Last-Minute Injunction Prevents Foreclosure by Mortgage Servicer Provident Funding

foreclosure-mortgage-litigation-provident-funding-culik-lawWith a foreclosure set for just before the Labor Day holiday, the mortgage servicer Provident Funding had plans to foreclose on a Middlesex County home.

The foreclosure, however, suffered from major paperwork flaws, according to a complaint filed by Culik Law in Middlesex Superior Court.

First, the complaint claimed that the lender sent a defective notice of right to cure, a mandatory pre-foreclosure letter that must be sent prior to foreclosure under Massachusetts General Laws chapter 244, section 35A.

Under the Supreme Judicial Court’s decision in U.S. Bank v. Schumacher, a homeowner is entitled to file suit to stop a foreclosure if such a notice is faulty.

And second, the foreclosure should have been conducted in the name of Freddie Mac, the true owner of the mortgage and note.

After a hearing in Superior Court, the judge granted an injunction stopping the foreclosure. The judge’s order stated that the homeowner “demonstrated a likelihood of success on the merits” and “is likely to suffer irreparable harm if the injunction does not issue.”

This case is another in a series of cases since the Schumacher decision allowing homeowners to stop unlawful foreclosures if banks and mortgage servicers do not comply with the Massachusetts right-to-cure law.

CULIK LAW PC

CULIK LAW

CULIK LAW is a Massachusetts based law firm who believes in doing good work in our New England community to help individuals Champion Your Rights. We help clients with debt, credit reporting, mortgage, consumer protection, employment, and personal injury. If your rights are being violated or you need a new beginning, we want to hear about it and find a way to help.