According to a recently published opinion regarding the case of
Alleyne Sylvester and Celeste Wenegieme v. Bayview Loan Servicing LLC, District Judge J. Paul Oetken granted in part and denied in part Bayview’s
motion to dismiss the case. The plaintiffs are representing themselves
and are seeking $750,000 in damages.
Here are the basic facts of the case:
- Alleyne Sylvester took out a mortgage on a property in New York City in
January 2005, which was later assigned to Bayview. Sylvester later assigned
the property to Wenegieme.
- Bayview filed a foreclosure action on the property in 2011, claiming that
neither plaintiff had made a mortgage payment since November 2010. The
state court granted summary judgment in this matter.
- Wenegieme moved to dismiss this judgment, claiming that she and Sylvester
did send in payments that were not properly credited. This motion was
denied based on lack of evidence and because the motion was brought so
late, and Bayview moved forward with the foreclosure.
- The plaintiffs responded by filing a lawsuit against Bayview, alleging
that the servicer engaged in illegal foreclosure action and intimidation
despite the fact that they had proof that payments were made on time.
They further allege that the defendants were not transparent in providing
the plaintiffs with statements of accounting, and that Bayview continued
with foreclosure while the plaintiffs were in the process of modifying
their mortgage – a violation of the Dodd Frank Act’s “dual
The Court understood two arguments brought by the plaintiff: one arising
under a provision of the Dodd-Frank Act, and a second argument challenging
the district court’s foreclosure decision. In regards to the first
argument, Bayview’s motion to dismiss was denied because the court
did find evidence of dual tracking. In regards to the foreclosure claim,
Bayview’s motion was granted insofar as they seek an injunction
or seek to undo the state court’s foreclosure proceeding. The plaintiffs
are allowed to continue with their tort claims. Bayview will have 21 days
to file an Answer to the remaining claims.