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.
Thursday, May 12, 2016
95-Year Old Homeowner Files Lawsuit Seeking Class Action Status, Alleging That Reverse Mortgage Bankster Conducted "Repeated, Unreasonable & Unnecessary Property Inspections" To Maximize Its Fee Income That Eroded Her Home Equity
The New England Center for Investigative Reporting reports:
A 95-year-old woman backed by consumer and elderly advocates sued two reverse-mortgage companies for charging allegedly excessive fees after she fell into foreclosure proceedings.
The suit, seeking class-action status, said that Texas-based Nationstar Mortgage LLC and Michigan-based Compu-Link Corp. ordered more than 30 property inspections on the home of Retha Floyd — sometimes as often as two or three times a month, and added fees for the inspections to her mortgage debt.
Floyd, of Washington, D.C. faced foreclosure after she fell behind on less than $2,000 in property taxes and insurance payments, but avoided losing her home after working out a payment plan, the May 3 lawsuit said. As reported by The Eye last week, an increasing number of seniors across the country are facing foreclosure because of troubles paying property charges or complications following a spouse who died.
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After Floyd fell into danger of foreclosure in 2012, the companies ordered multiple inspections on her home to allegedly protect their interest, her lawsuit said. The fees for the inspections – some of them “drive-by” looks lasting only a few seconds — eroded her equity in the home, according to the lawsuit.
“Defendants use automated software to order and/or conduct repeated, unreasonable, and unnecessary ‘property inspections’ with the effect of maximizing fee income and cheating borrowers who can least afford it,’’ the suit said.
The suit was filed on Floyd’s behalf in U.S. District Court for the District of Columbia by Legal Counsel for the Elderly, an affiliate of the senior advocacy group AARP; the Boston-based National Consumer Law Center; and the Washington-based law firm Tycko & Zavareei LLP.
National Consumer Law Center attorney Charles Delbaum said Wednesday that there are likely thousands of other “defenseless seniors” being hit with similar charges.
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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