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Category Archives: Foreclosure & Short Sale

Mathematical methods given the green light by judge

There are currently 15 cases involving banks, including Credit Suisse and Bank of America that deal with mortgages. These cases have been consolidated as the Federal Housing Finance Agency (FHFA) is the plaintiff and the banks are the defendants. The FHFA oversees US government giants Fannie Mae and Freddie Mac. In this lawsuit, which began last year, the FHFA is fighting the banks as they backed 1.1 million mortgages and lost $200 billion on them. Fannie Mae and Freddie Mac had guaranteed the mortgages that the banks underwrote them now face losses.

The problem in this particular case is the number of mortgages involved. According to Thomson Reuters News and Insight, it can cost up to $400 and take up to three hours to re-underwrite each mortgage. As a result, the FHFA would like to use methods of statistical sampling to analyze the massive number of mortgages quickly and cost-effectively. However, the banks challenged the “reliability” of this method.

A U.S. District Judge denied the request, meaning that the plaintiff, the FHFA can use this method in bringing the banks to court. The agency will now begin to use its mathematical methods to determine which mortgages are losses were at the fault of the banks for a January 2014 trial.

If you have been affected by the mortgage crisis or if you are considering filing bankruptcy, call the law office of Jayson Lutzky, P.C. Mr. Lutzky has been practicing law for over 29 years and has helped thousands of satisfied clients over that period. Initial in person consultations are free, so call (800) 660-5299 today or visit www.BankruptcyNYC.com for more information.

Failure to file bankruptcy petition in time leads to sale of couple’s house in foreclosure

New York Judge rules to uphold the sale of a New York couple’s home even though the couple filed for bankruptcy relief and protection. The New York Law Journal reported in an October 12th, 2012 article that the couple filed for bankruptcy only hours after their home was foreclosed upon, yet the court would not…Continue Reading

Advantages of Chapter 13 bankruptcy filing

There are several advantages to filing for a Chapter 13 bankruptcy rather than a Chapter 7. One of the main advantages is for those individuals whose property is close to foreclosure.  Filing for a Chapter 13 bankruptcy helps save the property from being foreclosed, however, mortgage payments must still be paid. Another significant advantage to…Continue Reading

Electronic mortgage registry settles with Delaware

System designed for simplicity causes damages MERS stands for the Mortgage Electronic Registration System. This system is designed to facilitate the transfer and recording of mortgages with ease because it is used throughout the nation. On July 13, 2012, Thomson Reuters wrote that MERS settled a case with the State of Delaware. According to the…Continue Reading

Judge tolls interest and fees on a loan and prevents foreclosure

A plaintiff in a foreclosure case, the mortgagee, wanted to foreclosure the defendant’s property according to a January 23, 2012 New York Law Journal Article. The defendant countered this, asking for dismissal. The defendant also wanted to toll, or delay the imposition of, the loan’s interest and fees from December 2009 to the present. This…Continue Reading

Lower interest rates do not necessarily mean higher consumer borrowing

Recently, interest rates in have fallen.  Even though low interest rates mean that borrowing costs are low, businesses have used these low borrowing costs to their advantage much more than consumers according to a June 9, 2012 New York Times article. Consequently, during the first quarter 1 of 2012, businesses were borrowing more than ever…Continue Reading

New York court rules in favor of bank in foreclosure case

A New York court ruled against a homeowner on his motion for a summary judgment to dismiss his mortgage foreclosure action, as reported by the New York Law Journal in an April 11th, 2012 article. The homeowner’s mortgage loan was modified in accordance with the guidelines established by the Home Affordable Modification Program. The homeowner…Continue Reading

Mortgage servicers follow new guidelines

According to a New York Times news article published April 10th, 2012 the Consumer Financial Protection Bureau outlined a preliminary plan to address a lack of clearness and accountability among mortgage servicers. “For too long, mortgage servicers have not been held accountable to their customers, and the result has been profoundly punishing to homeowners in…Continue Reading

New York Attorney General declines to agree with large banks

  Large banks in New York are eager to reach a settlement agreement with Eric T. Schneiderman, New York’s Attorney General, as reported in an August 21st, 2011 New York Times article. Mr. Schneiderman, on the other hand, is dragging his feet in discussing the matter. Along with other state attorney generals, Mr. Schneiderman is…Continue Reading

Bronx Lawyer Discusses New Refinancing Plan

The White House may have plans to refinance loans owned by government-controlled mortgage companies Fannie Mae and Freddie Mac. These plans may help homeowners who are having difficulty paying high-interest rate mortgages. According to “A Lifeline for Homeowners”, published in the New York Times on August 26, 2011, a refinancing plan will seek to lower…Continue Reading

The housing market in the Miami area is showing signs of improvement

The very depressed housing market in the Miami area is showing signs of improvement, The New York Times reports. “Affluent Buyers Reviving Market for Miami Homes,” The New York Times, Tuesday, July 26, 2011. The housing market in South Florida has been in real bad shape in recent years. In Miami-Dade County, one out of…Continue Reading

How people are reacting to the foreclosure crisis in Spain

  In a country considered by many to have the harshest foreclosure laws in Europe, protesters in Spain are blocking evictions, The New York Times reports. “Foreclosure Protesters in Spain’s Cities Now Go Door to Door,” The New York Times, Saturday, July 16, 2011. In Spain the borrower is in absolute deep trouble if he or…Continue Reading

The $108 million Countrywide settlement will be distributed

  Countrywide Home Loans, who has agreed to pay $108 million in a settlement for allegedly charging excessive fees, will finally get to distribute the money to affected borrowers, The New York Times reports. “Countrywide to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011. The Federal Trade Commission (F.T.C.) charged…Continue Reading

The New York Times supports a strong an independent Consumer Financial Protection Bureau

The New York Times published an editorial calling for a strong and independent Consumer Financial Protection Bureau. “Consumers vs. Banks,” The New York Times, Sunday, July 24, 2011. Congress created the new Consumer Financial Protection Bureau (C.F.P.B.) when it approved the Dodd-Frank law to overhaul financial regulations after the credit crisis. The editorial reminds readers…Continue Reading

How Countrywide Home Loans incurred in abusive practices against borrowers

According to the Federal Trade Comission, Countrywide Home Loans overcharged borrowers for default-related services, gave borrowers incorrect information about how much they owed and on their mortgages, or added fees and escrow charges without notice, The New York Times reports. “Country to Distribute Settlement to Its Clients,” The New York Times, Thursday, July 21, 2011.…Continue Reading

Concerns about the foreclosure crisis in Spain

  In Spain, people are looking for ways to deal with a foreclosure crisis affecting this country, The New York Times reports. “Foreclosure Protesters in Spain’s Cities Now Go Door to Door,” The New York Times, Saturday, July 16, 2011. Many people consider Spain to have the harshest foreclosure laws in Europe. The borrower does…Continue Reading

Concerns about the success of efforts to protect consumers

Efforts in Washington to protect consumers are finding resistance. The most recent sign of resistance is the opposition from Republicans in Congress to the nomination of Richard Cordray as director of the newly created Consumer Financial Protection Bureau, The New York Times reports, “Former Ohio Attorney General to Head New Consumer Agency,” The New York…Continue Reading

Bronx bankruptcy lawyer comments on MERS legal problems

Mortgage Electronic Registry System faces more legal issues dealing with the company’s loan and foreclosure processes. According to a July 23rd, 2011 New York Times article, banking executives and state attorney generals have begun negotiating a settlement agreement to end the legal battles surrounding the company. As of now, it is unclear how much protection…Continue Reading

Bronx foreclosure defense law firm shares news about a bank fraud case: former chairman of mortgage firm sentenced to 30 years

Lee B. Farkas, former chairman of mortgage firm Taylor, Bean & Whitaker, is being sentenced to 30 years in prison for bank fraud, The New York Times reports. “Former Chairman of Mortgage Firm Sentenced to 30 years in Bank Fraud,” The New York Times, Friday, July 1, 2011. Mr. Farkas was accused in federal court…Continue Reading

Bronx bankruptcy law firm shares news about foreclosure case: the president and CEO of HSBC did not appear at sanction hearing

The president and CEO of HSBC Bank USA did not attend the sanction hearing regarding a foreclosure case, the New York Law Journal reports. “Judge Weighs Sanction Over Faulty Bank Documents,” New York Law Journal, Monday, July 18, 2011, reporting on HSBC v. Taher, 9320-2009. Brooklyn Supreme Court Justice Arthur M. Schack judge had ordered…Continue Reading

BRONX FORECLOSURE ATTORNEY COMMENTS ON DECREASE OF PROPERTY FORECLOSURES

The new foreclosure policies placed on the 14 major banks have led to a significant decrease in the number of properties foreclosed on, reported The Wall Street Journal on May 28th, 2011. These new polices were placed into effect to prevent the banks from continuing the use of “robo-signing.” A method that sped up the…Continue Reading

BRONX FORECLOSURE ATTORNEYS COMMENT ON HOME OWNERSHIP DECREASE

The New York Times reported in a May 30th, 2011, article that the number of homeowners in America is dropping. Even with the economy slowly beginning to turn around since last year. The American public is not looking to buy their own home. Many Americans are simple are unable to because of unemployment, previous foreclosures,…Continue Reading

BRONX BANKRUPTCY ATTORNEY BLOGS ABOUT THE NEW COURT STANDARD ON FORECLOSURES

The New York Times reported on Sunday, November 28th, 2010, that government is starting to increase scrutiny on banks during foreclosure proceedings. When a bank attempts to start the foreclosure process against their borrower the courts are now requiring they show proof that the bank is in control of the loan and that it has…Continue Reading

Bronx financial attorney comments on foreclosure prevention programs and the issues they face

Unemployment is currently the biggest contributor to property foreclosures, reported The New York Times in a June 10th, 2011, article. Since President Obama took office he has been trying to stabilize the number of foreclosures. In 2009, Obama started the Home Affordable Modification Program as a primary foreclosure prevention tool. The program was designed to…Continue Reading

Bronx bankruptcy attorney shares news about a plan to protect homeowners from foreclousre

The New York Times reports that state Attorneys General are proposing a very helpful plan that would protect struggling homeowners in a trial modification. “A Plan to Make it Harder for Banks to Foreclose on Homeowners,” The New York Times, Saturday, March 5, 2011. According to the plan, if the borrower has made three payments…Continue Reading

New York City bankruptcy lawyer reposts what is MERS and how it can hurt you as a homeowner

  MERS stands for Mortgage Electronic Registration Systems and is a system owned by major banks and Fannie Mae and Freddie Mac that serves as an agent for institutions that own mortgages. A bank may list MERS as the mortgage holder in order to avoid filing new paperwork or paying fees each time a mortgage…Continue Reading

Bronx bankruptcy law firm blogs on a deal to improve things for struggling homeowners coming soon

The New York Times reports that Attorneys General of the 50 states, federal regulators, and the banks may be near an agreement to overhaul the way foreclosures as well as loan modifications are handled for millions of Americans. “Foreclose Deal Near, State Officials Say”, The New York Times, Tuesday, March 8, 2011. So far it…Continue Reading

Bronx bankruptcy attorney comments home buying classes to help avoid foreclosures

  It is a part of the American dream to own your own home but if that home is not in your budget it can quickly turn into a nightmare. That’s why more first time homebuyers have started using the resources offered by agencies like GreenPath Debt Solutions, before making the commitment to buy, reported…Continue Reading

Bronx bankruptcy firm wishes to advice clients that a foreclosure lawyer under investigation shuts down his office

      David J. Stern, a Florida lawyer who made millions of dollars handling thousands of foreclosures and who has been under investigation by the Florida Attorney General, will be closing his foreclosure practice at the end of the month. The announcement closing the foreclosure practice comes from a filing with the Securities and…Continue Reading

New York lawyer shares news on mortgage related lawsuits: JP Morgan overcharging homeowners in the military, settlement is approved

A settlement has been approved in a federal case against JP Morgan Chase & Company, sued for overcharging homeowners in the military, The New York Times reports, “JPMorgan in Talks to Settle S.E.C. Inquiry Into Securities,” The New York Times, Saturday, May 7, 2011. Since 1942, people in the military are protected under the Servicemembers…Continue Reading