LAWSUITS NEWS & LEGAL INFORMATION
Property Tax Bankruptcy
New York, NY: (Sep-19-07) Mortgage financier Freddie Mac brought charges against bankrupt loan servicer American Home Mortgage Corp. over delayed property taxes on behalf of thousands of homeowners. The lawsuit, filed early September 2007, had Freddie Mac warning that homeowners faced an imminent risk of losing their homes unless it was able to recover files for 4,547 loans, worth about $796.8 million, from American Home Mortgage, which filed for bankruptcy August 6, 2007. Legal counsel stated that homeowners are ultimately responsible for being current on tax and insurance payments, even if the money is sent to a loan servicer and put in an escrow account.
In a settlement reached, Freddie Mac ended its dispute with American Home Mortgage Corp., clearing the way to pay $2.4 million in delayed property taxes on behalf of thousands of homeowners. In its court filing, Freddie stated that it fired American Home August 1, but that the servicer refused to release the associated loan files. Freddie was able to seize $5.5 million in principal, property tax and insurance payments held by American Home. But without the files, the company could not transfer match the funds to the mortgage. [CNN NEWS: PROPERTY TAX]
Published on Sep-20-07
In a settlement reached, Freddie Mac ended its dispute with American Home Mortgage Corp., clearing the way to pay $2.4 million in delayed property taxes on behalf of thousands of homeowners. In its court filing, Freddie stated that it fired American Home August 1, but that the servicer refused to release the associated loan files. Freddie was able to seize $5.5 million in principal, property tax and insurance payments held by American Home. But without the files, the company could not transfer match the funds to the mortgage. [
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