Homeowner gets free house when Florida Judge throws out lender's case

Pasco county Florida resident, Ernest Harpster will be getting a “free house” based upon the ruling of Circuit Judge Lynn Tepper. In an order dated March 25, 2010, Judge Tepper dismissed with prejudice the foreclosure lawsuit that was filed against Mr. Harpster by US Bank National Association as trustee for a securitized mortgage trust.

The judge’s ruling followed a hearing that was scheduled to be commenced at 3:00 p.m. According to the Court order, the law firm for the Bank of America, David Stern, P.A. failed to appear either in person or by phone for the hearing. The matters that were scheduled to be heard were a Motion to Compel Responses to Interrogatories and Request for Production; Amended Motions in Limine regarding the Promissory Note and a Second Motion in Limine/Motion to Strike based on an allegation of fraud on the court; and finally a Motion for Rehearing."

The Court found that U.S. Bank’s counsel failed to produce answers to interrogatories (written questions to be answered under oath) for an astounding twenty-six (26) months.

The Defendant's Motion in Limine/Motion to Strike was based on an allegation that the Assignment of Mortgage was created after the filing of the lawsuit, but the document date and date the document was notarized were purposely backdated by the Plaintiff to a date prior the filing of this foreclosure action.

The attorney for the homeowner discovered this apparent fraud because the assignment was allegedly signed and notarized on December 5, 2007. The notary’s stamp designating when the notary’s license expired had a May 19, 2012 expiration date. Since Notary licenses are only good for four years, a notary license that expires on May 19, 2012 would have been issued four years earlier on Mary 19, 2008. As such the notary license would not have been issued and did not exist on December 5, 2007 when the assignment was alleged to have been executed.

According to the Court order, the notary who notarized the “back-dated” document was Terry Rice. Homeowners and their attorneys who have pending foreclosure cases should be on the lookout for other assignments and affidavits by Terry Rice which might be forged, fraudulent, or back-dated.

The court specifically found “that the purported Assignment did not exist at the time of filing of this action; that the purported Assignment was subsequently created and the execution date and notarial date were fraudulently backdated, in a purposeful intentional effort to mislead the Defendant and this Court.”

Judge Tepper ruled “The Plaintiff's complaint is dismissed with prejudice, based on the fraud intentionally perpetrated upon the Court by the Plaintiff. This Court has the power to dismiss a case a showing of a commission of fraud on the Court by a party.” She further ruled that “The Defendant shall go henceforth without day” which means that the Plaintiff, U.S. Bank will not recovery any money and will note be able to re-file the lawsuit. Judge Tepper also ruled that U.S. Bank will have to pay the homeowner’s attorney’s fees.

Our law firm did not participate in this case. Usually I only write about cases our firm was involved in. This case is discussed so that the public becomes aware of the underhanded tactics some banks and some lawyers are using to wrongfully foreclosure on Floridians’ homes. Unfortunately, Judge Tepper’s order did not include the name of the homeowner’s lawyer whose work was extraordinary. (Update we have since leaned that the homeowners lawyer was Tampa attorney Ralph Fisher) This case illustrates what a tremendous difference a talented litigator can make. Some lawyers practice “foreclosure delay” and think that filing a motion for extension of time is sufficient to defend a foreclosure case. At our firm, we listen to our clients to determine their objectives and design a strategy unique to their case and goals. Then we put that plan into action. When we defeat lender motions for summary judgment it is not by accident, rather it is because through discovery requests, depositions, and motions to compel we have obtained the evidence needed defeat the lender’s motion.

If you believe that an assignment of mortgage in your cases was fabricated or back-dated we will review the assignment on a complementary basis. If the assignment is dated after the date the foreclosure lawsuit was filed against you, the lawsuit should be dismissed. To Homeowners with questions about this blog can contact the author at foreclosuredefenselaw@gmail.com. To view a complete copy of the Court's order as a PDF / Adobe Acrobat document click here

For more information about Shuster & Saben's defense of homeowners in foreclosure in Miami-Dade, Broward, Palm Beach, Collier, Lee, Martin, St. Lucie, Indian River, Brevard, Orange, and Volusia counties please visit www.attorneyforeclosuredefense.com

Shuster & Saben Obtains Deed In Lieu Offer for Fort Myers Client

What a difference one month and hiring a lawyer can make.

Before retaining counsel our client pleaded with his loan servicer, Bank of America, to modify the mortgage on his Fort Myers condominium. Our client requested a loan modification because he has lost his job when new construction in Lee County, Florida came to a halt. BAC Home Loan Servicing, LP told our client that because he had no current income he did not meet the income requirements for a HAMP modification and declined his request for modification of his loan. Prior to our firm being retained the lender did not offer deed in lieu to the homeowner and ultimately filed a foreclosure action against him.

After diligently searching the websites of over a dozen foreclosure law firms the client selected Shuster & Saben to defend his foreclosure case. Our client explained that reading the why we are different section of our firm's website lead him to call our office. Less than three business days after being retained our firm filed an answer on the client's behalf and served an additional twenty-one pages of discovery requests and correspondence.

Our client’s goal was to avoid a deficiency judgment and to move to another part of the country where his employment prospects were better. To achieve our client’s objective, we advised the bank's lawyer in a letter sent with the answer that if they would waive deficiency judgment our client would agree to a without recourse deed in lieu of foreclosure.

Less than thirty days later we received an offer for deed in lieu of foreclosure that offered our client:
(a) No recourse… The lender would agree to waive the entire loan balance in exchange for possession of and title to the condominium.
(b) Moving expenses of up to 2% of the outstanding loan balance. This will provide our client with approximately $5,000.00 for moving expenses.
(c) BAC Home Loans will allocate up to $8,500.00 to pay liens on the property for condominium maintenance and property taxes.

The offer to our client was received less than a month after our answer was filed. To view a copy of the offer (with our client’s name removed for privacy reasons) click here.

Shuster & Saben has offices in Melbourne, Plantation, Doral, and Miami, Florida. The firm is also available for consultation only in Bonita Springs, Florida, Boca Raton, West Palm Beach, and Stuart, Florida. Shuster & Saben handles foreclosure cases in Miami-Dade, Broward, Palm Beach, Collier, Lee, Martin, St. Lucie, Indian River, Brevard, and Orange Counties.

Firm Attorneys Attend Fair Debt Collection Practices Act Seminar

Firm attorney Richard Shuster traveled to Jacksonville, Florida to attend the National Associations of Consumer Advocates (NACA) annual seminar on the Fair Debt Collection Practices Act. The seminar was attended by leading consumer protection attorneys from across the United States. Richard Shuster is a member of NACA.

The Fair Debt Collection Practices Act is a federal law that protects consumers from unfair or harassing collections practices. This law regulates the conduct of third party bill collectors including mortgage loan servicers and law firms that file foreclosure actions against homeowners. Under the Fair Debt Collection Practices Act a loan servicer (such as Litton Loan Servicing) must comply with a consumers request that the servicer stop calling the consumer and conduct all future communications in writing. A consumer may also demand that a servicer or bill collector not call their cell phone or work number.

Under the Fair Debt Collection Practices Act, bill collectors and mortgage loan servicers are prohibited from communicating with debtors when the bill collector or loan servicer knows that the debtor is represented by an attorney. If a loan servicer calls a homeowner after receiving a request to cease communications or after receiving notice that the homeowner has retained an attorney, the homeowner is entitled to statutory damages of up to $1,000.00 and actual damages.

In the near future our law firm will be filing additional lawsuits under the Fair Debt Collection Practices Act, against loan servicers who continued to call our clients after receiving notices that the homeowners had retained an legal counsel.

HOW MUCH DOES FORECLOSURE DEFENSE COST?

A review of Google searches made by Florida homeowners performing on-line research suggests that there are a significant number of homeowners trying to find out how much it costs to have an attorney defend them in foreclosure litigation. While our firm includes its price in its website ($495.00 per month on loans under $500,000) it appears that most law firms do not include their prices in their websites. To help homeowners make informed decisions about the cost of hiring a lawyer to defend themselves and their home in a foreclosure case, it is necessary to discuss the four most common pricing models among law firms that defend foreclosure cases. The four most common models are: Fixed Fee, Hourly, Monthly, and Hybrid.

FIXED FEE
ADVANTAGE: The Homeowner Pays One time.
DISADVANTAGE: Lawyer has little incentive to work on the case. Arrangement may put lawyer’s interest of obtaining reasonable hourly rate in conflict with client’s goals.
CAUTION: Look our for hidden fees.

When a lawyer represents homeowners on a fixed fee basis all the money the lawyer will ever receive is in the lawyers hands on day one. Working harder on the case or spending more time on the file will not benefit the firm’s bottom line. If the lawyer charges $2,400 for a fixed fee defense and usually changes $300.00 per hour, then you can divide the cost of the defense by the hourly rate to figure out how many hours the lawyer expects to spend on the case. Will the lawyer who is hired on a fixed fee basis take a deposition or file a motion to compel better answers to a request for production of documents, if doing so only increases the amount of work the lawyer has to do and the duration of the case? Will the lawyer hired on a fixed fee basis attend mediation and summary judgment hearings on the client’s behalf. Some lawyers who accept foreclosure cases on a fixed fee basis only intend to file an answer and discovery requests. If a fixed fee representation is being considered the homeowner should be frank with the prospective lawyer during the initial interview. The client and lawyer should be on the same page as to what is included in the fixed fee and whether the lawyer contemplates attending mediation and summary judgment hearings.


HOURLY:
ADVANTAGE: Lawyer has a financial incentive to work on the case
DISADVANTAGES: Lawyer has a financial inventive to work on the case. Fees may vary widely from month to month.

It is hard for consumers to evaluate how much time various legal tasks require. The lawyer may have incentive to perform work because it is billable rather than crucial to advancing the case. The amount of each bill may vary greatly depending amount of time spent by the lawyer.




MONTHLY:
ADVANTAGES: Fees are the same every month. Lawyer has a financial incentive to work on the case.
DISADVANTAGE: Penalizes lawyer for rapid resolution of case.

For a homeowner seeking to stay in their home for as long as possible, monthly fees will align the interest of the lawyer and the client. For a owner of a vacant investment property monthly fees with a cap on total months or a bonus for a quick resolution can modify a monthly fee arrangement to make it work for all parties. With monthly fees the fee is always the same so there are no surprises for the client. Monthly fees make foreclosure defense affordable for many consumers who lack sufficient cash for a one time up front fee, and can’t afford high hourly fees.

HYBRID:

A hybrid fee arrangement combines two or more of the above models. For instance a firm might change hourly with a monthly cap on the total fee. Some firms also include a reverse contingency where the firm receives a bonus in the event the firm is able to obtain a reduction of the loan balance or interest rate. Under a reverse contingency the firm is paid a portion of the savings the client receives as a result of the representation.

UPDATE (May 2012):  This blog post has now been read over 2,000 times!  When evaluating the cost of a specific law firm homeowners should not ignore a firm's results and choose a lawyer on price alone.  A cheap foreclosure defense lawyer who does a bad job will most likely costs more than an expensive foreclosure lawyer who does a good job.  When our firm firm wins foreclosure cases we file motions against the bank to recover attorney's fees for the benefit of our clients.  Firms that win cases and recover fees from the the bank can substantially decrease a client's legal expenses.  For more information on recovering fees from banks see our blog post The Robin Hood Law Firm. 

UPDATE 2 (July 2013):  New Post about BAIT & SWITCH pricing strategies being used by some law firms.  To read the post click here.

UPDATE 3 (January 2015):  This post has now been read over 5,000 times!  In 2014 we set a firm and Brevard County record for attorney fee recoveries from banks, and retuned tens of thousands of dollars to our clients by winning their foreclosure cases, recovering attorney's fees from the banks that lost the cases, and returning money from such recoveries to our clients.

Consumers with questions about the cost for Shuster & Saben to defend a foreclosure case in Miami-Dade, Broward, Palm Beach, Collier, Lee, Martin, St. Lucie, Indian River, or Brevard County can e-mail foreclosuredefeneselaw@gmail.com.

Ten Months and Two Weeks Later ... Still Perfect in Naples

In early March 2009 an upside down Naples homeowner contacted our law firm in search of litigator willing to take on lenders like Fifth Third Bank and Deuthsche Bank in Collier County. The homeowner was close friends with a prominent Naples real estate investor who had hired one or two local lawyers to defend foreclosures with mixed results. It was the perception of the homeowner and his investor friend that some lawyers who dabble in foreclosure do not fight the cases but merely move for an extension of time. The investor perception was that in the past he paid for “foreclosure defense” but what he received was merely “foreclosure delay.”

When I heard the homeowners plight, I advised him that for one case it might not be practical for our firm to take cases in Naples but if there were others we would consider it. I always enjoyed going to Naples to visit my wife’s relatives and taking foreclosure cases in Naples would be another excuse to visit Michelbob’s Ribs. On March 11, 2009, I met with the upside down homeowner, his friend the real estate investor, a local realtor, and local mortgage broker and another distressed homeowner. By the end of the day, we had committed to defend five cases, with total mortgages of 2.7 Million dollars (two of the properties had loan balances in excess of $700,000). Since this trip we been blessed with additional referrals from the original Naples clients.

In my first interview with a prospective Naples client the client had many frank questions. “Why should I hire a law firm with offices in Miami and West Broward to litigate a case in Collier County?” she asked. I explained that for our firm to litigate in Naples is not an impediment as the lenders' lawyers usually have to travel from Tampa or Fort Lauderdale. While I could not comment as to the quality of the representation she would receive from local counsel, I let her know that the representation we would provide would be through and effective and that we would keep her in the loop by scanning and E-mailing her the copies of the pleadings we filed on her behalf. Further, she would not see knee-jerk motions for extension of time. Our way of doing things would be to sit down, assess her situation, and develop a strategy with her to achieve her objectives based on her financial position and the strengths and weaknesses of her case.

After ten and half months none of our Naples clients have lost their home to foreclosure. One of the clients (the one who asked all the questions) had a successful no-recourse short sale. The rest of the clients are still living in their homes. Our firm has since grown from two offices (Miami and Plantation / West Broward) to three offices when the firm opened its third office in Melbourne. Hopefully the firm will be able to add a full time office in Southwest Florida later this year. For More Information about Shuster & Saben please visit our website www.attorneyforeclosuredefense.com.

Is HAMP one big Scam?

Yesterday, CNN published an article about Home Affordable Modification Program otherwise know as HAMP and the Obama Plan Modification. The article is titled “450,000 At Risk In Foreclosure-Prevention Program.” If you have not read the article here is a link to the story. I was suspicious of the banks participating in HAMP before the article was published. Too many times I our law firm has heard from homeowners who had stopped making mortgage payments and were contacted by their lenders about a HAMP modification. The homeowners were promised that is they made three (3) trial payments they would be approved for a HAMP loan modification that would reduce their mortgage payments. The homeowner would be told that if they made the three trial payments and submitted the requested paperwork (usually pay stubs and tax returns) they would receive a loan modification, the amount of which would be determined during the 90 day trial period. Many of the homeowners contacting our firm for help made the three trial payments only to be told that they did not qualify for a modification or that their documentation was incomplete.

After reading CNN’s article, I am beginning to feel that HAMP is just a scam perpetrated by lenders against homeowners. The statistics reported by CNN show that less than 10% of the homeowners who have participated in HAMP received a permanent modification. Specifically, CNN reports that while 787,200 homeowners are in trial modifications but only 66,500 people have received permanent adjustments.

A bank-loving lobbyist might speculate that the reason for so few modifications is a failure by the homeowners to make their three trial payments on time. Such speculation would be WRONG as the Treasury Department confirmed to CNN that three-quarters of the homeowners in trial modifications are making their three trial payments on time.

My suggestion for Florida homeowners that are not in foreclosure and are considering a HAMP modification is get everything in writing. If a homeowner who has not paid their mortgage in several months is called about HAMP, the homeowner should request written confirmation that if they make three timely trial payments they will receive a permanent modification. The amount of the permanent modification should also be provided before the first payment is made. After the first payment is made and the documents are submitted, the homeowner should call to confirm receipt of the documents and confirm that no additional documents are needed. If a bank representative orally confirms that no additional documents are needed such confirmation should be reduced to writing in the form of an E-mail or letter to bank confirming the conversation. By confirming that the lender or servicer does not need any additional documents the homeowner takes away the lender’s ability to call after receiving 3 payments and only to tell the homeowner that they must start over because one form was incomplete or missing a signature or comma.

For homeowners who already in foreclosure any loan modification should occur as part of a written settlement agreement reviewed by the homeowner’s legal counsel. Before the homeowner pays one thin dime, the homeowner must know what performance on their part will result in the dismissal of the bank’s case and the amount of interest rate and loan balance reduction they will receive in return for their resumption of monthly mortgage payments.

Homeowners who made three HAMP payments and did not receive a permanent modification should consult a licensed attorney to evaluate if the homeowner has a claim for either fraudulent inducement or breach of contract. Our firm is litigating against Litton and Bank of America for breaching a loan modification agreement. Homeowners with further questions about this issue my inquire by e-mail to foreclosuredefenselaw@gmail.com

Does my case need a foreclosure defense attorney

It is not necessary to hire an attorney in every Florida Foreclosure Case. Some homeowners in some circumstances do not need a lawyer, if they know how to deal with the lender and lenders attorney in a professional manner and commit to putting everything in writing in case things go wrong and they need to hire counsel later on.
Our new video blog entry discusses this further. Please click the link to see our new video on you tube.