October 2010 Archives

Defective Default Notice Dooms Foreclosure Action

October 22, 2010

Wells Fargo sought to foreclose on a condominium after its owner defaulted on her mortgage. The court determined that the mortgage documents required that Wells Fargo send the borrower a notice that set forth certain information about the loan and default before finding the borrower to be in default. The notice was to be sent to the borrower's address. Wells Fargo sent the notice to the address, but failed to list the unit number. The notice was also unclear as to how much the borrower had to pay to bring the loan current. For these reasons, the judge found the notice defective and dismissed the foreclosure.

Court Dismisses Foreclosure Action Where Loan Could Not Be Described

October 6, 2010

Bank of America filed a foreclosure action, seeking the foreclosure of a "prime/traditional/conventional loan," but asserted that a pre-foreclosure notice was sent to the home-owner in compliance with the rules governing subprime loans. In other papers, the bank identified the loan as subprime, but that no notice was sent because it was not required. Finding the papers to be "replete with inconsistent and inaccurate proofs," the court dismissed the case.

Bank's Foreclosure Papers Were "Greatly Distressing" and Sanctions Could Be Assessed

October 1, 2010

Suffolk County Judge Arlen Spinner had another foreclosure case on his chopping block recently. Chase filed a foreclosure action claiming that the home-owner signed a mortgage, which was in default. One of Chase's allegations was that the home-owner signed the mortgage. Examining the mortgage and note, however, indicated that the mortgage and note were for different amounts, and signed by someone other than the home-owner. Judge Spinner found Chase's papers to be "grossly inaccurate and untrue" and scheduled a hearing to determine whether sanctions should be assessed.