NewRez LLC Foreclosure Defense Lawyer

NewRez, LLC touts itself as one of the biggest non-bank originators of mortgages in the country. NewRez did business as Penn Financial before 2018 but the company was purchased by New Residential Investment Corporation that same year. It was shortly after the company rebranded itself as NewRez, LLC that the institution purchased Shellpoint Partners and went under the simplified name of Shellpoint. Still, NewRez LLC is recognized as a nationwide mortgage lender licensed in all 50 states.

NewRez provides many options for homeowners including VA loans, FHA loans, conventional loans, refinancing, and more. Unfortunately, NewRez often treats homeowners unfairly. They try to wrongfully foreclose on homes and they have also been sued by many homeowners in the past. If you have received notice that NewRez is going to foreclose on your home, you must speak with a Fort Lauderdale foreclosure defense lawyer who can provide the legal advice you need.

Why Not to Choose NewRez When Obtaining a Home Loan

Many homeowners are excited just to obtain a home loan but just as with other institutions, there are some drawbacks associated with getting a home loan from NewRez. One of the most common complaints against the company is that they promotes themselves as being a great option for first-time homebuyers who do not understand what type of mortgage they require. They often use this in their advertisements in an attempt to attract customers, which the company then takes advantage of. This allegation has formed the basis of many lawsuits filed against the company.

Customers who work with NewRez are also required to work with a loan officer, and this is not beneficial for homeowners. Loan officers represent banks, credit unions, and other financial institutions. Their intended role is to assist borrowers throughout the loan application process. However, it is critical to know that they are employed by NewRez and so, they do not always prioritize the best interests of the customer. Even though loan officers are employed by NewRez, the consumer pays for the cost of them. This means obtaining a home loan from NewRez is even more costly and for many, completely unaffordable.

What Lawsuits Have Been Filed Against NewRez?

The fact that NewRez has been the center of many lawsuits in the past should be concerning for borrowers. Many of these have been class action lawsuits, meaning that there have been several borrowers suing NewRez for the same illegal acts.

One of the earliest class action lawsuits was filed in West Virginia. In this case, the plaintiff claimed that NewRez engaged in predatory lending practices and that they were taken advantage of. Solicited by Countrywide to buy a property that had been foreclosed on for an appraisal value of $71,500, it was only much later that the plaintiff learned the property’s value was far less than that. The plaintiff also claimed that it was difficult to understand the financial details of the case and that the company took advantage of that fact.

While the company was operating as Shellpoint, NewRez paid a settlement of $500,000 in a separate class action lawsuit. This class action claimed that NewRez sent borrowers misleading mortgage statements. The homeowners in this case claimed that they had worked out a forbearance plan in compliance with the Coronavirus Aid, Relief, and Economic Security (CARES) Act. While these borrowers were still in the forbearance period, NewRez sent them misleading mortgage statements.

The same lawsuit that was settled for $500,000 also accused NewRez of violating the Fair Debt Collection Practices Act (FDCPA). Under this federal law, lenders are prohibited from engaging in certain actions, which include using threatening or harassing language, calling borrowers very late at night or very early in the morning, and misrepresenting themselves as an attorney when they are not. These are just a few of the illegal acts the company was accused of in the lawsuit.

How to Defend a NewRez Foreclosure

In Florida, there are many legitimate defenses to foreclosure. These include loan modifications, a lack of standing, deeds-in-lieu of foreclosure, and more. In regards to NewRez specifically and the allegations they have faced in class action lawsuits, certain defenses are often more appropriate than others. Some of these include:

• Fraud: The allegations of sending misrepresenting mortgage statements and falsifying the appraised value of a home are just two instances of fraud NewRez engaged in. Mortgage loan lenders and servicers have a legal duty, to be honest and transparent at all times when dealing with borrowers. When they fail to do this, they can be sued for fraud.
• Unclean hands: The defense of unclean hands alleges that NewRez engaged in some type of illegal, oppressive, or fraudulent action so they can file a lawsuit against unsuspecting homeowners. Many claims of unclean hands have been filed against NewRez, along with violations of the FDCPA.
• Undue influence: Undue influence occurs when a company influences a borrower to take certain actions without regard for the consequences. This is a valid defense in the first case, and others like it, as the borrower was unsure of the financial details of his case.

While the above are affirmative defenses, there are others as well that are not. An affirmative defense is one in which a borrower did default on their mortgage, but they had a legitimate reason for doing so. A Fort Lauderdale foreclosure defense lawyer can advise on the defenses that will work best in your case.

Call Our Foreclosure Defense Lawyers in Fort Lauderdale for Help with Your Case

If NewRez is threatening to foreclose on your home, you may think you do not have any options. Fortunately, this is likely not true. At Loan Lawyers, our Florida foreclosure defense lawyers can advise on the strategy that will work best in your case and give you the best chance of staying in your home now, and in the future. Call us today at (954) 523-4357 or contact us online to request a free review of your case and to get the legal help you need.