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CHESTER COUNTY TRIAL RESULTS IN SETTLEMENT

December 11, 2013 By

I was on trial today in Chester County, PA, for our client who was a custodian employed by West Chester University. She was a victim of a high interest rate mortgage refinance, and was placed into a loan that required a monthly payment of almost 2/3rds of her monthly income. Since her income was not nearly enough to support the mortgage, she became delinquent and eventually defaulted in 2009.

After being sued in 2011 for foreclosure by Bayview Loan Servicing in the Chester County Court of Common Pleas, I filed an answer and undertook discovery. During the discovery process, I received documents from the lender which, in my view, raised grounds for a counterclaim (a lawsuit back against the Lender for wrongful conduct). The banks will not agree to let me add a counterclaim, so I had to file a motion to add the counterclaim; it was granted by the court in 2012.

The case was called to trial, and on December 9, 2013, the lender presented its witness on the stand for testimony. After direct and cross examination of the bank’s witness, the lender and I negotiated a settlement agreement, which enables our client to reside in the property for at least 7 more months, obtained a confidential cash payment and eliminated all past and future payments to the lender (an amount in excess of $110,000) – which I call “waiver of deficiency”.

Contact Shaffer & Gaier

To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Lending, Mortgage Modification Tagged With: , , , , , , , , ,

Favorable Settlement During Trial in Philadelphia

November 28, 2013 By

Our client had been sued by HSBC, one of the world’s largest banks (its initials stand for Hong Kong Shanghai Banking Corporation). In 2010, my client’s employer cut back on his overtime hours, and this caused a decrease in take-home pay. During the build-up to the housing bubble, HSBC acquired hundreds of thousands of U.S. mortgages from smaller lenders. Many banks got bailed out, but HSBC did not, and now claims that since it did not take any federal bailout money, it does not have to adhere to federal guidelines to modify mortgage loans, or engage in what I call reasonable settlement/resolution practices.

HSBC, therefore, demanded that the only way to reinstate my client’s delinquent loan was for the him to come up with 40% of the arrears. For homeowners that have been in foreclosure for a year or more, this often means that HSBC will not modify the mortgage unless the homeowners has tens of thousands of dollars to put down towards the new loan. In my client’s case, as in the case of most homeowners, this was not possible.

This scenario causes, in my view, more trials than are necessary since it is so difficult to settle by a loan modification. In this trial which started on November 27, 2013, the results ended favorably for my client. In this Philadelphia County case, HSBC was demanding that my client come up with over $60,000 in order to reinstate his mortgage loan (which already contained a 10.9% interest rate). My client rejected the offer, and the case proceeded to trial. Midway through the trial, HSBC made an offer to let our client remain in the home for almost another 12 months, and to waive the entire unpaid loan amount of $177,000. The case has been in litigation for nearly 3 years so this was a fantastic result for my client. The terms of the settlement were put on the record in front of the judge.

Contact Shaffer & Gaier

To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Foreclosure, Foreclosure Abuses, Foreclosure Defense, Mortgage Lending, Mortgage Modification Tagged With: , , , , , , , , , ,

Foreclosures Surge in DC Area After Federal Budget Cuts – Could Pass New Jersey in Foreclosure Rates

November 11, 2013 By

According to reports released by the Bipartisan Policy Center, this year’s across-the-board budget reductions have led to “sequester pain.”  Federal agencies award more than $500 billion a year, or roughly $1.4 billion dollars a day, to tens of thousands of contractors, with late payments, halted work and canceled solicitations accumulating, to the detriment of companies and their workers. Initial foreclosure filings for September climbed 144 percent since August in Fairfax County, Virginia; they more than doubled in Prince William, Loudoun and Fauquier counties.  New Jersey’s 55 percent monthly increase in foreclosure starts is the highest in the United States. Virginia is the second-highest in the US with a 52 percent monthly increase in foreclosure starts.  Virginia is likely to see another surge, and may surpass New Jersey, as an estimated 800,000 federal workers, including Defense Department inspectors and auditors who help certify invoices, were furloughed when the shutdown began at the beginning of October.   Full article.

In September, the number of properties that received a foreclosure filing in NJ was 55% higher than the previous month – and 55% higher than the same time last year. Home sales for August 2013 were down 4% compared with the previous month, and down 2% compared with a year ago. The median sales price of a non-distressed home was $298,000. The median sales price of a foreclosed home was $185,000, or 38% lower than non-distressed home sales.

Contact Shaffer & Gaier

To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Foreclosure, Foreclosure Abuses, Foreclosure Defense Tagged With: , , , , , , ,

J.P. Morgan Chase Settlement with Government Regulators

November 1, 2013 By

J.P. Morgan Chase is close to striking a $13 billion settlement with government regulators for a wide range of alleged mortgage-related wrongdoings. Of that amount, $6 billion will serve as compensation for investors, such as pension funds, that suffered losses from J.P. Morgan and two banks it previously acquired, Bear Sterns and Washington Mutual.

Another 4 billion dollars will be in the form of relief for struggling homeowners which will somewhat serve as a penalty for the bank’s general mortgage practices. The only “punitive” fine in the case is a $2-3 billion sum, which was the result of an investigation into mortgage securities that J.P. Morgan sold before the financial crisis.

What remains to be seen is the form of relief earmarked for struggling homeowners. In the past, instead of reducing principal on the mortgage loan balances, the banks have taken write-offs by way of a short sale or the write-off of a second mortgage. This does not help homeowners retain their homes; it just simply eliminates a debt after the homeowner has been forced to leave their home. As of October 2, 2013, J.P. Morgan and the regulators are still in discussions about how the $4 billion in homeowner relief will be carried out. We all hope for the best.

Contact Shaffer & Gaier

To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Current Events, Foreclosure, Foreclosure Abuses, Foreclosure Defense, Mortgage Lending, Mortgage Modification Tagged With: , , , , , , ,

Seminar October 21st – What can be Done When you are Near or In Foreclosure

October 16, 2013 By

Don’t Lose Your Home – Seminar

Featuring Speaker Michael Gaier

foreclosure-seminar-image***SEMINAR HAS BEEN RESCHEDULED FOR OCTOBER 21, 2013***

Click HERE for additional information, including the number to call to sign up to attend (***SEMINAR WAS MOVED TO 10-21-13, same time & location***)!

Filed Under: Current Events, Foreclosure, Foreclosure Abuses, Foreclosure Defense, Speaking Engagements - Luncheons - Seminars Tagged With: , , , ,

Little Known Foreclosure Abuses

October 4, 2013 By

In early 2012, the nation’s five big banks settled with state and federal regulators over widespread foreclosure abuses, including the seizure of homes without due process. Many of the abuses keep coming to light, but one little-known and rarely-discussed violation is becoming more widespread as banks foreclose on more homes.

After a homeowner is delinquent in their mortgage, the lender is allowed to hire a property management company to determine whether the homeowner had abandoned his or her home. If so, the management company is allowed to secure the vacant property, within reason. It does not always happen that way, and the nation’s largest property management company, Safe Guard, has been accused of breaking Illinois law, with allegations that it broke into homes despite evidence of occupancy, even damaging and removing personal property in the process. There are also charges that Safe Guard changed locks, cut off utilities and bullied occupants into leaving their homes when they actually had a legal right to stay there.

In mid-September, 2013, the Illinois attorney general filed a lawsuit against Safe Guard to hold it accountable for these violations. Under the 2012 Foreclosure Settlement, lenders became responsible for supervising and auditing the contractors, including ones like Safe Guard. There is certainly profit motive for the bank to take control of these vacant homes, since the sooner the house can be sold and the more the home is worth, the better. The banks are not able to make any money on occupied homes that haven’t yet forged their way through the foreclosure litigation process.

The bottom line is that eviction is only permissible after the legal process has concluded. In New Jersey and Pennsylvania, this means after a Final Judgment of Foreclosure has been entered and the property has been sold at a lawful Sheriff’s Sale.

For its part, Safe Guard claims that its work meets the highest standards in the industry. As these abuses keep coming to light, it remains to be seen how it will all affect the nearly 3 million homeowners who are in or near foreclosure.

Contact Shaffer & Gaier

To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Foreclosure, Foreclosure Abuses, Foreclosure Defense Tagged With: , , , , , ,

Now Lenders are Being Extra Careful

October 1, 2013 By

During the mortgage lending boom in the middle of the last decade, prospective loan originators and mortgage brokers would lend money to almost anyone, whether the perspective homeowner had sufficient income to pay the loan back or not. In recent days, however, lenders are risk-averse, and they are demanding detailed documentation for all areas of the applicant’s financial status and background. Borrowers should be prepared to answer questions about gaps in their employment, pending lawsuits and even divorce proceedings.

There is, however, a limit to how much personal information can be requested. Questions about whether an applicant is pregnant are prohibited under federal law, but lenders have figured ways of getting around those delicate (and unlawful) inquiries. For instance, the lender may ask a young woman, applying for a mortgage on her own, whether she has any children yet, or whether she likes children. While this may not be unlawful, it certainly is a turn-around from the way business used to be conducted. Racial profiling is fair game in the paperwork, largely so regulators can identify and keep statistics on whether race is a factor in the kinds of loans offered, interest rate and other qualifying factors.

Contact Shaffer & Gaier

To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Mortgage Lending, Mortgage Modification, Predatory Mortgage Practices Tagged With: , , , ,

Mortgage Deliquencies Remain High in New Jersey

September 26, 2013 By

Even though there is an improving nationwide real estate market, mortgage delinquencies and foreclosures continue to be a problem in New Jersey. The national mortgage delinquency rate – defined as borrowers who are at least 60 days past due on their payments – shrank by 26% in the Second Quarter of 2013, when compared to the same period one year ago, according to TransUnion, the credit information service. The delinquency rate in August, 2013 was approximately 4.1%, still double what it was in the pre-recession period, but it is still on a downward trend.

Locally, however, things are not so good. While Florida and Nevada have the highest delinquency rates (9.9% and 8%, respectively), New Jersey is right behind them, at 7.2%.

In New Jersey, there were 4455 mortgage foreclosure lawsuits filed in July, and 4222 foreclosure lawsuits filed in August, 2013, a dramatic rise from 2012 and early 2013. In New Jersey, the nation’s biggest lenders have recently filed motion papers that are paving the way and allowing a greater number of foreclosure lawsuits to be filed. In New Jersey, it is expected that the number of foreclosure lawsuits will continue to increase through the end of 2013.

Contact Shaffer & Gaier

To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.

Filed Under: Foreclosure, Foreclosure Defense Tagged With: , , , , ,

Mortgage Foreclosure Defense Authority Presents Educational Program to Voorhees Homeowners

September 9, 2013 By

shaffer-gaier-library-speaker

Filed Under: Current Events, Foreclosure, Foreclosure Defense, Speaking Engagements - Luncheons - Seminars Tagged With: , , , , ,

Defending the Mortgage Foreclosure Action – Current Trends and Cases

September 6, 2013 By

Defending the Mortgage Foreclosure Action – Seminar and Luncheon

Featuring Speaker Michael Gaier

foreclosure-seminar-image

Click HERE for additional information, and to sign up to attend!

Filed Under: Current Events, Foreclosure, Foreclosure Defense, Mortgage Lending, Mortgage Modification, Speaking Engagements - Luncheons - Seminars Tagged With: , , , , ,
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