In a decision handed down today by the Ohio Court of Appeals for the Tenth Appellate District, the Court reversed and remanded a trial court summary judgment in the case PHH Mortgage Corporation v Ramsey:
PHH Mortgage Corporation v Ramsey, No. 11AP-559, 2012-Ohio-672 (Ohio App. 10th Dist. 2012)
This is one of those classic cases of mortgage servicing fraud where the servicer essentially manufactures the default by frustrating and refusing payment. Servicers used to do this regularly to extort late fees from borrowers. When a borrower failed to pay the unjust late fee, the servicer would initiate foreclosure and then tack on a wide variety of other fraudulent fees to steal the borrower's equity.
This maneuver is somewhat more difficult when the borrower is upside down on the loan. In such a case the manufactured late fees and other trash charges actually serve to defraud the mortgage investor rather tan the servicer.
This appellate case is a nice reminder that when a defendant can get valid summary judgment evidence into the record by affidavit and other supporting documents, creating a genuine issue of material fact, that this precludes summary judgment.
That this matter ever went to summary judgment reflects extremely poorly on the disreputable foreclosure mill of Lerner, Sampson and Rothfuss and shows why this law firm ought never be contracted any foreclosure work on behalf of taxpayer subsidized entities.