July 2014

California Jury Awards Homeowner $16 Million in Wrongful Foreclosure

July 21, 2014 Mark Cullen

From The Sacramento Bee:

A Yuba Superior Court jury this week awarded $16.2 million in damages to a homeowner who nearly lost his home to foreclosure after the loan servicer botched his mortgage modification, the homeowner’s lawyers said Friday.

Phillip Linza, a homeowner in Plumas Lake, was awarded the damages after a three-year battle against PHH Mortgage Services, a loan servicer based in Mount Laurel, N.J.

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Ocwen Sends 26,000 Mortgage Settlement Claim Forms in FL

July 14, 2014 Mark Cullen

From Ben Lane at Housing Wire:

Residents of the state of Florida are now one step closer to receiving settlement checks from Ocwen Financial Services (OCN), as claim forms have been sent to more than 26,000 Florida residents who lost their homes due to “mortgage servicing misconduct and foreclosure abuse,” according to Florida Attorney General Pam Bondi.

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A Full Frontal Attack on MERS in Beaufort County

July 14, 2014 Mark Cullen

A new complaint filed against Mortgage Electronic Registration Systems (MERS) in Beaufort County, SC alleges the company facilitated “a systematic breakdown of accountability and ethics” in the mortgage industry.

MERS has also admitted taht under its agreement with its members, MERS “cannot exercise, and is contractually prohibited from exercising, any of the rights or intrests in the mortgages or other security documents” and has “no rights whatsoever to any payments made on account of such mortgage loans, to any servicing rights related to such mortgage loans, or to any mortgaged properties securing such mortgage loans.”… At this point, one might ask how MERS can be the “mortgagee” in a mortgage as to which the beneficial interest “runs to the owner and holder of the promissory note.

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How a Trust Lost Over $10 Million on Just One Loan

July 7, 2014 Lynn Szymoniak

Here is yet another case with a Lost Note count, DocX Assignments showing the trust acquired the loan after it filed for foreclosure and years after the trust closed.  The Lost Note was found (of course) and the found version was endorsed (of course) but the case is still noteworthy because of the amount of loss to the trust – over $10 million and still growing. … [Read More]