Bank accuses foreclosure mill of negligence, says it won’t pay for previous work

by Kim Miller

CitiMortgage, Inc., says it doesn’t owe back pay to the Law Offices of David J. Stern because the Plantation-based firm’s own “decisions, conduct, and/or negligence” caused its contract to be terminated.

Stern’s firm filed a breach of contract lawsuit against CitiMortgage last month in Miami-Dade County, claiming it is owed $4.4 million for work completed on the bank’s foreclosure cases.

CitiMortgage and the firm _ once one of the largest so-called “foreclosure mills” in the state _ had been doing business since about July 2009.

In a Thursday response to the suit, now removed to the United States District Court, Southern District of Florida, CitiMortgage complains that Stern’s firm made business promises that it broke when allegations of foreclosure-related wrongdoing surfaced and it was fired by federal mortgage backers Fannie Mae and Freddie Mac.

CitiMortgage also claims the bank’s own performance review of the firm in September found that it “falsely reported” that it had completed tasks on files that it had not.

The bank also filed a counterclaim against the firm in excess of $75,000.

Check out the rest here…

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4closureFraud.org

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CitiMortgage Answer and Counterclaims to David J. Stern
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