twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.


Foreclosure Litigation

Recent foreclosure lawsuit activity

June 8, 2009

By SAM GARCIA


Servicers in three states must contend with a growing army of lawyers who are offering pro bono services for borrowers facing foreclosure. In some cases, borrowers are successfully fending off foreclosure by demanding a copy of the note.

Indiana Chief Justice Randall T. Shepard recently announced a plan to train more judges, mediators and lawyers about dealing with foreclosure cases. Indiana Lieutenant Governor Becky Skillman is leading a statewide effort, and an education session was co-sponsored by the Indiana Supreme Court, Indiana Legal Services Inc. and the Legal Aid Society of Southwest Ohio.

"The Indiana Supreme Court will offer scholarships to private attorneys who complete the training and agree to handle one mortgage foreclosure case on a pro bono basis," the announcement said.

The Florida Bar and Florida Legal Services launched a similar effort last year dubbed Florida Attorneys Saving Homes, or 'FLASH.' In 2007, Ohio Supreme Court Chief Justice Thomas J. Moyer called on Ohio attorneys to offer their services pro bono to assist in addressing the increasing number of foreclosure cases

Many delinquent borrowers contest their foreclosures as a tactic to avoid paying their loan while still living in the property, according to attorney Christopher E. Thorsen with Bradley Arant Boult Cummings LLP. Thorsen, who represents servicers in foreclosure litigation, noted that the borrowers are just working the system.

But he identified one tactic works well for servicers.

"We've found having the court order the borrowers to pay all or a significant portion of their mortgage payments into court while the case is pending can resolve the matter very quickly," he said in a statement. "If borrowers object to paying their mortgage payment into court, judges usually ask if they really intend to live in their house without paying anything.

"Generally, if a borrower is just looking to get out of their payments by filing a lawsuit, requiring them to meet their obligations by paying their mortgage amounts into court brings the case to a quick conclusion."

Thorsen is up against law firms like Oppenheim Pilelsky, P.A., which claims it was able to extract a $200,000 principal modification from a lender that was unable to produce the note in a foreclosure. Attorney Roy Oppenheim, who holds free workshops for delinquent borrowers, noted that Florida faces a backlog of foreclosure cases because of economic cutbacks.

In a February statement, MFI-Miami LLC claimed that Deutsche Bank does not have a legitimate claim on many minority borrowers facing foreclosure because it rarely produces -- or refuses to produce -- the original note, mortgage or a valid note transfer. Instead, Deutsche allegedly retains counsel to intimidate borrowers, obtain default judgments and complete the foreclosure as quickly as possible.

"These mortgages have been traded by fund managers like baseball cards," MFI said. "Deutsche Bank is named as the trustee on nearly 50 percent of the fraud investigations we have done in the past six months."

The Associated Press reported that an increasing number of delinquent borrowers appear to be delaying the foreclosure process by requesting a copies of their notes. The first time the strategy was employed was in 2007 against Deutsche Bank in Cleveland. A federal judge dismissed 32 foreclosure cases filed by Deutsche Bank, Wells Fargo and others because the paperwork filed with the court did not establish the history of the mortgages' ownership.


Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com in 2000.

e-mail: [email protected]




Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.


Logout forgot
password?

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders