Have You Been Abused By Your Mortgage Lender?

When a mortgage lender or servicer engages in wrongful behavior, many homeowners believe they have no power to hold these large financial companies responsible for their actions. While legislators in Washington tend to favor big banks over struggling homeowners, these individuals can seek recourse in the court system. While filing an abuse complaint against a major corporation can seem daunting, an experienced foreclosure attorney can stand up for your rights and guide you through the legal process.

Recent abuse cases indicate hope in the courts

Two cases from earlier this year give homeowners some hope that courts can be on their side in mortgage abuse and fraud cases. Both cases involve wrongful actions by banking giant Wells Fargo—a lender with a marginally better reputation than other mortgage companies.

In New York, Wells Fargo was involved in a five-year-long foreclosure case over a $170,000 property. In order to successfully pursue a foreclosure, a bank is required to present certain proof of ownership of the mortgage loan, including notes, assignments, and indorsements. The bankruptcy judge for the Southern District of New York¹ found evidence that the bank had actually forged the documents when they did not have the necessary indorsement on file. As a result, the court granted² the homeowner's objection to the foreclosure claim.

In the second case, homeowners from Missouri who had fallen behind on their mortgage gathered the arrears and Wells Fargo agreed to stop the foreclosure once the loan was current. However, despite sending a certified check for about $10,000 per the company's instructions, Wells Fargo continued with the foreclosure sale the very next day. The homeowners further asserted that Wells Fargo foreclosed with no actual proof of a mortgage note. The court held³ the bank acted intentionally deceptively and awarded the homeowners clear title to their property, $96,000 from Wells Fargo, $200,000 for emotional distress, and $2.9 million in punitive damages.

Mortgage abuse is very broad and the above cases are not necessarily examples of what will happen in every homeowner's claim for abuse. Though the courts do not always find so in favor of the homeowners, it is worth discussing your situation with an experienced foreclosure attorney to find out your legal options.

Have you been the victim of abuse?

Mortgage abuse can come in many forms, including:

·       Misapplying payments to the wrong account

·       Blocking loan refinances with other lenders

·       Charging illegal fees

·       Unresponsiveness to lenders trying to find solutions

·       Agreeing to loan modifications yet still initiating foreclosure

·       Failing to provide proper notice of default or impending foreclosure

·       Failing to follow New York state law in pursuing foreclosure

·       Initiating foreclosure without proof of mortgage notes

·       Falsifying documents to enable foreclosures

If you believe you have been the victim of any type of wrongful behavior on the part of your mortgage lender, call 631-296-0912 to speak to a New York and Long Island foreclosure attorney at the Law Office of Ronald D. Weiss today.

References:

¹http://www.nysb.uscourts.gov/content/judge-robert-d-drain

²http://graphics8.nytimes.com/packages/pdf/business/FranklinOpinion.pdf

³http://graphics8.nytimes.com/packages/pdf/business/judgment.1-26-15.pdf