For New York homeowners facing foreclosure, they may feel like the deck is stacked against them. The economy is in the tank. Credit has dried up. Trying to call your mortgage company and negotiate a loan modification feels like an exercise in futility. And mortgage companies are probably profiting off the delays in the foreclosure process anyway.
But it turns out there is a real hero out there whose name is not BAPCPA Man. In fact, he works right in Brooklyn.
The Honorable Arthur M. Schack, a Brooklyn bankruptcy judge, has been turning the tables on banks and mortgage companies when it comes to foreclosures, according to the New York Times (“A ‘Little Judge’ Who Rejects Foreclosures, Brooklyn Style“).
The article goes on to describe how Judge Schack simply makes a point of “taking a magnifying glass to the mortgage industry” and actually looking through all of the mortgage documents. Turns out there are tons of mistakes by mortgage companies in their documentation. In one instance:
a Deutsche Bank representative signed an affidavit claiming to be the vice president of two different banks. His office was in Kansas City, Mo., but the signature was notarized in Texas. And the bank did not even own the mortgage when it began to foreclose on the homeowner.
To date, Judge Schack had overturned 46 of 102 foreclosure motions before him on the basis that if a bank can’t prove ownership, then it shouldn’t have the right to foreclose. The article quotes Schack as saying:
“If you are going to take away someone’s house, everything should be legal and correct,” he said. “I’m a strange guy — I don’t want to put a family on the street unless it’s legitimate.”
At a time of great cynicism, it’s inspirational to see someone adding humanity back into the economic formula. I strongly encourage you to read the whole article. The article even notes that perhaps Judge Schack’s approach could evolve into a national model. That is, in lieu of any legislation to protect homeowners, judges start stepping in more to do what’s needed.
Stay tuned for more developments on this front.
In the meanwhile, if you’re facing Brooklyn NY foreclosure attorneys or contemplating bankruptcy filing, please feel free to get in touch for a free initial consultation.
