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: , , , , , , , , , , , , , , ,

COMPLICATED LITIGATION RESULTS IN FAVORABLE SETTLEMENT

February 10, 2014 By

On June 30, 2005, my client took out a $104,000 loan and mortgage on his family’s home in Southwest Philadelphia. The original lender was Indy Mac Bank, a sub-prime lender, whose operations were essentially taken over by the FDIC for what many believed were shoddy lending practices. The loan carried a low interest rate for the first two months, and then increased to an exorbitant interest rate for the next 29 years and 10 months. The mortgage broker, however, told my client at closing that he would be able to refinance the loan within a matter of months. This false promise never materialized, leaving my client with a deceptive, unfair and unreasonably high interest rate for the life of the loan.

One West Bank acquired the mortgage loan, which was later serviced by Ocwen Loan Servicing. One West filed a foreclosure lawsuit, and we filed a counterclaim and cross-claim against other lenders. The bank’s attorneys and I engaged in written discovery and multiple depositions, and in the fall of 2013, the Court scheduled a series of settlement conferences. The case was scheduled for trial in March, 2014.

By the time the case would be presented for trial, however, the balance on the loan was going to be approximately $187,000, almost twice as much as the original mortgage loan. The parties, however, reached a settlement, which lowered the principal balance by nearly $100,000, to $93,000. The settlement also called for an interest rate of 2% for the first 5 years, and for the remaining 5 years at 4.35%. While the case took almost 3 years to wind its way through the court, we were able to reach a favorable result.

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, Predatory Mortgage Practices, Sub - Prime Lending Tagged With: , , , , , , , , , , , ,

SUPERIOR COURT UPHOLDS DEFAULT JUDGMENT AGAINST BANK OF AMERICA

January 14, 2014 By

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: , , , , , , ,

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