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.
Monday, August 13, 2012
Buffalo Bankruptcy Attorney Raises Questions About L.I. Foreclosure Mill's Billing Practices; Suspects Systematic Squeezing Of Homeowners Across NYS
In Buffalo, New York, The Buffalo News reports:
A Buffalo bankruptcy attorney's attempt to investigate and call into question the fees charged to debtors by a prominent downstate foreclosure law firm has triggered a bitter defamation lawsuit.
Attorney Peter Grubea, who runs the largest bankruptcy practice in Western New York by volume of cases, has raised questions about what he calls high and unnecessary fees charged by Rosicki, Rosicki & Associates P.C., of Long Island, one of the biggest foreclosure firms in the state.
He accuses them of racketeering, a charge often used for organized crime and corruption. In a blog posting on his website in late March, Grubea wrote that he is "currently investigating the billing practices" of Rosicki, saying that "we believe that the charges imposed ... are unfairly high."
He also wrote that he is already litigating the issue in a bankruptcy proceeding and expects additional litigation in state court, and asks for people to contact him if they've dealt with Rosicki in a foreclosure case. "You may have a claim for monetary damages," he wrote.
In response, Rosicki sued Grubea for defamation and libel, accusing him of "publicly and falsely defaming plaintiffs to the whole world" by making "defamatory statements that are directed squarely at destroying both the business and reputation of plaintiffs."
The battle between Grubea and the downstate firm illustrates what is already happening in the wake of the dissolution earlier this year of Steven J. Baum's firm, which had been the dominant foreclosure law firm in the state for years.
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In a legal memorandum, filed as part of the bankruptcy petition for a Lancaster woman to justify reducing her mortgage debt, Grubea accused the Rosicki firm and its affiliated title and legal service firms of being "engaged in the systematic overbilling of New York homeowners for all of the foreclosure-related services they provide."
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As a result, Grubea alleged, Rosicki actually earns more money on a case through non-lawyer paperwork - handled by the affiliated companies that are owned and run by the law firm's husband-and-wife partners - than it does from the work performed by its lawyers.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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