A very nice legal victory today. Late last year Citimortgage proceeded with a foreclosure sale at the very same time the owners' HAMP mortgage modification was in the final stages of review. Fannie Mae bought the house at the foreclosure sale and the family was facing eviction. Enter our firm. Remarkably, Citi claimed it had every right to proceed on "dual tracks" - both foreclosure and modification evaluation - at the same time with no duty to coordinate between the separate departments. Yes, the owner was on the phone with Citi almost daily alerting them to the conflict and the impending train wreck for her family, which included kids in the local high school. This family was exactly who the HAMP and other modification programs were designed to help. Long time owners who got slammed in the Great Recession and were now back on their feet and qualified for a mortgage modification.
Back in January we made a motion to vacate the sale and convinced a judge to stay the eviction proceeding while this mess would be reviewed. The judge scheduled a hearing on the issue of vacating the sale. Citi's attorneys then adjourned the hearing multiple times.
Well earlier today, Citi's attorneys conceded. They called us and agreed that they can't defend our motion and would voluntarily vacate the sale (as soon as they and the Fannie lawyers figure out how to do that).
I take special pride in taking on banks when they behave poorly. I don't know why, but bankers often think they are the smartest person in the room. They are not. My partner and I like being the only thing that stands between a person or family or small business and an injustice being committed by a behemoth that has no sense of fair or unfair, right or wrong. Remember, banks created this mess and their behavior in dealing with it has been really poor and downright shameless.