In the latest foreclosure fraud scandal to come to light, Nationstar Financial admitted that it halted foreclosure proceedings in 23 states after receiving multiple complaints from state authorities. The admission came to light in documents filed with the SEC. This admission comes at a time when Nationstar is trying to raise $1.4 billion in new capital.
With over 5000 employees nationwide, Nationstar is not some fly-by-night mortgage lender. As we have seen with Bank of America and Allied Home Mortgage, even the biggest “too big to jail” lenders are not immune from foreclosure fraud complaints.
The company claims it voluntarily stopped foreclosures after hearing complaints from 4 state attorneys general. Nationstar says that after an internal review it restarted the foreclosure procedures. Shutting down in 23 states is no small issue. That action had to cost the company millions in lost revenues. We wonder exactly how serious the complaints from regulators were to lead to such a drastic action. We also wonder about the findings of the company’s own “internal” review.
Foreclosure fraud is out of control nationwide. Unlike mortgage fraud which is wrongful or deceitful action by borrowers, foreclosure fraud occurs when a lender or servicer (Nationstar is both) fails to properly follow state and federal foreclosure guidelines. Examples can include the wrongful denial of a HAMP modification, failure to process payments, robosigning, forging important mortgage documents and by failing to prove that the party foreclosing has the standing to do so.
With mortgages being purchased, packaged, flipped and securitized, often the servicer filing the foreclosure can’t even prove that it owns the mortgage.
No one has formally charged Nationstar with a crime or wrongdoing but in its own prospectus, the company admitted that it could not assure that future inquiries would not affect its ability to foreclose loans. We are looking for customers of Nationstar – or any lender – who feel they have been the subject of a wrongful foreclosure. Mahany & Ertl is not a traditional mortgage foreclosure defense firm. We believe the best defense is a good offense. If you made your payments but were still subjected to a foreclosure, let us know. We sue banks for foreclosure fraud.
For more information, please contact attorney Brian Mahany at email@example.com (Wisconsin cases) or attorney Anthony Dietz at firstname.lastname@example.org (Michigan cases). Facing a wrongful foreclosure in another state? We may be able to help in select other jurisdictions.
Please note that if you are facing the imminent loss of your home, contact a mortgage foreclosure or bankruptcy lawyer in your area immediately. We sue banks for money and compensation and can’t take foreclosure cases with impending eviction or hearing dates.
Mahany & Ertl – America’s Foreclosure Fraud Lawyers. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine; Minneapolis, Minnesota and San Francisco, California. Foreclosure fraud cases in select jurisdictions nationwide.
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