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By Paul A. DiSegna | Real Estate Pro in Rhode Island
  • CitiMortgage Hosts Foreclosure Prevention Event in Los Angeles Area

    Posted Under: Home Selling in Los Angeles County, Financing in Los Angeles County, Foreclosure in Los Angeles County  |  May 24, 2011 3:42 AM  |  651 views  |  No comments

    05/23/2011BY: HEATHER HILL CERNOCH Printer Friendly View

    CitiMortgage and Los Angeles Neighborhood Housing Services will host a free homeowner outreach event for distressed homeowners in Torrance, California on Tuesday.

    Part of the Citi Road to Recovery Homeowner Assistance Series, the event is open to all homeowners needing help with their mortgage payments.

    CitiMortgage representatives will provide one-on-one consultations for homeowners whose loans are serviced by CitiMortgage and who are having difficulty making mortgage payments or facing foreclosure. The goal is to explore potential solutions open to them.

    Homeowners whose loans are serviced by other mortgage companies other than Citi can consult with Los Angeles Neighborhood Housing Services foreclosure prevention counselors on the same topics.

    Attendees can view educational presentations about mortgage modifications and other homeowner assistance programs.

  • City of Los Angeles Sues Deutsche Bank for Failing to Maintain REOs

    Posted Under: Quality of Life in Los Angeles, Market Conditions in Los Angeles, Foreclosure in Los Angeles  |  May 6, 2011 4:09 AM  |  530 views  |  No comments

    05/05/2011BY: CARRIE BAY Printer Friendly View

    Germany’s largest bank has been hit with its second lawsuit of the week related to the company’s U.S. mortgage business. 

    The city of Los Angeles has filed a civil law enforcement actionagainst Deutsche Bank for allowing properties it has foreclosed on to fall into “serious disrepair” and for the alleged illegal eviction of hundreds of low-income tenants renting the foreclosed homes.

    L.A. City Attorney Carmen Trutanich says Deutshce Bank “has become one of the largest slumlords” in Los Angeles.

    The lawsuit focuses on 166 properties as examples of what Trutanich describes as Deutsche Bank’s “illegal conduct.” The complaint alleges violations of federal, state, and municipal laws regulating housing conditions, nuisance properties, and tenancies by Deutsche Bank, through its subsidiaries Deutsche Bank National Trust Company and Deutsche Bank Trust Company Americas.

    The lawsuit seeks an immediate injunction, including a complete inventory, registration, and inspection of the bank’s foreclosed properties; actions to bring the properties

    into compliance with state and municipal codes; and a stop to all illegal evictions of rent-paying tenants.

    The city attorney is also seeking restitution to current and former tenants; reimbursement to the city for costs of repair, abatement, inspection, and investigation; and penalties.

    According to a statement from the city attorney’s office, Deutsche Bank’s liability is potentially in the hundreds of millions of dollars.

    The city says over the past four years, Deutsche Bank’s subsidiaries acquired over 2,200 Los Angeles properties through foreclosure. According to the complaint, the bank failed to properly maintain vacant homes, unlawfully evicted the tenants when the properties were occupied, and failed to provide minimum maintenance at occupied buildings “condemning tenants to live in substandard and dangerous conditions.”

    Deutsche Bank’s New York office did not immediately return our request for comment, but John Emshwiller of the Wall Street Journal says the bank claims the mortgage servicers that acted as trustees of the loans on the foreclosed properties are contractually responsible for maintenance and tenant issues, not Deutsche Bank.

    The U.S. government sued Deutsche Bank earlier this week for what it described as “reckless” behavior relating to its participation in a Federal Housing Administration (FHA) program.

    The federal complaint alleges the bank put loans into the FHAprogram without following proper procedure to assess borrowers’ ability to repay them, leading to high volumes of default claims. The U.S. is seeking damages and penalties of $1 billion.

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