Bank of America Withdraws Motion to Dismiss to Engage in Settlement Negotiations

May 6, 2013 By

Shaffer & Gaier, LLC represents nine homeowners who had negative amortization loans with Countrywide (Countrywide was, of course, bought by Bank of America.). Our firm represented these homeowners who brought a consolidated lawsuit against Bank of America for their fraudulent and duplicitous conduct. All of these homeowners were victims of Countrywide’s negative amortization loan scheme which they used to defraud these homeowners. Countrywide offered a variety of loan products that were both financially risky and difficult for borrowers to understand, including payment option ARM’s. Countrywide craftily hid the true cost of the loan from the homeowners by failing to issue accurate Truth in Lending Disclosure forms thereby luring the homeowners into thinking the loan was less expensive than it actually was.

The option ARM, which Countrywide classified as a prime product, is a complicated mortgage product which allows borrowers to pay a “teaser rate” then the rate jumps up beyond reasonable market levels. However, the homeowner is tricked into paying part of the principal only. Therefore, the loan keeps recalculating causing the homeowners to lose additional value. Bank of America filed extensive Motions to Dismiss and our law firm filed responses to those Motions. After significant litigation, Bank of America has agreed to withdraw those Motions to Dismiss to allow the parties to continue with settlement negotiations. Our firm welcomes inquiries into these negative amortization loans, payment option ARM’s and any other fraudulent or deceptive loan product offered by Countrywide, Bank of America or any other lending institution.

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: , , , ,

Lawyers Working Polling Places

May 3, 2013 By

November 4, 2008 was an historic day in America. No matter what your political affiliation, we can all be inspired by the record turnout and the astounding participation in the Democratic process.

The lawyers at Shaffer & Gaier were proud to be poll watchers to ensure that every person, Democrat, Republican or Independent had a clear path to the voting place. All of our attorneys, watched the polling places to ensure our citizens’ rights were not infringed upon and they could exercise their right to vote.

Filed Under: Foreclosure, Foreclosure Defense, Medical Malpractice, Nursing Home Injuries, Personal Injury, Product Liability Tagged With: , , , , ,

Mortgage Relief Checks Are Bouncing

May 1, 2013 By

It has taken years for the big banks to finally begin to redress homeowners who were victimized by shoddy foreclosure practices, wrongful eviction and mortgage servicing abuses. So, in early April, the banks began to issue payments to homeowners that at least partially compensated them for their losses. When many of the homeowners went to cash these checks, however, the checks bounced because those funds are not available. Unbelievable, right?

While this is a fitting end to the lengthy ordeal suffered by so many, it is but the latest setback for troubled homeowners. Not only did it take more than two years to resolve a federal investigation into the foreclosures, but these checks that were received have been delayed for weeks. The checks generally range from $400 to $1,000, although the banks promised that some homeowners would receive checks up to $125,000. These payments, even federal regulators will concede, hardly make up for losing a home or being unlawfully put through the foreclosure process.

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: , , ,

Philadelphia Judge Denies Bank’s Motion for Summary Judgment

April 18, 2013 By

My clients own a home in the Chestnut Hill neighborhood in Philadelphia. Their lender is Suntrust Mortgage Company, an Atlanta based lender with offices in the Southern and Eastern U.S. and in the Cayman Islands.

Suntrust sued my clients in a foreclosure lawsuit in Philadelphia Court of Common Pleas. In January, Suntrust filed a motion for summary judgment, arguing to the court that a trial was not necessary because the loan documents themselves prove that the homeowners are in default. The banks frequently file these motions in which they argue that the bank should have the absolute right to foreclose. A closer inspection of the loan documents, however, established that the bank may not have properly applied the mortgage payments to the principal and interest when the payments were made. This created a question of fact because my clients’ mortgage payments conflicted with the bank’s payment ledgers.

The trial court agreed, on February 27, 2013 the judge denied the bank’s motion for summary judgment. The clients continue to reside in the home and I am awaiting notification of a trial date.

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: , , ,

The Reviewers Are Getting Reviewed

April 12, 2013 By

Over the last few years, private consultants were paid to review the shoddy foreclosure practices and investigate the financial misdeeds of the nation’s biggest banks. These consultants were paid in excess of 2 billion dollars, yet they were paid by the same banks that they supposedly investigated. As luck would have it, there have been hardly any payments made to homeowners as promised and it is now widely believed that the review process has been botched. it can safely be stated that it will not bring any meaningful results to homeowners or the housing industry.

Now, in a twist of fate, the Senate Banking Committee will be reviewing the entire foreclosure review process and other missteps made by at least two of the consulting groups, Promontory and Deloitte & Touche. The regulators are questioning the quality and integrity of the consultants’ work, primarily because there may be a conflict of interest since they are getting paid by the banks whose practices they are reviewing. The consultants, however, blame the Federal regulators on the delays, so it will end up as a finger pointing episode. The Senate Banking Committee plans to hold hearings in mid-April. Executives from Promontory and Deloitte are expected to testify.

Meanwhile, homeowners languish while waiting for their just compensation. Do not be optimistic that anything good is going to come out of this.

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: , , ,

Delaware County Judge Denies Bank’s Objections

April 5, 2013 By

I represent homeowners in Delaware County who are faced with a foreclosure lawsuit. I filed an answer to the bank’s lawsuit, and I raised various defenses to the action. The kinds of defenses in this case are that the bank is not the true owner of the Note and that my clients were victims of bait and switch tactics. For instance, on the day of settlement, the interest rate went from what was promised, at 6%, up to 8.5%. In addition, the originating lender increased the mortgage balance by lumping many of my client’s other debts (credit card bills and medical bills) into the mortgage loan, even though my clients weren’t given advanced warning of that.

The loan is allegedly owned by banking giant, Deutsche Bank, because it is the trustee of the mortgage trust that claims to own the loan. When my clients were sued, I answered in court filings that the bank engaged bait and switch and predatory practices. The banks’ lawyers filed objections to my court papers claiming that the defenses were not relevant to the actions since, in their view, all of the paperwork was in order and my clients knowingly signed onto the mortgage loan. The Delaware County trial Judge denied the bank’s objections ordered that the bank must now respond to my allegations. This was a bitterly contested motion and I am glad that we prevailed on this aspect of the case. A trial date has not yet been set.

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: , , ,

Philadelphia Judge Denies Bank’s Motion for Summary Judgment

April 1, 2013 By

My clients own a home in the Chestnut Hill neighborhood in Philadelphia. Their lender is Suntrust Mortgage Company, an Atlanta based lender with offices in the Southern and Eastern U.S. and in the Cayman Islands.

Suntrust sued my clients in a foreclosure lawsuit in Philadelphia Court of Common Pleas. In January, Suntrust filed a motion for summary judgment, arguing to the court that a trial was not necessary because the loan documents themselves prove that the homeowners are in default. The banks frequently file these motions in which they argue that the bank should have the absolute right to foreclose. A closer inspection of the loan documents, however, established that the bank may not have properly applied the mortgage payments to the principal and interest when the payments were made. This created a question of fact because my clients’ mortgage payments conflicted with the bank’s payment ledgers.

The trial court agreed, on February 27, 2013 the judge denied the bank’s motion for summary judgment. The clients continue to reside in the home and I am awaiting notification of a trial date.

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: , , , , , , , ,

Federal Court Foreclosure Practice

March 27, 2013 By

I have a case pending in Federal District Court in Philadelphia against Bank of America (the servicing bank) and HSBC (HSBC controls the trust that holds my client’s mortgage). The basis of the lawsuit is that the banks lied to my client when they told him that he should let his loan go into default if he wanted a loan modification. As crazy as this may sound, this is a technique used by the banks over that last couple of years. Of course, this sets up a homeowner for a foreclosure lawsuit. This all happened before he retained me, and as luck would have it, my client did exactly what the bank told him to do—he went into default and the bank filed a foreclosure action against him in Delaware County, Pennsylvania.

I filed a lawsuit for fraud and promissory estoppel (i.e., my client relied on the bank’s statement that he should go into default). The bank filed a motion to dismiss our lawsuit, claiming that it was not reasonable for my client to rely on such a promise.

At oral argument on February 14, 2013, it was clear that this was the first time that the Federal Court judge became aware that the bank engaged in tactics like this. Since most foreclosure-based lawsuits are filed in the state courts, this is not surprising. For a good part of the hearing, which lasted about an hour, I felt as if I was educating the Court about 1) the bank practices which led to the housing crisis and 2) the ridiculousness of the loan modification process. Instead of issuing an opinion, the judge ordered Bank of America to look into settling the entire matter, which would include withdrawing the foreclosure complaint and providing a loan modification.

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: , , , , , , , ,

US Department of Justice Continues to Pursue Wells Fargo Bank

February 28, 2013 By

Wells Fargo Bank may be the largest mortgage loan originator in the country, but the Department of Justice says that Wells Fargo continues to violate the terms of a settlement reached in July, 2012. On October 9, 2012, prosecutors in New York filed a new mortgage-based civil action against Wells Fargo, seeking hundreds of millions of dollars in damages for alleged mortgage fraud violations under the False Claims Act. The action asserts that Wells Fargo engaged in a long-standing and reckless trifecta of deficient training, deficient underwriting and deficient disclosure, all while relying on the convenient back stop of government insurance. Essentially, it is claimed that Wells Fargo originated bad loans, and then relied on government insurance through the Federal Housing Administration to pay the claims when those mortgages fell into default.

Wells Fargo, however, claims that the recent action is barred because the alleged conduct was already part of the July, 2012, settlement, and Wells Fargo claims that the slate was wiped clean. In court filings on November 1, Wells Fargo asked a trial judge to declare that the government’s second lawsuit is a breach of the July, 2012, settlement terms.

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 Modification Tagged With: , , , , , , , ,
«Previous Page

Our Services

img

Our Latest News Posts

Firm Newsletter: April 2019

April 3, 2019 By

Click here to download a printable pdf of this newsletter. Supreme Court Victory Leads to Arbitration Award It certainly seemed like a long-time coming, but our firm was successful in taking our client’s case all the way to the Pennsylvania … [Read More...]

Diagnosing Traumatic Brain Injuries

June 1, 2018 By

Nearly 50,000 patients die annually from traumatic brain injuries. Now a new study led by the University of Pennsylvania reveals that tiny blood vessels in the brain can offer clues to better treatment, according to an article from UPI’s Health … [Read More...]