July 24, 2018

In just the last few weeks, we have seen more and more instances of unethical “bank” lawyers engaging in unprofessional and fraudulent conduct and actions designed to frustrate the homeowners’ defense of foreclosure actions. Of particular note:

(a)  In a case in Oregon where Mr. Barnes’ Firm represents the homeowners, the “bank” claimed for years that the original Note was lost, and confirmed this through a Lost Note Affidavit from a prior servicer and sworn deposition testimony of the “bank’s” representative. Three days before the trial, counsel for the “bank” advised that all of the sudden, the “original” Note had been located, but did not send a copy to the homeowners’ attorneys until the day before trial was to begin. The Court continued the trial, but the “bank’s” attorney has not yet provided the names of all persons who were involved in the miraculous discovery of the Note 72 hours before trial nor have they advised of the circumstances of the discovery,

(b)  In a case in New Mexico where Mr. Barnes’ Firm represents the Plaintiff homeowner, one of the attorneys in a fraud case who represents one of the Defendants is a material witness in the case as he signed Quitclaim Deeds in connection with the alleged fraud. His counsel agreed that he and his Firm must thus be disqualified from representing the Defendant client. He agreed in writing to have his deposition taken on August 22, but just now filed a “Motion for Protective Order” claiming that the deposition date was never discussed or agreed to. The New Mexico rules of professional conduct provide for the assessment of sanctions against attorneys who make frivolous claims. The homeowner will be seeking such sanctions.

(c)  In a case pending in New Jersey where the homeowners have retained Mr. Barnes’ Firm and his local NJ counsel, an Answer to the foreclosure Complaint was filed months ago and copied to counsel for the “Bank”. Notwithstanding this, the law Firm representing the “Bank” has just moved for a default judgment against the homeowners. Despite the homeowners’ local counsel bringing this error to the attention of the “bank’s” attorneys; they refused to withdraw their Motion and are seeking the entry of a foreclosure judgment without either a Motion for Summary Judgment being filed or a trial.

These are just a few examples of the kind of incredibly arrogant and dishonest conduct being engaged in by law Firms representing “banks” and servicers. It is time that the Courts begin assessing severe and punitive sanctions against these wrongdoers, who apparently have no respect for the rules of professional conduct.

Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com