Did New Century sell a mortgage it did not in fact own? The complaint for this class action rests its charges primarily on that allegation plus claims that amounts charged in connection with a subsequent foreclosure were excessive and improper.
Two classes have been proposed for this action.
The first is all borrowers of loans originated by New Century secured by property which was foreclosed on by one of the defendants (or where one of the defendants acted as foreclosure servicer or attorney), where defendants recorded documents in which New Century assigned or transferred rights to another entity, after July 15, 2008.
The second is all borrowers of loans secured by property on which a foreclosure was begun by one of the defendants (or where one of the defendants acted as foreclosure servicer or attorney) in which the borrower (1) paid legal fees which were not prorated or were otherwise higher than the amounts allowed in the Fee Agreements, industry guidelines, or relevant law, or (2) paid expenses in excess of amounts allowed in the Fee Agreements, industry guidelines, or relevant law.
The defendants in this case are named as Mickel Law Firm; US Bank, NA; Citigroup Mortgage Loan Trust, Inc. 2006-NC-2 Asset Backed Pass Through Certificates Series 2006-NC-2; and Wells Fargo Home Mortgage.
In 2006, plaintiff Tricia Schmidt and her then-husband took home loans with New Century Mortgage Corporation. These included a first mortgage and a second mortgage on their new home. Schmidt’s husband was abusive and she filed for divorce. Unfortunately, she also suffers from illnesses that prevent her from working, and during the break-up, she was unable to keep up payments on the home.
In 2012, New Century purported to assign the second mortgage on her home to Residential Funding Company, which assigned it the following year to 21st Mortgage Corp. In 2017, it purported to assign the first mortgage to US Bank, NA as trustee for the Citigroup Mortgage Loan Trust.
However, New Century had filed for bankruptcy in 2007 and complete a Chapter 11 plan in 2009 that transferred its assets to a liquidating trust. The complaint therefore claims that it no longer owned either mortgage and did not have the right to transfer them to anyone.
On April 26, 2017, US Bank, in its trustee capacity for the Citigroup trust, began foreclosure proceedings, with Wells Fargo as servicer.
Schmidt then asked for a reinstatement quote, and eventually paid the nearly $10,000 it required to stop the foreclosure sale.
However, the complaint claims that (1) some of the fees included in this amount were excessive, and (2) the foreclosure was improper to begin with and should not have proceeded at all. It alleges violations of the Fair Debt Collection Practices Act, breach of contract, and fraud, among other things.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
Improper Sale of Mortgage and Excessive Foreclosure Fees Complaint
June 13, 2018
Did New Century sell a mortgage it did not in fact own? The complaint for this class action rests primarily on that allegation plus claims that amounts charged in connection with a subsequent foreclosure were excessive and improper.
micel_law_firm_imporper_mortgage_service_complaint.pdfCase Event History
Improper Sale of Mortgage and Excessive Foreclosure Fees Complaint
June 13, 2018
Did New Century sell a mortgage it did not in fact own? The complaint for this class action rests primarily on that allegation plus claims that amounts charged in connection with a subsequent foreclosure were excessive and improper.
micel_law_firm_imporper_mortgage_service_complaint.pdf