Emigrant Mortgage Co. to Pay $100,000 Plus in Mortgage Foreclosure Action

A state court judge in Suffolk County New York ruled in favor of the defendants in a mortgage foreclosure action, arguing that Emigrant Mortgage Co. (plaintiff) deliberately tried to ruin the couple's chance of keeping their home. According to the lawsuit, the defendants Anthony J. Corcione and Jane Corcione defaulted on their $302,500 loan in May 2008 after facing employment loss.

The foreclosure case was filed on behalf of Emigrant Mortgage Co. 14 months later. The defense argued that Emigrant was unresponsive and unwilling to work with the couple, who tried to get a lower, fixed rate for months following their initial default.

Mortage Company Delays Foreclosure Case To Prevent Defendants From Recovering Home

Because Emigrant waited 14 months before starting a foreclosure case, the court says it believes the mortgage company was trying to stick the couple with hefty penalty fees, making it impossible for them to recover financially. Before filing the foreclosure case, the lender reportedly offered the couple a loan modification plan on Feb. 23, 2010, with 10 days to accept. The proposal included terms that would make it impossible for the borrowers to take measures to try and save their home if they defaulted on payments in the future.

The court referred to the waiver as being, "highly questionable, unconscionable, unreasonable and overreaching." The judge awarded the borrowers $100,000 in damages, wiped out the late charges and refused to pay the legal fees for the plaintiff.

If you suspect mortage fraud and have been wronged in a mortage foreclosure action, contact a consumer fraud attorney today.