Mortgage Daily

Published On: June 23, 2010
Foreclosure Lawsuits
First-Quarter 2010 Mortgage Litigation Index
Servicer-related litigation, foreclosure lawsuits and cases against foreclosure rescue services.

Case Title
Case Number
Date Filed Link to StoryLink to Story
Alan Miller, Phyllis A. Miller, Branch Banking and Trust Co., Jeff D. Rogers, substitute trustee Fifth Third Mortgage Co. North Carolina Court of Appeals na Fifth Third filed suit seeking reformation of a deed of trust that included an incorrect description of the real property that was being foreclosed upon by another lender. The other lender was deemed to have priority to the proceeds of the foreclosure sale because the error in the deed of trust precluded Fifth Third’s priority claims. Fifth Third Mortgage Co. v. Miller et al No. COA09-961 March 2, 2010
American Home Mortgage Holdings, Inc. et al na U.S. Bankruptcy Court for the District of Delaware $100k AHM was held liable for aiding and abetting mortgage fraud perpetrated by an unlicensed real estate broker. In Re. American Home Mortgage Holdings, Inc. et al No. 07-11047 na
American Home Mortgage Servicing, Inc., Option One Mortgage Corporation, Quality Loan Service Corp., Olympic Mortgage & Investment Company, Inc., Phillip Rouble and Timothy Alan Smith and Does 1-20 Walter Baldain Jr., Michael Baldain U.S. District Court, E.D. California na The judge denied Defendants’ motion to dismiss the lawsuit where defendants are accused of foreclosing on the wrong property. Baldain v. American Home Mortgage Servicing, Inc. Case No. CIV. S-09-0931 LKK/GGH January 5, 2010
Bank of America Corp. Alan Schroit 122nd State District Court in Galveston na Plaintiff claims that Bank of America mistakenly foreclosed on his free-and-clear Galveston vacation home–changing the locks, shutting off the power and resulting in 75 pounds of spoiled salmon. Schroit v. Bank of America Corp. 3:2010cv00044 February 10, 2010
Bank of America Corp. Angela Iannelli Allegheny County, Pennsylvania Bank repossessed wrong house and, in the process, stole a parrot. na na na
Bank of America et al. Charlie P. Cardoso and Maria C. Cardoso et al. Massachusetts District Court na Bank of America faces litigation over Countrywide’s 2009 foreclosure of a free-and-clear property owned by plaintiffs. Cardoso et al. v. Bank of America et al. 1:2010cv10075 January 20, 2010
Bank of America, Bank of America, A1 Preservation Corp. and Richard A. Spurgeon (Unknown Agents) Christopher Hamby Commonwealth of Kentucky Floyd Circuit Court na Plaintiff claims that Bank of America mistakenly foreclosed on his residence and caused damage to his property. Hamby v. Bank of America Civil Action NO. 09-CI-01137 February 1, 2010
Chase Manhattan Sandra Faye Wright 1st Judicial District, Caddo Parish, Louisiana na On removal to US District Court for the Western District of Louisiana, Chase wins on motion to dismiss claim alleging failure to remit mortgage payment from borrower to CitiFinancial Mortgage. na na February 12, 2009
City of Providence Deutsche Bank National Trust Rhode Island Superior Court na Plaintiff alleges that a law by the city of Providence violates Rhode Island law. na na January 14, 2010
Countrywide Home Loans Montana Attorney General Steve Bullock na $247,247 A foreclosure relief settlement with Montana Attorney General Steve Bullock will cost Countrywide $247,247. Defendant was accused of fast-talking borrowers into dubious loans they did not understand and had little or no hope of ever paying back. Borrorower received checked for $3,129 as settlement. na na na
Dolores Chia Wells Fargo Bank, N.A. na na An appeals court denied an individual’s attempt to amend a complaint to name mortgagor Wells Fargo because her bankruptcy proceedings had already been discharged. na na na
Edward D. McCusker, Jeffrey A. Bennett, Stephen G. Doherty, John Alford Bariana, Jacqueline McCusker United States U.S. District Court for the Eastern District of Pennsylvania na Defendants are accused of operating a scheme from 2004-2007 using mortgage fraud to extract the remaining equity in homes where borrowers were delinquent or financially distressed. United States v. McCusker et al. na December 8, 2009
Edward Seung Ok, Martha Rodriguez, Cynthaia Valenzuela, Vladimir Stefanovic and Maria G. Juarez United States of America na $40,000,000 Prison sentences handed out in foreclosure scam na na na
Eric Alpert Nevada na na Alpert is accused of illegally seizing foreclosed properties, while Alpert claims a law called adverse possession allows him to seize vacant homes. He faces up to 147 years in prison for seizing control of the properties and leasing them out. na na na
First Horizon Home Loans Brian P. Sims Court of Appeals, Twelfth Appellate District of Ohio, Warren County na Summary judgment in favor of lender foreclosing on note is affirmed in part and reversed in part. First Horizon Home Loans v. Sims No. CA2009-08-117 na
G Services Group LLC d/b/a Guardian Services Group State of Ohio ex rel. Attorney General Richard Cordray Court of Common Pleas of Montgomery, Ohio na Defendants are accused of charging borrowers thousands of dollars to help them avoid foreclosure and refusing to provide refunds even though services were never provided. State of Ohio v. G Services Group LLC d/b/a Guardian Services Group Case No. 2010 CV 00805 February 1, 2010
Greenpoint Mortgage Funding, Inc. Melody L. Cochran California Court of Appeals, Second Appellate District, Division Five na Plaintiff sued to quiet title and for fraud based on fraudulent transfer of spouse’s separate property by husband. Appellate court reversed a summary judgment grant in favor of Greenpoint, who had recorded two Deeds of Trust on the Property Cochran v. Greenpoint Mortgage Funding, Inc. No. B214890 March 9, 2010
Home Savers Consulting Corp., Garth Celestine, Phil A. Simon na na $10,000,000 Guilty plea in alleged foreclosure scam. na na na
Isaac Yass and Andrew Blechman United States U.S. District Court in Topeka, Kansas $1,000,000 Sentences pursuant to convictions for fraudulently filing bankruptcies in the name of nonexistent individuals with businesses that claimed to be part-owners of properties that were in foreclosures. U.S. v. Yass No. 08-40008-JAR January 4, 2010
Jamaar Manlove, Larry Manlove, Rhonda Manlove, Master Builders for Christ and Vision Builders Christian Center United States Delaware na Defendants were charged in a 21 count indictment for mortgage fraud. Defendants allegedly promised borrowers who were on the verge of foreclosure that they could avoid foreclosure through a complex sale-leaseback scheme where they transferred title then took it back after their financial standing improved. na na February 2, 2010 (Indictment announced)
Jeffery Tye Brown na na na Indictment over alleged foreclosure scheme. Borrower fled to Phillipines. na na na
Jennifer McCall, Wilbur Ballesteros, Ronald Aaron Chapman Jr., Clifford McCall, Joy Jackson, Kurt Forham na na $17,000,000 Some of defendants sentenced in foreclosure scheme. na na na
Julian James Ruiz III State of Oregon na na Mortgage fraud results in criminal prosecution for owner of American Home Modification. na na na,
Marilyn L. Elliott and Michael S. Elliott JPMorgan Chase Bank, as Trustee on Behalf of the Registered Certificate Holders of GSAMP Trust 2004-SEA2, Mortgage Pass-Through Certificate Series 2004-SEA2 Court of Appeals of Indiana na The court overturned a foreclosure filed by Ocwen Bank on behalf of Appellee, JP Morgan Chase Bank, finding that Chase had already recorded a satisfaction of lien after the original borrower had paid the loan in full in 2001. The foreclosure was erroneous. Elliot v. JPMorgan Chase Bank Case No. 30A01-CV-356 February 2, 2010
Michael Brotherton State of Ohio ex rel. Attorney General Richard Cordray Court of Common Pleas of Green County, Ohio General Division $81,894 An $81,894 judgment was obtained against Defendant who allegedly promised debit negotiations and modification in exchange for an up-front fee of $1,269. Defendant failed to deliver any services. State of Ohio v. Brotherton Case No. 2009 CV 0709 January of 2010
Michael Sinclair, William Vargas na na na Indictment over alleged foreclosure scheme. Sinclair fled to Phillipines. na na na
National City Bank Judith Engler and Estate of Harold P. Engler Minnesota Court of Appeals na The court found that a mortgage was valid and enforceable against a wife who didn’t sign the loan documents as a co-borrower but stopped making payments after her husband died. National City Bank v. Engler No. A09-837 January 26, 2010
PNC Bank and First Franklin Financial Corporation and Home Loan Services, d/b/a First Franklin Loan Services, and Select Portfolio Servicing, Inc. and American Home Mortgage Servicing, Inc. and U.S. Bank National Association and Citigroup Global Markets Realty Corp. Pansye Williams U.S. District Court, S.D. West Virginia, Charleston Division na The court denied Defendants’ Motion to Change Venue in a case where the Plaintiff is trying to avoid a foreclosure. Williams v. PNC Bank Civil Action No. 2:09-CV-953 January 29, 2010
Stan Kahan Jennifer Zollars Solano County Superior Court, California na The same day that the REO department of the U.S. Bank sold property to the plaintiff, another department at the bank filed a notice-of-trustee’s sale based on an earlier deed of trust to Stan Kahan, who filed an eviction notice against the plaintiff. Zollars filed suit alleging she owned the home, but the court ruled against her in finding that CA law protects a bidder at a foreclosure sale upon delivery of a trustee’s deed after a non-judicial foreclosure sale if he is a bona fide purchaser. Zollars v. Kahan Case # FCS 031010 na
United Law Group, Inc. State of Ohio ex rel. Attorney General Richard Cordray Franklin County Common Pleas Court na Defendant is accused of soliciting borrowers over the phone using “high-pressure sales tactics”–charging upfront fees of as much as $4,000–and not delivering on its promises. State of Ohio v. United Law Group, Inc. Case No. 10 CVH 02 1567 February 1, 2010
Wells Fargo Bank, Bank of America, Guaetta and Benson Marie Carole Eveillard, Andre E. Pierre U.S. District Court for the District of Massachusetts na Plaintiffs seek cessation of foreclosure auction proceedings and mortgage modification. Eveillard et al v. Wells Fargo, NA et al. Case No. 1:10-cv-10351-RWZ Feb. 26, 2010
Wells Fargo Bank, NA, as trustee for Bear Sterns Asset Backed Securities I LLC, Greenpoint Mortgage Funding Trust 2006-ARI, Mortgage Pass Through Certificates, Series 2006-ARI John Cirigliano Circuit Court of the Eleventh Judicial District, Miami Dade County, Florida na Plaintiff’s motion for summary judgment denied based on issues of material fact as to standing. Wells Fargo, NA v. Cirigliano No. 08-28846-CA10 March 25, 2010
William Gahwyler Jr. and Frederick Cleveland Sean O’Brien and Nicole O’Brien U.S. Bankruptcy Court $700,000 Defendant Gahwyler found liable over alleged participation in a mortgage foreclosure rescue scam. O’Brien v. Cleveland Case No. 08-1676 January 22, 2010 (ruling)

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