Foreclosure Defense FloridaGeneral Information

Mathis 12(c) Motion Denied Enforce Granted Loan Mod And False Statements By Attorney

According to the amended complaint, (Doc. 18), the plaintiffs executed a
mortgage covering their primary residence. Defendant Federal National Mortgage
Association (” Fannie Mae”) later acquired ownership of the loan. Servicing of the loan
was at some point transferred to defendant Nationstar Mortgage, LLC (” Nationstar“).
The plaintiffs applied for a loan modification under the Home Affordable Modification
Program (” HAMP“), dealing with Nationstar after it became the servicer. HAMP is a
product of the Emergency Economic Stabilization Act of 2008 (” EESA”).
According to the amended complaint, Nationstar instructed the plaintiffs to stop
making mortgage payments while it evaluated the loan modification request, and the
plaintiffs did so. Nationstar later told the plaintiffs they had been approved for a Trial
Period Plan (” TPP”), under which they would make lower monthly payments on a trial basis. The plaintiffs successfully completed the trial period, and Nationstar sent a
permanent modification agreement, which the plaintiffs signed and returned to
Nationstar. The plaintiffs then continued making the lowered monthly payments in
accordance with the modification. Eventually, Nationstar advised the plaintiffs they had
not accepted the offer or had withdrawn their request, though neither was true.
Nationstar then notified the plaintiffs they were in default and that the loan was
$11,057.97 in arrears. The loan was not in default, and the figure provided by Nationstar
did not give the plaintiffs credit for the lowered payments they had been making for
several months. The plaintiffs learned that Nationstar was holding these funds in a
suspense account, but Nationstar refused either to refund these monies or apply them to
the claimed deficiency. During this period, Nationstar failed to pay the homeowner’s
insurance premium out of escrow funds it held, resulting in cancelation of the policy.
Nationstar received assignment of the deed of trust, which transferred the mortgage to
Nationstar. Nationstar did not acquire ownership of the debt, but Nationstar through its
counsel falsely represented to the contrary. Nationstar published foreclosure notices
containing various falsehoods, and it then conducted a foreclosure sale, at which Fannie
Mae bought the property. Prior to foreclosure, Nationstar did not provide the plaintiffs
the notices and rights to cure granted them by the mortgage, in that the notices contained
material misrepresentations. After foreclosure, the plaintiffs vacated the premises, in  reliance on instructions from Fannie Mae and representations from Nationstar that a valid  foreclosure sale had occurred.
The amended complaint includes seven claims, each asserted against both
“¢ Count One Breach of mortgage agreement
“¢ Count Two Breach of TPP agreement
“¢ Count Three Negligence
“¢ Count Four Wantonness
“¢ Count Five Wrongful foreclosure


Leave a Reply