2010).

(1) Judge Friedman entered an order actually finding that the service of process wasquestionable,” but because there was no meritorious defense to the foreclosure, he denied the motion to vacate the foreclosure judgment.

(2) To the uninitiated, this would appear to be a pretty basic and fundamental precept of law. Apparently not, at least not for Judge Friedman. Either that or maybe he wasn't expecting that the financially strapped homeowner would be able to afford the cost (ie. attorney fees) of filing an appeal of his ruling. As trial judges ponder this ruling, they may also want to consider whether presenting a meritorious defense to a foreclosure action by a homeowner is necessary where the party initiating the action has failed to prove that it has standing to bring the lawsuit in the first place.

By the way, where a foreclosure sale has already taken place with the property being purchased by an unwitting third party, the situation illustrated by this case could result in the foreclosure sale being voided and, consequently, the title to the property held by the third party purchaser (and any other property interest holders - ie. downstream buyers, mortgage holders, etc. - claiming under the 3rd party buyer) being voided as well.

Pennsylvania Notary Unlicensed In New Jersey At Center Of Garden State Robosigner Scandal

The New York Post reports:
  • The face of New Jersey's robo-signing scandal may be a Pennsylvania notary public who signed thousands of foreclosure documents in the Garden State even though he wasn't licensed there.

  • Thomas Strain, who now heads the bankruptcy team at GMAC Mortgage Corp., has emerged as a key player in New Jersey's foreclosure mess through a damning report that swayed the state's top judge to crack down on rogue foreclosure filings by the nation's largest mortgage lenders, including GMAC.

***

  • In announcing the measures [to halt abusive foreclosure practices in the state, including rubber-stamping documents without verifying their authenticity, known as robo-signing],(1) [New Jersey's chief justice, Stuart] Rabner pointed to a report compiled by Legal Services of New Jersey, a non-profit in Edison, NJ, which mentions Strain in no less than four cases involving instances of robo-signing when Strain worked for Mount Laurel, NJ-based Full Spectrum Services prior to joining GMAC in 2009. The report also repeatedly mentions Strain's former boss, Frank Hallinan, a lawyer with mortgage law firm Phelan, Hallinan and Schmeig.(2)

  • Full Spectrum was a legal support company owned and operated by Phelan, Hallinan. "I was notarizing maybe on an average of 50 a day," Strain said under oath in a 2008 deposition attached to the report.

  • In one foreclosure case, Strain verified that Hallinan, who is Strain's primary notary client, is a vice president and assistant secretary of Mortgage Electronic Registration Systems, the electronic registry that tracks servicing rights and ownership of mortgages. But when questioned as to how he confirmed that Hallinan held this position, Strain said "word of mouth" before admitting, "I do not know."

  • In another instance, Strain said he couldn't explain why he signed off on a document referring to Hallinan as a "she" rather than a "he." Strain also admitted that Hallinan may not have been present when he notarized documents on his behalf because they often worked out of different offices. When asked in the 2008 deposition if he was authorized to work as a notary in NJ, Strain said "no" even though he acknowledged notarizing documents in the state.

  • Strain said under oath he understood the repercussions for false notarizations, but when asked for specifics he stumbled: "I don't know the exact. . .I just know that you have to. . .I don't know what the actual penalties are."

  • As for Hallinan, the report alleges that he testified to preparing his mortgage assignments according to the instructions he received from the foreclosing party "without reviewing and supporting documentation." Neither Strain nor Hallinan responded to requests for comment.

For the story, see Report rips NJ foreclosure robo-signing notary.

See also Legal Services of New Jersey resource material on statewide robosigner scandal.

(1) For the court's 'robosigner' orders, see:

(2) For the report, see Legal Services of New Jersey Report and Recommendations to the New Jersey Supreme Court concerning False Statements and Swearing in Foreclosure Proceedings, November 4th, 2010.

For the Exhibits to the Report:

Lender Processing Services

Deposition Transcripts

Sample Documents

Deutsche Bank Memos

Scholarly Writing

Examples of Robo-Signing in NJ

Court Sanctions and Corrective Actions

Links

Videos

Go here for links to robosigner videos.

Thousands Of Affidavits 'Robosigned' By Dead Woman Used By Zombie Debt Buyers To Collect Debts In Credit Card Account Lawsuits

The Wall Street Journal reports:
  • Martha Kunkle has come back to life. She died in 1995. Yet her signature later appeared on thousands of affidavits submitted by one of the nation's largest debt collectors, Portfolio Recovery Associates Inc., in lawsuits filed against borrowers.

  • Some regulators complain that the use of Ms. Kunkle's name reflects an epidemic of mass-produced, sloppy and inaccurate documentation in the debt-collection industry.

***

  • Large debt collectors such as Portfolio Recovery Associates and publicly traded rivals Encore Capital Group Inc. and Asset Acceptance Capital Corp. frequently buy delinquent accounts in bulk. Information about each debt sometimes is little more than a line in a spreadsheet with the borrower's name and amount owed, according to lawyers who represent borrowers. As of Sept. 30, Portfolio Recovery Associates had $91.5 million in revenue from lawsuits it won, or 34% of its overall revenue.

***

  • Questions about Martha Kunkle first popped up in 2008 after her name appeared in thousands of affidavits generated by a unit of Providian National Corp. The credit-card issuer sold an undisclosed number of delinquent account balances to Portfolio Recovery Associates and other debt collectors, which then sued the borrowers to collect the debt.

For more, see Dead Soul Is a Debt Collector (Deceased Woman's Name Was Robo-Signed on Thousands of Affidavits).

Foreclosure Law 'Reading List' To Be Given To Central Florida Judges; Circuit Chief Hopes Briefing Will Help Jurists Avoid Getting "A Pie In The Face"

In Central Florida, the Sarasota Herald Tribune reports:
  • Starting Monday, three of the most experienced circuit judges will begin handling civil cases [in the courtrooms of Florida's 12th Judicial Circuit], but first they have a reading list: lengthy analysis of the latest foreclosure law and arguments, and guides written by judges who have been in the foreclosure mess for years.

  • "It's hard to step into that role," said 12th Circuit Chief Judge Lee Haworth, who made the judicial assignments for this year. "I'm hoping we can get them briefed so they don't get a pie in the face."

  • Foreclosures are not even close to the most complex type of litigation to cross a civil judge's desk -- for example, some trials about car crashes involve medical testimony and have seven or eight attorneys. But the more advanced foreclosure defenses now delve into the sometimes labyrinth world of financial markets, trusts and securities. The handbooks discuss the areas of disagreement, or "gray areas" in the law. "There's a larger gray area than we like," Haworth said.

For the story, see Judges studying home suits (FORECLOSURES: Three will have to get up to speed on a fast-moving field).

Sunday, January 02, 2011

Fla Appeals Court 'Green Lights' Class Action Against Foreclosure Mill Accused Of Clipping Delinquent Borrowers In Bogus Loan Reinstatement Fee Ripoff

In West Palm Beach, Florida, The Palm Beach Post reports:
  • As many as 2,000 homeowners suing the law firm of self-proclaimed foreclosure king David J. Stern over excessive attorney fees and costs won a major victory [last week] when an appeals court blessed the group's class-action status.

  • "We are very excited," said Louis M. Silber, the West Palm Beach attorney who filed the case in January 2007 — the first class-action lawsuit filed against Stern and his Plantation-based law firm stemming from foreclosure fraud accusations.

  • In a four-page opinion, the 4th District Court of Appeal upheld the findings of Circuit Judge Thomas H. Barkdull,, who decided the complaints and circumstances of the homeowners were so similar that they would best be handled in a class-action lawsuit.

  • Members of the class are homeowners who received letters from Stern's firm between Jan. 18, 2003 and Feb. 19 2009 offering to reinstate their loans with Wells Fargo by paying reinstatement charges.(1)

For more, see Judge OK's class-action status for homeowner lawsuit against Florida law firm.

See also South Florida Sun Sentinel: Court upholds decision on Stern foreclosure class action suit (Homeowners claim they were charged excessive fees for title searches and examinations, being served foreclosure papers, legal work — and in some cases, were billed for expenses and mortgage payments not yet due).

For the ruling, see Law Offices of David J. Stern, P.A. v. Banner, Case No. 4D09-3928 (Fla. App. 4th DCA, December 29, 2010).

(1) The class action lawsuit claims that the foreclosure mill's alleged misbehavior constitutes violations of the Florida Consumer Collection Practices Act and the Florida Deceptive and Unfair Trade Practices Act.

Boston Feds: Attorney/Title Agent Pocketed Closing Cash Meant For Mortgage Payoffs, Seller On Three Deals, Then Issued Title Insurance To Victims

From the Office of the U.S. Attorney (Boston, Massachusetts):
  • A Boston attorney was arraigned [] on wire fraud and money laundering charges arising out of a mortgage fraud scheme involving properties in Braintree and Malden. STUART H. SOJCHER, 57, of Leominster, was indicted by a federal grand jury on four counts of wire fraud and six counts of money laundering.

  • According to the indictment, Sojcher submitted fraudulent loan documents to two mortgage lenders and then misappropriated most of the $1.3 million in proceeds rather than paying off the prior mortgages as directed by the lenders.

  • The indictment alleges that Sojcher also agreed to perform a closing in connection with a legitimate property purchase, but pocketed the proceeds of that loan, along with the down payment made by the buyers, rather than paying the proceeds to the seller.

  • To conceal his fraud, Sojcher issued title insurance on all three of the properties, thereby pocketing the commissions from his sale of the policies and lulling the new lenders, and the innocent homeowners, into believing that the previous mortgages had been paid off.(1)

For the U.S. Attorney press release, see Attorney Charged With Mortgage Fraud.

(1) If the allegations in this matter turn out to be true, the victims will be able to turn to the Massachusetts Clients' Security Board of the Supreme Judicial Court, which manages and distribute money collected from annual dues paid by members of the bar to members of the public who have sustained a financial loss caused by the dishonest conduct of a member of the bar acting as an attorney or a fiduciary.

For similar "attorney ripoff reimbursement funds" that cover the financial mess created by the dishonest conduct of lawyers licensed in other states and Canada, see:

Maps available courtesy of The National Client Protection Organization, Inc.

MERS: A Primer

The Washington Post recently ran a story on Virginia-based Mortgage Electronic Registrations Systems ("MERS"), the electronic clearinghouse serving as a registry with a reported 67 million mortgages on file, that is said to be at the center of the foreclosure mess by its critics.

For those who don't know much about MERS, the story may be worth a read.(1)

For the story, see How a mortgage clearinghouse became a villain in the foreclosure mess.

In a related commentary, see Rolling Stone: An Extremely Long Metaphor to Explain Mortgage Chaos (describing MERS as "essentially an effort at systematically evading taxes and hiding information from homeowners in ways that enabled the Countrywides of the world to defraud investors and avoid legal consequences for same").

(1) For some additional insight on MERS, see:

Saturday, January 01, 2011

Ohio AG Urges Continued Vigilance By The Courts In Foreclosure Robosigner Cases

From the Office of the Ohio Attorney General:
  • In a letter sent [] to Ohio judges, Attorney General Richard Cordray has requested that the state courts continue to pay close attention to foreclosure cases that may have affidavits signed by robo-signers. In support of continued vigilance, Cordray highlights several courts that have taken action to address the situation.

  • "In tracking these cases throughout the state, we have found that judges are finding different ways to handle them," said Cordray. "Judges from Cuyahoga to Trumbull to Butler Counties have all found ways to deal with affidavits that may be fraudulent. I strongly urge other courts to consider options that will work best for them as our office decides how to handle the individual cases."

  • In the letter, Cordray highlights the following decisions by Common Pleas Judges:

    In Butler County, Judge Charles Pater issued an order denying GMAC's motion to ratify a judgment because "neither the Ohio Civil Rules nor the local rules of this court provide a procedure for or authorize a court to 'ratify' a final appealable order" and stating that "the proper course of action would be for GMAC to first file a motion to set aside its judgment and then, once the court grants that motion, to refile its motion for summary judgment with a correctly executed affidavit in support."

    In Cuyahoga County, Judge Nancy Russo has scheduled a hearing requiring a foreclosure plaintiff "to provide the court with proof of integrity of all documents submitted."(1)

    In Franklin County, Judge John Bender issued an order in a foreclosure case requiring that foreclosure counsel "personally certify the authenticity and accuracy of all documents submitted in support of judgment."

    In Trumbull County, Judge Andrew Logan sent a letter to foreclosure counsel requiring that affidavits state that the signatory "has personal knowledge of the file and has personally reviewed the documents."

Source: Ohio Courts Take Action in Foreclosure Cases.

Go here to view the Ohio AG's letter to Ohio judges in full.

(1) The Ohio AG's letter notes a recommendation made by the Cuyahoga County Court of Common Pleas for dealing with robosigned affidavits:

  • The Cuyahoga County Court of Common Pleas has issued a policy on foreclosure affidavits, recommending that its judges issue an order requiring a lender who submitted a robo-signed affidavit, pre or post-judgment, to show cause why the case should not be dismissed without prejudice. In the future, counsel for a lender in a foreclosure proceeding must sign an affidavit attesting that counsel has reviewed the file and confirmed with his or her client that the client reviewed the file. The policy, which is currently under review, and template affidavit are available [here].

Stern Makes "Dirty Dozen" List Of South Florida Despicables For 2010; Scores Perfect 10 On New Times' "Dirt Meter"

In South Florida, Broward-Palm Beach New Times reports that foreclosure mill king David J. Stern has made its "Dirty Dozen" list of most despicable South Florida people for the year 2010.

In rating the bad guys from one to ten (with ten being the worst) on its special Dirt Meter (distinguishing mere scamp from pure unadulterated scoundrel), Stern scored a perfect ten. He is said to potentially be the poster boy for the entire foreclosure quagmire in this country, and the story ends its description of Stern by saying that "If Americans ever do take to the streets in violent revolt, it's people like Stern who will be hunted."

For the story, see The Dirty Dozen: 2010's Most Despicable People.

Lawsuit: Insurer Stiffed Homeowner On Claim After Hard Freeze Allegedly Led To Ruptured Water Pipe, Causing Shift In Foundation, Damage To Structure

In Galveston, Texas, The Southeast Texas Record reports:
  • A Santa Fe couple alleges that American Security Insurance Co., Assurant Inc., Claim Adjustment Specialists and adjuster Michael Bower have failed and refused to fully honor their claim over a water line rupture at their residence, recent court documents say.

  • In a lawsuit filed Dec. 16 in Galveston County District Court, complainants James and Karen Wingate accuse the defendants of wrongfully denying the claim for property repairs as well as withholding timely payment of the disputed damages.

  • A hard freeze on Jan. 6 earlier this year caused the water line running from the pump well into the rear of the house under the slab of the patio enclosure and into the house to burst. "As a result, the Wingates' foundation was pushed up and the Wingates' home was substantially damaged," the original petition says. "As a result, the interior, exterior, roof and other structures of the home were damaged."

  • The plaintiffs subsequently filed a claim with American, asking the carrier to handle the repair costs. American handed the claim to Assurant, which turned it over to CAS and Bower for further investigation. According to the suit, the defendants underestimated the damages thus turned down the claim. Repairs were not able to be conducted to the home since the damage, the Wingates say.

  • They insist the continuous delays of payment have inflicted significant economic impact, worry, distress and continuing economic and physical damage.

Source: Couple sues insurer, adjuster over water line rupture at home.

Lawsuit: Landlord's Failure To Fix Water Leak Forces Tenant To Flee Apartment, Citing Mold Damage That Caused Health Concerns, Damage To Possessions

In Jefferson County, Texas, The Southeast Texas Record reports:
  • A Jefferson County man wants to be reimbursed for items he says he lost when mold infested them following a recurring water leak at his apartment. Leonard Lewis filed a lawsuit Dec. 13 in Jefferson County District Court against Kiran Housing Group, doing business as Alabama Garden Apartments.

  • Lewis claims he lived at Alabama Garden Apartments, an apartment complex at 4905 Wyatt in Beaumont owned by Kiran, when the incident occurred. While under lease at the apartments, Lewis discovered a water leak coming from one of his neighboring apartments and repeatedly informed the defendants of the problem, according to the complaint.

  • However, Kiran failed to remedy the problem, the suit states. "It was then discovered that the water leakage caused mold to accumulate on Plaintiff's possessions, requiring them to be destroyed," the complaint says. "Further, due to the unsafe condition of the apartment, and danger to his health and safety, the Plaintiff was forced to move out of his residence and seek alternative shelter."

  • Because of the water leak, Lewis claims he sustained personal property damages and inconvenience. Lewis blames Kiran for causing his damages, saying it negligently violated the Texas Deceptive Trade Practices Act, breached express or implied warranties and engaged in an unconscionable action.

Source: Beaumont man sues apartment owners over mold damage.

Friday, December 31, 2010

BofA Continues Its Reckless Conduct By Threatening Foreclosure & Ruining Homeowners' Credit Despite Acknowledging That Mortgage Is Not In Default

In West Hartford, Connecticut, Connecticut Watchdog reports:
  • In one of the more bizarre foreclosure cases, Bank of America is threatening to throw a West Hartford family out of their home even though the couple never missed a mortgage payment.

  • The largest bank in the United States earlier this month notified Shock Baitch and his wife Lisa (Friedman) Baitch that foreclosure action will start today – Christmas eve – unless the couple agrees to put their home up for a forced sale.

  • Why? Because another unit of Bank of America erroneously reported to credit agencies that the family was seeking a loan modification, ruining their credit rating and as the result putting their mortgage into default.

  • All this is happening even though the bank – after admitting it erred and sent a letter of apology in September – handed this case to a special unit at Bank of America that is charged with dealing with severe customer issues. It promised to notify the credit reporting agencies that the couple were not deadbeats, but were good credit risks.

***

  • [The couple's attorney Wendell] Davis, a member of the Ct Bar Association’s foreclosure committee, said he is preparing a lawsuit to protect his clients because it’s the only way to hold Bank Of America accountable for its actions.

For more, see Bank Of America’s Christmas present: Foreclose Even Though Not A Payment Missed.

Jailed Son Scores $1.1M Inheritance From Deceased Mom, Despite Getting Ten Years For Neglect, Abuse, $115K Ripoff Before Her Death

In Louisville, Kentucky, The Louisville Courier Journal reports:
  • Filthy, frail and suffering from dementia, 81-year-old Harriet Robbins was removed from her Cherokee Gardens home in late 2006 after police found the retired church bookkeeper alone and in “deplorable condition,” with no heat or power, according to court records.

  • Her son and caregiver, John Jackson Robbins Jr., later pleaded guilty to charges of neglect, abuse and stealing $115,000 from her. Robbins, 53, was sentenced to 10 years in prison in 2008 and is incarcerated at the Kentucky State Reformatory.

  • But he's now a wealthy man — having inherited his mother's $1.1 million estate after she died in 2008. Advocates say it's a prime example of why Kentucky needs a law that prevents people who exploit or abuse elderly or vulnerable adults from inheriting their estates when they die — similar to the state'sslayer statute,” which bars killers from financial gain as a result of their crimes.

For more, see Preying on Seniors Relatives abuse, but still inherit.

Go her for more on Preying on Seniors.

"Granny Snatching" Expected To Soar As A Prime Form Of Elder Abuse, Allowing Perpetrators To Hijack Control Over Aged Relatives' Assets

The Connecticut Watchdog reports:
  • Granny Snatching. What is it? It’s an ugly phrase and an uglier practice and it is increasingly affecting more and more American families. Granny Snatching occurs when younger family members take custody of an elder relative under false pretenses, convince a judge to declare the elder person incompetent, allowing them to then force their aged relative into a nursing home or similar institution, and strip them of their assets. In the coming decades trillions of dollars will be at stake as America’s population ages, and we must prepare now to defend ourselves and our finances in the future.
  • We hear about these incidents when they involve rich or famous people with lots of money at stake, but not the day-to-day incidents involving regular folks with modest incomes or nest eggs. Yet according to advocates for the elderly, incidents of Granny Snatching are growing exponentially across the US and in Canada. With the first Baby Boomers turning 65 in March 2011, Granny Snatching is expected to quickly become one of the prime forms of elder abuse.(1)
For more, including an account of the author's experience with his own siblings' attempt to "snatch" their own mother by attempting to commit her to a nursing home and hijack control over her assets, see GRANNY SNATCHING: Ron Winter’s New Weekly Blog.
(1) For other resources on "granny snatching," see: