Consumer complaint received 2025-05-31 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Paying off the loan
Company: MIDFIRST BANK
State: NY

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX OF XXXX -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- XXXXXXXX XXXX / MIDFIRST BANK, Plaintiff, v. 
XXXX XXXX  et al., Defendants, XXXX XXXX XXXX XXXX, Proposed Intervenor-Defendant. 
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Index No : [ Insert Case Number ] MOTION TO INTERVENE, DISMISS FORECLOSURE, AND ASSERT COUNTERCLAIMS TO : THE HONORABLE JUDGE OF THE COURT NOW COMES XXXX XXXX XXXX XXXX, a resident of XXXX XXXX XXXX, XXXX, NY XXXX, and respectfully moves this Court to : XXXX. Intervene as a party defendant pursuant to XXXX XXXX and/or XXXX ; XXXX. Dismiss the foreclosure action for lack of standing and failure to state a claim ; XXXX. Assert counterclaims under Federal and State law for violations of the Truth in Lending Act ( TILA ), 15 U.S.C. 1601 et seq. 




-- - I. BASIS FOR INTERVENTION XXXX. XXXX has a direct and legally protectable interest in the subject property and mortgage contract referenced in the above-captioned foreclosure case. 


XXXX. Movants rights are threatened and impaired by the pending action, and existing parties do not adequately represent those interests. 




-- - XXXX. MOTION TO DISMISS : FAILURE TO STATE A CLAIM & LACK OF STANDING XXXX. Plaintiff, XXXX XXXXMIDFIRST BANK XXXX XXXX at XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX, has no enforceable claim as : a. Plaintiff filed and submitted an IRS Form XXXX indicating acquisition or abandonment of the subject property and satisfaction of debt ; b. Plaintiff thus either : Took possession of the collateral ( and thereby extinguished the mortgage lien ), or ; Elected to write off the debt, which bars them from pursuing foreclosure under equitable estoppel and unjust enrichment doctrines. 



XXXX. The filing of XXXX, accepted by the IRS, indicates Plaintiffs abandonment or acquisition, which triggers waiver of further legal remedy against the mortgagor. 




XXXX XXXX XXXX. VIOLATION OF THE TRUTH IN LENDING ACT ( TILA ) XXXX. Plaintiff violated provisions of XXXX5 U.S.C. 1601 et seq. by : Failing to provide material disclosures at the time of loan origination ; Misrepresenting APR, finance charges, and amortization schedule ; Failing to notify the mortgagor of servicing transfers or escrow recalculations. 



XXXX. These constitute material breaches under TILA and Regulation Z ( 12 CFR Part 1026 ), entitling the Movant to : Statutory damages under 15 U.S.C. 1640 ( a ) ; Rescission rights under 1635 ; Attorneys fees and costs. 





-- - XXXX. RELIEF REQUESTED WHEREFORE, Movant respectfully requests that this Court : XXXX. XXXX leave to intervene as Defendant ; XXXX. Dismiss Plaintiffs foreclosure complaint with prejudice ; XXXX. Declare the mortgage XXXX extinguished or satisfied ; XXXX. Award statutory damages under TILA ; XXXX. Order such further relief as this XXXX deems just and proper. 




-- - Respectfully Submitted, XXXX XXXX XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation