PA SUPREME COURTS ALLOWS DEFAULT TO STAND AGAINST BANK OF AMERICA

September 10, 2014 By

As an update to a blog I posted in January, 2014, in which I discussed a default judgment I secured for my client against Bank of America, the Pennsylvania Supreme Court just ordered that the default judgment shall remain in place. I filed a lawsuit against Bank of America in Delaware County, PA for predatory lending and unfair trade practices. The bank failed to answer the lawsuit and I moved for a default judgment. Of course, the bank appealed, asking the trial judge to allow it to file an Answer, but the trial judge refused. The bank unsuccessfully appealed to the Superior Court and then to the Pennsylvania Supreme Court, also unsuccessfully.

This means that the case can now proceed to a jury trial to determine the amount of my clients’ monetary damages. Certain discovery issues need to be worked out; primarily I am in the process of securing testimony from a Bank of America Corporate Representative regarding the net worth of the company in 2012 and 2013.

This is because I included a claim for punitive damages, which are used to punish the defendant for wrongful conduct. One of the ways that a jury is allowed to and able to determine an appropriate dollar amount for damages is to consider the net worth of the defendant. The Bank is, of course, objecting to such an inquiry, and is not agreeing to produce such a representative; again, the trial judge will decide the scope of the deposition testimony. I am hopeful for trial in January/February 2015. I will keep you posted.

Contact the law firm of Shaffer & Gaier, LLC

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: Bank of America, Current Events, Foreclosure, Foreclosure Defense, Mortgage Lending, Mortgage Modification, Mortgage Settlements 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: , , , , , , ,

Senior Citizens Threatened by Foreclosure

February 20, 2013 By

Over the last 5 years, the mortgage crisis has made senior citizens especially vulnerable to foreclosures. From 2007 to 2011, nearly 1.6 million older Americans lost their homes as a result of the mortgage crisis. Millions more seniors are underwater (meaning they owe more on their mortgage than their home is worth) and are likely to face foreclosure even as the housing market stabilizes, according to the AARP. According to its report released in July 2012, AARP stated that “millions of older Americans are carrying more mortgage debt than ever before, and more than 3 million are at risk of losing their homes.” In fact, 2.5 million loans of people over 50 years old were underwater, which would result in older homeowners having some of the highest and most serious delinquency rates.

Some of the factors that are contributing to this trend are retirement, loss of job and death of a spouse, all of which decrease a senior’s income, making foreclosure a realistic probability. While some of the factors at work can be planned by the homeowner, most are not planned, and when coupled with the distressed housing market, often leads to the inevitable foreclosure notices.

It is widely believed that Federal and State government programs, which were designed to stem the progression of the foreclosure crisis, have not been adequate. Many seniors are not aware that there are government programs that can offer help, even for the homeowner who is in danger of falling behind on their mortgage payments. One of these programs is Home Affordable Refinance Program (HARP), launched by President Obama to help stabilize the U.S. Housing Market. There are specific guidelines in order to qualify for HARP, one of which is that the homeowner must be current on their payments. Everyone involved in these programs agrees that it can be frustrating and time consuming, but keeping your financial records currnet and readily available is the only way to get through the 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: Uncategorized Tagged With: , , , , ,

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