COMPLICATED LITIGATION RESULTS IN FAVORABLE SETTLEMENT

February 10, 2014 By

On June 30, 2005, my client took out a $104,000 loan and mortgage on his family’s home in Southwest Philadelphia. The original lender was Indy Mac Bank, a sub-prime lender, whose operations were essentially taken over by the FDIC for what many believed were shoddy lending practices. The loan carried a low interest rate for the first two months, and then increased to an exorbitant interest rate for the next 29 years and 10 months. The mortgage broker, however, told my client at closing that he would be able to refinance the loan within a matter of months. This false promise never materialized, leaving my client with a deceptive, unfair and unreasonably high interest rate for the life of the loan.

One West Bank acquired the mortgage loan, which was later serviced by Ocwen Loan Servicing. One West filed a foreclosure lawsuit, and we filed a counterclaim and cross-claim against other lenders. The bank’s attorneys and I engaged in written discovery and multiple depositions, and in the fall of 2013, the Court scheduled a series of settlement conferences. The case was scheduled for trial in March, 2014.

By the time the case would be presented for trial, however, the balance on the loan was going to be approximately $187,000, almost twice as much as the original mortgage loan. The parties, however, reached a settlement, which lowered the principal balance by nearly $100,000, to $93,000. The settlement also called for an interest rate of 2% for the first 5 years, and for the remaining 5 years at 4.35%. While the case took almost 3 years to wind its way through the court, we were able to reach a favorable result.

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, Predatory Mortgage Practices, Sub - Prime Lending Tagged With: , , , , , , , , , , , ,

PA and NJ FORECLOSURES ROSE IN 2013

January 27, 2014 By

In 2013, Pennsylvania foreclosures rose more than 18 percent—and New Jersey foreclosure rose by 25.5 percent—even though, nationally, the foreclosure rate rose by a relatively small 5.9 percent.

New Jersey was ranked 13th nationally in foreclosure rate, with 1.1 percent of all homes in foreclosure, just above the national average of 1.04 percent. The 3.5 million filings in the Garden State were 44 percent above 2012 and 123 percent higher than 2011. It is still well below the rough years between 2009 and 2010 when foreclosures skyrocketed as the economy plummeted. Pennsylvania was ranked 18th nationally in foreclosure rate at 0.84 percent in 2013. The 5.6 million filings last year were 12.5 percent above 2012 and 44 percent higher than 2011. But unlike New Jersey, the number of filings in 2013 do not represent a drop-off from the height of the recession. In fact, while filings were down in Pennsylvania by 9 percent from 2010, they were 4 percent higher than 2009 and 25 percent higher than 2008.

An explanation? Both states resolve foreclosures through the state judicial systems, which tend to process foreclosures less quickly. The states may still be dealing with a backlog of cases going back to 2010, it has been reported.

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: , , , , , ,

SUPERIOR COURT UPHOLDS DEFAULT JUDGMENT AGAINST BANK OF AMERICA

January 14, 2014 By

We sued Bank of America on behalf of our client in a classic case of predatory lending (bait and switch, undisclosed terms, etc.). The lawsuit was filed on August 31, 2012, and we served it on Bank of America by regular and certified mail, as the court rules permit, on September 5, 2012. Bank of America failed to respond, and I secured a default judgment against Bank of America on October 31, 2012.

Over a month later, on December 12, 2012, Bank of America filed a petition to open the default judgment, claiming that I improperly served the complaint. On a side note, Bank of America was served at their Plano, Texas Mail Center, and Bank of America concedes that this center is a regular place of business or activity. Also, I’ve served BoA dozens of times at that address and there were never any problems before.

On March 27, 2013, Judge Burr of the Delaware County Court of Common Pleas denied Bank of America’s petition to strike or vacate the default judgment. The court’s opinion is here. Bank of America appealed to the Superior Court of Pennsylvania. On December 22, 2013, the Superior Court affirmed Judge Burr’s decision that the default judgment was proper. The Superior Court’s opinion is here.

The crux of Bank of America’s argument was that service of process was deficient in two regards. First, it claims that the “mail center” is not a person, but rather a place. This, despite the fact that a bank employee physically stamped the lawsuit papers as “received”, was not persuasive to the Superior Court. Second, Bank of America maintained that proper service requires a signed receipt, and the mail center’s stamp was not sufficient. This was also dismissed by the Superior Court as not persuasive.

As service of the lawsuit has been deemed proper by the Superior Court, the default judgment remains in place. It is unknown whether Bank of America will file an appeal.

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 Tagged With: , , , , , , ,

Foreclosures Plummeting – but not in New Jersey

December 30, 2013 By

According to reports, August 2013 brought the fewest lender initiated foreclosure actions against U.S. homes for any month in nearly eight years.  However, foreclosure activity is still on the rise in New Jersey. Nationally, approximately 55,775 homes entered the foreclosure process nationwide in August, a decline of 8 percent from July and down 44 percent from August of last year.  In New Jersey, foreclosure starts were up 18 percent from a year ago, and all foreclosure activity rose 43 percent. Additionally, New Jersey has a large backlog of distressed homes.  It is speculated that this backlog piled up while the mortgage industry dealt with accusations that homeowners’ rights were being abused in the foreclosure process. Full article.

New Jersey has the second longest timeline to complete the foreclosure process, behind New York, coming in at 1,002 days.  According to reports, the national average in the first quarter of 2013 is 477 days to complete the foreclosure process.  This means that if you are facing foreclosure in a state where it takes a considerable amount of time to complete the process, you will have plenty of time before the foreclosure is complete to try to refinance your mortgage, negotiate an alternative to foreclosure, or live inside your home without making a payment prior to foreclosure completion. Ultimately, the longer the foreclosure takes, the better it is for you.

 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 Modification Push Helps New Jersey Homeowners

December 18, 2013 By

Mortgage delinquencies are falling as home prices rise and the foreclosure pipeline is clearing. Many speculate that this is the result of the mortgage modification push by the Obama Administration.  The Obama Administration has used various programs like HARP, the Home Affordable Refinance Program, and HAMP, the Home Affordable Modification Program, to allow distressed borrowers to refinance or modify their mortgages into something more affordable.  These programs have been particularly effective in New Jersey, as under New Jersey law, a judge must approve foreclosures, and they often press the borrower and lender to find a way to keep the borrower in their home.  Full article.

Mortgage modification is a process where the terms of a mortgage are modified outside the original terms of the contract agreed to by the lender and borrower.  At Shaffer & Gaier, we aggressively protect the rights of property owners in Pennsylvania, New Jersey and Florida. Our lawyers bring more than 45 years of combined legal experience to every case we handle. While we recognize that your case is unique, our commitment remains the same — to use our skill, knowledge, experience and resources to help you get the best outcome possible in a timely and cost-effective manner.

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: , , , , , , , ,

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: , , , ,
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