Ransom Must be Paid | Chase Ordered to Pay Ben-Ezra & Katz $4 Million for Foreclosure Files

Palm Beach Post Staff Writer

Chase Home Finance will have to pay the Fort Lauderdale-based law firm Ben-Ezra & Katz a $4 million surety bond to get its foreclosure case files back.

The U.S. District Court for the Southern District of Florida made the ruling Friday after the bank’s lawsuit against Ben-Ezra & Katz alleging that the firm was delaying the return of the documents after being fired March 9.

Chase said the files contain more than $400 million worth of original notes and mortgages “without which Chase will be unable to proceed with any of the pending cases.”

Ben-Ezra & Katz, which also was let go by federal mortgage backer Fannie Mae in February, said it is owed $6.2 million in legal fees from Chase.

“This will enable Ben-Ezra & Katz to complete its long-standing pledge to transfer the files in an orderly, professional manner,” the company said in a statement Friday about the ruling.

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11 Responses to “Ransom Must be Paid | Chase Ordered to Pay Ben-Ezra & Katz $4 Million for Foreclosure Files”
  1. anonymouschasecustomer says:

    This is what I think is really happening. I base this upon my own personal experience as well as being a former Realtor and pre-law student. Ultimately, NO ONE is going to get a real loan modification because it is all a scam. We happen to have Chase Home Mortgage also, and I have read story upon story from one homeowner after another about the way these banks are abusing people. The stories are the same and I can identify with everything that others have said. The banksters’ ultimate goal is to take your house. THEY WILL FORECLOSE. Make NO mistake about that. You WILL lose your home. Bottom line.
    Because when the banks got all that bailout money, that gave the Feds the right to stick their nose in the banksters business. Banksters are common thieves (the ONLY difference is they dress nicer and don’t sneak into your home in the middle of the night).
    The banks want the Feds out of their business so they say they are going to pay back the bailout money to get the Feds off their backs. HOWEVER, rather than actually paying back the billions in bailout money (our taxpayer dollars mind you) they are forcing everyone who is upside down and behind into foreclosure. Banks almost always buy the/your houses back at the foreclosure sales. Then they write the difference off (as losses) on their taxes. Thus, they are technically “paying back” the bailout money but not out a single dime and, they get to keep the houses too and resell them and make even more money over the life of the new loan. They get to have their cake, keep it, and eat it too. This is who the American homeowner is dealing with.
    HOW are they getting away with doing this and why are they telling people to PURPOSELY NOT make XX payments prior to filing for a modification? The answer lies in the mortgage paperwork itself. Almost all mortgages have a clause in them called a “Power of Sale” provision. Read it! It plainly states that in the event of your default (ie., you get behind), the lender has the right to foreclose and NO OBLIGATION to enter into ANY modification program or accept anything other than what was originally agreed to. The banks are literally setting people up like dominoes. Just look around. Right now 4 out of 10 homes are either vacant or in foreclosure-that’s nearly HALF! The Banks have ZERO intention of letting you keep your home. It is a complete scam with the full blessing of our elected officials who work so hard for us (cough). Once you are behind, there appears to be no accountability as to what happens to any/all payments you make to them from what I am seeing and hearing. There are major discrepancies in escrows. My educated guess is that the banks are pocketing whatever you do send them so you might as well burn the money.
    Bottom line? Don’t get behind. In this economy though, I know for most people that is or has been impossible. If you have been or you are in arrears/trial loan modification, etc., REALIZE NOW that they ARE GOING to take your house-it is only a matter of time, a question of WHEN, NOT “IF”. If you are behind, stay in your home as long as you can, drag the process out as long as possible, realize you will most likely have to file bankruptcy because they will also try and come after you for the difference in what you owed and what the home actually sold for. Watch your respective County recorder’s office for the foreclosure sale date. They are REQUIRED to record that PRIOR to the sale. On the day BEFORE the sale, file your bankruptcy. It isn’t the end of the world. Rather, it is a new beginning. While you remain in your home DO NOT SEND THE BANK ONE CENT! Save ALL of your money and sell off anything you don’t need so that you can find another home when they stick a note on your door telling you that your home has been sold from underneath you. This is the inevitable. It is awful and scary and atrocious-but this is the reality of what is going on. I have yet to hear of a single loan modification that worked out in the homeowners favor. Google the banks and foreclosures and complaints and you will see the same scenarios being played out over and again and all have the SAME end result-FORECLOSURE! It is doubtful that the government or the AG’s will help. ALL the complaining is falling on deaf ears. Banks are powerful because they have money (our stolen money) and money is power. Class actions are good but they are only as good as the judge who handles the case and Judges can be and are bought and sold all day long for the right price. Bottom line, SAVE YOUR MONEY! Give these criminal enterprises (banks) a taste of their own medicine. Play along – but send them no money and drag out the process of foreclosure as long as possible. Two can play at their game. But realize that ultimately you WILL lose your home so you best prepare yourself whilst you have the time. Don’t pay these bastards ANYTHING no matter what empty promises they offer. They are lying and yes, still stealing and they will stop at nothing to steal your home right out from under you.

  2. Fury says:

    maybe they can arm wrestle for the files.

    all this BS would be laughable, if people’s hard-earned money and homes weren’t at stake.

    these creeps are ruining lives and taking the economy down w/ them.

    when will the madness end?

  3. Nye Lavalle says:

    It’s not ransom when its one crook to another. It’s called “horse-trading!”

    horse-trad·ing (hôrstrdng)
    Negotiation characterized by hard bargaining and shrewd exchange: political horse-trading

    See http://www.thefreedictionary.com/horse-trading

  4. l vent says:

    What a bunch of fraudsters. Where’s Batman? The joker and the riddler are at it again.

  5. JamesM says:

    Interesting. It is my understanding that lawyers may not hold client files for non-payment of fees.

    This has a sound legal grounding becuase:

    A) The files belong to the client.
    B) If such were allowed then one case would have to be put on ice while the depute between the client and lawyer was litigated. (In this case hundreds or thousands of cases have to be put on hold until the files are recovered, causing much confusion in the courts AND wasting judicial time, effort and resources.)
    C) The client could file a request for production on the documents in the client lawyer dispute, which are clearly relevant, the contents of which might show lawyers failings which would be relevant to an adjustment in the fees charged.

    In this case the files should contain the orignal notes, which belong to the INVESTORS, not the lawyer, or the servicer (chase) but the investment pools.

    Therefore I suspect the requirement for the surety bond will be appealed in short order. Expect an interesting and expedited opinion from the appellate court.

  6. housemanrob says:

    Is it “Mutiny on the bounty”?

  7. housemanrob says:

    The files contain original whhaaatttt?…………NOTES? Who is joking here………Chase? Or the lawyers? Remember what has been proven to us over and over again……THERE ARE NO ORIGINAL NOTES!!!!! So what is this really?

  8. Gregory says:

    what would happen if the truck ran of the road and caugt fire in the ditch, what would chase do then??????

  9. Stupendous Man - Defender of Liberty - Foe of Tyranny says:

    Yes it is good. Mill firms and banks are gonna start fighting and eating each other. I see no way that will be a bad thing.

    • see says:

      The way I see things, you want these guys to fight amoung themselves. When people start turning on each other lots of things start to happen and big mistakes are made. We want these mistakes to favor the homeowner. Wouldn’t it be great if Ben-Ezra had the mindset if we can’t make the money on these foreclosures no one else will. Somehow they loose important documents accidently on purpose. I say let them keep fighting each other.

  10. 1ofthemany says:

    This is good however it is too bad the real people (homeowners) affected by Chase will not get restitution.

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