Judge tosses foreclosure suit by ‘living dead’ bank IndyMac

I wish that Justice Arthur Schack was duplicated in all 50 states..

(Reuters) – Something scary has been haunting a homeowner facing foreclosure in Brooklyn — a “living dead” bank that a judge compared to Dracula.

In a decision Thursday involving an apparent case of robo-signing, Kings County Supreme Court Justice Arthur Schack questioned how the failed thrift IndyMac Federal Bank could have initiated a foreclosure on a $460,000 mortgage when the bank ceased to legally exist three weeks earlier.

For IndyMac to have standing to foreclose on homeowner Mendel Meisels’ property “would be the legal equivalent of a vampire — the ‘living dead,'” Schack said.

The judge, a frequent critic of mortgage servicing abuses, also chastised the law firm that brought the foreclosure action, Fein, Such & Crane.

The firm faces possible sanctions from Schack for “engaging in frivolous conduct” by bringing the case on behalf of the defunct bank, the decision said.

Schack compared Fein Such to Dracula’s servant Renfield in the 1931 film about Bram Stoker’s vampire staring Bela Lugosi.

“[Fein Such], similar to Renfield, throughout its papers and at oral argument demonstrated its loyalty by not betraying its client and Master, the ‘living dead’ IndyMac Fed,” Schack wrote.

Derrick Hanna, a lawyer for Meisels at Hanna & Vlahakis, said defense lawyers and the courts won’t stand idly by while banks file fraudulent and forged documents supporting foreclosure cases.

“Proper documentation in compliance with current laws should be the only documents filed in court,” he said in an email. “The banks have rights, but the consumer homeowner does as well and the law protects them equally.”

Read on.

2 responses to “Judge tosses foreclosure suit by ‘living dead’ bank IndyMac

  1. Just in time for Halloween . . .

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