|
Defendant
|
Plaintiff
|
Court
|
Amount
|
Overview
|
Case Title |
Case Number
|
Date Filed |
Link to StoryLink to Story |
| Antonio Ibanez |
U.S. Bank National Association, as trustee for the Structured Asset Securities Corporation Mortgage Pass-Through Certificates, Series 2006-Z |
Massachusetts Land Court |
na |
Plaintiff, the securitization trustee, foreclosed on the defendant’s loan before the loans had been properly assigned to the trustee. The judge denied a motion to vacate the judgment finding that the foreclosure sale was invalid because it failed to meet the minimum requirements of the Massachusetts foreclosure statute. |
U.S. Bank National Association v. Ibanez |
08 MISC 384283 (KCL) |
na |
www.mortgagedaily.com/LawsuitMaForeclosures102109.asp |
| Boyd A. Kessler, Millennia Mortgage Corp. |
Landmark National Bank |
Supreme Court of the State of Kansas |
na |
Despite its participation in the Mortgage Electronic Registration Systems Inc. registry, a second mortgage holder in Kansas was not notified about a foreclosure action by a first mortgage holder–leaving excess sale proceeds to the bankrupt borrower. The subordinate lender unsuccessfully tried to have the action reversed — highlighting flaws in the widely used MERS system. |
Landmark National Bank v. Kessler |
Case No. 06-CV-155 |
Jan. 2007 |
www.mortgagedaily.com/LawsuitMers100209.asp |
| Edward G. McCusker, Jeffrey A. Bennett, Stephen G. Doherty, John Alford Bariana, Jacqueline McCusker |
United States of America |
U.S. District Court for the Eastern District of Pennsylvania |
$14,600,000 |
Criminal action against individuals or conspiracy and fraud by recruiting debtors to use equity built into their homes to pay for a new mortgage that would be purchased by straw purchasers, who then would take out an additonal mortgage on the property and keep the proceeds of the second loan. |
United States v. McCusker, et al. |
na |
Dec. 8, 2009 |
www.mortgagedaily.com/ForeclosureRescueLitigation121509.asp |
| Freddie Rosario |
“LaSalle Bank National Association, as trustee for the certificate holders of Bear Stearns Asset Backed Securities I, LLC Asset-Backed Certificates Series 2007-HE2 |
Massachusetts Land Court |
na |
The Massachusetts Land Court upheld the validity of a foreclosure which took place after the loan was assigned to the securitization trustee, but before the assignment was recorded. |
LaSalle Bank National Association, as Trustee v. Rosario |
MISC 386018 (KCL) |
na |
www.mortgagedaily.com/LawsuitMaForeclosures102109.asp |
| H&R Block, Inc.; Block Financial Corp.; Option One Mortgage Corp.; H&R Block Mortgage Corp.; AH Mortgage Acquisition Co., d/b/a American Home Mortgage Servicing Inc. |
Commonwealth of Massachusetts |
Suffolk Superior Court, Massachusetts |
na |
Defendants allegedly originated risky subprime loans with reckless disregard as to whether the borrowers would be able to pay back the loans. In addition, defendants allegedly discriminated against African-American and Latino borrowers. American Home Mortgage Servicing Inc., against whom no misconduct is alleged, has acquired Option One’s servicing business and has reached a settlement with Massachusetts, which includes modifying 8,200 mortgages. Specifically, borrowers who are more than 45 days past due and unable to make their scheduled payments are eligible for modifications. However, litigation against Option One and H&R Block is expected to go to trial next year. |
Commonwealth of Massachusetts v. H&R Block, Inc. et al. |
08-2474-BLS1 |
June 1, 2008 |
www.mortgagedaily.com/SettlementAmericanHome111309.asp |
| IndymacBank F.S.B. |
Diana Yoro-Horoski, Wells Fargo Bank Minnesota National Association as Trustee for Soundview Home Equity Loan Trust 2001-1, Kinberly Horoski |
Supreme Court, Suffolk County, New York |
$292,500 |
Judge voided a promissory note upon which Indymac attempted to forclose due to failure of lender to prove ownership of the note, amounts due under the note, and refusal to conduct settlement negotiations required by state law. |
IndyMac Bank F.S.B. vs. Dian Yano-Horoski, Wells Fargo Bank Minnesota National Association as Trustee for Soundview Home Equity Loan Trust 2001-1 and Kimberly Horoski. |
2009 NY Slip Op 52333(U) |
Nov. 19, 2009 |
www.mortgagedaily.com/PbForeclosureNy120409.asp, www.mortgagedaily.com/ForeclosureLitigation121509.asp |
| James William Fox II, James Hooper Dan |
United States of America |
na |
$2,400,000 |
Indictment in equity stripping scheme. |
na |
na |
na |
www.mortgagedaily.com/ForeclosureRescueLitigation121509.asp |
| Jennifer McCall, Wilbur Ballesteros, Ronald Aaron Chapman Jr. |
United States of America |
U.S. District Court |
$16,900,000 |
135-month sentence in foreclosure rescue scam at Metropolitan Money Store. |
na |
na |
na |
www.mortgagedaily.com/ForeclosureRescueLitigation121509.asp |
| Marc. A. Larace and Tammy L. Larace |
Wells Fargo Bank, N.A., as trustee for ABFC 2005-OPT 1 Trust, ABFC Asset Backed Certificates Series 2005-OPT 1 |
Massachusetts Land Court |
na |
Plaintiff, the securitization trustee, foreclosed on the defendant’s loan before the loans had been properly assigned to the trustee. The judge denied a motion to vacate the judgment finding that the foreclosure sale was invalid because it failed to meet the minimum requirements of the Massachusetts foreclosure statute. |
Wells Fargo Bank v. Larace |
08 MISC 386755 (KCL) |
na |
www.mortgagedaily.com/LawsuitMaForeclosures102109.asp |
| National Payment Modification Company; The Bostonian Group, LLC, f/k/a The Bostonian Group, Inc. d/b/a People’s First; and William R. Rodriguez, Sr. |
State of Florda |
Circuit Court in Orange County, Fla. |
na |
Allegedly engaged in foreclosure rescue fraud. The lawsuit alleges that defendants accepted fees in exchange for assisting homeowners in preventing foreclosure. However, the defendants provided no such services. Furthermore, defendants obtained their clients using mailings that implied that they came from a federal agency. |
State of Florda v. National Payment Modification Company; The Bostonian Group, LLC, f/k/a The Bostonian Group, Inc. d/b/a People’s First; and William R. Rodriguez, Sr. |
na |
Oct. 9, 2009 |
www.mortgagedaily.com/ModificationLitigation123109.asp, www.mortgagedaily.com/ForeclosureFirmLitigation111709.asp |
| Phillip Seibel |
United States of America |
U.S. District Court in Oklahoma |
$770,037 |
30-month sentence plus restitution over alleged foreclosure rescue scam through Homesavers LLC. |
na |
na |
na |
www.mortgagedaily.com/ForeclosureRescueLitigation121509.asp |
| Tyrone Bailey, Individually, a/k/a T.D. Bailey a/k/a J.D. Bailey d/b/a Behind on Mortgage; Mark Bailey, Individually a/k/a Markus Bailey, d/b/a Behind on Mortgages, USA |
State of Texas |
134th Judicial District, Dallas County, Texas |
$20,000 per violation of the Texas Deceptive Trade Practices Act in addition to legal costs |
The defendants allegedly visited homeowners facing foreclosure and told the homeowners that they could help them acquire new loans, renewals, and extensions on current loans. However, despite accepting payment, defendants provided no such services and the homeowners lost their homes. The judge granted an agreed temporary injunction barring the defendants from deceptively operating their unlicensed business and required them to pay the fees they charged back to the homeowners. The state seeks $20,000 per violation of the Texas Deceptive Trade Practices Act in addition to legal costs. Also alleged are violations of the Texas Business and Commerce Code and the Texas Finance Code. |
State of Texas, Plaintiff, v. Tyrone Bailey, Individually, aka T.D. Bailey a/k/a J.D. Baily d/b/a Behind on Mortgage, and Mark Bailey, Individually a/k/a Markus Bailey, d/b/a Behind on Mortgage, USA Defendant |
09-14826, 09-18246 |
na |
www.mortgagedaily.com/ModificationLitigation123109.asp, www.mortgagedaily.com/ForeclosureFirmLitigation111709.asp |
| U.S. Bank National Association; Wells Fargo Bank, N.A. |
Antonio Ibanez; Mark A Larace and Tammy L. Larace |
Massachusetts Land Court |
na |
Judge Long consolidated three cases in which mortgagees failed to record assignments of mortgages prior to sale. Judge Long ruled if a foreclosing mortgagee does not have possession of an assignment dated prior to the date notice is published, the mortgagee does not possess sufficient title to foreclose. This effectively invalidates foreclosure sales where the foreclosing party can produce only an assignment which has a date after that of the date of the published notice, though the effective date of the assignment may be prior to the publication date. |
U.S. Bank National Association v. Ibanez; Wells Fargo Bank v. Larace |
08 MISC 384283; 08 MISC 386755 |
na |
www.mortgagedaily.com/ForeclosureLitigation111709.asp |
| U.S. Bank, National Association |
Estate of George Battle, Jr, Emmett A. Battle, Administrator |
Court of Appeals of Iowa |
$89,756 |
Appeals Court reverses lower court ruling allowing bank to enforce a promissory note against spouse of the note’s signator who lived in the property and married signator after the mortgage was acquired. Court of Appeals held that bank’s negligence in the loan documentation process voided the note. |
In the Matter of the Estate of George Battlew, Jr. |
Case No. 9-607/ 09-0170 |
Dec. 17, 2009 |
www.mortgagedaily.com/LawsuitUsBank122109.asp |
| Warren Agin, Trustee |
Mortgage Electronic Registration Systems Inc. |
U.S. District Court for the District of Massachusetts |
na |
Bankruptcy appeal in which “trustee is allowed to treat a mortgage as an unsecured claim.” |
Mortgage Electronic Registration Systems, Inc. et al v. Warren E. Agin, et al. |
Case No. 1:2009cv10988 |
June 10, 2009 |
www.mortgagedaily.com/ForeclosureLitigation121509.asp |
| Wells Fargo Bank, N.A., Wells Fargo Financial Leasing, Inc. |
Mayor and City Council of Baltimore |
U.S. District Court for the District of Maryland |
tens of millions |
City of Baltimore alleges Fair Housing Act violations, including “reverse redlining,” leading to outsized foreclosure rates among minority sections of the city. |
Mayor and City Council of Baltimore v. Wells Fargo Bank N.A. |
Case No. L08CV062 |
July 7, 2009 |
www.mortgagedaily.com/ForeclosureLitigation121509.asp |
| Wells Fargo Bank, N.A., Wells Fargo Financial Tennessee, Inc., Wells Fargo Financial Tennessee 1, LLC |
City of Memphis, Shelby County |
U.S. District Court for the Western District of Tennessee |
na |
Memphis and Shelby County accuse Wells Fargo of various illicit lending practices, such as reverse redlining, encouraging credit worthy borrowers to purchase subprime instead of prime loans, increased vacancy rates have led to increased costs for the city and county providing services to these areas. |
City of Memphis v. Wells Fargo Bank N.A. |
Case No. 2:09-cv-02857-dkv |
Dec. 30, 2009 |
www.mortgagedaily.com/Litigation123009.asp |
