Judge Punishes Bank For Unfair Mortgage Agreement

Justice Spinner of Suffolk County New York has taken Immigrant Savings Bank to task for refusing to engage in good faith settlement conferences required by a 2008 amendment to the New York Banking Law. 

Judge Spinner has ordered Immigrant Mortgage Company to pay a Huntington New York couple a $100,000 as compensation for the banks “deplorable” mortgage agreement and its bad faith foreclosure negotiations.

In his decision Judge Spinner stated “the court…determines that the imposition of exemplary damages upon (the plaintiff bank) is equitable, necessary, and appropriate in light of plaintiff’s shockingly inequitable, bad faith conduct, as well as to serve as an appropriate deterrent to any future outrageous, improper and wrongful activities”. His decision was in the case of Immigrant Mortgage Company v. Corcione, Q009/28917.

In addition Justice Spinner has also “forever barred” Immigrant from collecting interest on the $302,500 mortgage as well as any legal fees, cost “or any sums other then the principal balance”.

In their lawsuit defendants Jane Corcione and Anthony Corcione claimed that Immigrant refused to engage in good faith settlement conferences, as explicitly required by the 2008 amendment to the banking law.

The judge singled out in his decision a half a dozen of the mortgage agreements “deplorable” and “distressing” provisions. One of the provisions singled out by Judge Spinner was a clause which forever prohibited the Corcione’s from seeking protection under the United States Bankruptcy Code. In his decision Judge Spinner stated that if this clause was enforceable against the Corcione’s it would be able to preempt federal insolvency statutes. Judge Spinner’s decision stated that a pre-bankruptcy waiver should under no circumstances be enforced against consumer debtors. His decision found the waiver was unconscionable, unreasonable, over reaching and absolutely void as against public policy.

Judge Spinner criticized the mortgage agreements “general release” which discharged the bank from any potential liability in “any and all claims that are relating to, concerning, or underlying the loan, and brokering, closing, servicing, or administration of the loan.” Justice Spinner’s decision stated “the obvious and factually clear intent of this clause is to circumvent each and every state and federal law in the State of New York intended to regulate the mortgage banking industry.”

This decision by Justice Spinner is the third time he has sanctioned a mortgage lender for its conduct in a foreclosure proceeding. Justice Spinner is the presiding judge in Suffolk County Residential Mortgage Foreclosure Conference Part. Suffolk County has the most foreclosure cases pending in the State of New York.

Should you find yourself facing a foreclosure on your home contact the foreclosure defense attorneys at the Law Office of Elliot Schlissel. We have more than 30 years experience in defending lawsuits by creditors. Call us at 1-800-344-6431 or send us an email.

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Congress Should Help Homeowners

The federal government has bailed Wall Street firms out to the tune of $700,000,000.00. This is a form of corporate welfare. The restructuring was done to prevent large Wall Street firms from going bankrupt. Instead of amending the Bankruptcy Law to help these Wall Street firms, the government simply gave them $700,000,000.00 in loans.

Recently, Jamie Dimon of JP Morgan Chase and Lloyd Blankfein received millions of dollars in salary packages. The government bails out Wall Street and the Wall Street tycoons get richer and richer. During this period of time, between 7.1 million and 7.9 million households according to mortgage bond trader, Amherst Securities, fell behind in their mortgage payments and are subject to losing their home.

It is estimated that as many as 25% of all the homes in the United States have mortgages on them that are greater than the value of their home. The term used to describe this situation is calling the home “under water”. President Obama had initially asked that when individuals do mortgage modifications with their banks that the banks restructure their mortgage so they only have to pay an amount equal to the value of their home. The banks have refused to do this. The mortgage modifications by banks in the United States modify the payments but do not reduce the amount that is owed.　

The Bankruptcy Law Needs to Be Changed

The United States Constitution reserves all rights to make laws concerning bankruptcies to the federal government. Congress passes all laws that deal with bankruptcy.

Congress needs to strengthen the bankruptcy court’s ability to restructure mortgage loans when individuals file bankruptcy. Congress has already bailed out Wall Street. Now they need to bail out the American homeowner. Unfortunately, the large financial institutions in this country oppose any modifications to the Bankruptcy Law to help out homeowners.

Congress needs to help the American homeowner and modify the Bankruptcy Laws to deal with the issue of restructuring mortgages that are under water. Congress has already bailed out the financial industry to the tune of $700,000,000.00, now they need to bail out the American homeowner!

Should you have questions concerning bankruptcy or mortgage modifications, feel free to contact the Law Office of Elliot S. Schlissel to discuss these matters at 1-800-344-6431 or email us at schlissel.law@att.net.

–Elliot S. Schlissel, Esq.

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Foreclosure Rates Going Up in 2010

Projections have been made that there will be as many as 3,000,000 foreclosures in the United States in 2010. This will surpass the foreclosure rate for 2009.

The United States Treasury Department has been in negotiations with many of the country’s largest financial institutions regarding their participation in a new second mortgage program designed to modify foreclosures. Unfortunately, negotiations have not been successful up to this point.

New loan modification programs are necessary to help individuals going into foreclosure this year. Foreclosures have a negative effect on the value of real estate in local communities. In 2009, mortgage modifications set a record. However, foreclosure still were at an all time high in 2009. Hopefully, the new mortgage modification programs being proposed to the Treasury Department will stem the tide of new foreclosures.

If you need help with loan modification, foreclosure, or bankruptcy help, you can always e-mail us or call us anytime at 800-344-6431.

Foreclosure Dismissed- Mortgage Cancelled Due to Bank’s Bad Behavior

Justice Jeffrey A. Spinner, sitting in a Supreme Court Part in Riverhead, New York (Suffolk County), has recently ordered that a $292,500 mortgage be deemed “cancelled, voided, avoided, nullified and set aside”. He took this action due to the fact that IndyMac Mortgage Services, a division of One West Bank FSB and its representor were engaged in “harsh, repucnic, shocking and repulsive” behavior.

Greg Horoski and his wife, Diana Wano-Horoski, bought a four bedroom, three bath home 1994. They paid $178,000 for their home. They refinanced their home in 2004 for $292,500.

They eventually fell behind on their mortgage. Mrs. Horoski was in failing health. She had undergone triple bi-pass heart surgery in 2006.

Every two or three months Mr. Horoski would contact his bank for the purpose of avoiding foreclosure. He would advise them that he could make payments in various amounts. He asked if they would accept these payments as a good faith measure and that they reinstate the loan. Greg and Diana Horoski appeared at every court appearance. Court conference were rescheduled on five separate occasions due to IndyMac Bank’s failure to cooperate.

Judge Spinner’s decision indicated that IndyMac Bank displayed an intransiness in its continuing failure and refusal to cooperate with the court. The Judge said a bank officer who appeared on September 22^nd had a “Opprobrious demeanor and condescending attitude” . He would not accept any offer by the homeowners including an offer by their daughter to purchase the house.

The Judge further indicated on November 18, 2009 court conference the bank did not even know the specific balance due in owing of the house. The Judge felt due to the extremely inappropriate behavior of the bank, severe sanctions would have to be imposed to prevent the bank from engaging in further abuse. In the end, IndyMac Bank would not consider any loan modification arrangements. The bank has indicated they will appeal Judge Spinner’s decision.

Are you behind in your mortgage? Are you in foreclosure? Problems with your bank or mortgage company? The mortgage renegotiation and defense lawyers at the law office of Elliot Schlissel may be able to help you with these problems. Contact us by e-mail or call anytime at 1-800 344-6431.

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Foreclosure – Don’t Give Up – You Can Fight

Many Americans unfortunately find themselves having difficulty paying their mortgages. When a family falls behind on their mortgage payments, there are a number of ways to deal with the situation. Houses go into foreclosure for a variety of reasons. Loss of employment, divorce, injuries, illnesses and disabilities. In this situation, you have a number of options:

1. Mortgage Modification 

An application to your financial institution can be filed for a mortgage modification. This is a long and difficult process and unfortunately in many situations, the request for mortgage modification is denied. 

2. Forebearance Agreement 

Forbearance Agreements are agreements to allow you to catch up on your Mortgage while either freezing or modifying the mortgage payments. They are very similar to mortgage modification arrangements. 

3. Bankruptcy 

You can file a Chapter 13 Bankruptcy in the United States Bankruptcy Court. Bankruptcies are Federal Proceedings whereas the foreclosure proceedings are initiated in state courts. The bankruptcy filing gives you an automatic stay (freezes) the foreclosure proceeding and allows you to enter into repayment plan thru the bankruptcy court concerning your debt. Deed in Lieu of

4. Foreclosure

 You can simply deed your house back to the financial institution. 

5. Sell Your House 

You can sell your house, pay off the mortgage and keep the balance of the proceeds from the sale. If your house is worth less than the amount of your mortgage, you have to initiate a short sale with the permission of your financial institution. 

6. Fight Back 

Experienced Foreclosure Defense Attorneys can help you in defending foreclosure proceedings. Due to the large volume of cases, currently pending in New York State Courts, it could be 12 to 24 months for the foreclosure to be completed.　

7. Foreclosure 

Does this mean the bank owns my house? 

Foreclosure is the start of a process whereby a financial institution that has a mortgage or equity loan on your home seeks court intervention to have the house either sold or have the deed put back in the name of the financial institution. It is a long and detailed process. The foreclosure Is the start of the process and not the end of the process. The end of the process is the point at which you lose your home. The best way to deal with this process is to hire competent, experienced, Foreclosure Defense Attorneys. 

Fighting foreclosures are difficult but they can be dealt with by experienced dedicated attorneys who understand the foreclosure process. Feel free to contact our office anytime for information or a free consultation regarding our mortgage modification, foreclosure, and bankruptcy services. We will help you decide which path is right for you and then we will help guide you through the entire process.

You can reach us 24/7 at 800-344-6431 or click here to e-mail us.

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