Tuesday, March 12, 2013

SunTrust, its Attorney, Trustee Continue Illegal Foreclosure

SunTrust, its Attorneys, Trustee Continue Illegal Foreclosure in North Carolina

McGrath & Spielberger works with borrowers to save their homes.


As an attorney who represents mortgage loan borrowers and homeowners, I have encountered all sorts of bizarre and even illegal actions by banks, mortgage loan holders, mortgage loan servicers, and their representatives and agents. In this instance, it's SunTrust and its "neutral" substitute trustee who are illegally continuing to prosecute a foreclosure that they know is not supported by law or fact.

SunTrust is attempting to foreclose on a primary residence near Charlotte, North Carolina. The family who owns the property includes a local pharmacist and two college students - very nice and intelligent people. We are attempting a mortgage loan modification while trying to avoid foreclosure. At one hearing in this case, the SunTrust substitute trustee / attorney for didn't even bother to show up; the rest of us spent our time and money to attend, only to have the hearing not occur. 

 In North Carolina, the foreclosing party (SunTrust) must prove that it has the legal right to foreclose, which of course includes being the legal holder of the loan note. SunTrust, its trustee, and its law firm (an out of state law firm based in Atlanta) have now admitted that SunTrust has no connection with this loan but have refused to drop the foreclosure case. SunTrust is not the owner of the loan. It is not the holder of the loan. It is not the "person entitled to enforce" ("PETE") the loan. It is not the loan servicer. It admits all of this but still continues the foreclosure case!                                

Of course we are taking appropriate actions, but think about how stressful it is to have a lawsuit against you which seeks to take your home away. Now think about how upsetting it would be to know that the bank and the *neutral* trustee refuse to halt the foreclosure case despite essentially admitting that the bank has zero right to foreclose. Then think about the fact that the dollars paying to defend against this nonsense are coming out of your pocket, and could otherwise being toward a mortgage payment or to support your family.

It's not like this is the first time SunTrust has done this. In fact, it wasn't that long ago that SunTrust even warned its own investors that it was expecting formal charges by the Federal government for foreclosure fraud and abuse, and that this may make foreclosures take longer and be more expensive (i.e., cost the investors money): SunTrust Warns Investors of Foreclosure Abuse Investigations by Government.

Lest we think that SunTrust has only rarely wandered off of the path of the straight and narrow, let's remember that the Federal Government has also accused SunTrust of participating in illegal kickback schemes worth $6 billion.