New Jersey Foreclosures Lead the Nation

January 6, 2015 By

South New Jersey Foreclosure Attorneys

As of November 2014, information released by the Mortgage Bankers Association indicates New Jersey leads the nation in foreclosures. For the most part, the foreclosure crisis that followed the 2008 financial meltdown has abated and returned to levels seen before the 2008 recession. In New Jersey, however, one in six home mortgages is either delinquent or in foreclosure. While the percent of mortgages in foreclosure or delinquent is slightly less than this time last year (8 percent and 7 percent respectively in November of 2013), New Jersey is still posting foreclosure rates substantially higher than the national average.

Why Foreclosures are Higher in New Jersey

Part of the reason why New Jersey’s foreclosure rate is so high at this time is due to how foreclosures are handled in New Jersey. Under state law, foreclosures must go through the courts, which inevitably prolong the process. Additionally, due to a near halt in foreclosure activity in 2011 after questions regarding allegations of abuse and fraud in the mortgage industry, the system now has to play catch up.

Interestingly enough, most of the troubled mortgage loans are ones that were made prior to 2007.  According to Mike Fratantoni, the chief economist for the Mortgage Bankers Association, 74 percent of delinquent loans were made before the beginning of the 2007 sub-prime mortgage crisis.

Mortgage Troubles? Contact Foreclosure Attorneys at Shaffer & Gaier

If you’re facing foreclosure or the bank has already initiated foreclosure actions against you, it’s important that you understand your legal rights and protections. In some cases, foreclosure can be avoided if you bank is willing to refinance your home. If this isn’t an option, short-selling your home can help you avoid bankruptcy and other unwanted financial complications.

To learn how we can help you, contact the foreclosure attorneys at Shaffer & Gaier today. We have offices in Haddonfield, New Jersey, Philadelphia, Pennsylvania, and Fort Lauderdale, Florida.

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

Foreclosure – Not so Straightforward

October 18, 2014 By

Based on a recent study conducted by RealtyTrac, foreclosure filings for the year 2013 totaled 1.36 million properties in the continental United States. Although this number has decreased by approximately 26% from 2012, the total number of Americans facing foreclosure is vast. Although it has been calculated that 1 million Americans are involved in active foreclosure proceedings of all stages, these numbers fail to account for homeowners living in fear of foreclosure proceedings that have not yet been instituted.

Although the term “foreclosure” is becoming ever prominent in the daily vocabulary of far too many Americans, the actual legal steps of the process still remain a mystery for the Americans directly involved in this nationwide crisis. Furthermore the help that is available feels elusive for those who are in desperate need of it. If you find yourself facing foreclosure, know that you are not alone and do not wait any longer to seek the help that you deserve. Take advantage of the many private and government funded programs that will allow you to retain your home. Help is available to you no matter what stage of foreclosure in which you find yourself.

In fact, Pennsylvania is the only state in the country that offers state-funded loan programs designed to help homeowners who, because of extenuating circumstances, have found themselves trapped in the foreclosure process and are worried about losing their homes. Pennsylvania even offers a specific state assistance program and there is help available for everyone through government programs that are specifically designed to help homeowners retain their homes.

HARP, the Home Affordable Refinance Program, is one of these types of programs. Originally developed in 2009 by the Federal Housing Finance Agency and the Department of the Treasury, this program is designed for homeowners who owe more than the estimated worth of their home. As the foreclosure crisis grew in America following 2009 HARP grew too; this program was expanded in 2011 in order to maximize eligibility and help as many homeowners as possible. These are not the only options to help homeowners currently involved in this nationwide crisis. The point is, however, that homeowners should deal with foreclosure issues as soon as possible, but if need be, help can also available in the later stages.

Contact Shaffer & Gaier – Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. 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: , , , , , , , ,

Rental Property Foreclosure Lawsuit – Philadelphia

July 31, 2014 By

We represent a woman who owns a rental property in Philadelphia. I took the case over from a lawyer who responded to the bank’s lawsuit, but there was very little done in the way of discovery. The case was called for trial on July 8, 2014, and the bank, Bank of America, flew in one if its corporate witnesses to testify at the trial. In my client’s Answer to the foreclosure lawsuit, her previous lawyer admitted that she signed a Mortgage Note to repay Bank of America $93,000. Based on this, the bank’s witness did not bring the original Note to the trial.

The problem for the bank, however, is that the plaintiff in the lawsuit was a Wall Street trust, U.S. Bank National, as trustee, who acquired the Note in the securitization process. This means that the Mortgage was owned by the Trust, and not by Bank of America. Without bringing the Note to trial, which presumably would show that the Note was “negotiated” or transferred from Bank of America to the trust, I moved for a non-suit during the trial at the close of the bank’s evidence. I successfully argued that the Plaintiff did not prove that it had standing to enforce the Mortgage and Note because there was no evidence before the court that Plaintiff’s trust owned the Note (or the debt). The Honorable Idee Fox requested legal briefs on the issues, and then after oral argument, the court granted my motion for a non-suit and the foreclosure action was dismissed. It is not expected that the bank will appeal this action, and their only recourse will be to start the entire process over and file a new foreclosure lawsuit.

Contact Our Office

We provide a free initial consultation to anyone with concerns about foreclosure or who is involved in foreclosure proceedings. To schedule an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.

Filed Under: Foreclosure, Foreclosure Defense, Mortgage Modification, Rental Property Foreclosure Tagged With: , , , , , ,

FORECLOSURE ERRORS CONFIRMED

June 16, 2014 By

On Wednesday, April 30, 2014, a Federal regulator confirmed that the biggest banks committed widespread errors when dealing with homeowners who faced foreclosure at the height of the mortgage crisis. The report released by the Office of the Comptroller of the Currency was really a post-mortem of the earlier-released Independent Foreclosure Review, a very expensive review though limited in scope, of how the banks mistreated homeowners in the foreclosure process.

Almost 10% of the errors discovered in the review involve situations when banks improperly denied loan modifications that would have prevented a foreclosure filing in the first place. Many of these errors involved administrative flaws and improper fees being charged to the homeowners during the foreclosure process. In 2013, however, 15 banks settled with banking regulators making payments that totaled $3.9 billion, paid out to more than 4 million homeowners (averaging about $1,100 per household). These settlements ended the Independent Reviews, and the banks agreed to pay homeowners regardless of whether they had been harmed. The banks and regulators agreed to halt the review process because it was so expensive and lengthy, even though only a small fraction of the mortgage files were reviewed.

The report released on April 30 showed that the banks had made even less progress in the reviews than was previously disclosed. For example, Bank of America reviewed only 6% of its files, yet revealed a financial error rate of nearly 9%. Wells Fargo examined less than 10% of its records, and found an error rate of nearly 11.5%. Parties on both sides of the crisis were not pleased, and one reason could be that the decision to cut short the review left regulators with limited information about actual harm to borrowers, even though there was a multi-billion dollar settlement.

Contact Shaffer & Gaier – Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. 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: , , , , , , ,

Multi – Million Foreclosure Rescue and Real Estate Ponzi Scheme in New Jersey

June 2, 2014 By

May 14, 2014 – FBI Special Agents in Philadelphia arrested a New Jersey man Wednesday morning for allegedly operating a multi – million dollar ponzi scheme involving foreclosure rescue and real estate investment. An operator of Equity Capital Investments, LLC (and the former president of the South Jersey Real Estate Investment Club), Randy Poulson of Woolwich Township, New Jersey, is charged with using his investment company to scam property investors. Mr. Poulson is also accused of stealing the deeds from 24+ struggling homeowners who were facing foreclosure.

Poulson allegedly devised a two-part scam in which he promised distressed homeowners, who were facing foreclosure, that he would pay for their mortgages if they sold their homes to him. They did this by signing over the deeds to their home to Poulson. He then had the victims vacate their homes so that renters could move in. Then, he ceased making mortgage payments to the original home owner’s lender.

Part two of Poulson’s scheme involved soliciting 50+ private investors. He pitched investors at seminars, speeches and dinners he attended to invest in real estate and properties for rehabilitation. He advised them that he would be able to sell these investments for a return of 10 to 20 percent. Poulson created fake mortgages and promissory notes to give to investors in order to legitimize his company.

Randy Poulson pocketed both the homeowners’ and the investors’ money for his own personal use. Poulson spent the money at Acme, Exxon/Mobil, Jos. A. Bank, DirecTV, Hollywood Grooming, Kiddie Garden, Philadelphia Union tickets, American Express, Studio 122 (a hair salon), The Disney Store, Toys ‘R Us, Wawa, eating at Ray’s Pizza, and payments on a personal beach house in Ventnor, New Jersey.

Contact Our Office

We provide a free initial consultation to anyone with concerns about foreclosure or who is involved in foreclosure proceedings. To schedule an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Evening and weekend meetings can be arranged upon request. We will travel to your home if necessary to meet with you.

Filed Under: Current Events, Foreclosure, Foreclosure Abuses, Foreclosure Defense, Real Estate Fraud Tagged With: , , , , , , , , ,

Despite Housing Market Turnaround, Foreclosures High

March 3, 2014 By

Data released in late January notes that New Jersey may become the nation’s leader in the number of foreclosed homes by summer 2014. Mark Fleming, a chief economist for the online analytic firm CoreLogic.

Since the real estate bust in fall 2008, Florida had the highest percent of foreclosed homes, with New Jersey coming in second. By 2013, slightly over 10 percent of Florida homes with mortgages had undergone foreclosure. In contrast, New Jersey’s rate was slightly over 7 percent. It seems that New Jersey is going through the process much slower than Florida.

In fact, in the past year, while Florida competed 119,000 foreclosures, New Jersey’s completed just 5,138. It evidently takes about 1,002 days to resolve foreclosures in the Garden State, while the Sunshine State completes them in 883 days.

Foreclosure Backlogs in New Jersey

New Jersey’s struggles escalated when the state Supreme Court ordered the six largest banks to review their procedures for lending money. Filings at that time fell from 58,000 in 2010 to 6,000 in July 2011, creating a significant backlog.

It will be just a matter of time before New Jersey gets to the top of the list. The good news is that home sales have reached their highest levels since 2005, up about 18 percent in 2013.

Contact Shaffer & Gaier: Protecting Homeowner Rights

The law firm of Shaffer & Gaier protects the rights of those who are facing foreclosure or seeking mortgage modifications in New Jersey and Pennsylvania. 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: , , , , , ,

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