Sunday, October 10, 2021



A number of articles* have appeared on this blog, containing information supplied by homeowners who assert that they have been the victims of illegal mortgage foreclosure actions, brought by FAY SERVICING LLC, a mortgage servicer for certain prominent American financial institutions. Now, in a professional negligence action brought by on behalf of one of  Fay's clients,, we have the rare opportunity to peek inside its operations, to further understand why its lawyers allegedly play fast and loose with the truth, and violate the Canons of Professional Ethics, while artfully divesting the victims of their homes, and how they take their properties while deceiving them about the status of their cases. 

The malpractice action, captioned NRZ PASS-THROUGH TRUST X et al vs. JAMES E. ALBERTELLI, P.A. d/b/a ALBERTELLI LAW,  Case No.: 2020-CA-006724-MA ( Cir. Ct. Duval Co. Fla.), alleges that the defendant law firm, a foreclosure agent for Fay, was professionally negligent in a case involving real estate in which Fay's client, Bank of America, held an interest to real property. While all the facts are not alleged in the pleadings, it  appears that a condominium association successfully prevailed over Fay's bank client. Legal Malpractice is alleged to have occurred.

The docket note that a Motion to Dismiss has been filed in the action, together with a Motion to Strike the demand for Attorney's Fees. Additionally, a Motion for a More Definite Statement has also been filed. The Florida Rules of Civil Procedure allow such a motion when the Compliant is so vague and ambiguous that the party responding cannot reasonably prepare a response. Fla. R. Civ. P.  1.140 . The Court has not yet ruled on these ending motions; the case is presently in the Discovery phase.

The action also contains a Breach of Contract count, and a Legal Services Agreement between Fay Servicing and the Albertelli law firm is attached as an exhibit. It appears to be the form contract Fay uses to retain foreclosure counsel. This agreement puts all its lawyers on a tight leash, involving restrictions on  billing, including a provision that a maximum of two bills for legal services in an uncontested matter are permitted. Many of the victims have alleged that some of the foreclosure lawyers retained by Fay misled borrowers into believing that a refinancing of their past-due debt was in progress, causing them to not defend their foreclosure. The victims also alleged that Fay attorneys misrepresented to a number of courts that a request for a modification of mortgages in default had not been submitted, or any other settlement, notwithstanding that the homeowners had a good faith belief that their cases were not proceeding through the foreclosure process to a final judgment. The were deceived, they allege.

If the lawyers retained by Fay Servicing have a well-founded fear of imminent malpractice actions against them, notwithstanding that it is impossible to predict how a judge or jury will rule, it may explain, though not excuse, their sharp tactics. Apparently, Fay Servicing is only interested in a successful outcome, irrespective of the methods used, or it goes after its own lawyers when things don't go their way in court. Both the attorneys and their client come up short when it comes to ethics.

Meanwhile, the reportedly illegal, improper and unethical actions of Fay Servicing, and its lawyers, continue to be ignored by US Attorney General Merrick Garland, the Department of Justice, the Consumer Financial Protection Bureau, and the various state attorneys general, especially in the State of California, where Fay continues to exploit the lucrative housing market, making America's Senior citizens homeless. These law enforcement agencies are doing nothing to enforce the laws protecting our Seniors from this predatory mortgage servicing firm.


*Victims allege that Fay Servicing Attorneys made Material Misstatements of Fact ( this article has links to several additional articles from this blog concerning Fay Servicing).


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