by Brian Mahany
I thought I had seen everything until I read a story about Investor’s Saving Bank. If you haven’t figured out why juries dislike lenders and are awarding large judgments against banks, read on.
A New Jersey company sought mortgage funding from Investors Savings. At the closing, Investors only provided half the funding. The loan paperwork, however, had a provision that said the borrower was precluded from filing a counterclaim if sued by the lender. Because the rest of the funding was never delivered, the borrower fell into financial hard times and defaulted on the loan.
If you think you know what is coming, you are right. Investors sued the borrower seeking to foreclose. The borrower sued back saying that they never got the all the money they were promised. Investors then asked the court to dismiss the borrowers claims on the theory that they signed away their right to sue!
Incredibly, a New Jersey trial court agreed with Investors and tossed the counterclaim. Thankfully, the NJ appeals court reversed the trial judge’s decision and allowed the claims against Investors to proceed.
The borrower was a business and generally courts treat residential borrowers more favorably than commercial ones. We think it is just incredible, however, that a bank would sink so low as to try to force any borrower to waive their right to file a counterclaim.
When I was a child, banks and bankers were held in high esteem. While most banks still do serve a purpose and often do the right thing, incidents such as this case are becoming increasingly common. If you have been ripped off or treated unfairly by a bank or mortgage company, we want to hear your story. Borrowers are speaking out and fighting back and more and more courts are beginning to listen.
The fraud lawyers at Mahany & Ertl represent borrowers and homeowners in lawsuits against banks. We are not a foreclosure defense firm but will sue a bank for a wrongful lockout, HAMP mortgage modification denial or predatory lending and foreclosure claims. Both juries and judges are getting increasingly fed up with the callous way in which some lenders treat their customers.
If you believe you have a claim against a mortgage company, bank or mortgage servicer, contact attorney Anthony Dietz at Have an emergency that can’t wait? Contact the author at (414) 704-6731 (direct). All inquiries are protected by the attorney -client privilege and kept in strict confidence.
Mahany & Ertl – Giving Homeowners A Voice. Offices in Milwaukee, Wisconsin; Detroit, Michigan; Portland, Maine & Minneapolis, Minnesota.