This seems to be another underhanded tactic by many lenders.
The banks have more money, legal access and time than the borrower.
"Waiting out" the borrower by not filing the RJI to ask for the
court's intervention is just another method lenders use to make sure they have
an unfair advantage. The AG has done a great job protecting New York
borrowers.
- John Brancato, Loss Mitigation
Robert E. Brown, PC
HSBC faces a lawsuit
from New York Attorney General Eric T. Schneiderman, who accused the bank of
failing to follow a state foreclosure law that mandates a settlement conference
for past due borrowers.
“Companies like HSBC
are brazenly ignoring state law, leaving homeowners across New York stuck in a
legal limbo where they can’t even get the legally required settlement
conference that could help them keep their homes,” said Attorney General
Schneiderman. “For homeowners facing foreclosure, time is their greatest enemy.
Every day spent waiting for a settlement conference is a day that the lender
piles on additional interest, fees and penalties and the homeowner falls
further behind.”
According to the
statement, the investigation from the attorney general’s office resulted in the
identification of nearly 300 instances of delayed RJI filings in four New York
counties— Erie, Monroe, Suffolk and Bronx. In some cases, the office says
homeowners waited for two years for the bank to file the RJI.
According to first
quarter data from RealtyTrac, New York has the longest foreclosure timeline out
of any other state at 1,049 days.
“Although identifying
these cases takes significant resources, my office will continue to bring these
types of cases until every homeowner in the shadow docket receives the relief
they are legally entitled to,” added Schneiderman.
In an emailed statement
to DSNews, an HSBC spokesperson said, “HSBC is committed to compliance with all
applicable laws, which includes those related to foreclosure. We will respond
appropriately to the State AG in this matter.”
For the full story: http://www.dsnews.com
nice article
ReplyDelete