NY: Queens man returns to home after judge overrules bank’s foreclosure

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ANOTHER LOSS FOR DEUTSCH BANK

 

Home sweet foreclosed home: Queens man returns to home after judge overrules bank’s foreclosure
BY Robert Gearty
DAILY NEWS STAFF WRITER

Sunday, June 5th 2011, 4:00 AM

Johnny Ferreira may be the luckiest guy in Queens.

Ninety-nine times out of a hundred, a struggling homeowner who loses his home to foreclosure will never see it again.

Last month, a judge vacated a bank’s foreclosure sale of Ferreira’s home, effectively handing him back his keys.

As a result, Ferreira is preparing to move back into the same brick two-family with postage stamp front lawn, snug backyard and tidy driveway he’d been evicted from two years ago.

“He loves that house,” his lawyer, Penkaj Malik, said. “He doesn’t want to move” again.

The extremely unusual ruling appears to be a one-of-a-kind victory in New York for a homeowner in a battle that banks almost always win.

The problems started in 2009 when Ferreira was evicted after his home in East Elmhurst a few blocks from LaGuardia Airport was sold at auction.

He fought back in court.

“I am helpless at this point and beg that the court intervene and assist me in regaining title to my home which I was defrauded out of,” he said in an affidavit.

Malik made it clear to Ferreira the odds were against him.

“When he came to me I said his chances of winning were slim to none because judges are loath to do something this drastic,” the lawyer said.

Then Queens Supreme Court Justice Allan Weiss suddenly set aside the auction sale and ordered Ferreira “restored to possession.”

“It’s pretty unusual to undo a foreclosure sale in New York,” said Josh Zinner of the nonprofit Neighborhood Economic Development Advocacy Project. “There is a pretty high standard that has to be met and generally speaking, there has to be fraud or abuse in the actual sale.”

Weiss ruled that Ferreira was never served with the foreclosure papers, depriving him of due process. The judge said the bank’s document was filled with errors, including an incorrect docket number, and was never filed in court.

“It was just shoddy paperwork,” Malik said.

The judge’s unusual ruling comes as attorneys general in all 50 states are investigating lenders for foreclosing on homes with inaccurate and shoddy paperwork.

Zinner said Weiss’ decision shows the courts are starting to closely scrutinize documents that lenders submit in foreclosures.

Ferreira declined to speak to a reporter, but in an affidavit filed in court he said he didn’t know his house was in foreclosure until he got an eviction notice.

He claimed he was then misled by a Long Island loan modification company in his bid to recover his home. The company, Amerimod, charged Ferreira $8,000 and told him to stop paying his mortgage to qualify for a modification.

He chose the wrong company. In August 2009, state Attorney General Andrew Cuomo sued Amerimod and its president for defrauding distressed homeowners with “foreclosure rescues.”

Ferreira’s home was then sold to Deustche Bank, the trustee for the mortgage holder, on March 27, 2009. He’d lived there less than three years.

In court papers, Ferreira said that when he received the eviction notice, Amerimod steered him to a lawyer who only made matters worse. That lawyer, without his permission, agreed to a stipulation giving Ferreira 30 days to move.

“We have been living hand to mouth and with family and friends who have been kind enough to allow us to stay with them,” Ferreira said in court papers. He, his wife and their two children wound up in a basement apartment elsewhere in Queens, said Malik.

It’s not clear when he’ll be able to move back in, his lawyer said. The next step is to get his name back on the deed and negotiate a new mortgage payment plan. The house is worth less than the amount he owes, so it’s unclear if his luck will hold.

21 Responses

  1. […] NY: Queens man returns to home after judge overrules bank’s foreclosure MOST POPULAR ARTICLES GET COMBO TITLE AND SECURITIZATION ANALYSIS – CLICK HERE ANOTHER LOSS FOR DEUTSCH BANK   Home sweet foreclosed home: Queens man returns to home after judge overrules bank’s foreclosure BY Robert Gearty DAILY NEWS STAFF WRITER Sunday, June 5th 2011, 4:00 AM Johnny Ferreira may be the luckiest guy in Queens. Ninety-nine […] […]

  2. Usedkar – no, that doesn’t work. Unless the atty happens to be the agent for service of process, serving the bank through them is not effective

  3. thanks Uprootedone

    t

  4. Jan van Eck, a question if I may…
    Can I serve process upon the national banks (trustee and the servicer) through their Attorney of record, by having the law firm as a named defendant?

    That is, when the process server dumps the pile on the desk, and they’re served, is the bank also served?

    Surely the law firm would be obligated to inform their client they are being sued.

    I’m not naming the firm to skip the service, they are named in the action for their actions.

    Thanks for the help.

  5. THIS BANK IS SO CORRUPT THAT IS BEING SUE NATIONWIDE AND LOOSING CASES. I BOUGHT MY HOUSE THROUGH INDYMAC AND IN FORECLOSURE SALE DEUTSCHE BOUGHT IT FOR $1,000.00
    AND HAVE BOUGHT MANY IN FLORIDA FOR $100.00 BELIEVE IT OR NOT.
    THIS HOMEOWNER RESIDE AT THE SAME COUNTY AS MYSELF.
    ANYONE CAN CALL ME AT 917-975-6292 OR 917-254 2749

    LUANMAR22@HOTMAIL.COM

  6. @E. Tolle:

    Referring to your post—If he (Mr. Zulueta), had said that there is no proof that the “trust” even exists, and anyway, in the Pooling and Servicing Agreement there is no Loan Schedule—what would that wonderful judge have come up with then???

  7. “It’s not clear when he’ll be able to move back in, his lawyer said. The next step
    is to get his name back on the deed and negotiate a new mortgage payment plan. The house is worth less than the amount he owes, so it’s unclear if his luck will hold.”

    WHAT”S WRONG WITH “D A M A G E S”???!!! “RIGHTS VIOLATIONS”!!!???

  8. Jan van Eck:

    The so called Trustee DB is the trustee of a remic. Are you saying DB takes in individual name, not the trust name with the credit bid?

  9. marilyn lane
    go to smokeandmers,com for the full story

    While the U. S. Department of Justice is actively prosecuting mortgage and foreclosure fraud, a national organization that helps homeowners avoid foreclosure has evidence that certain state judges appear to be protecting lawbreakers. Billions of dollars have been received by corporations in the foreclosure industry since the Great Recession began.

  10. Marliyn or anyone

    Having trouble with that one.

    Here is the petition

    http://act.demandprogress.org/sign/pipa_letter/?akid=688.429634.1FQz4W&rd=1&t=4

    But here is the bill..

    http://www.govtrack.us/congress/billtext.xpd?bill=s112-968

    Not seeing where the free speech is blocked?

  11. MSNBC has an article on todays page (6/11/11) MSNBC.com – re Internet in a Suitcase.getting developed in case a government shuts down the internet and communications and prevents free speech—————
    in another country – what sinister motives can this suitcase plan have?

  12. Oh boy! My foreclosure had shoddy paper work. I choose the wrong modification company/ lawyer help. US Loan Auditors vs. Jerry Brown is still in court. I was in the home less than 3 years. Deutsche Bank bought my home using a credit bid and quickly resold it. I’m still living hand to mouth with family.

    Does this mean I get my home back? Magic eight ball says, “No.”

    The only conclusion I can come up with is its either California Crime or the cologne I’m wearing.

  13. MR. ZULUETA: Okay. So I just wanted to find out,Your Honor, if One West Bank has the proper authorization from Deutsche Bank to authorize them, because I don’t see any power of attorney presented.

    THE COURT: All right. Well, you know, the bottomline is you’re not going to get a free house.

    MR. ZULUETA: I’m not asking for a free house,Your Honor. I just want to make sure that the proper paperwork is in place so I can pay the right creditor.

    http://www.scribd.com/doc/57626848/Zulueta-Bankruptcy-Court-Transcript

    What we have here is the need for some rope and a tree.

  14. My AG flat out told me that they had no power to prosecute, that it would have to be done by the DoJ. What a major waste of taxpayer money.

    My local FBI said they had “no interest” in documented fraud on behalf of my servicer. What a major waste of taxpayer money.

    I wrote the OCC and told them of outright fraud by my bank, a major lender. They simply forwarded the letter to the lender. What a major waste of taxpayer money.

    I wrote the FDIC, the DoJ, the OTS, the POTUS, my legislators, regulators, state and federal, and received no replies, save for replies of a dismissive nature. What a major waste of my time and money.

  15. Here’s the link:

    http://www.examiner.com/architecture-design-in-national/national-mortgage-fraud-scandal-spreads-to-the-judiciary

    Ms. Batte stated that Samuel Olens, a highly respected attorney and former Cobb County, GA Commission Chairman, made prosecution of mortgage and foreclosure fraud a major platform of his campaign last fall. However, after becoming Georgia’s new Attorney General, he has not prosecuted any cases of these types of fraud, nor investigated charges of judges showing inappropriate favoritism to the foreclosure industry. She added that apparently “someone got to him” around February of 2011. He suddenly stopped mentioning foreclosure and mortgage fraud in public speechs. When questioned by reporters about these subjects, he dodges the issue and claims that he has no power to investigate violation of the state laws relating to perjury, forgery, fraud and judicial misconduct.

    Continue reading on Examiner.com National mortgage fraud scandal spreads to the judiciary – National Architecture & Design | Examiner.com http://www.examiner.com/architecture-design-in-national/national-mortgage-fraud-scandal-spreads-to-the-judiciary#ixzz1P4qfHe00

    Amazing how people’s souls can be bought for trinkets….

  16. @ uprootedone

    I cannot get the link and this is very interesting to me since my nysc judge Alice Schlesinger took a bribe from the title companies. Could you add to your posting more of what the article said thanks alot

  17. National mortgage fraud scandal spreads to the judiciary

    Judges caught with their hand in the cookie jar?

    Continue reading on Examiner.com National mortgage fraud scandal spreads to the judiciary – National Architecture & Design | Examiner.com http://www.examiner.com/architecture-design-in-national/national-mortgage-fraud-

    scandal-spreads-to-the-judiciary

    While the U. S. Department of Justice is actively prosecuting mortgage and foreclosure fraud, a national organization that helps homeowners avoid foreclosure has evidence that certain state judges appear to be protecting lawbreakers. Billions of dollars have been received by corporations in the foreclosure industry since the Great Recession began. Are these vast sums of money finding their way to elected state judges and politicians?

  18. The part of this story that has received no attention and very little emphasis is that the villain, Deutsche Bank, “purchased” the property with a credit bid. You already know how this one played out: DB is the pseudo-“Trustee,” and “sells” the property to itself as “buyer.” Except that no hard money actually changes hands. To put it in layman’s terms, this is a paper shuffle, designed to facilitate property theft. A Trustee is (in theory) an independent fiduciary, one with responsibilities to both the trustor and the beneficiary in equal measure. The Trustee’s responsibility is to obtain the best possible deal for both parties in the event of liquidation of the asset entrusted. Except with Deutsche Bank, it never seems to work out that way. Instead, Deutsche Bank just enriches itself. I call it theft. You call it self-enrichment. The Court calls it “foreclosure.” Just lovely.

  19. How wonderful- a Judge upholding his oath to the Constitution and protecting the man’ s rights given to him in the fifth and fourteenth amendments.

    Judges that protect the true owners property rights are the one that should be seated, the rest of them should be pushed out on their rears.

  20. the tide is turning

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