ForeclosuresCourt Reduced Homeowner’s DebtCourt Would Not Countenance Blatant and Repeated Misrepresentations of FactBank’s Conduct to Have Been “Overreaching, Willful and Unconscionable and Wholly Devoid of Even So Much as a Scintilla of Good Faith”
A bank had commenced a foreclosure action against a homeowner. The mortgage’s original principal amount was $494,000. Thereafter “and through no fault of their own, Defendants defaulted.” Pursuant to CPLR §3408, 18 settlement conferences were held, each one “a component part of a continuing albeit fruitless effort to resolve this matter.” Only upon order of the court, did a bank representative travel from Texas “to appear with a view toward some amicable resolution of this action. However, in derogation of the mandatory provisions of CPLR §3408(c),” no bank representative appeared with any “authority to settle or otherwise compromise the matter. Further delays were occasioned by serious illness having afflicted both of the Defendants as well as the unfortunate passing of [the defendant's wife]….” Additionally, the bank’s former counsel, had been discharged and his law firm had been disbanded.
