Court eliminates mortgage because the bank refused to negotiate a loan modificationDecember 3rd, 2009

An interesting case from Suffolk County, New York. Indymac Bank F.S.B. v. Diana Yano-Horoski This involved a subprime loan in which IndyMac was the servicer. The bank representative at the settlement conference said there was no way that the borrower could receive a loan modification. In additon, the lender attempted to justify their refusal by stating that the borrower had defaulted on a forebearance agreement. Under questioning the lender’s reprentative admitted that the forebearance agreement required a payment to be made prior to the date when the forebearance agreement was sent to the borrower. The court felt that the lender acted in bad faith and eliminated the entire mortgage.

The bank’s bad practices are finally catching up to them. What works in the customer rep department in Dallas or India doesn’t cut it in court.

About David Parker

In 15 years of legal practice, David Parker has worked on a variety of corporate, real estate and business legal matters. Having also held non-legal positions in business, he is able to think outside the box and provide you with service that will enhance your goals.

He has handled leasing for office and retail landlords and tenants, joint venture agreements, financing and confidentiality agreements. In addition, he represents real estate developers and investors in all aspects of their real estate work.

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