Tag Archives: foreclosure

Brooklyn Court Quietly Moves to Toss Out Hundreds of Foreclosure Cases

BROOKLYN — Kings County Supreme Court is about to quietly dismiss thousands of foreclosure cases on Tuesday — in what lawyers say will deal a severe blow to homeowners with pending cases.

The court said it planned to dismiss all cases filed before Jan. 1, 2016 that have seen no court activity after Sept. 30, 2016.  It quietly published a notice of the administrative dismissal in the New York Law Journal on Thursday, April 27, giving parties until Monday, May 1 to contact the court to keep their cases alive.

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Repeat foreclosures in the city have reached an all-time high

New York homeowners are in default mode — again.

The city leads the nation in repeat foreclosure filings

And the winner in all this is the residential mortgage servicing industry, which collects monthly payments and cashes in on fees for every homeowner’s misfortune.

The number of repeat foreclosure filings in New York City far outstrips that of other major cities like Los Angeles, while New York state is No. 1 for repeat foreclosures, outpacing every other state and the US as a whole.

In a report prepared exclusively for The Post, Attom Data Solutions found that in New York City last year, roughly 4,900 — or more than half of all new foreclosures filed — were repeats, up from just 5 percent in 2008.

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How the FHA May Impact the Supreme Court Foreclosure Ruling

In a 5-3 decision on Monday, the U.S. Supreme Court determined that cities can sue banks over lost tax revenue on foreclosed properties from urban blight. Law360 reported that Miami has the standing to sue Bank of America Corp. and Wells Fargo & Co. under the Fair Housing Act, stating that the banks’ discriminatory and predatory lending practices led to a major shortfall in city tax revenues.

The final ruling is not up to the high court, however, as the Supreme court sent the case back to the Eleventh District, in order to determine whether the banks’ lending practices were “proximate cause” for the damages. Law360 reported that all eight justices rejected the probable cause argument.

“The ruling is clearly a concern for lenders who believed cities did not have sufficient standing in order to assert claims that are more appropriate to be brought by the ultimate aggrieved parties, which should be the borrowers, assuming of course the allegations are true,” said Shaun K. Ramey, Shareholder, Sirote and Permutt, P.C. “That being said, although the Court granted cities the right to file suit, they set a high bar for proving proximate causation so the impact of the Supreme Court’s decision may not be as broad as it appears at first blush.”

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Local vet urges changes in Dept of Veterans Affairs rules on foreclosures

SPARROWBUSH – Any day now, DJ Gonzalez will be escorted out of his home, and the doors will be locked behind him.

Gonzalez, a 62-year-old Vietnam War veteran, is on the verge of homelessness, due to a string of circumstances that could befall anyone: divorce, health problems and tight finances.

Disabled and unable to work full time, Gonzalez said Social Security payments weren’t enough to keep the home on Academy Avenue where he has lived since 2005 when he purchased it for $164,900, with a loan backed by the U.S. Department of Veterans Affairs.

As the former manager of the Empowering Port Jervis community center, Gonzalez knows how to help people who have fallen on hard times, he said.

Now, being there himself, he wants to address the holes in the system.

In April 2016, the VA bought Gonzalez’s foreclosed home from the mortgage company for $58,800, according to Jennifer Toth, a loan guarantee officer with the VA.

Gonzalez purchased the home for $164,900 in 2005 – near the height of the housing market – but the 2016 appraisal for the home was $70,000, Toth said.

The VA paid the mortgage company an additional $41,650 because it was responsible for up to 25 percent of the loan, she said.

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How a Cruel Foreclosure By BofA Drove a Couple to the Brink of Death

 

A married couple resorted to self-harm after being physically and psychologically terrorized by Bank of America over their house—until a judge fined the bank $46 million.

“Franz Kafka lives… he works at Bank of America.”

Judge Christopher Klein’s words kick off an incredible ruling in a federal bankruptcy court in California last week, condemning Bank of America for a long nightmare of a foreclosure against a couple named Erik and Renee Sundquist. Klein ordered BofA to pay a whopping $46 million in damages, with the bulk of the money going to consumer attorney organizations and public law schools, in hopes of ensuring these abuses never happen again—or at least making them less likely.

The ruling offers numerous lessons in the aftermath of a foreclosure crisis that destroyed millions of lives. First of all, the judge specifically cited top executives as responsible, not lower-level employees. Second, the sheer size of the fine—for just one foreclosure—is a commentary on the failure of America’s regulatory and law enforcement system to protect homeowners, despite the financial industry’s massive legal exposure.

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Bank Of America Ordered To Pay $46M Over Improper Foreclosure

Bank of America must pay $46 million for improperly foreclosing on a California couple’s home in 2010. 

U.S. Bankruptcy Court Judge Christopher Klein levied [PDF] the judgement against the bank this week, calling Bank of America’s actions in foreclosing on the couple’s home “heartless” and “brazen.”

In all, Klein ordered the bank to pay $46 million, most of which will be divvied up by law schools and consumer advocate agencies, with the couple receiving about $1 million.

Klein noted in the 107-page ruling that the fine should be enough to spur change with the bank’s mortgage practices, and not be seen as “petty cash or chump change.”

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90-year-old woman foreclosed, evicted from home of over 60 years

NJ.com:

LAWRENCE — It wasn’t supposed to end this way.

Gloria Turano thought she’d be living on Skillman Avenue when she died, in the ranch home her late husband Louis built for them in 1953. She never wanted to leave it, and the decades of memories of raising a family it holds for her.

“I thought the undertaker would take me out of here,” the 90-year-old Turano said with a smile recently, sitting on a couch in the home’s den.

But as she spoke, the house was not hers anymore.

It belonged to Fannie Mae, the government-sponsored mortgage company, which bought it for $100 at a sheriff’s sale last year after a reverse mortgage company foreclosed on it – shutting down a loan Turano took in 2004.

She borrowed the money to help her pay her property taxes – in an effort to stay in the home. The taxes would be the loan’s undoing.

The money ran low, and Turano’s attempts to contact the lender, Financial Freedom, and refinance or work things out were never answered, she said.

She fell more behind in the taxes, and then legal notices started coming to the home from the lender around 2012 and 2013.