Our Miami foreclosure attorneys know that the $3.1 million judgment in the Mandleman Matters blog. He jokingly said that for a condemnation of that magnitude, surely jail time would ensue. Of course, we all know that banks are rarely held to the standards as the rest of us.
As we recently reported on our Miami Foreclosure Lawyer Blog, this was a case involving a New Orleans man who was entangled in a five-year litigation with the bank. What happened in this situation was (and probably still is) happening to countless other borrowers. It’s a situation called rolling debt. The borrower fell into default on his mortgage – an all-too-common occurrence in this housing climate, where millions of homeowners across the country are underwater on their homes. But once that happened, the bank began applying the balance of his subsequent payments to only his fees and interest, rather than the principal. Even when he filed for bankruptcy protection, Wells Fargo continued to falsely apply these amounts. This is rolling default.
As Andleman put it, “I think this should be called, ‘boiling default,’ because once it’s boiling, you’re goose is most assuredly cooked.”
But it wasn’t even enough for the bank when they had been caught red-handed to simply fess up, and begin correctly apply the balance. Not only has this practice continued, but their arsenal of lawyers filed dozens of motions, briefs and other filings that were an obvious effort to slow the legal proceedings to a snail pace. Obviously, the ultimate goal was a message to borrowers: Don’t even think about trying to take legal action against us, because we will make it so difficult as to be nearly impossible.
They aren’t the only banker with this mindset, and that’s why it’s so critical if you’re facing a Miami foreclosure to consult with an experienced attorney who knows the tactics of these institutions well, and who has the legal muscle to back them down.
The federal bankruptcy judge in this case told a Huffington Post reporter that she had personally reviewed the loan files of some 20 borrowers, finding errors in each and every case.
In light of these egregious violations of ethical and legal conduct, those who currently bank with Wells-Fargo should seriously reconsider – not only on moral grounds, but because they’ve made it clear it doesn’t matter who they harm in their efforts to enrich themselves.
If you’re battling foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.