Mortgage Daily

Published On: August 24, 2009
Foreclosure Lawsuits
Second Quarter 2009 Mortgage Litigation Report

Servicer-related litigation, foreclosure lawsuits and cases against foreclosure rescue services.

Defendant
Plaintiff
Court
Amount
Overview
Case Title
Case Number
Date Filed Link to StoryLink to Story
American Mitigation Group Inc. Indiana Attorney General Greg Zoeller n.a. n.a. Fees collected to stop foreclosure process were in violation of Indiana’s Deceptive Consumer Sales Act, Credit Services Organizations Act and Mortgage Rescue Protection Fraud Act. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
Ameriquest Mortgage Securities, Inc.; Bank of America, N.A.; Bear Stearns & Co. Inc.; Chase Bank USA, N.A.; Citibank N.A.; Citigroup Global Markets Inc.; Countrywide Securities Corp.; Credit Suisse USA Inc.; Credit Suisse (USA) LLC; Deutsche Bank Securities Inc.; GMAC-RFC Holding Co.; Goldman Sachs & Co.; Greenwich Capital Markets Inc.; HSBC Securities (USA) Inc.; JP Morgan Acquisition Corp.; Merrill Lynch, Pierce, Fenner & Smith Inc.; Morgan Stanley & Co.; Novastar Mortgage Inc.; Option One Mortgae Corp.; Washington Mutual Bank; Wells Fargo Asset Securities Corp.; and Wells Fargo Bank, N.A. City of Cleveland U.S. District Court for the Northern District of Ohio, Eastern Division n/a Dismissal appealed in case blaming securitizers for Clevelands foreclosure problems. City of Cleveland v. Ameriquest Mortgage Securities, Inc. No. 1:08-cv-00139-SL 15-May-2009 oldwww.mortgagedaily.com/LawsuitCleveland051909.asp
Apply 2 Save Inc. and Derek Oberholtzer Attorney General of Idaho Kootenai County District Court n/a Consumer protection lawsuit attempting to shut down firm. State of Idaho v. Apply 2 Save, Inc. and Derek R. Oberholtzer CV 09-3154 20-Apr-2009 oldwww.mortgagedaily.com/Modifications042909.asp
Cash VIP and Fernando Rios Illinois Attorney General Lisa Madigan n.a. n.a. Foreclosure rescue service allegedly didn’t provide services even though it collected up-front fees in violation of the Illinois Mortgage Rescue Fraud Act. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
Centurion Loss Mitigation Group and Carlos A. Gome Illinois Attorney General Lisa Madigan n.a. n.a. Foreclosure rescue service allegedly didn’t provide services even though it collected up-front fees in violation of the Illinois Mortgage Rescue Fraud Act. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
Colin Connelly U.S. Attorney’s Office for the Eastern District of Virginia n.a. $377,000 18-month prison sentence for bogus foreclosure rescue scheme. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue040809.asp
Deutsche Bank, US Bancorp, Saxon Mortgage Brokerage, North American Specialty Insurance Co., Orlinda Martinez, Angelica Duran and Mountain View Mortgage New Mexico Office of Attorney General on behalf of the Financial Institutions Division of the New Mexico Regulation and Licensing Department n.a. n.a. 78-year-old borrower claims her signature was forged, and state seeks to halt foreclosure. n.a. n.a. May 2009 oldwww.mortgagedaily.com/Lawsuits061109.asp
Federal Loan Modification Law Center, LLP; Anz & Associates, PLC; Venture Legal Support, PLC, LegalTurn, Inc., also known as Legal Turn, Inc.; Federal Loan Modification, LLC; Federal Loan Modifications, SBSC Corporation, also doing business as Federal Loan Modification, Nabile “Bill” Anz; Boaz Minitzer; Jeffrey Broughton, Steven Oscherowitz, Legal Turn, LLC, MGO Capital Federal Trade Commission U.S. District Court for the Central District of California n/a Defendants allegedly violated FTC Act by promising loan modifications they didn’t deliver and representing that they were affiliated with the Federal government. Federal Trade Commission v. Federal Loan Modification Law Center, LLP et al. SA-CV-09-401-CJC (MLGx) 3-Apr-2009 oldwww.mortgagedaily.com/Modifications040709.asp
Foreclosure Assistance LLC Indiana Attorney General Greg Zoeller n.a. n.a. Fees collected to stop foreclosure process were in violation of Indiana’s Deceptive Consumer Sales Act, Credit Services Organizations Act and Mortgage Rescue Protection Fraud Act. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
Foreclosure Relief Agency LLC Indiana Attorney General Greg Zoeller n.a. n.a. Fees collected to stop foreclosure process were in violation of Indiana’s Deceptive Consumer Sales Act, Credit Services Organizations Act and Mortgage Rescue Protection Fraud Act. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
Homeownership Preservation Group LLC Indiana Attorney General Greg Zoeller n.a. n.a. Fees collected to stop foreclosure process were in violation of Indiana’s Deceptive Consumer Sales Act, Credit Services Organizations Act and Mortgage Rescue Protection Fraud Act. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
Homestead Protection Services LLC Florida Attorney General Bill McCollum n.a. $25,000 Settlement reached requiring firm to shut down for allegedly charging up-front fees and not providing promised services. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue040809.asp
Joseph Kaiser, Heidi M. Kaiser, G. Hobus Investments LLC, Bobo Buys Real Estate LLC, Pre Flop LLC, Unclaimed Funds Inc. State of Washington Superior Court of the State of Washington in and for the County of King $3,980,000 Judge ordered payment to more than 300 victims. State of Washington, Plaintiff, vs. Joseph Kaiser, and Heidi M. Kaiser, husband and wife as members of a marital community with named defendant, G. Hobus Investments, LLC; Bobo Buys Real Estate, LLC; Pre Flop LLC; Unclaimed Funds, Inc., a Washington Corporation, Defendants Case No. 07-2-08789-3 n.a. oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
LBM Financial Robert Depietri, David Depietri U.S. Bankruptcy Court District of Massachusetts $5,000,000 Defendants win case alleging plaintiffs didn’t extend contract DePietri et al. v. David G. Massad, et al. CV40267 n.a. oldwww.mortgagedaily.com/Lawsuits042009.asp
Mortgage Crisis Solutions LLC and Donald Gillettee Florida Attorney General Bill McCollum n.a. $25,000 Injunction obtained for allegedly charging up-front fees and not providing promised services. Office of the Attorney General, Department of Legal Affairs, State of Florida, Plaintiff, vs. Donald R. Gillette, Flynn McCarthy, Mortgage Crisis Solutions Association, LLC, Property Solutions Specialists, Inc., One Source Vommunications, Inc., and Nationwide Financial partners, Inc., Defendants Case No. 09-23745CA05 25-Mar-2009 oldwww.mortgagedaily.com/ForeclosureRescue040809.asp
Mortgage Electronic Registration System n.a. U.S. Bankruptcy Court n.a. Judge rules MERS cannot represent lenders seeking to foreclose unless it provides actual note. n.a. n.a. n.a. oldwww.mortgagedaily.com/Lawsuits061109.asp
n/a The Federal National Mortgage Association (Fannie Mae) South Carolina Supreme Court n/a Temporary restraining order halting foreclosures issued for loans that might be modified under the HAMP. In re Federal National Mortgage Association Loans Subject to Foreclosure Sale 2009-05-04-01 4-May-2009 oldwww.mortgagedaily.com/MoratoriumSC050509.asp
National Foreclosure Counseling Services Corp of Jacksonville, Raymond Paulk and Robert Dallavia dba National Foreclosure Counseling Services and American Foreclosure Counseling Center Florida Attorney General Bill McCollum Circuit Court of the Fourth Judicial Circuit in and for Duval County, Fla. n.a. Injunction sought against firm that allegedly charged fees but didn’t provide services. State of Florida, Office of the Attorney General, Plaintiff, v. National Foreclosure Counseling Services Corp., Raymond Paulk and Robert V. Dallavia D/B/A National Foreclosure Counseling Services and American Foreclosure Counseling Center, Defendants. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue040809.asp
National Foreclosure Relief Inc. Idaho State Department of Finance n/a n/a Cease-and-desist order issued over engaging in unlicensed debt or credit counseling activities. n/a n/a 20-Apr-2009 oldwww.mortgagedaily.com/Modifications042909.asp
Nationwide Foreclosure Prevention Center, LLC and Robert P. Valentin Pennsylvania Department of Banking n/a n/a A Consent Agreement and Order agreed to with the department. n/a n/a 14-Apr-2009 oldwww.mortgagedaily.com/Modifications042909.asp
Property Solutions of N.J. Inc., Edward Toledo and Leon Toledo, Raymond Vega; PRSE Holding Company LLC Anne Milgram, New Jersey Attorney General; David M. Szuchman, Director of the New Jersey Division of Consumer Affairs Court of New Jersey Chancery Division, Hudson County $3,980,000 Defendants accused of violating the Consumer Fraud Act through lies and deception in promising to prevent foreclosures through a leaseback scheme. Anne Milgram, Attorney General of the State of New Jersey, and David M. Szuchman, Director of the New Jersey Division of Consumer Affairs, Plaintiffs, v. Property Solutions of N.J., LLC; Leon Toledo; Edward Toledo; Raymond Vega; Jane and John Does 1-10, individually and as owners, officers, directors, shareholders, founders, managers, agents, servants, employees, representatives and/or independent contractors of Property Solutions of N.J., Inc. and/or PSRE Holding Company, LLC; and XYZ Corporations 1-10, Defendants Docket No. Hud-C-51-09 23-Apr-2009 oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
Thomas Ryan, bailout.hud-gov.us and bailout.dohgov.us Federal Trade Commission U.S. District Court for the District of Columbia n/a Amened complaint filed against defendant that allegedly promoted that their services were associated with the Federal government. Federal Trade Commission, Plaintiff, v. Thomas Ryan, 1078 Buckingham Lane Newport Beach, CA 92660, Defendant Civil Action No. 1:09-cv-00535-HHK, FTC File No. 092 3116 6-Apr-2009 oldwww.mortgagedaily.com/Modifications040709.asp
Tony McConkey Teresa L. Milligan n.a. $11,000 Alleged rescue scheme involved turning title over to avoid foreclosure. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
U.S. Foreclosure Relief Missouri Attorney General Chris Koester n.a. Firm allegedly charged upfront fees of $2,350 but failed to provide services in violation of state law. n.a. n.a. 7-Mar-2009 oldwww.mortgagedaily.com/ForeclosureRescue040809.asp
Valerie Hanserd, Primary Mortgage and Leo Desi Commonwealth of Massachusetts Suffolk Superior Court $115,000 Consent judgment in case alleging participation in an illegal foreclosure rescue scheme. n.a. n.a. n.a. oldwww.mortgagedaily.com/Lawsuits061109.asp
You Walk Away LLC Indiana Attorney General Greg Zoeller n.a. n.a. Fees collected to stop foreclosure process were in violation of Indiana’s Deceptive Consumer Sales Act, Credit Services Organizations Act and Mortgage Rescue Protection Fraud Act. n.a. n.a. n.a. oldwww.mortgagedaily.com/ForeclosureRescue051109.asp
1st-quarter 2009 foreclosure lawsuits

4th-quarter 2008 foreclosure lawsuits

3rd-quarter 2008 foreclosure lawsuits

2nd-quarter 2008 foreclosure lawsuits

1st-quarter 2008 foreclosure lawsuits

full-year 2007 foreclosure lawsuits

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