The foreclosure crisis has taken a new turn as a religious corporation accuses mortgage lenders and their legal representatives of fraudulent practices. The Citadel of Praise & Worship, Inc. filed a class-action complaint in the United States District Court for the Eastern District of New York on December 18, 2025, against the Metropolitan New York Synod of the Evangelical Lutheran Church in America and Capell Barnett Matalon & Schoenfeld LLP. The lawsuit alleges that these defendants have been involved in a systematic scheme to inflate post-foreclosure sale judgments fraudulently.
According to the complaint, the defendants are accused of conspiring to manipulate court documents by inserting false calculation methods into foreclosure judgments and reports of sale. This practice allegedly allowed them to secure inflated payouts from court-ordered foreclosure sales, depriving homeowners and creditors of surplus funds legally owed to them. The plaintiff argues that this misconduct is part of a broader pattern that emerged following the 2008 financial crisis when certain law firms cut corners to remain competitive.
The complaint details how state and federal protections were enacted post-crisis to prevent such abuses, requiring foreclosing entities to provide additional notices and affirmations regarding document veracity. However, banks and their attorneys allegedly circumvented these requirements by using dilatory tactics in court proceedings. The lawsuit cites specific instances where appellate decisions reversed foreclosure judgments due to inaccuracies and overcharges, yet no substantial action was taken by authorities to address these systemic issues.
The Citadel of Praise & Worship seeks both monetary judgment and injunctive relief through this legal action. They aim not only for compensation but also for measures that would prevent future occurrences of such fraudulent activities. The plaintiff emphasizes that this case represents a widespread issue affecting numerous individuals across New York who have been similarly defrauded.
Representing the plaintiff are attorneys Mark S. Anderson and Kimberly Wroblewski from Anderson, Bowman & Wallshein, PLLC. The case is being presided over by judges from the Eastern District Court under Case ID 1:25-cv-06962.