More borrowers are taking banks and loan servicers to court, alleging they were misled when they tried to renegotiate the terms of their loans.
Jean C. Wilcox of Irvine says EMC Mortgage Corp. strung her along for three years, repeatedly changing the rules as she tried to modify her nearly $800,000 loan. Her suit alleges breach of contract, deceptive business practices and fraud. (Francine Orr, Los Angeles Times / October 26, 2010)
By E. Scott Reckard, Los Angeles Times
October 26, 2010
Financially strapped homeowners struggling to obtain mortgage modifications are taking their frustrations to court, accusing banks and loan servicers of misleading them or breaking promises to help them hold on to their homes.
The lawsuits go to what U.S. Housing and Urban Development Secretary Shaun Donovan has described as the heart of the government’s anti-foreclosure efforts: ensuring that banks work in good faith from the start to help borrowers.
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