Call Our Office Today: +1 (718) 329-9500

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 defendant argued that the bank was acting in bad faith because it did not follow an Administrative Order. This order was designed so that the bank’s attorney would need to affirm that the papers and documents of the loan were entirely correct. However, the court found “unresolved factual ambiguities.” They were counted as triable issues that barred the foreclosure. The judge denied summary judgment and also ordered the bank to toll all fees and interest on the loan from December 2009 to the present. Additionally, the judge prevented the bank from collecting the fees and interest in the future.

If you are facing foreclosure or are considering bankruptcy, contact the law offices of Jayson Lutzky, P.C. Call us at 800-660-5299 to set up a free initial, in-person consultation. Visit us online at www.BankruptcyNYC.com. Mr. Lutzky has worked with thousands of satisfied clients over the past 29 years.

Leave a reply