Billions of Dollars in “Aid” – But no Meaningful Relief

May 16, 2013 By

In 2012, five of the nation’s biggest banks reached an agreement with state and Federal officials that addressed the foreclosure abuses over the last several years. The banks agreed to give roughly 46 billion dollars in relief to distressed homeowners, much of it through principal reductions of mortgage amounts. What the banks did with this mandate is proving worthless. Here’s why.

Despite these banner numbers, much of this relief is coming in the form of reducing principal on second mortgages, not on first mortgages. While addressing the second mortgage can offer some relief, it is the primary mortgage that leads to the foreclosure lawsuit. That means homeowners are still in jeopardy of losing their homes, even though the big banks get credit for restructuring the second mortgages. The banks get credit towards fulfilling the $46 billion relief package, but the homeowner still gets foreclosed on.

What happens is that a homeowner will be notified that their second mortgage has been reduced, giving false hope that their housing problems are behind them. What ends up happening, however, is that the first mortgage holder has not reduced the principal, and they are free to foreclose and take the home. This does little, if anything, to help the homeowner. It is important to note that when a house is sold in foreclosure, there is typically no money to pay the second mortgage anyway, and the second mortgage holder usually gets nothing. Under the terms of the settlement, though, the banks are receiving credit for giving the second mortgage, even though they most likely would have not have gotten any money for it anyway.

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

Lunch and Learn Seminar Series: ‘Don’t Lose Your Shirt and Your Home – What Professionals Must Know About the Tricky Area of Foreclosure’

May 14, 2013 By

Lunch and Learn Seminar Series:

Click Here to Register:
‘Don’t Lose Your Shirt and Your Home – What Professionals Must Know About the Tricky Area of Foreclosure’

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

Foreclosure Defense Workshop July 23

May 13, 2013 By

foreclosure-defense-workshop

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: , , ,

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: , , , , , , , ,
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