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February 25, 2010

Foreclosures may be put off while homeowners scramble for government mortgage relief

The federal government has admitted that homeowners have not been treated fairly under its recent $75 billion mortgage relief program. However, the government may soon implement new policies which could help level the playing field between homeowners and mortgage companies.

The Atlanta Journal Constitution has the story.

One of the largest complaints by home owners is that lenders can continue to foreclose on a home even if a homeowner has enrolled in the relief program. If the new policies go into effect, a mortgage company would be required to halt any legal proceedings as soon as a borrower enrolls. Moreover, if a borrower is rejected from the program, he or she may appeal the decision within 30 days. During those 30 days, a lender would not be able to carry out a foreclosure sale.

At Pate & Brody, we have seen many homeowners who have not been treated fairly by their mortgage companies. When a home owner is not being treated fairly, we can often step in and stop a foreclosure sale from taking place. It may also be appropriate to file suit against the mortgage company to recover damages for the harm caused to the home owner. The amount of recovery in such cases can often be significant.

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Posted In: Consumer Protection , Mortgage Fraud

January 28, 2010

Atlanta lawyers at Pate & Brody file suit against Wells Fargo alleging wrongful foreclosure

Our firm was recently retained to represent a Georgia homeowner who had been threatened with foreclosure by Wells Fargo, even though she had faithfully followed the bank’s repayment plan.

The Marietta Daily Journal featured the story in an article called “American Nightmare.”

Although the client was to be kicked out of her house right before Christmas, Attorney Jennifer Jordan of our firm took immediate action and helped our client keep her home. Based on the actions of Wells Fargo, we also filed a complaint against the company alleging wrongful foreclosure and breach of contract. Among other things, the complaint seeks recovery of damages and attorneys fees.

The case is currently pending in Gwinnett County. No trial date has been set.

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Posted In: Consumer Protection , Metro Atlanta , Mortgage Fraud

August 11, 2009

State Attorney General accuses Wells Fargo of pushing subprime loans on minority lenders

The Illinois Attorney General filed suit against Wells Fargo last week for discriminatory and illegal mortgage lending practices against blacks and Latinos.

CNN.com has the story.

Lisa Madigan, the Attorney General of Illinois, believes that Wells Fargo has turned Latino and African-American communities into hotbeds of subprime lending. She stated that the high foreclosure rates in these communities are a direct consequence of the illegal practices committed by Wells Fargo. Madigan also alleged that white borrowers with equivalent incomes were typically given lower-cost loans.

The lawsuit goes on to complain that Wells Fargo Financial Illinois, a subsidiary, misled borrowers about the terms of their mortgages and misrepresented the pros and cons of refinancing. The suit also claims that Wells Fargo routinely “flipped” loans and confused borrowers with misleading mailings.

Madigan has asked the court to rescind all of the contracts at issue and for Wells Fargo to pay restitution to those who have been afflicted.

Wells Fargo maintains that it practices responsible lending and does not use race as a factor.

Pate & Brody is an accomplished Georgia law firm with offices in Atlanta, Macon and Madison. Our lawyers are dedicated to pursuing justice for crime victims, people who have been defrauded by deceptive business practices, or injured through the fault of others. Our lawyers have been recognized on the list of Georgia's "Super Lawyers", and included among Georgia's "Legal Elite" by Georgia Trend Magazine.

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Posted In: Business Fraud , Consumer Protection , Mortgage Fraud

November 20, 2008

Golden West Financial investigated for fraudulent mortgage practices

Golden West Financial, the mortgage lender acquired by Wachovia Bank in 2006, is being investigated by the United States Department of Justice for fraudulent mortgage lending practices. The "preliminary investigation" was reported by the Associated Press and picked up by many news outlets, including Forbes.

The gist of the investigation appears to be allegations that the company engaged in predatory lending practices by misrepresenting the terms of certain loans, falsifying documents and persuading borrowers to obtain loans that were clearly inappropriate for them.

Our firm has been involved in many mortgage fraud investigations. We have represented both victims of fraudulent mortgage practices and those charged with being involved in mortgage fraud, including attorneys, mortgage brokers, real estate agents, appraisers, "straw purchasers," and investors.

These cases can be very complex to prosecute and to defend. If you think you were the victim of fraudulent mortgage practices, or have been charged with a mortgage fraud related offense, you may contact our lawyers for a free initial consultation to discuss your case. We have helped many people caught up in this mortgage mess, and we may be able to help you.

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Posted In: Business Fraud , Consumer Protection , Crime Victims' Rights , Mortgage Fraud , Theft and Fraud Victims

October 6, 2008

Mortgage fraud claims to be resolved by Bank of America

This week, Bank of America agreed to pay approximately $8 billion to assist over 400,000 people with troubled mortgages. The settlement is the Bank's attempt to resolve claims that Countrywide, recently acquired by the Bank, used deceptive mortgage lending practices.

The Atlanta Journal Constitution has the story.

Eleven states should benefit from the settlement, but Georgia was not one of them. Apparently, the Georgia Attorney General did not participate in the lawsuit.

Regardless, this is a positive step for many people who were victimized by deceptive lending practices and sold mortgages that they could not afford. Perhaps other lenders will follow suit and help homeowners negotiate more favorable mortgages so they can stay in their homes.

Our firm also helps homeowners victimized by the fraudulent sales practices of many over-eager mortgage brokers and lenders. If you believe that you were deceived into applying for a mortgage that you could not afford, you may contact our office to see if you have a claim for fraud against the mortgage broker or lender.

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Posted In: Business Fraud , Consumer Protection , Mortgage Fraud

September 10, 2008

Mortgage fraud lawsuit filed by Indiana against Countrywide for deceptive mortgage practices

The lenders are finally getting some heat for their role in the rampant mortgage fraud that has forced many Americans into foreclosure.

Indiana has joined a number of other states in suing Countrywide for deceptive and fraudulent lending practices relating to residential mortgages. Reuters has the story.

Several other states are already pursuing Countrywide, although Georgia is conspicuously absent from the list. The states that have sued are focusing on Countrywide's deceptive and misleading sales practices for residential mortgages. Among other things, the lawsuits allege that Countrywide brokers were knowingly completing false loan documentation to get borrowers approved for loans they simply could not afford.

It will be interesting to see what happens to Countrywide (now owned by Bank of America) as a result of these lawsuits. The State of Washington has already threatened to revoke their lending license.

Our firm has been involved in numerous Georgia mortgage fraud cases. We have seen lenders, brokers and investors push people into deals that were not fair and that they could not afford. Hopefully, these state lawsuits will provide some relief. If not, there is always the option of pursuing the lenders and brokers on an individual basis, if the facts show clear deception.

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Posted In: Business Fraud , Consumer Protection , Mortgage Fraud

Contributors

Page Pate
Page Pate is an accomplished trial lawyer and founding partner of Pate & Brody. Page has been recognized by both Georgia Trend Magazine and Georgia Super Lawyers as one of the state’s elite trial lawyers…

Bernard Brody
Bernard Brody is an experienced trial and appellate lawyer and founding partner of Pate & Brody. Bernard has won trials and successfully resolved difficult criminal and civil cases in courts across Georgia…

Jess Johnson
Jess Johnson graduated first in his class from the University of Georgia in 2006, where he attained degrees in political science and sociology...