A New York foreclosed homeowner, Barbara Small, is seeking compensation after it was discovered her lender and referee used a disputed method for calculating interest on her loan, which inflated the amount she owed by tens of thousands of dollars. The calculation method has been used in thousands of foreclosure cases across New York State.
New York's foreclosure process has a history of scandal and disorder. In 2008, the state's largest foreclosure law firm admitted to submitting phony documents to speed through hundreds of cases. A former state assembly member was arrested for embezzlement while serving as a court-appointed referee in 2013. Additionally, a review of court records found that sitting lawmakers received hundreds of commissions for handling foreclosure auctions.
A lawyer representing Small and other homeowners, Mark Anderson, has accused lenders and their attorneys of using the disputed method to boost profits at the expense of former homeowners. The dispute reveals widespread inconsistencies in how millions of dollars in foreclosure sales are handled in New York State.
Anderson's scrutiny started with a woman whose mother lost her home to foreclosure in Queens. He discovered that her lender’s attorneys had used the disputed calculation method, which contradicts the court system’s own guidance for referees. Since then, Anderson has scrutinized more foreclosure cases and found other instances of alleged miscalculations.
Gothamist and New York Focus conducted an independent analysis of state court records, which found that over 95% of reports drafted by 14 law firms representing lenders in large numbers of foreclosure cases used the disputed method. The data scraping did not pick up on every electronically filed case in New York.
Anderson is seeking to recoup the cash that he says his clients lost and accuses lenders and their attorneys of violating both criminal and consumer protection statutes, including the RICO Act and a state law against "unjust enrichment." He has also called for a more transparent foreclosure process.
New York's foreclosure process has a history of scandal and disorder. In 2008, the state's largest foreclosure law firm admitted to submitting phony documents to speed through hundreds of cases. A former state assembly member was arrested for embezzlement while serving as a court-appointed referee in 2013. Additionally, a review of court records found that sitting lawmakers received hundreds of commissions for handling foreclosure auctions.
A lawyer representing Small and other homeowners, Mark Anderson, has accused lenders and their attorneys of using the disputed method to boost profits at the expense of former homeowners. The dispute reveals widespread inconsistencies in how millions of dollars in foreclosure sales are handled in New York State.
Anderson's scrutiny started with a woman whose mother lost her home to foreclosure in Queens. He discovered that her lender’s attorneys had used the disputed calculation method, which contradicts the court system’s own guidance for referees. Since then, Anderson has scrutinized more foreclosure cases and found other instances of alleged miscalculations.
Gothamist and New York Focus conducted an independent analysis of state court records, which found that over 95% of reports drafted by 14 law firms representing lenders in large numbers of foreclosure cases used the disputed method. The data scraping did not pick up on every electronically filed case in New York.
Anderson is seeking to recoup the cash that he says his clients lost and accuses lenders and their attorneys of violating both criminal and consumer protection statutes, including the RICO Act and a state law against "unjust enrichment." He has also called for a more transparent foreclosure process.
this is so messed up!!! They're basically ripping off these people left & right & no one's even holding them accountable! I mean, thousands of homes lost because of some sloppy math and now the lenders are just trying to cover their tracks. It's like they think they can just game the system and get away with it? 
It's not just about the money, it's about basic human decency and respect for others.
for standing up for these homeowners and fighting for what's right. We need more people like him, not just lawyers who care about the money 
. This is disgusting 
it's not right at all that lenders and their lawyers are making millions off people who are already struggling 
i'm so glad mark anderson is speaking up for his clients 
he deserves a major round of applause 
we need more ppl like him advocating for change in our country 
, you know? It's like, these lenders are basically playing with people's lives when they're dealing with foreclosures. I mean, who gets to play around with numbers that can add up to tens of thousands of dollars and expect everyone to just take it lying down? 
.
.
.
? And it's not like these homeowners are asking for much - they just want the system to work fairly and transparently 
. It's like, where is the help? Where is the support? The fact that these lenders are using some dodgy calculation method to rake in profits while their clients suffer is just unacceptable 
.
. We need a system that prioritizes people over profits and makes sure everyone has access to fair and affordable housing options 
. I'm all for holding these lenders accountable, but let's also be thinking about how we can create a more compassionate and just system for everyone 
.
, but thousands of other homeowners got hit with the same problem too... it's not all her fault 
. And what about those court-appointed referees who got caught embezzling back in 2013? Where were they when this was happening? 
. We need to make sure our foreclosure system is fair and transparent, but we also need to give people a chance to rebuild their lives after they've lost everything