For the fifth time in the past four weeks, Shaffer & Gaier LLC forced the dismissal of a foreclosure action that was recently filed by a major lender.
The latest lender to cancel their foreclosure filing was U.S. Bank, the fifth largest commercial bank in the country. Other lenders that have dismissed their foreclosure actions in the past month include Citibank, Bank of America and Chase Home Finance.
All the cases were separate challenges in Pennsylvania, New Jersey and Florida.
“What we’re finding is that rather than risk losing in court, banks are opting to dismiss their cases against our clients,” said Michael Gaier, partner with Shaffer & Gaier. “Once we dive into discovery and depositions, we are able to uncover fraud and shady practices by the banks and they have no other choice than to drop their foreclosure lawsuits.”
The dismissals occurred after allegations of predatory lending, including the manipulation of loan documents, loan flipping, fraud and conspiracy, took place by the loan originator, the mortgage servicer, and the trustee for the mortgage-backed securities pool.
The Philadelphia-based law firm’s goal in these cases is to not only seek declaratory relief against the foreclosures issued against a homeowner, but also to nullify the mortgage itself.
“Dismissing the foreclosure lawsuit allows the bank to avoid the risk of losing outright in front of a judge or jury, which could not only involve the nullification of the mortgage, damages and legal fees, but also includes the risk of setting a major precedent for millions of foreclosure actions across the country,” Gaier said.
Even if the firm has failed to dismiss a case after the first try, they have filed counterclaims against the banks for predatory lending and fraud, which could result in triple damages and legal fees and costs.
“We are confident that we are on the right side of this fight,” Gaier said. “These banks have committed fraud and we intend to pursue them whether it be defeating their mortgage action and filing counterclaims or filing our own plaintiff actions. Our clients have been struggling for years, robbed of their savings and are threatened with the loss of their homes. They are entitled to resolution and monetary restitution.”
