HURRICANE SANDY RELIEF - a fundraiser to help families that have lost everything
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November 17, 2012 4PM - CLOSE
An informational blog pertaining to foreclosure law and foreclosure defense practice.
© Copyright 2015 Law Offices of Robert E. Brown, P.C. All Rights Reserved.
Wednesday, November 14, 2012
Tuesday, November 13, 2012
In re Residential Capital, LLC, Case No. 12-12020-- ORDER EXTENDING DEADLINE FOR FILING PROOFS OF CLAIM
In re Residential Capital, LLC, Case No. 12-12020
-ORDER EXTENDING DEADLINE FOR FILING PROOFS OF CLAIM-
Due to the recent events precipitated by hurricane Sandy, the Debtors have requested that the Court extend the General Bar Date for a limited period; the General Bar Date is extended from Friday, November 9, 2012 at 5:00 p.m. (Prevailing Eastern Time) to and including Friday, November 16, 2012 at 5:00p.m. (Prevailing Eastern Time) (the “Extended General Bar Date”).
Sen. Schumer to insurance companies: You will 'pay every dollar for every legitimate claim in the wake of Sandy'
Sen. Chuck Schumer warned insurance agencies Sunday not to lobby to have Sandy reclassified as a hurricane in order to charge hard-hit homeowners higher deductibles.
Click here for full article.
Friday, October 26, 2012
ANOTHER WIN FOR ROBERT E. BROWN, P.C.
After aggressively litigating for 2 years, Household Finance Realty Corporation of New York, finally gave up and discontinued the action without prejudice. Below is the STIPULATION OF DISCONTINUANCE.
STIPULATION OF DISCONTINUANCE WITHOUT PREJUDICE
STIPULATION OF DISCONTINUANCE WITHOUT PREJUDICE
Wednesday, October 24, 2012
Judge Glenn Denies Request for ResCap Borrowers' Panel
Judge Martin Glenn of the U.S. Bankruptcy Court in Manhattan turned down a bid for the appointment of an official committee to represent borrowers in the Chapter 11 proceeding of the nation's fifth-largest home-loan servicer on the grounds the company's troubles, and those of the industry, have spawned sufficient safeguards.
Judge Glenn, however, cited a promise by the official creditors committee to refer borrower issues to special counsel. That is enough to guard against the "theoretical risk" that ResCap's official creditors committee, which has one borrower member, won't have the interests of borrowers at heart, the judge said.
Click here for full article: FOX BUSINESS ARTICLE
Judge Glenn, however, cited a promise by the official creditors committee to refer borrower issues to special counsel. That is enough to guard against the "theoretical risk" that ResCap's official creditors committee, which has one borrower member, won't have the interests of borrowers at heart, the judge said.
Mr. Brown said he was surprised by the ruling but was encouraged by Judge Glenn's recognition that borrowers allegedly injured by ResCap's practices have a special stake in the case, which should be addressed by the special counsel the creditors committee has offered to hire.
"Now if they appoint a firm that has a nationwide practice foreclosing on people or that has a huge banking practice, that's not someone borrowers will trust and probably not someone that will understand the unique problems of someone in foreclosure," Mr. Brown said.
Click here for full article: FOX BUSINESS ARTICLE
Tuesday, October 23, 2012
Decision denying Motion for Borrowers' Committee
Judge Martin Glenn has rendered his decision on the ResCap Motion for Borrowers' Committee.
CLICK HERE FOR DECISION
CLICK HERE FOR DECISION
Monday, October 22, 2012
ANOTHER WIN FOR ROBERT E. BROWN, PC
Our client A.W. was sued by American Express for credit card debt in 2009. After aggressively litigating for 3 years, American Express finally gave up and discontinued the action. Below is the NOTICE OF DISCONTINUANCE.
CLICK HERE: NOTICE OF DISCONTINUANCE
CLICK HERE: NOTICE OF DISCONTINUANCE
Tuesday, October 16, 2012
SUCCESSFUL SETTLEMENT VIA LOAN MODIFICATION
The Law Office of Robert E. Brown, PC has successfully negotiated a loan modification with US Bank National for our client Luis Padilla.
Padilla's previous principle and interest payment was $1312.70 with a 6.0% interest rate.
On September 25, 2012 Hogan & Lovells (representing US Bank National) presented a trial modification plan to our client, Luis Padilla. After careful consideration, our client accepted the loan modification offer and began making his first payment immediately. Our client's current principle and interest trial payment is $972.56. With a rate of 2.0%.
The Law Offices of Robert E. Brown, P.C.
2409 Richmond Road, Staten Island, New York 10306
Phone: 718.979.9779
Phone: 718.979.9779
Monday, August 27, 2012
Homeowners Want Their Own Committee in ResCap Bankruptcy
Homeowners with mortgages serviced by Residential Capital LLC want to form an official committee in the company's
bankruptcy case, which would give them a louder voice in the company's complicated Chapter 11 proceedings.
In a Friday filing with U.S. Bankruptcy Court in Manhattan, a lawyer for the group of homeowners said they're
concerned that state and federal settlements this year with mortgage servicers including ResCap's government-owned
parent Ally Financial might not be enforced properly now that ResCap is in bankruptcy. A ResCap spokeswoman declined to
comment.
The settlement, over borrower claims of improper foreclosure practices, offers billions of dollars in relief to many
homeowners who either owe more than their homes are worth or were forced to sell their homes and move. While the
homeowners do have one representative on ResCap's official committee of unsecured creditors--a plaintiff in a
Pennsylvania class-action lawsuit brought by the same lawyer asking for a committee--the group said it needs more say to
protect its interests.
"One borrower claimant seated on the Committee will simply be overruled if any objection is made" by other "dominant"
members of the committee, the lawyer said. Further, if the class-action suit isn't viable, "then the one and only
borrower representative will be found to have no standing to be on the creditors' committee," the lawyer said in the
filing.
ResCap said at the time of its bankruptcy filing that 65,000 of its customers are in foreclosure proceedings, and
51,000 have declared bankruptcy.
An official committee gets more stature than standalone creditors in a bankruptcy case, most notably because it
typically gets its legal and professional fees paid for by the estate.
The lawyer, Robert E. Brown of Robert E. Brown PC, points out in his filing that a borrowers' committee was appointed
in the bankruptcy case of American Home Mortgage Holdings Inc. (AHMIQ).
ResCap's restructuring hinges on the sales of its various mortgage assets to Berkshire Hathaway Inc. (BRKA, BRKB) and
Nationstar Mortgage Holdings Inc. (NSM), which have been named the stalking-horse bidders for ResCap's legacy loan
portfolio and mortgage-servicing portfolio, respectively. The sales, which are subject to higher bids, could generate
more than $4 billion for ResCap's estate.
ResCap filed for Chapter 11 protection May 14 as bond-related payments loomed and litigation over soured mortgage-
backed securities mounted. The move is intended to help Ally, which isn't part of the bankruptcy, sever itself from an
estimated $400 million to $1.25 billion in liabilities related to ResCap's troubles.
Full Article: Nasdaq.com
Homeowners Seek Official Committee in ResCap Case
Homeowners with mortgages serviced by
Residential Capital LLC want to form an official committee in the
company's bankruptcy case, which would give them a louder voice in the
company's complicated Chapter 11 proceedings. ...
For the full story click here
For the full story click here
Support the Homeowners' Motion for an Official Committee
If you would like to
support the Homeowners' motion for an official committee, you can do so by
writing a letter to the Judge and the US Trustee. We have provided a sample
letter, which contains their addresses. Feel free to make any changes you like,
or write your own letter. If you are a homeowner that has a claim against
ResCap, GMAC or any related entity and would like to join the motion, please
contact my office at 212-766-9779 or email me at rbrown@robertbrownlaw.com
.
August ___, 2012
The
Honorable Martin Glenn
United States Bankruptcy Court
Southern District of New York
OneBowling Green, Court Room 501
New York , NY
10004
Southern District of New York
One
Ms. Tracy Hope Davis, Esq.
Brian Masumoto, Esq.
Linda Riffkin, Esq.
Office
of the United States
33 Whitehall Street
21st Floor
Re: Case No. 12-12020 (MG)
Dear Judge Peck and Ms. Davis:
We write to
express our support for the formation of a separate committee to represent
homeowner interest and to ensure that homeowners have an opportunity to be represented
and to seek appropriate relief against Residential Capital LLC and related GMAC
subsidiaries which participated in origination, servicing and securitization of
mortgage loans.
GMAC was one of the top five mortgage
lenders, loan servicers, and prolific securitizer of mortgage loans and
therefore this bankruptcy affects millions of homeowners. Ally's legacy
mortgage assets - that is, GMAC mortgages and securities predating 2009 -
totaled $10.9 billion on Dec. 31, according to the company's annual report. ResCap wrote off $22 billion in
mortgages in 2009, 2010, and 2011 much of it subprime mortgages. [1] Ally is the primary servicer
on 2.3 million mortgages with collective unpaid principals totaling about $356
billion, according it a recent SEC filing.
The federal government and 49
states reached a settlement with a group of banks on their defective foreclosure
procedures and ResCap- GMAC participated in that settlement and paid a $212
million fine. Homeowners spread out
all over the United States
have unique issues and are without the resources to advocate for their own
interest in a New York
The seated unsecured creditors
committee consists of Trustees, Deutsche Bank. US Bank, and Bank of New York
Mellon, the very parties who are currently seeking to foreclose on homeowners in
state courts. The remaining members are insurers, MBIA and AIG, who are
assigned the right to collect deficiency judgments from homeowners after
foreclosure. This dynamic creates a conflict of interest that is only rectified
by the appointment of a separate committee of homeowners only.
Ally Financial, the former GMAC still owes
taxpayers about $12 billion $17.2 billion in loans it received as part of the
bailouts and the government still owns 74% of Ally, who has repaid only $5.5
billion of $17.2 billion it got in the bailout.
It has been widely reported
that Ally put its home mortgage subsidiary into bankruptcy court to end the
drag of its toxic mortgage assets on Ally's profitable businesses. Ally CEO Michael Carpenter said in a
statement: "The action by ResCap will enable Ally to achieve a permanent
solution to its legacy mortgage risks and put these issues behind us." [2]
The taxpayers and victims of
fraudulent practices as detailed in the settlement agreement and consent orders
deserve a seat at the table and representation in this bankruptcy as Ally
attempts to leave behind and dump its “toxic mortgage assets” – translation
their homes.
Our
state has been hit hard with foreclosures, and we believe that the formation of
a homeowner committee will ensure that the promises made by Ally and GMAC to
work with homeowners in distress will be followed through during the bankruptcy
proceedings. The committee will also
help to avoid confusion and give homeowners a point of contact to assist them
in understanding the complex and byzantine process of Chapter 11 bankruptcy and
how it affects their rights.
Thank you for your consideration,
_______________________________________________
Wednesday, August 15, 2012
Lack of Evidence that Mortgage Assigned to Plaintiff Dooms Foreclosure: FTBK Inv. II LLC v Mercy Holding LLC
In a July 24, 2012 decision
by Justice Demarest, the court denied summary judgment seeking to
foreclose on a mortgage and note. The mortgage and note were held by
Washington Mutual Bank (“WaMu”), until the Federal Deposit Insurance
Corporation (“FDIC”) appointed a receiver for WaMu and transferred all
of its loans to Chase Bank. When defendants stopped making payments,
Chase notified them they were in default. Chase then transferred the
loan to a new entity, which later transferred the loan to Plaintiff.
CLICK HERE FOR THE FULL STORY
CLICK HERE FOR THE FULL STORY
Friday, July 13, 2012
Thursday, June 21, 2012
BANKRUPTCY PETITION FOR OFFICIAL BORROWER COMMITTEE
**ALERT**
All homeowners who believe they have claims against one of the entities
listed on EXHIBIT “A” qualify to participate in the motion to appoint a
committee. There is no cost
to any participant and if the committee motion is granted the debtor in this
case, Residential Capital and subsidiaries will pay for the committee expenses
pursuant to 11 U.S.C. § 503(b)(4).
Claimants that have lawsuits pending have standing to participate in this motion. Further homeowners who believe that they have claims, including illegal foreclosure, but do not have a lawsuit pending may still qualify. For more details click here.
For more information, you may contact:
Robert Brown 212-766-9779
ANOTHER WIN FOR THE LAW OFFICES OF ROBERT E. BROWN, P.C.
ANOTHER WIN FOR THE LAW OFFICES OF ROBERT E. BROWN, P.C.
"Just saved a soldier's house from
foreclosure in a pro bono case I am handling through the NY Guard. She got a
loan mod of 2% for 5 years and then 4% for the life of the loan - down from her
original rate of 9.75%. Her payments dropped almost $600 a month and the bank
gave her a principal reduction of over $10,000."
- Robert E. Brown
Tuesday, June 19, 2012
BANKRUPTCY PETITION FOR OFFICIAL BORROWER COMMITTEE
ALERT
BANKRUPTCY PETITION FOR OFFICIAL BORROWER COMMITTEE
In re:
Bankruptcy Petition #: 12-12020-mg
Debtor-Residential Capital, LLC aka Residential Capital Corporation
Subsidiary List – See Attached Exhibit A
1177 Avenue of the
NEW YORK-NY
Tax ID / EIN: 20-1770738
Robert Brown, a consumer attorney based in New York
Robert E. Brown, Esq.
Law Offices of Robert E. Brown, PC
Wall Street (212) 766-9779
Staten Island (718) 979-9779
Facsimile (718) 979-9784
All homeowners who believe they have claims against one of the entities listed on EXHIBIT “A” qualify to participate in the motion to appoint a Borrower Committee. There is no cost to any participant (homeowner) and if the committee motion is granted the debtor in this case, Residential Capital and subsidiaries will pay for the committee expenses pursuant to 11 U.S.C. § 503(b)(4).
Claimants that have lawsuits pending have standing to participate in this motion. Furthermore, homeowners who believe that they have claims, including illegal foreclosure, but do not have a lawsuit pending may still qualify.
Time is of the essence as events are already unfolding which may affect borrower rights. Those events include an $8.7 billion settlement couched as a claim, wherein ResCap and Ally will agree not to challenge repurchase claims with large institutional creditors. Another important issue is the bankruptcy may release Residential Capital, LLC and Ally Financial Inc. from the nationwide loan-servicing and foreclosure settlement.
Bankruptcy law allows for formation of Official Committees in a chapter 11 bankruptcy cases to represent various classes of claimants. In lender bankruptcies it is typical that Indenture Trustees, insurers and large bank claims dominate the committee for the unsecured creditors. The borrowers are included under this committee. Understandably this creates conflicts of interest if the borrower claim is directly against not only the bankrupt entity, but may also be against a Trustee, insurer or bank seated on the committee.
In the American Home Mortgage bankruptcy case, the judge determined that inherent conflicts of interest existed and appointed a separate committee to represent only borrowers. This was the only lender bankruptcy case to date where this occurred. Paula Rush was the driving force behind that committee, served as Chairperson of that Committee, and she will be assisting Robert Brown in the formation of a committee in this case. You may reach Paula to answer any questions you may have at 443-676-3509.
To begin, you only agree to have your client’s name included on the motion for appointment
of the committee and prepare a paragraph of background relating to the violations asserted resulting in a claim to be included in the motion. A hearing will be scheduled for the motion and you may attend the hearing, but you do not have to attend. The attorney bringing the motion will argue it before the court on behalf of all participants on the motion.
After the committee motion is granted, the U.S. Trustee will send out questionnaires to ask if you would like to serve on the committee. You do not have to serve on the committee as it is voluntary. Anyone can serve on the committee regardless of what state you are in. Meetings are held via conference calls to discuss what actions the committee will take as the bankruptcy progresses.
For more information, you may contact:
Robert Brown 212-766-9779
Paula Rush 443-676-3509
EXHIBIT A
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