Video Blog: Making The Banks Pay

In this video firm attorney Richard Shuster, answers a blog visitor's question about why this blog features copies of checks from cases where the bank lost the case and was ordered to pay attorney's fees.

Richard Shuster to teach Foreclosure Defense Law, October 17, 2013

For the second year in a row, firm attorney Richard Shuster, has accepted the Brevard Bar Foundation’s invitation to present a lecture at the Space Coast Community Law School.  Shuster will present this free lecture on foreclosure defense at the Brevard Courthouse in Viera, Florida on October 17. 2013.  The seminar is designed to educate consumers about the foreclosure process, how to avoid default, how to answer a foreclosure complaint, legal defenses to foreclosure, conducting discovery, foreclosure mediation, loan modification,  summary judgment, and trial. Homeowners interested in the Space Coast Community Law School  visit  www.spacecoastcommunitylawschool.com

Video Blog: Why Trial Expereince Counts

In the video below Florida foreclosure defense attorney Richard Shuster explains the importance of trial experience in evaluating potential law firms to defend a foreclosure case and how consumers can evaluate whether a lawyer has adequate trial experience to properly defend their case.

Foreclosure Appeal Victory for Space Coast Homeowner

Shuster & Saben Defeats US Bank & Douglas Zahm PA in Foreclosure Appeal

In 2011, firm attorney Richard Shuster obtained the dismissal of a foreclosure case filed against a Brevard County law enforcement officer.  After the case was dismissed our firm filed a motion for attorney’s fees to recover money from U.S. Bank to reimburse as much as possible of the fees paid by the homeowner to our firm and to recover payment for the portion for our time that was spent on a pure contingency fee basis.  (Under our firm’s retainer agreement, a substantial portion of the time spent on the case is on a contingency fee basis meaning unless we win the case and recover fees from the bank we do not get paid for the time).  On January 12, 2012, a fee hearing was conducted before Brevard Circuit Judge John D. Moxley, Jr. to determine the amount of attorney’s fees US Bank would have to pay.  The case had numerous hearings after U.S. Bank’s lawyers, Douglas Zahm, P.A. had objected to almost all of the homeowner’s discovery requests, and our firm had to repeatedly go to Court to obtain orders overruling the bank’s objections and ordering the bank to provide discovery.

The time sheet filed by Douglas Zahm’s office showed they had worked approximately seventy hours by the time the bank moved for summary judgment.  Ultimately our firm worked over 100 hours on the case before we obtained a dismissal.  At the fee hearing the Court awarded 95 of the 101 ours we requested. After adding expert witness fees, costs, and interest, the attorney fee judgment against U.S. Bank came to $46,878.20.  This judgment was the largest fee judgment rendered against a bank in Brevard County in 2012.  The hours were much higher in this case because both firms fought the case very hard and “went to the mat.”

Trial & Appellate Files Stacked On Top Of Each Other

U.S. Bank brought in Lee L. Haas, a board certified business litigation attorney to handle the appeal.  Firm attorney, Richard Shuster, who handled the case at the trial level, fought on for the homeowner in the appeals Court.   While this was the firm’s first foreclosure appeal, Shuster had prior appellate experience in the First and Third District Court’s of Appeal.  The firm handled the appeal on a pure contingency fee basis, meaning the client paid no fees to our firm while the appeal was pending and the firm would only get paid if we won the appeal and appellate attorney’s fees were awarded.  During the fifteen months the appeal was pending our client paid nothing for attorney’s fees and made no mortgage payments.  The firm will now collect the original trial level fee award from the appellate bond paid by US Bank and seek additional appellate fees for writing an appellate brief that was approximately 40 pages long.  To view a redacted copy of the 5^th DCA’s Per Curium Affirmed Opinion clink here.  A Per Curium Affirmed opinion means the appellate Court unanimously found that the trial Court did not commit any errors.

About Shuster & Saben:  Shuster & Saben is a civil litigation firm with offices in Miami, Fort Lauderdale and Satellite Beach.  The firm represent consumers in insurance litigation, consumer protection matters, fair debt collection practices act, and foreclosure cases. Homeowners looking for counsel with trial and appellate experience or with foreclosure questions can reach the firm at www.attorneyforeclosuredefense.com or e-mail Richard Shuster at foreclosuredefenselaw@gmail.com 

Beware of Bait and Switch Pricing by Foreclosure Defense Lawyers!

 

In February 2010, I wrote a blog post that explained the four primary pricing methods ( hourly, flat fee, monthly and hybrid) used by foreclosure defense firms.  To read the whole blog post on this subject click here.  I have recently noticed a trend where lawyers and law firms are using marketing strategies that in my opinion are bait and switch tactics. 

If a consumer sees a sign that says SALE – Unleaded Gas - $2.00 per gallon, most consumers know that the price is to good to be true and will be looking for the catch.  Perhaps the price is only good for the first gallon of gas or is only good with purchase of an alignment job at an inflated price.  Gas stations in 2013 can’t sell gas for $2.00 a gallon because it costs the gas station more than $2.00 to buy the gas. 

Unfortunately, many consumers will not know that a the promise of a $1,000.00 or $1,500.00 flat fee foreclosure defense is just about always an offer that is to good to be true.  We are seeing consumers come to our office after either firing their old lawyer or after their old lawyer withdrew from their case.  In many cases the consumer saw advertising material and thought they would pay a one-time fee of $1,000 or $1,500.00 and would never need to spend another dime for the duration of their case.  Once the consumer actually visited the law firm they found out that the $1,000.00 was just an “initial” payment for the first thee or six months of their case.  After the initial period was over the consumer had to “re-hire” the lawyer for another six month or one year term ( it varies by firm) for an even higher fee.  

We think lawyers who advertise a flat fee price should offer true flat fee prices.  Nobody who comes to a lawyer’s office and spends an hour in a consultation thinking the costs is one number should find out when they read the fine print that over a two year engagement the price will be three or four times higher than the price they saw on the web.

At Shuster & Saben, we aspire to have a simple, clear, understandable, and predictable billing method.  The client (on loans of under $500,000.00) pays $495.00 per month for the first hour we work each month and any additional hours we work are on a pure contingency fee basis, where we do not get paid at all unless we win the case and get the fees paid as prevailing party attorney’s fees paid by the losing bank.  Our clients do not have to worry about paying a few thousand dollars to renew for six months or a year when their case is on the eve of settlement or trial and might soon we won or settled in a matter of weeks.  Our clients can predict and budget for their legal expenses.

For the likes of me, I can’t figure out how a lawyer can take a foreclosure case on for $1,500.00 and litigate the case for three years and take the case to trial all for $1,500.00.  Some flat fee lawyers cut corners with short form answers, and do not bother to conduct discovery, take depositions, or engage in trial preparation.  Perhaps other flat fee lawyers can make it work by buying $2.00 gas.

Foreclosure Win Results in $17,500.00 Attorney Fee Recovery

When the Foreclosure mill law firm David Stern, P.A. collapsed many lawyers who defend foreclosures were content to sit on their hands and wait six months to a year for the banks suing their clients to send the files to other law firms.  Of course Shuster & Saben is NOT  like most firms that defend foreclosures.  Firm attorney Richard Shuster saw the collapse of David Stern as an opportunity to cut off  the head of a sleeping snake.

After the Stern firm failed to respond to requests for admission served by Shuster on behalf of a foreclosure defense client, Shuster filed a motion for summary judgment in favor of the homeowner.  The Stern firm did not withdraw form the case and Wells Fargo did not assign the case to new counsel.  Shuster then set a hearing on the motion for summary judgment. 

Despite their receipt of the notice of hearing, David Stern did not have an attorney present at the hearing.  When the judge called the firm to allow them to attend the hearing by phone the lawyer who the receptionist directed the Judges call to did not take the Court’s call. Since Wells Fargo's lawyers ( David Sern, P.A.) failed to respond to requests for admission that Wells Fargo did not own the note and a request for admission that Wells Fargo did not hold the note summary judgment and final judgment were entered in favor of the homeowner.  After the win the foreclosure defense attorney Richard Shuster filed a motion for attorney’s fees. 

Shuster was concerned if the firm immediately sought to collect attorney’s fees Wells Fargo might move for relief from the judgment arguing that they accidentally failed to send the file to new counsel.  As such Shuster waited one year from the date of judgment so that the time for Wells Fargo to seek relief form judgment ( 1 year under the rule) expired.  Once the time for Wells Fargo to seek relief from judgment expired the firm went forward with its motion for attorney’s fees.  Wells Fargo’s new lawyers, Aldridge Conners argued that the homeowner should not be entitled to attorney’s fees.  This argument was rejected by the Court which found for the Defendant on attorney fee entitlement.  The day before the hearing on the amount of attorney’s fees Wells Fargo and their new counsel agreed to pay $17,500.00 to resolve the attorney fee claim. Our client not only won their case  ( a final judgment win not a mere dismissal ) get money back from the fees recovered from Wells Fargo. 

Principal Reduction Loan Modification & Foreclosure Settlement in Under Sixty Days

Old Payment $1,596.31 – New Payment $954.17.

On April 26, 2012, a nervous couple sat down with foreclosure defense attorney Richard Shuster, for a free consultation at Shuster & Saben’s Melbourne office.  Ten days earlier the couple had been served with a summons, lis pendis, and a complaint ( law suit) to foreclose on their Viera, Florida home.  The couple had had not make a mortgage payment in over fourteen months, and owed approximately $230,000.00 on a home worth approximately $175,000.00.  The couple came to Shuster & Saben, at the recommendation of a co-worker whose foreclosure case was won by Attorney Shuster.

The firm filed a notice of appearance for the homeowner on April 30, 2012, and a fifteen page Answer to the complaint on May 7, 2012.  At the same time he served the firm’s Answer, Shuster opened lines of communication to Ocwen ( the loan servicer ) and to opposing counsel to attempt an expedited settlement.  Shuster fast tracked this case toward settlement based on the fact that the loan servicer was Ocwen with whom the firm has a large number of principal reduction settlements and because the homeowners were only 25% upside down.  The plaintiff that had filed the foreclosure action was Bank of New York Mellon as Trustee for the Certificate Holders of Poplar ABS Inc.  Shuster was further encouraged by the fact that this trust had no prohibition against principal reductions and had made other principal reduction settlements.

On June 8, 2012, the firm received an offer (dated June 5, 2012) from Bank of NY Mellon’s attorney.  Shuster forwarded the offer to the client the same day, and E-mailed the bank’s lawyer that the offer was accepted.  Once the client was ready to wire their first payment the settlement documents were executed and faxed to Ocwen and Bank of NY Mellon’s counsel on June 27, 2012. 

The settlement reduced our clients loan balance from approximately $230,000.00 to $185,000.00 and reduced their interest rate from 7.5% to 3.78%.  Our client’s monthly payment went from $1,596.31 (principal & interest only) to $954.17 (principal & interest only).  Over the remaining 23 years of their mortgage term our clients will save $177,230.64 which is based on a monthly savings of $642.14 per month times 276 months.  Our clients will not only keep their home and the roof over their children’s beds, they will also be in a far stronger position when they retire in a few decades.  Our clients’ return for their investment in foreclosure defense was over $30.00 of savings for every dollar they invested. 

To Review the Settlement Agreement Clink the Link Below:

Settlement Agreement

About Shuster & Saben:  Shuster & Saben thinks that the best foreclosure defense lawyers are problem solvers.  We look at and discuss our clients finances, home value, loan balance, and personal objectives before explaining their options and helping our clients make well informed decisions.  We evaluate asset protection, tax consequences, and the strengths and weaknesses of the banks' cases and look at all potential solutions including litigation, deed-in-lieu, loan modification, short sale and on very rare occasions referral to a bankruptcy lawyer.  We charge more than those foreclosure lawyers using cookie cutter, one-size fits all, stall tactics but we work our cases and are proud of our results.  See our older post for court orders from our victories and other loan medication settlements.