tag:blogger.com,1999:blog-45052679853468508872024-02-28T05:22:07.049-05:00Wall Street, Main Street<br><br><br>An informational blog pertaining to foreclosure law and foreclosure defense practice.
<br>
© Copyright 2015 Law Offices of Robert E. Brown, P.C. All Rights Reserved.Unknownnoreply@blogger.comBlogger532125tag:blogger.com,1999:blog-4505267985346850887.post-2264085376580076902017-05-02T09:50:00.002-04:002017-05-02T09:50:40.131-04:00Supreme Court says cities can sue banks over predatory loans<div style="text-align: justify;">
<b>WASHINGTON — The Supreme Court ruled Monday that cities can sue banks for discriminatory mortgage lending practices, but they must prove that predatory loans led to damages such as lost tax revenue and higher spending on municipal services.</b></div>
<div style="text-align: justify;">
<b><br /></b></div>
<div style="text-align: justify;">
<b>The decision was a partial victory both for Miami, which sought standing to sue banks under the Fair Housing Act, and for Bank of America and Wells Fargo, which argued that the city's damages were too many steps removed from the original loans. The dispute now returns to lower courts for further action.</b></div>
<div style="text-align: justify;">
<b><br /></b></div>
<div style="text-align: justify;">
<b>The 5-3 ruling was written by Justice Stephen Breyer and backed by the court's liberal justices and Chief Justice John Roberts. Three justices — Clarence Thomas, Anthony Kennedy and Samuel Alito — argued that the city had no right to sue under the landmark 1968 civil rights law in the first place. Newly confirmed Justice Neil Gorsuch did not take part in the decision.</b></div>
<div style="text-align: justify;">
<b><br /></b></div>
<div style="text-align: justify;">
<b>Click <a href="https://www.usatoday.com/story/news/politics/2017/05/01/supreme-court-says-cities-can-sue-banks-over-predatory-loans/100890224/">HERE</a> for the full story.</b></div>
Unknownnoreply@blogger.com6tag:blogger.com,1999:blog-4505267985346850887.post-7311809336551994472017-03-13T13:13:00.004-04:002017-03-13T13:13:51.189-04:00Creditors’ And Debtors’ Rights<div style="text-align: justify;">
<span style="background-color: white; font-family: "Droid Sans", sans-serif; font-size: 14px;"><b>Plaintiff moved for summary judgment, appointment of a referee to compute and a default judgment against non-appearing defendant. The original balloon note and mortgage was between Home Funds Direct and defendants, who allegedly defaulted by failing to make payments. US Bank Trust (USBT) moved for summary judgment, while defendants argued USBT did not have standing claiming MERS was never authorized by the original lender to assign the note and mortgage to USBT. They alleged the note was in the possession of a "custodian,"—Wells Fargo Bank, not USBT. The court found USBT failed to meet its burden of proving standing, finding it failed to prima facie establish it was in possession of the note as Wells Fargo continued to possess the original. Also, while USBT may establish standing by showing the note was assigned to them, it failed to succeed as there was no endorsement to MERS on the note giving it authority to assign. As there was no evidence indicating MERS had a right to assign the note, as MERS could not transfer what it did not hold, no factual details of a physical delivery were provided and USBT failed to establish it had physical possession at the time the action was commenced. USBT's motion was denied, and the case was dismissed.</b></span></div>
<div style="text-align: justify;">
<span style="background-color: white; font-family: "Droid Sans", sans-serif; font-size: 14px;"><b><br /></b></span></div>
<div style="text-align: justify;">
<span style="background-color: white; font-family: "Droid Sans", sans-serif; font-size: 14px;"><b>The full text decision and summary can be found <a href="http://www.newyorklawjournal.com/id=1202780573368/US-Bank-Trust-NA-v-Morales-21832016?kw=US%20Bank%20Trust%2C%20NA%20v.%20Morales%2C%202183/2016&et=editorial&bu=New%20York%20Law%20Journal&cn=20170309&src=EMC-Email&pt=Daily%20Decisions&slreturn=20170213131121">HERE</a></b></span></div>
Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-4505267985346850887.post-47421902158480919192017-01-19T12:26:00.000-05:002017-01-19T12:26:42.428-05:00High Court Says Fannie Mae Has Limited Path To Fed. Court<div style="text-align: justify;">
<a href="https://www.law360.com/realestate/articles/882020/breaking-fannie-mae-has-limited-path-to-remand-suits-to-federal-court-high-court-says?nl_pk=7e08787f-e51e-4cae-84ec-42407a6f2ac5&utm_source=newsletter&utm_medium=email&utm_campaign=realestate">Law360</a>, Minneapolis (January 18, 2017, 10:55 AM EST) -- The nation's high court on Wednesday reversed a Ninth Circuit ruling that found Fannie Mae can remove state suits to federal court, striking a blow to Fannie, which has argued that its charter allows it to bring suits to federal courts.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Fannie Mae, which is currently involved in tens of thousands of cases in state courts, has lost its U.S. Supreme Court battle to move those suits into federal court. </div>
<br />
<b>The full article can be found <a href="https://www.law360.com/realestate/articles/882020/breaking-fannie-mae-has-limited-path-to-remand-suits-to-federal-court-high-court-says?nl_pk=7e08787f-e51e-4cae-84ec-42407a6f2ac5&utm_source=newsletter&utm_medium=email&utm_campaign=realestate">HERE</a> {Law 360 is subscription service}</b>Unknownnoreply@blogger.com9tag:blogger.com,1999:blog-4505267985346850887.post-80408308060202529112016-11-10T12:12:00.002-05:002016-11-10T12:12:36.769-05:00 ATTEMPT TO DEMONSTRATE STANDING FAILED BECAUSE THE SUBMITTED AFFIDAVIT DID NOT MEET THE REQUIREMENTS OF THE BUSINESS RECORDS EXCEPTION TO THE HEARSAY RULE; AFFIDAVIT SUBMITTED IN REPLY PAPERS CANNOT BE CONSIDERED.<div style="text-align: justify;">
<span style="font-size: large;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-size: large;">The Second Department determined plaintiff loan service did not demonstrate standing to bring this foreclosure action. The affidavit submitted by the plaintiff did not meet the requirements of the business records exception to the hearsay rule. An affidavit submitted with the reply papers could not be considered: “…[T]he plaintiff relied on the affidavit of Jaclyn Holloway, an assistant secretary of Nationstar Mortgage, LLC (hereinafter Nationstar). Holloway alleged that, after the action was commenced, the plaintiff delivered the note to NationStar. She alleged that, ‘pursuant to the business records of [the plaintiff],’ the plaintiff had physical possession of the note when it commenced the action. However, the plaintiff failed to demonstrate the admissibility of the records relied upon by Holloway under the business records exception to the hearsay rule (see CPLR 4518[a]) since Holloway did not attest that she was personally familiar with the record-keeping practices and procedures of the plaintiff ... . Consequently, Holloway’s allegations based on those records were inadmissible ... , and, therefore, insufficient to meet the plaintiff’s prima facie burden to establish its standing ... . The plaintiff could not rely on the affidavit of its vice president to meet its prima facie burden since the affidavit was improperly submitted for the first time in its reply papers ...”. . Aurora Loan Servs., LLC v. Baritz, 2016 N.Y. Slip Op. 07154, 2nd Dept 11-2-16
</span></div>
Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-4505267985346850887.post-30012027491418302692016-10-18T11:24:00.000-04:002016-10-18T11:24:25.822-04:00A.G. Schneiderman Announces Nearly $13 Million In Awards For Cities To Combat Vacant And Zombie Homes<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b>A.G. Schneiderman will forward approximately $350,000 to NYC to help combat "Zombie Homes". These grants are awarded under the Zombie Remediation and Prevention Initiative. Under the passage of the Abandoned Property Neighborhood Relief Act in June 2016, banks are now required to register any properties abandoned by their customers with the Department of Financial services. If you've ever lived next to an abandoned property you'll surely appreciate this act. Unfortunately there are now approximately 16,000 Zombie homes across New York State. So, odds are you've either seen them in your neighborhood or unfortunately live next door to one. </b></span></div>
<div style="text-align: justify;">
<span style="font-family: Verdana, sans-serif;"><b><br /></b></span></div>
<div style="text-align: justify;">
<span style="font-family: "Calibri","sans-serif"; font-size: 11.0pt; mso-ansi-language: EN-US; mso-bidi-font-family: "Times New Roman"; mso-bidi-language: AR-SA; mso-fareast-font-family: Calibri; mso-fareast-language: EN-US; mso-fareast-theme-font: minor-latin;"><a href="http://www.ag.ny.gov/press-release/ag-schneiderman-announces-nearly-13-million-awards-cities-combat-vacant-and-zombie">http://www.ag.ny.gov/press-release/ag-schneiderman-announces-nearly-13-million-awards-cities-combat-vacant-and-zombie</a></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-20239678704003988802016-10-06T15:51:00.001-04:002016-10-06T15:53:57.485-04:00New Legislation Allows Defendant Participating In Foreclosure Settlement to File Late Answer <div style="text-align: justify;">
<div style="text-align: center;">
</div>
<div style="text-align: justify;">
<b><span style="font-family: Trebuchet MS, sans-serif;">A new rule will be put in place starting December 20, 2016
that will significantly help home owners in foreclosure. Borrowers will now be
permitted to file an answer (late) after their time to answer has expired. An
"answer" (in response to the summons and complaint) is required
to be filed in writing within a certain amount of days according to how the
summons and complaint was served (delivered) to the borrower. If delivered by
process server the answer must be filed within 20 days. Delivered in any other
way and the borrower gets an additional 10 days (30 days total). The new rule
will give borrowers 30 days to answer <u>AFTER </u>the first Foreclosure
Conference (court hearing). At the first Foreclosure Conference the court will
provide the borrower with a 'Consumer Bill of Rights" handbook. </span></b></div>
<div style="text-align: justify;">
<b><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></b></div>
<b><div style="text-align: center;">
<b><span style="font-family: Trebuchet MS, sans-serif;">------------------------------------------------------------------------------------</span></b></div>
<div style="text-align: center;">
<b><span style="font-family: Trebuchet MS, sans-serif;"><br /></span></b></div>
</b><b><div style="text-align: justify;">
<b><span style="font-family: Trebuchet MS, sans-serif;">JP Morgan Chase (JPMC) commenced this residential mortgage foreclosure action on June 8, 2016, and while Hernandez did not answer, she appeared at all five subsequent foreclosure settlement conferences. The case was released from the settlement conference part March 15, 2016, and she filed an answer March 30, 2016, but JPMC rejected the answer on April 8, 2016. But, the court noted that effective this coming December 20, 2016 under CPLR 3408, mandatory settlement conference in residential foreclosure will be amended. The court sated the intent of the new legislation was to allow defendants in foreclosure actions—who were usually pro se litigations—to answer and participate in the foreclosure litigation. It stated here, Hernandez was served with the summons and complaint on June 18, 2016, and she fully participated in the foreclosure settlement process. Also, the court noted that within 15 days of the case being released from the foreclosure part, Hernandez filed her answer. Thus, the court stated based on the intent evidenced by the new legislation, the fact Hernandez participated in the litigation, and JPMC would not suffer any prejudice in permitting her to file a late answer, her motion to file the late answer was granted, and her answer deemed served.</span></b></div>
</b></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>Click <a href="http://www.newyorklawjournal.com/id=1202769057918">HERE </a>for full decision.</b></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-85258896564985339382016-09-30T12:06:00.003-04:002016-10-04T10:48:59.769-04:00Recent Efforts to Speed Up Foreclosure Proceedings in N.Y.<div class="MsoNormal" style="text-align: justify;">
<span style="color: #1f497d;"><span style="font-family: Georgia, Times New Roman, serif;">New York now boasts one on the
longest time-frames to foreclose in the country. It now takes an average
of 1,061 days to foreclose. Seems part of the delay may be cause by re-defaults
of those borrowers whose loans were modified. It appears though that the
Foreclosure Settlement process may be helping somewhat. Part of the reason
appears to be now borrowers are "required" to bring all of their
financials to the first court appearance. This will give the bank a quick view
of the borrower's finances to see if a modification is possible. The best part
of this, at least for the banks anyway, seems to be that vacant properties can
now move quicker through the foreclosure process. This in turn will allow the
banks to sell these properties sooner. If you've ever lived next to a
"Zombie Home" this is welcome news.</span><o:p></o:p></span></div>
<br />
THE FULL ARTICLE CAN BE FOUND HERE: <a href="http://www.newyorklawjournal.com/id=1202766331727/Recent-Efforts-to-Speed-Up-Foreclosure-Proceedings-in-NY">http://www.newyorklawjournal.com</a>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-4505267985346850887.post-36853915843254964472016-09-30T11:28:00.002-04:002016-09-30T11:28:23.467-04:00MOTION TO DISMISS RPAPL ARTICLE 15 ACTION SEEKING DECLARATION MORTGAGE INVALID DENIED<div style="text-align: justify;">
Plaintiffs owners commenced this RPAPL Article 15 suit seeking judgment declaring the mortgage of record held by defendant was invalid and unenforceable and barred by expiration of the six-year statue of limitations. Defendant moved to dismiss the complaint based on a defense of documentary evidence and failure to state a cause of action on the grounds plaintiffs' hardship affidavit served to re-start the statute of limitations and defendants stopped the limitations period running upon revocation of its election to accelerate plaintiffs' loan by its de-acceleration letter. The court found defendant improperly sought to rely on the de-acceleration letter as a letter was not documentary evidence, nor was the court persuaded it conclusively established a defense. The hardship affidavit also failed as it did not conclusively establish a defense to this Article 15 action—it did not conclusively establish the foreclosure action was not barred by the statute of limitations. As the affidavit did not utterly refute plaintiffs' claim that any effort by defendant to foreclose plaintiffs' underlying mortgage obligation would be barred by the limitations period, and defendant failed to establish a defense warranting dismissal of the complaint. Defendant's motion was denied.</div>
<div style="text-align: justify;">
<i><b><br /></b></i></div>
<div style="text-align: justify;">
<i><b><u>The full text decision can be found here:</u> http://www.newyorklawjournal.com/id=1202766377597</b></i></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-86492981025769359542016-09-30T11:13:00.002-04:002016-10-04T10:42:16.236-04:00The New 90-Day Notice Rules: A Potential Morass for Lenders<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">New changes are headed our way. Changes that could help New York borrowers delay the beginning of the foreclosure process. After the collapse of the mortgage markets in 2008 various new pieces of legislation were put into place to help and protect homeowners. One of the more outstanding was the "90 Day" requirement notice. The 90 Day Notice is more like a pre-foreclosure notice or warning letter. The main idea here was to "wake up" the borrower and tell them they had 90 Days to get it together and work out a deal with their lender or the foreclosure process would begin. Here's a quick overview of the new changes:</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">-Notice to be provided in the borrower's native language (provided that it falls within the six most common languages spoken in New York)</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><span style="font-family: times, times new roman, serif;"><br /></span>
</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">- Notice will now state the borrower can remain in the property until a court order states you must leave (this was always the case)</span></span></div>
<br />
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><div style="text-align: justify;">
- A new notice is required if a borrower makes the loan current and then stops paying again</div>
</span><br />
<br />
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><div style="text-align: justify;">
- Lastly, and more importantly the new 90 Day Notice states that the foreclosure process can only begin if the borrower did nothing during the 90 day period to resolve the missing payments. </div>
</span><br />
<div style="text-align: justify;">
<br /></div>
<span style="font-family: "georgia" , "times new roman" , serif;"><br /></span>
<span style="font-family: "times" , "times new roman" , serif;"><br /></span>
<br />
<div>
<br /></div>
<br />
<br />
The full article can be found here: <a href="http://www.newyorklawjournal.com/id=1202767292472/The-New-90Day-Notice-Rules-A-Potential-Morass-for-Lenders?mcode=0&curindex=0&curpage=ALL">http://www.newyorklawjournal.com</a><br />
<br />
<br />Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-4505267985346850887.post-35182728643685729872016-09-30T11:06:00.000-04:002016-10-04T10:49:46.235-04:00NY's Statute of Limitations and Mortgage Foreclosures: How to Revoke Acceleration<div style="text-align: justify;">
<div class="MsoNormal">
<span style="color: #1f497d;"><span style="font-family: Georgia, Times New Roman, serif;">The good news for borrowers is
that banks have only a certain amount of time to foreclose in New York (six
years). The bad news? Seems bankers and their attorneys may have figured out a
way to extend this time. What can bankers do? They can simply "take
back" or revoke their request to have the borrower pay the entire loan in
full (acceleration of the loan) by sending a letter to the borrower stating
just that.</span><o:p></o:p></span></div>
</div>
<br />
The full article can be found here: <a href="http://www.newyorklawjournal.com/id=1202764328981/NYs-Statute-of-Limitations-and-Mortgage-Foreclosures-How-to-Revoke-Acceleration?mcode=0&curindex=0&curpage=ALL">http://www.newyorklawjournal.com</a>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-4505267985346850887.post-13628060198861522222016-09-01T17:47:00.000-04:002016-09-01T17:48:05.488-04:00Thinking About Filing For Bankruptcy?<div style="text-align: justify;">
<span style="font-family: "georgia" , "times new roman" , serif;">There are many pitfalls to avoid when filing for bankruptcy that consumers need to be aware of and understand . To help avoid these problems you should hire only a competent attorney specializing in bankruptcy law. Because one small error or misstep may cause your case to be dismiss (instead of discharged). </span></div>
<div style="text-align: justify;">
<span style="font-family: "georgia" , "times new roman" , serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "georgia" , "times new roman" , serif;">Did you know your credit score takes a major hit when there are judgments and liens? In fact, it stays on your credit for seven years! This alone should be a reason to avoid judgment and liens. Consider too that because of the ding on your credit you may also pay a higher interest rate when borrowing for mortgages, car loans/leases, etc.</span></div>
<div style="text-align: justify;">
<span style="font-family: "georgia" , "times new roman" , serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "georgia" , "times new roman" , serif;">If you have two mortgages (on the same property) and you're home is financially under water (you owe more than what your home is worth) filing for bankruptcy may help to eliminate (or "strip away") your second mortgage. Here's something else to think about. Did you know you could file for bankruptcy and still lose your home? Most people don't. Just another reason why you need a competent bankruptcy attorney. </span></div>
<div style="text-align: justify;">
<span style="font-family: "georgia" , "times new roman" , serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "georgia" , "times new roman" , serif;">Bankruptcy is not the answer to all financial problems. There are certain judgments and liens where bankruptcy may not help. This may include IRS liens, NYS tax warrants, mechanic liens and domestic support judgments. Most taxing authorities will allow you to work out a payment plan. It may be worth a shot to try and work out a deal as opposed to doing nothing and having a tax lien/warrant.</span></div>
<div style="text-align: justify;">
<span style="font-family: "georgia" , "times new roman" , serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: "georgia" , "times new roman" , serif;">Should you ever be in the position where you need the guidance of a bankruptcy attorney be certain to hire a competent one who's expertise is bankruptcy. This is not the time to hire a "jack of all trades" attorney. Like foreclosure defense (consumer law), bankruptcy law is a very specific area of law. </span></div>
<div>
<br /></div>
Unknownnoreply@blogger.com6tag:blogger.com,1999:blog-4505267985346850887.post-39232033054202541912016-08-17T10:10:00.000-04:002016-08-17T13:15:34.201-04:00Is That Really a Debt Collector on the Phone?<b><u>How it Works:</u></b><br />
<br />
A debt collector is someone who regularly collects debts owed to others. It could be a collection agency, a lawyer, or a company that buys delinquent debts and then tries to collect them. On the other hand, it could be a fake debt collector! Armed with sensitive information he coaxes from you, the criminal could charge your credit cards or open new accounts, take out loans in your name, write fraudulent checks and more.<br />
<br />
<b><u>What You Should Know:</u></b><br />
<br />
A debt collector might be a fake if the person is trying to collect on a loan you don’t recognize, refuses to give you a mailing address or phone number, asks you for sensitive information, or uses threats to try to scare you into paying.<br />
<br />
<b><u>What You Should Do:</u></b><br />
<br />
•<span class="Apple-tab-span" style="white-space: pre;"> </span>Tell the caller you refuse to discuss the debt unless you receive a written notice that includes the debt amount, the name of the creditor, and your rights under the federal Fair Debt Collections Practices Act.<br />
<br />
•<span class="Apple-tab-span" style="white-space: pre;"> </span>Don’t give the caller sensitive information. Never give out or confirm personal financial or other sensitive information unless you know whom you’re talking to. This includes your bank account number, credit card, or Social Security number.<br />
<br />
•<span class="Apple-tab-span" style="white-space: pre;"> </span>If the debt is legitimate, but you think the collector may be a fake, contact your creditor about the calls.<br />
<br />
•<span class="Apple-tab-span" style="white-space: pre;"> </span>If you get a call like this, report it to the Federal Trade Commission and warn others on the Fraud Watch Network Scam-tracking map.<br />
<br />
<br />
<b><i>Report calls to the FTC here</i></b>: <a href="https://www.ftc.gov/">https://www.ftc.gov/</a><br />
<br />
<b><i>Warn others of scams by clicking here</i></b>: <a href="https://action.aarp.org/site/SPageNavigator/FraudMap.html">https://action.aarp.org/site/SPageNavigator/FraudMap.html</a><br />
<br />
<br />
<u><b>Article Courtesy of:</b></u><a href="https://www.blogger.com/%C2%A0http://www.aarp.org/money/scams-fraud/fraud-watch-network/"> http://www.aarp.org/money/scams-fraud/fraud-watch-network/</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-70411922453692356662016-08-15T10:44:00.004-04:002016-08-15T10:44:37.088-04:00New Foreclosure Law in NY Boosts Consumer Protection <div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">ALBANY
-- A new law in New York will require that foreclosed-on properties not be
allowed to lie vacant for long and that more protections be built into the
foreclosure process for consumers.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">The
changes were approved in the last hours of the state Legislature's regular 2016
session and represent, sponsors say, the latest attempt to protect consumers
against losing their homes due to nonpayment of mortgages and to neighborhoods
and to whole communities hit by the approximately 1 million foreclosure filings
in New York state since the recession of the late 2000s.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;"><u><b>Provisions
of the legislation (A10741/S8159) provide for:</b></u><o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">•
Creation of a Consumer Bill of Rights to state homeowners' rights in the
foreclosure process. Specifically, the declaration must inform property owners
that they have a right to stay in their homes during the foreclosure process
until they are formally notified by a court that they must vacate the premises.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">•
A mandate that the crucial notifications that lenders are required to make to
borrowers be in a language the borrower is proficient in.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">•
Creation of a Community Restoration Fund within the State of New York Mortgage
Agency as a vehicle to provide for the purchase of defaulted mortgage notes, in
some instances, to revise repayment terms and to allow some homeowners to hold
onto dwellings.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">•
Authorization of a new civil penalty of up to $25,000 to be imposed by courts
to punish instances where plaintiffs are not negotiating in "good
faith" in preforeclosure hearings.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">•
Authorization for courts to award attorney fees and expenses to defendants
where plaintiffs are found not to be negotiating in good faith.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">•
Imposition of a new preforeclosure duty on banks and lending services to
maintain vacant and abandoned properties.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">•
Requirement that the entity obtaining a foreclosure move to auction within 90
days of receiving the judgment and to take actions to ensure that the property
be reoccupied within 180 days.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">The
foreclosure and "zombie" property legislation was signed into law by
Gov. Andrew Cuomo on June 23.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">Cuomo
and state Attorney General Eric Schneiderman praised the bill, in particular,
for its focus on so-called zombie properties, those vacant or abandoned homes
that lie dormant before, during or after foreclosure. Municipal leaders
throughout the state complain that these properties have been allowed to
deteriorate, thereby degrading nearby properties or even entire neighborhoods.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">Paul
Lewis, an assistant to Chief Administrative Judge Lawrence Marks, said court
officials believe the bill could impact the courts in two ways: Through the introduction
of the new penalties for plaintiffs found to be negotiating with property
owners in bad faith and through more frequent court declarations, at the behest
of municipal officials, that properties are abandoned.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">He
said court officials are studying the new statute to determine if it gives
court referees and court attorneys, the authorities who now preside over the
preforeclosure conferences the state has required in foreclosure cases since
2010, the power to impose civil penalties on bad-faith negotiators.<o:p></o:p></span></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">THE
FULL ARTICLE CAN BE FOUND HERE: <a href="http://www.newyorklawjournal.com/id=1202763416142?keywords=stashenko&publication=New+York+Law+Journal">http://www.newyorklawjournal.com/id=1202763416142?keywords=stashenko&publication=New+York+Law+Journal</a><o:p></o:p></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-38839065450962433072016-08-15T10:44:00.000-04:002016-09-19T12:30:55.959-04:00Residential Foreclosures: Legislative Changes to Settlement Conference Law<div class="MsoNormal" style="text-align: justify;">
<div style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, Verdana, sans-serif; font-size: 13.2px;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"><b>Finally, courts across New York will now have uniform guidelines to help homeowners in foreclosure! </b></span></div>
<div style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, Verdana, sans-serif; font-size: 13.2px;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, Verdana, sans-serif; font-size: 13.2px;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"><b>Since 2009 many homes were lost to foreclosure due to variations in how courts dealt with borrowers during FCP conferences (Foreclosure Conference Part). Obviously, unproductive settlement conferences were surely to blame as well. </b></span></div>
<div style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, Verdana, sans-serif; font-size: 13.2px;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<div style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, Verdana, sans-serif; font-size: 13.2px;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"><b>One of the more important revisions revolves around "bad faith". Now that the courts have somewhat addressed this issue and provided some much needed direction we can hopefully see both parties (especially the banks) come to the table ready to settle. And, surprisingly it is sometimes the borrower who behaves as if they do not want to save their homes. I believe though, this is more due to frustration than anything else. Most of these "bad faith" issues revolve around lenders sending in per diem attorneys to conferences with little to no information regarding the case. Along with the banks invoking the famous "phantom investor restrictions" excuse. Clearly, this makes it impossible to settle. A tactic long used by the banking industry. Which when you think about it makes no sense. Aren't banks in the business of collecting money, not properties?? </b></span></div>
<div style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, Verdana, sans-serif; font-size: 13.2px;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"><b><br /></b></span></div>
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"></span></span><br />
<div style="background-color: white; color: #666666; font-family: "Trebuchet MS", Trebuchet, Verdana, sans-serif; font-size: 13.2px;">
<span style="font-family: "Helvetica Neue", Arial, Helvetica, sans-serif;"><b>And, finally the most problematic issue we see is the failure to answer the summons and complaint. Unfortunately, many borrowers mistakenly believed that showing up in court and providing the bank with loan modification documents is the same as filing a written answer. The problem here is the borrower usually discovers after their case is removed from FCP that they failed to file an answer. Thankfully, the court will now address this problem by advising the homeowner at the first conference of the need to file an answer. Time to answer is limited though to 30 days from the initial FCP appearance. Clearly, the borrower must have a valid reason for not answering the summons and complaint. </b></span></div>
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span>
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">--------------------------------------------------------------------------------------------------------------------</span></span><br />
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span>
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Since their inception in 2009, settlement conferences
under New York's judicial residential foreclosure conference process, the
mandatory mediation program New York enacted in response to the foreclosure
crisis, have allowed thousands of New York homeowners to achieve settlements
and loan modifications, thereby averting foreclosures and sparing New York's
communities their adverse effects. But many homes have been needlessly lost to
foreclosure because of unproductive settlement conferences, with erratic
implementation of the law leading to dramatic variations in the efficacy of the
conferences (see Divergent Paths: The Need For More Uniform Standards and
Practices in New York State's Residential Foreclosure Conference Process (New
Yorkers for Responsible Lending), available at <a href="http://www.legalservicesnyc.org/storage/PDFs/divergent%20paths.pdf" target="_blank">http://www.legalservicesnyc.org/storage/PDFs/divergent
paths.pdf</a>).<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Legislation enacted in the waning hours of the 2016
session included significant changes to the foreclosure conference process.
These amendments fill many of the gaps that the original legislation left open,
so there is now hope that the settlement conference law will be more rigorously
implemented in all jurisdictions, with uniform consequences to deter its
violation, and the legislature's intent to prevent avoidable foreclosures and
encourage home-saving loan modification solutions more effectively implemented
across New York State. The amendments clarify the courts' obligation to ensure
a meaningful negotiation process that prevents avoidable foreclosures by
clarifying the obligations to appear with required information and authority,
defining the good faith negotiation standard, detailing the remedies when the
negotiation process is subverted, and preserving homeowners' ability to defend
foreclosure actions on the merits, among other changes.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span lang="EN" style="font-size: 18pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Settlement Conferences<o:p></o:p></span></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span lang="EN" style="font-size: 18pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">CPLR 3408 was enacted in 2008 and amended in 2009. It
provides for mandatory residential foreclosure settlement conferences at which
the parties are encouraged to negotiate, at face-to face court-supervised
settlement conferences, foreclosure-avoiding solutions such as loan modification
agreements (CPLR 3408(a), (f)). It requires parties appearing at conferences to
appear with authority to dispose of the case (CPLR 3408(c)), and requires the
courts to provide notice to the parties of the scheduling of the conference and
the documents to be brought to the conference (CPLR 3408(e)).<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Although CPLR 3408(f) presently expresses a preference
for home-saving loan modifications, specifying that "the plaintiff and
defendant shall negotiate in good faith to reach a mutually agreeable
resolution, including a loan modification, if possible," for some
homeowners other options such as "deeds in lieu of foreclosure" or
"short sales" are more viable.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Some courts denied defendants settlement conferences
based on a determination that the homeowners could not qualify for a loan
modification, depriving homeowners of the opportunity to avoid foreclosure with
a negotiated settlement as the Legislature intended. The amendments clarify
that other loss mitigation options, not just loan modifications, are proper
subjects of settlement conferences (CPLR 3408(a)).<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Following amendment in 2009, the law imposed an
affirmative obligation to negotiate "in good faith" to achieve such
loan modifications, if possible (CPLR 3408(f)), but the law left "good
faith negotiation" undefined, and prescribed no remedies when that
standard is violated, leaving the courts to devise their own, sometimes
idiosyncratic, definitions of good faith and to craft remedies when parties did
not fulfill the mandate to negotiate in good faith. The recent amendments fill
some of the gaps left by the original law.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">The amendments adopt a good faith definition evolved from
case law, stating that it "shall be measured by the totality of the
circumstances." Courts determining good faith shall now consider: (1)
compliance with the requirements of CPLR 3408 and applicable court rules,
orders or directives of the court or its designees; (2) compliance with
applicable mortgage servicing laws, rules or regulations and loss mitigation
standards; and (3) conduct consistent with efforts to reach a mutually
agreeable resolution, including avoiding unreasonable delay, appearing at
conferences with authority to settle, avoiding prosecution of foreclosure
proceedings while loss mitigation applications are proceeding (known as
"dual tracking"), and providing accurate information to the court and
parties (CPLR 3408 (f)).<sup>1</sup> In light of some courts' reluctance to
consider conduct preceding the formal start of settlement conferences when
assessing good faith, the reference to dual tracking is significant, because it
by definition authorizes consideration of conduct preceding the settlement
conference process.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">The amendments provide additional guidance about other
settlement conference requirements. CPLR 3408(c) clarifies that any party's
representative at the conference must appear with authority to dispose of the
case. In the past, plaintiffs routinely appeared by per diem lawyers or
representatives lacking required authority or information needed for meaningful
negotiations. As a result, the settlement conference process is often
needlessly protracted. See Stalled Settlement Conferences: Banks Frustrate New
York's Foreclosure Settlement Conferences, April 29, 2014, available at <a href="http://nylawyer.nylj.com/adgifs/decisions14/050214report.pdf">http://nylawyer.nylj.com/adgifs/decisions14/050214report.pdf</a>.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">The amendment revises the language to make the appearance
with authority requirement applicable to all representatives appearing at
conferences. Also, while the original statute allowed only plaintiff's
representative to appear telephonically or by video conference, as amended,
either party's representative may be permitted to appear by video or telephone.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">The amendments also add stronger language concerning the
obligation to bring required information needed for meaningful settlement
negotiations to conferences, for both defendants and plaintiffs (CPLR 3408(e).
The amendments require plaintiffs' representatives to appear with a summary of
the status of the plaintiffs' evaluation of any pending loan modification or
loss mitigation applications, including a list of outstanding items required
for completion of the application; an expected date for completion of the
review of the application; and, if the application was denied, a denial letter
or other document explaining the basis for denial and documentation supporting
denials.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Plaintiffs' invocation of phantom investor restrictions,
and refusals to seek waiver of such restrictions as is required by the federal
Home Affordable Modification Program (HAMP) governing most loan servicers, has
been an impediment to settlements and has led to much litigation concerning
failure to negotiate in good faith,<sup>2</sup> so the requirement that
plaintiffs supply this back-up for modification denials provides greater
transparency and should prevent litigation on these issues.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span lang="EN" style="font-size: 18pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Adjudicating Disputes<o:p></o:p></span></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span lang="EN" style="font-size: 18pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Addressing the statute's failure to specify a remedy for
violation of the statute,<sup>3</sup> the amendments provide a process for
adjudicating disputes under the statute and enumerate prescribed remedies for
its violation. A new section, CPLR 3408(i), empowers the court to determine
good faith and order remedies either on motion or sua sponte, on notice, and
also provides that referees, judicial hearing officers or other court staff may
hear and report findings of fact and conclusions of law, and may make reports
and recommendations for relief to the court. New subsections (j) and (k)
enumerate remedies when both plaintiffs and defendants fail to negotiate in
good faith.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">CPLR 3408(j) mandates that when plaintiffs fail to
negotiate in good faith, the court shall, at a minimum, toll interest and fees
during any undue delay caused by the plaintiff, codifying the most commonly
granted remedy under the case law construing CPLR 3408(f).<sup>4</sup> The
court may also compel production of documents requested during conferences,
impose a civil penalty not to exceed $25,000, and award any other relief deemed
just and proper (CPLR 3408(j)).<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">For defendants who fail to negotiate in good faith, CPLR
3408(k) specifies that the court shall remove the case from the conference
calendar, but cautions that the court shall take into account "equitable
factors," including whether the defendant was represented by counsel. This
is important recognition of the disparity in bargaining power at settlement
conferences, where foreclosing lenders are among the world's largest financial
institutions and are always represented by counsel, while defendants are among
the most vulnerable, and often are left to fend for themselves without access
to counsel or understanding of the court proceedings in which they find
themselves.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span lang="EN" style="font-size: 18pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Assistance for Homeowners<o:p></o:p></span></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<b><span lang="EN" style="font-size: 18pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></b></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Foreclosure actions historically proceeded on default in
most cases, with no homeowner defendant participation. With the advent of
settlement conferences, defendants have become participants in the process, as
homeowners lacking access to counsel or the wherewithal to answer a complaint
are nonetheless able to—and do—appear in court for settlement conferences when
they receive notice from the court of a scheduled conference date.<sup>5</sup>
But homeowners who have participated in conferences and believed they had
"answered" by attempting to negotiate a settlement in court and
complying with onerous application processes and documentation requests from
their mortgage servicers have, upon exhaustion of settlement conferences, been
prevented by the courts from submitting answers and litigating their cases on
the merits.<sup>6</sup> The amendments address that unintended problem.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">CPLR 3408(l) now obligates the court, at the first
settlement conference, to advise the defendant of the requirement to answer the
complaint, to explain what "answering" a complaint entails, that the
ability to contest the foreclosure and assert defenses may be lost if an answer
is not interposed, and to provide information about available resources for assistance.
Also, a new Section 3-a of RPAPL 1303 directs the Department of Financial
Services to publish a Consumer Bill of Rights detailing the rights and
responsibilities of parties to foreclosure proceedings, which the court must
provide to foreclosure defendants at the first settlement conference, pursuant
to CPLR 3408(l).<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">A new subsection (m) of CPLR 3408 overrules much of the
appellate case law effectively barring non-answering defendants who
participated in settlement conferences from vacating defaults and interposing
late answers, providing that a defendant who has defaulted in answering but
appears at settlement conferences is presumed to have a reasonable excuse for
the default and shall be permitted to serve and file an answer, without any
substantive defenses deemed waived, within 30 days of the initial appearance at
a settlement conference, and with the defendant's default being deemed vacated
upon service of such late answer (CPLR 3408(m)). This will spare the courts
adjudication of motions for leave to vacate defaults and serve late answers,
which currently flood the dockets of both the trial and intermediate appellate
courts and will better implement the preference of disposition of cases on the
merits.<o:p></o:p></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;"><br /></span></span></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN" style="font-size: 12pt;"><span style="font-family: "helvetica neue" , "arial" , "helvetica" , sans-serif;">Subsection (m) of CPLR 3408 also codifies existing
practice under the Uniform Court Rules (Uniform Rules for the Supreme Court and
the County Court §202.12-a (c) (7)) specifying that motions shall be held in
abeyance while the settlement conference process is ongoing, except for motions
concerning compliance with CPLR 3408 or its implementing rules. This makes
clear that parties participating in the settlement conference process have
redress for violations of the settlement conference law even if other motion
practice pertaining to the case is held in abeyance (and even if they have not
answered the complaint).</span><span style="font-family: "times new roman" , serif;"><o:p></o:p></span></span></div>
<div class="MsoNormal">
<br /></div>
<div class="MsoNormal">
<br /></div>
<br />
<div class="MsoNormal">
<span style="font-family: "georgia" , "serif"; font-size: 12.0pt;">The
full article can be found here: <a href="http://www.newyorklawjournal.com/id=1202763914888/Residential-Foreclosures-Legislative-Changes-to-Settlement-Conference-Law?mcode=0&curindex=0&curpage=ALL">http://www.newyorklawjournal.com/id=1202763914888/Residential-Foreclosures-Legislative-Changes-to-Settlement-Conference-Law?mcode=0&curindex=0&curpage=ALL</a><o:p></o:p></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-14012775548445606722016-08-15T10:42:00.000-04:002016-08-15T10:42:02.428-04:00Notice Provisions of RPAPL §1304 Inapplicable Where Borrower Deceased<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">US
Bank moved for summary judgment and an order of reference in this mortgage
foreclosure action. The now-deceased borrower, Eisenman, failed to make
payments, but defendant opposed the motion arguing dismissal was warranted due
to bank's failure to serve the estate of Eisenman with notice of default under
RPAPL §1304. The court found bank established prima facie entitlement to
summary judgment and an order of reference noting defendant failed to raise an
issue of fact precluding summary judgment in bank's favor. It found defendant's
laches argument meritless, as was the claim bank failed to comply with the
notice provisions of §1304. Also, contrary to defendant's claim, the Jan. 30,
2012 dismissal of a prior action against Eisenman was not dismissed on the merits,
and was not res judicata barring this action. The court stated prior courts
found §1304 was inapplicable where the borrower was deceased. Therefore, as
Eisenman, the borrower, was deceased, there could no longer be notice given to
the borrower, and accordingly, the notice provisions of RPAPL §1304 did not
apply. Hence, bank's motion for summary judgment, and an order of reference was
granted.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: left;">
<br /></div>
<br />
<div class="MsoNormal" style="text-align: left;">
<span style="font-family: "Georgia","serif"; font-size: 12.0pt;">Full
article and decision can be found here: <a href="http://www.newyorklawjournal.com/id=1202763984389?slreturn=20160715094217">http://www.newyorklawjournal.com/id=1202763984389?slreturn=20160715094217</a><o:p></o:p></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-53823766860472424462016-07-21T17:55:00.002-04:002016-07-21T17:55:13.431-04:00Pols say new foreclosure buyback program will help Queens families stay in their homes<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">A group of Queens pols is touting a new program to help people living in foreclosed homes turn their fortunes around.</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Council members representing southeast Queens gathered Tuesday morning to unveil the new Foreclosure Buyback Program, also known as the City Restoration Program.</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">They said the initiative is the first in the country of its kind, and would allow nonprofits to purchase distressed mortgages throughout New York City from the Federal Housing Association.</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">More than 40 so-called “zombie homes” across New York City have been selected for the pilot program, which has partnered with a number of nonprofits to purchase distressed mortgages.</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Once these are bought back from the FHA, the nonprofits will work with families to restructure their mortgages and give them the opportunity to remain in their homes.</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">Councilman I. Daneek Miller, who spearheaded the program, called it a response to the foreclosure crisis that has disproportionately struck areas like southeast Queens.</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">"Communities are redlined," Miller said, referring to the discriminatory practice of banks rejecting mortgages for residents of certain areas.</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">"You can't go through a traditional bank to get a traditional mortgage, and then we become very vulnerable and susceptible to predatory lenders."</span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Georgia, Times New Roman, serif;">The full article can be found here: <a href="http://www.nydailynews.com/new-york/foreclosure-buyback-program-aims-families-article-1.2717566">http://www.nydailynews.com</a></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-65356944930044855372016-07-20T17:25:00.004-04:002016-07-20T17:25:43.594-04:00ISSUES RAISED IF MODIFICATION ENTERED INTO REVOKING ACCELERATION BAR SUMMARY JUDGMENT<div class="MsoNormal" style="background: white; line-height: 18pt; text-align: justify; vertical-align: baseline;">
<span style="color: #333333; font-family: "inherit","serif"; font-size: 10.5pt;">U.S. Bank moved for summary judgment, striking Azad's answer and
dismissing the counterclaims and defenses in this foreclosure action. Bank
alleged a loan modification was entered into and that the holder of the
mortgage and underlying debt defaulted under their terms by failing to make
monthly payments due. As such, bank elected to accelerate the entire debt,
moving for summary judgment and an order of reference. After obtaining an order
of reference and a judgment of foreclosure and sale, bank vacated the judgment
and twice discontinued the action, commencing a third foreclosure suit that was
dismissed in 2013. Azad raised, as an affirmative defense, that the action was
barred by the statute of limitations—foreclosure actions were governed by a
six-year limitations period. The debt was accelerated in Oct. 2008, and the
suit not commenced until Nov. 2014, making it time-barred if lender took no
other affirmative action to revoke its election to accelerate all sums due. The
loan modification would act as a revocation, but Azad denied entering to such
one, thus, there was a question of fact if she entered into one, raising an
issue of fact if there was a revocation of the accelerated debt and if the
action was timely. Summary judgment and order of reference was denied.<o:p></o:p></span></div>
<div class="MsoNormal" style="background: white; line-height: 18pt; text-align: justify; vertical-align: baseline;">
<span style="color: #333333; font-family: "inherit","serif"; font-size: 10.5pt;"><br /></span></div>
<div class="MsoNormal" style="background: white; line-height: 18pt; text-align: justify; vertical-align: baseline;">
<span style="color: #333333; font-family: "inherit","serif"; font-size: 10.5pt;"><br /></span></div>
<div class="MsoNormal" style="background: white; text-align: justify; vertical-align: baseline;">
<span style="color: #333333; line-height: 18pt;"><span style="font-size: 14px;">The Full Article can be found here: </span></span><span style="background-color: transparent; font-size: 14px; line-height: 24px;"><span style="color: #333333;"><a href="http://www.newyorklawjournal.com/id=1202761611836">http://www.newyorklawjournal.com</a></span></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-42801405378771751382016-07-19T16:34:00.000-04:002016-07-19T16:34:26.370-04:00Bamboozled: Bank unlawfully breaks into home, lawsuit says<div style="text-align: justify;">
Steven Kenner came home to a nasty surprise after a two-week vacation in Florida. Papers were strewn about the house. Cabinets were left open. Cigarette butts were ground into the floor. A lock on the door to the laundry room had been tampered with. Kenner, 71, thought his East Hanover home had been burglarized. But what actually happened may have been worse.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
It wasn't a burglar. Instead, Kenner's mortgage lender hired subcontractors to break into Kenner's home as part of efforts to see if the home was vacant or abandoned, according to a lawsuit filed by Kenner against Citizens Bank, Citizens One Home Mortgage, subsidiaries of the bank and its subcontractors. The suit was filed in May in Morris County Superior Court.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
While subcontractors broke into his home, Kenner was in touch with the bank about a pending mortgage modification and no one reported anything was amiss, he said. And the bank even knew he was away on vacation, Kenner said. Citizens Bank said it doesn't comment on ongoing litigation.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Before it all happened, Kenner said, he broke a bone in his back and was unable to work. In January 2015, he fell behind on the mortgage payments for his home, which he had owned for nearly 40 years.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
He contacted his lender to request a mortgage modification.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Kenner entered into a trial plan in December 2015. If he paid the agreed monthly payment on time and in full for January, February and March of 2016, he would enter a mortgage modification that would start in April.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Citizens took automatic monthly payments from Kenner's bank account, and payments were on time for the trial period, Kenner said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
While Kenner was on the two-week trip in late February and early March, he said, he called the lender to check on the status of the modification, and the lender said his payments were not received.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
But that wasn't so, Kenner said, and he arranged for his bank to send the proof to Citizens.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
When he next spoke to Citizens, Kenner said, he was told there had been an error and yes, his payments were on time. Kenner qualified for the modification, he said he was told, and he was instructed to look for packages with all the paperwork he needed to sign when he returned from vacation.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
When Kenner got back to his East Hanover home on March 14, Kenner said he entered the way he usually does: through an unoccupied first floor apartment where his mom used to live.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
"The lights were on. Cabinets were open and there were papers all over the place," Kenner said. "I didn't know if I was robbed or what. I didn't know what was happening."</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
He next entered the home proper through a laundry room that's next to the apartment.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The inside of the laundry room showing the removed lock and the messy floor as it was found when Steven Kenner came home from his vacation.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
The laundry room has a door with two locks. Kenner said one of the locks was removed and a round cylinder was placed to cover the space where the lock was.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
"They must have put their hand around the round opening to open the other lock to enter my home," Kenner said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Next, Kenner entered the main house, he said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
More lights were on, more cabinets were open, and cigarette butts were all over, he said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
He called police.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
When officers arrived, they proceeded as if there was a burglary, Kenner said. They dusted for fingerprints and took photos, and they asked Kenner to see if anything was missing.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
As officers searched the home, Kenner opened the front door, looking for the packages he was expecting from the mortgage company.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
That's when he saw a "6" -- Kenner's house number -- written on the outside of the door with some kind of marker. And then they saw a sticker affixed to the door.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
"This property has been determined to be vacant/abandoned," the sticker said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Police called the number on the sticker and learned it was all a mistake by Kenner's mortgage company, Kenner said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
That's some mistake.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
"The police said they were told that the mortgage company more or less made a mistake," Kenner said. "The mortgage company had contracted with the company that broke into my home to see if the home was vacant."</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
But the home was not vacant, nor had the bank ever started any foreclosure proceedings, said Kenner's attorney, Philip Vinick.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Vinick said the New Jersey Supreme Court adopted amendments to court rules governing the foreclosure of vacant and abandoned residential properties in December 2012.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
If a lender brings a foreclosure action and it believes a property is vacant or abandoned, the lender can ask for a quicker judgment from the court so it can take steps to maintain the property. For that to work, the lender must prove that at least two of 14 conditions must be present at the property, such as overgrown or neglected vegetation, disconnected utilities, the accumulation of mail or newspapers and the absence of window treatments.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
None of the 14 conditions applied to Kenner's home, the attorney said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
"In Mr. Kenner's case the lender did not even institute a foreclosure action much less prove that Mr. Kenner's house was vacant, which it obviously was not," Vinick said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Even after Citizens was made aware of the error, the bank's subcontractors continued to contact Kenner, the homeowner said. One wanted to come into the home. Another wanted to shut off his water.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
And two days after Kenner returned home, Kenner's son passed the home and saw workers on property, according to a statement provided to Kenner's attorney. The son said he asked the workers what they were doing, and they said they were hired by the mortgage company to remove some shrubs. The workers then called the mortgage company, which in turn told them to leave the property, the statement said.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
And, Kenner realized, the cylinder that replaced the lock on the laundry room door could be removed by anybody at any time.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
At first he moved a washing machine in front of the door. Now a table blocks the passageway.</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
"I've been very upset," Kenner said, noting that he doesn't feel comfortable in his own home. "I'm thinking very seriously of selling because of what happened to me."</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
After the suit was filed, Citizens offered to settle, but Kenner's attorney called the amount "insufficient" to "compensate him for his physical and psychological damages, including being embarrassed and having to explain to his neighbors what happened."</div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
"The laws were bypassed or disregarded. It will eventually be left up to jury to determine how much Mr. Kenner's nightmare is worth," Vinick said. </div>
<div style="text-align: left;">
<br /></div>
<div style="text-align: left;">
The full story can be found here: <a href="http://www.nj.com/business/index.ssf/2016/07/bamboozled_bank_unlawfully_breaks_into_home_lawsui.html">http://www.nj.com</a></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-69039183486412708242016-06-30T15:41:00.001-04:002016-06-30T15:41:52.968-04:00PLAINTIFF FAILS TO ESTABLISH STANDING, DENIED SUMMARY JUDGMENT AND ORDER OF REFERENCE<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;">Wells Fargo Bank moved for summary judgment and appointment of a referee to compute. Defendants cross-moved for dismissal of the complaint in this foreclosure mortgage action alleging lack of standing. The court stated an electronic note signed electronically by the mortgagor was a "transferable record," noting a person having control of a transferable record was the holder. An affidavit from Wilson, Vice President Loan Documentation for plaintiff, stated plaintiff was in possession of the promissory note, an electronic note, and was the current controller. Yet, the court found Wilson did not expressly state she examined the note holder registry or identify the source from which she determined plaintiff was controller of the electronic note. It ruled in the absence of factual details as to the transfer of the electronic note to plaintiff, including the transfer date, it could not be established that plaintiff controlled the electronic note on the date this action was commenced. Hence, plaintiff failed to establish standing as part of its prima facie case, and its motion was denied. Also, as defendant failed to submit sufficient proof plaintiff was not the holder of the electronic note at the time the action was commenced, the cross-motion to dismiss was denied.</span></div>
<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;"><br /></span></div>
<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;"><br /></span></div>
<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;">The full decision can be found<a href="http://www.newyorklawjournal.com/id=1202758881694"> here</a></span></div>
<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;"><br /></span></div>
<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;"><br /></span></div>
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;"><br /></span>
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;"><br /></span>
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;"><br /></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-80947867781044555272016-06-30T15:17:00.000-04:002016-06-30T15:17:33.522-04:00BANK FAILS TO ESTABLISH STANDING TO SUE WITHOUT DETAILS OF NOTE'S PHYSICAL DELIVERY<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;">U.S. Bank moved to strike defendants' answer, defenses and counterclaim, and granting it summary judgment in this foreclosure proceeding. It produced a copy of the mortgage, and written assignment of same, among other things, proffering an affidavit of Wilde, who asserted defendants defaulted on the loan and bank was in physical possession of the note. Defendants asserted they never received correspondence regarding foreclosure settlement conferences, seeking to have the matter remanded to the settlement part. They also challenged bank's standing to sue herein. Wilde's affidavit averred only that before the action was commenced it was verified that bank was in physical possession of the note, but he did not provide factual details regarding the physical delivery of the note, or that he personally inspected the original note. The court stated absent such further details, bank failed to establish prima facie it was holder of the note before commencement of this action, and thus, was insufficient to establish bank's standing without details concerning the physical delivery. Given that defendants resided at the property, only missed an initial recent conference date and public policy considerations, the court referred the matter to the foreclosure settlement conference part.</span></div>
<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;"><br /></span></div>
<div style="text-align: justify;">
<span style="background-color: white; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; line-height: 24px;">The full article and decision can be found <a href="http://www.newyorklawjournal.com/id=1202760512768">here</a></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-91832359892219413682016-06-30T15:12:00.001-04:002016-06-30T15:12:16.076-04:00Law Makes NY Lenders Maintain 'Zombie' Homes<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
New York is imposing new requirements on mortgage lenders to maintain abandoned houses before foreclosure.</div>
<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
The law, signed Thursday by Gov. Andrew Cuomo, threatens banks with civil penalties up to $500 a day for failing to maintain residential properties once they're aware of vacancies.</div>
<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
The old law required they take responsibility following a foreclosure judgment, which Cuomo said left hundreds of "zombie properties" across the state.</div>
<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
The signed legislation, A10741/S8159, also establishes an electronic statewide registry of abandoned homes, establishes a state hotline where neighbors can report them and requires notices to mortgage borrowers emphasizing their right to stay in houses until foreclosure.</div>
<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
"It brings together multiple strands that, combined, will help homeowners, neighborhoods and municipalities and New York State at large, move from crisis into recovery," said Kirsten Keefe, a senior attorney at the nonprofit law firm Empire Justice Center. "The settlement conference and notice improvements alone will have an immense impact. I look forward to seeing this new law put into action."</div>
<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
A related measure, <a href="http://assembly.state.ny.us/leg/?default_fld=&leg_video=&bn=A10730&term=2015&Summary=Y&Memo=Y&Text=Y" rel="nofollow" style="border: 0px; box-sizing: border-box; color: #467984; font-family: inherit; font-size: inherit; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;" target="_blank">A10730</a>/S8141, establishes a State of New York Mortgage Agency fund to buy and sell abandoned properties at below-market rates and demolish those beyond repair.</div>
<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
<br /></div>
<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
THE FULL STORY CAN BE FOUND <a href="http://www.newyorklawjournal.com/id=1202760864843?keywords=law+makes+ny+lenders&publication=New+York+Law+Journal">HERE</a></div>
<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
<br /></div>
<div style="background-color: white; border: 0px; box-sizing: border-box; color: #333333; font-family: "Droid Sans", sans-serif; font-size: 14px; font-stretch: inherit; line-height: 24px; padding: 0px 0px 12.6563px; vertical-align: baseline;">
<br /></div>
Unknownnoreply@blogger.com5tag:blogger.com,1999:blog-4505267985346850887.post-62923845415426558322016-06-28T16:34:00.004-04:002016-06-28T16:34:32.759-04:00Emigrant Savings Bank Discriminated Against Minorities, Brooklyn Jury Says<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">A federal jury in Brooklyn found on Monday that the Emigrant Savings Bank had discriminated against eight minority homeowners by purposefully marketing to them subprime mortgages with what were described as predatory interest rates of as much as 18 percent a year.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">In 2011, the homeowners — among them a home health aide, a library worker and a clinician at Rikers Island — filed a lawsuit against the bank in Federal District Court in Brooklyn, claiming that Emigrant Savings had targeted minority customers who had low credit scores with so-called no-income refinancing loans from 2005 to 2009, both before and after the subprime crash. Ending a monthlong trial, the jury’s verdict upheld the plaintiffs’ claim that the bank had “aggressively” sold the “highly abusive” loans specifically to minority families in violation of the Fair Housing Act, among other state and federal laws.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">Six of the plaintiffs were awarded a total of $950,000 in damages in the case. Two others waived their claims after entering into a loan modification agreement with the bank. “Today’s verdict was a victory for borrowers seeking redress for Emigrant’s discriminatory and predatory lending practices,” said Rachel Geballe, a lawyer for Brooklyn Legal Services, which represented the plaintiffs.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">One, Edith Saint-Jean, testified that she and her husband had refinanced their home in Brooklyn to pay off more than $30,000 in delinquent bills. Ms. Saint-Jean said that an independent broker had assured her that her monthly payments on the Emigrant Savings loan would go down within six months, but it did not happen. “They destroyed my life,” she said.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">Officials for the bank had argued that the mortgages represented less than 5 percent of Emigrant Savings’ total assets and often allowed low-income clients, many of them black and Latino, access to the credit market when they had no other options.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">“Emigrant loans were a ‘lifeline’ for these consumers — which is why more than 70 percent of the borrowers in this program succeeded and kept their homes,” the bank said in a statement on Monday. After promising to appeal the jury’s verdict, the statement added: “Each of the plaintiffs greatly benefited from their Emigrant loans when compared to any gain they would have realized from selling their homes earlier.”</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">Correction: June 27, 2016 </span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">An earlier version of this article misidentified who Edith Saint-Jean had testified assured her that her monthly payments on a loan from Emigrant Savings Bank would go down after six months. It was an independent broker, not Emigrant Savings.</span></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
THE STORY CAN BE FOUND <a href="http://www.nytimes.com/2016/06/28/nyregion/emigrant-savings-bank-discriminated-against-minorities-brooklyn-jury-says.html?_r=0">HERE</a></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-11565250102237046612016-06-28T10:02:00.002-04:002016-06-28T10:02:41.737-04:00Legislation to clean up zombie properties signed into law<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">STATEN ISLAND, N.Y. -- Legislation to address the state's zombie properties -- 303 have been identified on Staten Island -- and to establish the Community Restoration Fund, was recently signed into law by Gov. Andrew Cuomo.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">Sen. Diane Savino. (D-North Shore/Brooklyn), along with Bronx Sen. Jeffrey Klein, championed legislation to protect neighboring home values while ensuring the speedy rehabilitation of properties.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">"This is a great day for the people of New York City, especially my constituents living in Staten Island and Brooklyn who've been dealing with this issue for far too long," said Savino.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">The legislation comes on the heels of a new study that revealed that Staten Island is home to 303 zombie homes, which has resulted in plummeting property values of privately-owned homes in surrounding neighborhoods by $50.7 million.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">The study, "The Next Great American Bank Robbery" -- launched by the Independent Democratic Conference (IDC) -- highlights financial and societal problems caused by zombie properties, which are those homes left to decay in the middle of the foreclosure process.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">The zombie homes negatively affect property values of an estimated 9,311 neighboring properties.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">"Just like every homeowner has a duty to maintain his or her property, banks need to do the same so that nearby residents aren't forced to deal with the blight of unmaintained properties and falling property values," said Assemblywoman Nicole Malliotakis (R-East Shore/Brooklyn).</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">"We've experienced a surge in this problem since the devastation of Sandy, adding to the frustration of so many people who worked so hard to get their homes back into shape," she added.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><u><b>IS THERE A ZOMBIE IN YOUR NEIGHBORHOOD?</b></u></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">According to the study, the Staten Island zip code with the most zombie homes is 10306, where there are 47 abandoned properties, and the median house value is $449,400. The overall home depreciation in this zip code is $7.1 million.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">The zip code with the least amount of zombie properties was 10307, where there were six of these homes. The median house value in that zip code is $571,200, and the total depreciation due to abandoned homes is $1.2 million.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><u><b>ADDRESSING ZOMBIE PROPERTIES</b></u></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">The new legislation calls for the following:</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">To address the zombie property blight, banks will now have to maintain vacant and abandoned properties.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">A new toll-free hotline will allow people to report potentially vacant or abandoned sites, and an electronic database will provide streamlined access to information for affected communities.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">An expedited foreclosure process will protect neighboring homes while improvements to mandatory settlement conferences will protect homeowners facing foreclosure.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">The establishment of a Consumer Bill of Rights will inform property owners of their rights in foreclosure proceedings.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><u><b><br /></b></u></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><u><b>THE COMMUNITY RESTORATION FUND</b></u></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">Savino and Klein introduced the legislation to establish the New York State Community Restoration Fund. This will help those homeowners who are delinquent, at risk of entering default, or may have already fallen into foreclosure due to economic hardship, said Savino.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">The fund authorizes the State of New York Mortgage Agency to utilize fund resources to rehabilitate distressed properties, demolish homes that are dilapidated beyond repair, and fund not-for-profit and affordable housing developers, in order to address the foreclosure crisis, repurpose or rehabilitate foreclosed or vacant properties into affordable housing, and keep families in their homes.</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;">CLICK <a href="http://www.silive.com/news/index.ssf/2016/06/zombie_home_legislation_signed.html">HERE</a> FOR THE FULL STORY</span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
<div style="text-align: justify;">
<span style="font-family: Helvetica Neue, Arial, Helvetica, sans-serif;"><br /></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-11586881087396385032016-06-02T14:03:00.002-04:002016-06-02T14:03:26.619-04:00Goldman, Barclays, 6 Others Ink $190M FDIC Deal Over Sour RMBS<br />
<div style="text-align: justify;">
<span style="background-color: white; font-family: sans-serif; font-size: 15px; line-height: 24px;">Goldman Sachs & Co., Barclays Capital Inc. and six other financial institutions have agreed to pay the Federal Deposit Insurance Corp. $190 million to end mortgage-backed securities claims the agency brought on behalf of five failed banks, the FDIC said on Thursday.</span></div>
<div style="text-align: justify;">
<span style="font-family: sans-serif; font-size: 15px; line-height: 24px;"><br /></span></div>
<span style="background-color: white; font-family: sans-serif; font-size: 15px; line-height: 24px;"><div style="text-align: justify;">
The deal settles federal securities suits the FDIC filed as receiver for the failed banks to recover on their purchases of 21 Countrywide mortgage-backed securities. </div>
<div style="color: #444444; text-align: justify;">
<br /></div>
<div style="text-align: justify;">
<b>For the full-story click <a href="http://www.law360.com/realestate/articles/802912?nl_pk=7e08787f-e51e-4cae-84ec-42407a6f2ac5&utm_source=newsletter&utm_medium=email&utm_campaign=realestate">HERE</a></b></div>
</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-4505267985346850887.post-36511060238952215822016-06-01T13:47:00.004-04:002016-06-01T13:47:53.476-04:00<div class="MsoNormal" style="text-align: justify;">
<span style="font-family: 'Arial Black', sans-serif; font-size: 12pt;">Today, we received a HAMP loan modification for one of our
clients which lowered the monthly payment from </span><b><span style="font-family: 'Arial Black', sans-serif;">$2,205.81 to $
1,010.90 – a savings of almost $1,200 a month!!! See the worksheet below which contains the details. </span></b></div>
<div class="MsoNormal">
<b><span style="color: #1f497d; font-family: "Arial Black","sans-serif";"><br /></span></b></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7KomktElks-nuDUh5-swulhbJhld-W-P8I22c2yhbAY5I9ZyR0HLDRcc-6-5Z4ZEmUoJ916F-TXEI7gBC6aKPaUqgIyqr-Fgz3ogE8x05Dj-iFUwPdAjLmM95HoGKcQ1qoU9Ao5kUF5TI/s1600/SETTLMNT+OFFER.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh7KomktElks-nuDUh5-swulhbJhld-W-P8I22c2yhbAY5I9ZyR0HLDRcc-6-5Z4ZEmUoJ916F-TXEI7gBC6aKPaUqgIyqr-Fgz3ogE8x05Dj-iFUwPdAjLmM95HoGKcQ1qoU9Ao5kUF5TI/s640/SETTLMNT+OFFER.jpg" width="556" /></a></div>
<div class="MsoNormal">
<br /></div>
Unknownnoreply@blogger.com5