Loan Modification Jury Trial Against Well Fargo

November 19, 2015 By Shaffer & Gaier

I just wrapped up a jury trial in New Jersey Federal Court against Wells Fargo. The litigation was lengthy and complicated and is hard to summarize in a blog. It was settled during closing arguments after A LOT of time and energy went into it—Wells Fargo, as usual, was represented by Reed Smith. In 2009, my clients were current with their mortgage, but asked Wells for a refinance. Instead they were pushed into applying for a loan modification so long as they paid an up-front fee of $2,415. One more thing—Wells said that they’d have to be delinquent in their mortgage to qualify (I’ve heard the same thing from many of my clients). My clients thought that sounded strange, but followed Wells’ representatives instructions. They paid the $2,415 application fee and stopped paying their loan.

Wells also told them, and then wrote to them, that the fee would be returned to them if the loan modification was denied. Which it was a few months later—but Wells never returned the money. Wells then confused my clients’ paperwork with others, but told my clients that they’d keep trying to get them a loan mod. While this was happening, Wells filed a foreclosure lawsuit against my clients, but didn’t even notify them of that important event until 2 months later. Wells eventually denied the loan modification, and then took a foreclosure judgment. Wells was lining the home up for Sheriff Sale when my clients retained me. I got Wells to hold up on the Sheriff Sale, and then I filed the federal court action for NJ Consumer Fraud for 1) not returning the $2,415 and 2) for foreclosing when they should’ve been working with my clients to modify their loan.

The end result was that Wells and my clients agreed to a modification and Wells agreed to pay a confidential sum of money to settle the case.

Avoid Foreclosure by Modifying Your Mortgage

When you hire us to help you with a loan modification, we will become your voice in all dealings with your lender. If we are unable to immediately get the process moving with loan or bank officers, we will work directly with attorneys for the bank to get the modification process moving forward. We have a comprehensive understanding of the programs available to help you refinance or restructure your loan and avoid foreclosure. We will carefully evaluate your circumstances to determine what programs you qualify for, and we will explain your options as well as the benefits and consequences of different strategies.

Contact Our Office

To set up an appointment, call our foreclosure hotline at 855-289-1660 or contact us online. Your first consultation is free of charge. 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, Loan Modifications, Mortgage Modification, Mortgage Refinance Tagged With: cherry hill new jersey mortgage foreclosure, current events, Loan Modification attorney new jersey, loan modifications, Mortgage Modification, Mortgage Modification attorney new jersey, Mortgage Modification attorney philadelphia, wells fargo, wells fargo lawsuits

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

June 2, 2014 By Shaffer & Gaier

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: 2014 new jersey foreclosures, cherry hill new jersey foreclosure, current events, foreclosure fraud, new jersey foreclosure defense, philadelphia foreclosure news, philadelphia pa foreclosure attorney, ponzi real estate schemes, ponzi schemes foreclosure, real estate fraud

SUPERIOR COURT UPHOLDS DEFAULT JUDGMENT AGAINST BANK OF AMERICA

January 14, 2014 By Shaffer & Gaier

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: bank of america attorney, bank of america lawsuit, bank of america predatory lending, current events, pa predatory lending attorney, pennsylvania foreclosure defense, predatory lending attorney, predatory mortgage lending