View Cart | 0 Items in Cart | Checkout
    Stop Foreclosure Forms Forms Mission FAQ Links Information and News Contact  
     
 
 
 FORECLOSURE DEFENSE NEWS AND INFORMATION - New York
 

Foreclosure defense forms must be drafted to comply with the laws of your State. Standardized forms for all States are generally not acceptable. We provide attorneys and you with the state-specific forms that are correct and valid. Free Previews available. All forms are available in Word format.





New York Supreme Court Slams Wells Fargo for Wanton Misconduct in Residential Foreclosure Case

June 6, 2013
By: Marc A. Rapaport, Esq.

Last week, a Justice of New York State's Supreme Court issued a decision of enormous benefit to all homeowners facing foreclosure in New York State. The decision signifies the dangers that banks face if they refuse to consider alternatives to foreclosure. The decision also underscores how vitally important it is for property owners in New York to file answers and raise affirmative defenses if they are served with a foreclosure summons.

Bronx County Supreme Court Justice Yvonne Lewis' decision, which was issued on May 29, 2013, in a residential foreclosure case styled, Wells Fargo v. Ruggiero, sets forth a scathing critique of Wells Fargo's misconduct in its dealings with the defendant homeowners. Justice Lewis imposed harsh sanctions on Wells Fargo for "wanton and flagrant" bad faith conduct in a residential foreclosure action. The Judge ruled that the bank must forfeit all interest accrued on the underlying loan since 2009 and pay the mortgage borrower's attorney fees.

According to the decision, Wells Fargo repeatedly frustrated the efforts of the borrowers, brothers Frances and Michael Ruggiero, to obtain a loan modification by demanding more and more financial information.

The sanctions issued against Wells Fargo stem from the bank's failure to comply with New York foreclosure law, which requires plaintiffs in residential foreclosure cases to engage in good faith negotiations with the defendant homeowners. Specifically, New York Statute, CPLR 3408, requires, in relevant part, that "[b]oth the plaintiff and defendant shall negotiate in good faith to reach a mutually agreeable resolution, including a loan modification, if possible."

In her decision, Judge Lewis notes that under the CPLR, the "parties to mandatory settlement conferencing are required to come to the Court in good faith, and they are required "to negotiate in good faith towards creation of a mutually satisfactory modification agreement It is the obligation of the parties to negotiate with an effort that would prevent the defendant from losing his, her, or their home. The decision against Wells Fargo lists a variety of actions and omissions on the part of Wells Fargo, and the bank's attorneys, that led court to conclude that they were not exercising good faith, including: (a) refusing to make a loss mitigation offer to the defendant homeowners; (b) refusing to make an offer of a permanent workout despite the homeowners' successful completion of a trial payment period; (c) misrepresenting in court documents that the homeowners' had failed to submit required financial documents; and (d) repeatedly demanding duplicative financial documents from the homeowners.

Based on Judge Lewis' determination that Wells Fargo did not exercise good faith efforts to prevent the loss of the defendants' home, she imposed financial penalties against the bank. The decision is a decisive victory for residential foreclosure defendants throughout New York State, and demonstrates the serious penalties that banks face for disregarding procedural safeguards enacted by the New York legislature to protect homeowners.

Marc A. Rapaport, Esq.
All Rights Reserved. Unauthorized Duplication Prohibited.

Return to NY Info Page


Mortgage Foreclosure Information and News for all Fifty States.

Select Your State

AlabamaAlaska
ArizonaArkansas
CaliforniaColorado
ConnecticutDelaware
FloridaGeorgia
HawaiiIdaho
IllinoisIndiana
IowaKansas
KentuckyLouisiana
MaineMaryland
MassachusettsMichigan
MinnesotaMississippi
MissouriMontana
NebraskaNevada
New HampshireNew Jersey
New MexicoNew York
North CarolinaNorth Dakota
OhioOklahoma
OregonPennsylvania
Rhode IslandSouth Carolina
South DakotaTennessee
TexasUtah
VermontVirgin Islands
VirginiaWashington
Washington DCWest Virginia
WisconsinWyoming



   

  Disclaimer
This compendium of mortgage foreclosure forms, information and news is provided to homeowners, legal organizations, and the general public as a free public service by Empire State Legal Forms, Inc. The information and forms provided on this site are not legal advice, but general information on legal issues commonly encountered. We are not a law firm, and our forms are not a substitute for an attorney or law firm. We provide legal forms at your specific direction. because the law changes rapidly, we cannot guarantee that all of the information on this site is completely current. The law is different from jurisdiction to jurisdiction, and may be subject to interpretation by different courts. The law is a personal matter, and no general information or legal tool can fit every circumstance. Furthermore, the legal information contained on this site is not legal advice and is not guaranteed to be correct, complete or up-to-date. Therefore, if you need legal advice for your specific problem, or if your specific problem is too complex to be addressed by our tools, you should consult a licensed attorney in your area.

  © 2017 Empire State Legal Forms, Inc. - All Rights Reserved.