On July 27, 2015, a Queens New York foreclosure attorney filed a Notice of Entry with the Queens County Clerk memorializing a decision issued by the Honrable Phyllis Orlikoff Flug in a 3 year old foreclosure case.
In her ruling Judge Flug upheld well settled law in New York that requires a lender to take steps in a timely manner during a foreclosure action. In the case entitled Ocwen Loan Servicing, LLC. vs. Perera, Surage under Index No: 023709/2012, Judge Flug ruled that “Although plaintiff’s affirmation admits that the subject motion is being made more than one year after the default, plaintiff fails to offer any excuse for the delay”.
Queens foreclosure attorney Brian McCaffrey, Esq. represented the borrower and responded to the Ocwen’s motion for an order of reference with a cross-motion to dismiss the action due to the banks failure to comply with New York’s foreclosure laws.
In an interview on Monday July 27, 2015 McCaffrey said “This ruling by Judge Fluge thwarting the efforts of Ocwen Loan Servicing, LLC is just one of many dismissals my office has been able to obtain against lenders who seem bent on ignoring the law.” And “What makes this case particularly satisfying is that Ocwen has refused to modify my client’s loan and now will have to start all over again and pay their attorneys to commence a new foreclosure action.”
McCaffrey also commented on the banks intransigence in offering a loan modification. “I can’t understand Ocwen’s resistance in offering a loan modification at a time when they are being investigated and closely watched for violations and refusal to comply with government guidelines. It seems like Ocwen will stop at nothing to turn a profit.”
When questioned by this reporter the homeowner, Mr. Perera said “Ocwen doesn’ want to modify my loan, no matter what, every time I have tried they refused to help me…. all I ever wanted was for Ocwen to modify the loan so that I can make payments that I can afford.” and “I have heard a lot of bad things about Ocwen, and I see in the news that they are being investigated by the government and attorney general, I don’t understand why these big banks do the things they do to homeowners, it wasn’t my fault that they lent money to everyone under the sun and created the housing bubble, they did this to all of us.”
According to Mr. McCaffrey this type of dismissal is common and these lenders who received taxpayer funds through TARP bailouts are digging in and refusing to honor agreements reached during the housing collapse.
McCaffrey said that “something here just doesn’t make sense they (Ocwen) should have settled and given my client a loan modification… These lenders can’t seem to get out of their own way.”
Either way it would have been in US Banks best interest in this case to offer Mr. Perera modification rather than risk dismissal and having to start all over again.
See the Court order here: Queens foreclosure attorney Brian McCaffrey beats Ocwen Loan Servicing
Ocwen is no stranger to problems with New York courts and authorities. Ocwen services more than $430 billion in mortgage debt and has been the subject of numerous actions by state and federal authorities. Here are a few of the problems Ocwen has faced:
Consent Order Pursuant to New York Banking Law § 44
A.G. Schneiderman Multi-Billion Dollar Settlement With OCWEN
Lawsky Letter on Ocwen investigation