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Victims are now taking legal steps to fight foreclosures being helped by the judiciary in New York.
The Shearons – David and Karen wanted to buy a house for their three children to give them a feeling of security. Initially it seemed easy although the couple earned something below $30,000. The agent told them that they would not have to make any down payment for a house in Staten Island, New York worth for $335,000. But the assurances vanished when within a year the interest and monthly payments began to spiral. Finally foreclosure made a loud ugly appearance. It was not a quiet note but there were loud bangs on the door accompanied by shouts saying that they were facing foreclosure. The idea was to embarrass the family. Later the Shearons reported the mater to ABC news.
The Shearons were a feisty pair – they refused to meekly surrender like the thousands of others facing the same predicament. They took up their cudgels and so far they have not started retreating.
The judge found in February this year that the lender was trying to foreclose on the property although they had violated the lending laws of the state that banned predatory lending. Perhaps this is the first ruling of its kind in New York. Judge Joseph Maltese did not give permission to the bank to proceed with foreclosure. He ruled that David and Karen Shearon were entitled to get back the mortgage payments and fees given to attorneys. Noah Pusey the attorney for the Shearons’ said that this particular case “gave the judge … reason to pause and consider in the current climate what is going on here, not just with these borrowers but with the industry in general.”
Tom Solferino the attorney representing the bank said that there had been no predatory lending. He complained that this was a case of misapplication of the law. He said, “There\’s such a thing as predatory borrowing going on,” he said. “There are people going out and buying property with no cash down, not making any payment and then pointing the finger at the people who lent them the money.”
Judge Maltese will again give another hearing about the ruling of stopping foreclosure after LaSalle bank appealed for the same.
Whatever the outcome the Shearons have been the first couple to focus and protest on and about predatory lending. They have set an example which hopefully others will follow.
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[...] here. But today about 20 people wait in the corridors before the doors are opened. Some rush in to stop foreclosure sales with only minutes to spare. A bankruptcy filing puts on hold a foreclosure sale. The [...]