CSJ Stays Foreclosure, Charges Mortgage Scam. Professors Linda Fisher and Chinh Q. Le along with Seton Hall Law students Katherine A. Kelly and Molly Moynihan filed a pleading and counterclaim defending elderly homeowner victims from foreclosure.
(Media-Newswire.com) - CSJ Stays Foreclosure, Charges Mortgage Scam. Professors Linda Fisher and Chinh Q. Le along with Seton Hall Law students Katherine A. Kelly and Molly Moynihan filed a pleading and counterclaim defending elderly homeowner victims from foreclosure.
CSJ filed an answer, counterclaim and third party complaint on behalf of William and Daphne Webb, an elderly Montclair couple. The third party Defendants— a disbarred lawyer, a subprime lender, and others— had induced the Webbs to temporarily sign over an interest in their home in order to save it from foreclosure. Desperate because of health problems, the Webbs complied, trusting that they would be able to remain in their longtime residence.
The CSJ complaint states, however, that the “Defendants preyed upon the Webbs’ financial distress and lack of economic sophistication by persuading the Webbs to enter into a complex real estate transaction wherein the Webbs surrendered title of their home to a third-party “straw-buyer,” with the promise that they could continue to live there as if they still owned it and, after making monthly payments for eighteen months, the Webbs would re-establish their credit and then repurchase their home.” The Webbs were not represented by counsel in the transaction. Although the Webbs made the payments as agreed, ANM Funding LLC. and/or “the straw buyer,” ceased making payments to the mortgage holding bank. Foreclosure proceedings ultimately resulted, with judgment entered in favor of the bank. CSJ, however, was able to get that judgment vacated and the Webbs were ultimately allowed to intervene in the case. They will now, along with CSJ, defend against the foreclosure.
The complaint warrants that “the Webbs lost approximately $400,000.00 in equity in their home by participating in this predatory lending/foreclosure rescue scam,” which is believed to have been perpetrated on numerous other distressed homeowners in the area.
In part, the Counterclaim against Third-Party defendants includes a petition for relief for:
“multiple violations of state and federal statutes – to wit: the New Jersey Consumer Fraud Act ( N.J.S.A. § 56:8-1, et seq. ), the New Jersey Civil Racketeer Influenced and Corrupt Organizations Act ( N.J.S.A. § 2C:41-2( c ) ), the New Jersey Fair Foreclosure Act ( N.J.S.A. § 2A:50-56, et seq. ), and the Federal Truth in Lending Act ( 15 U.S.C. § 1601, et seq. ) – as well as common law fraud, negligent misrepresentation, equitable fraud, conspiracy to commit fraud and misrepresentation, aiding and abetting, and breach of fiduciary duty.”
In part, the pleading also charges that the foreclosing entity, assignee U.S. Bank:
Lacks standing to enforce the Note securing the Property because U.S. Bank is not a proper assignee and holder of the Note pursuant to N.J.S.A. § 12A:3-201 and Article 3 of the Uniform Commercial Code ( “UCC” );
Is not a “holder in due course” and therefore is vicariously liable for the Webbs’ claims and defenses against the originators of the mortgage, Credit Suisse Financial Corporation and its agent, ANM Funding, LLC;
The Webbs are entitled to recoupment because U.S. Bank failed to make proper disclosures pursuant to the Truth in Lending Act ( “TILA” ), 15 U.S.C. § 1601, et seq.
U.S. Bank lacks standing to seek foreclosure because the mortgage was not assigned to it until after the foreclosure action was filed. N.J.S.A. § 46:9-9 requires mortgage assignments to be in writing. A written mortgage assignment between Mortgage Electronic Registration Systems, Inc. and U.S. Bank was not executed until April 9, 2008, approximately four months after filing of the Complaint.
Related Content
Release Date
This story was released on 2008-12-29. Please make sure to visit the official company or organization web site to learn more about the original release date. See our disclaimer for additional information.