Banks to Face HAMP lawsuits.
Were you one of those homeowners that submitted your loan modification under the Obama administration’s HAMP -Home affordable modification program. Then after making a series of payments told that you don’t qualify? Well a number of banks are now facing class action lawsuits from homeowners who are now finding out that they may have originally qualified for the program
(Reuters)Bank of America among many other banks, had hoped to avoid facing tens of thousands of irate homeowners claiming that they were unreasonably denied mortgage aid through the Home Affordable Modification Program by the lender. However, a judge has denied the bank’s motion to dismiss the case and the bank will be asked to provide permanent loan modifications to those who are eligible and award damages to those who were “wrongfully denied modification”. Attempting to put a positive spin on the situation, BofA announced that it is “pleased that the court dismissed four of the eight counts in the consolidated complaint.” The judge ultimately limited the case to homeowners who entered trial period plans (TPPs) for loan modifications but were then denied permanent HAMP mods. He did allow for homeowners in states where consumer protections are stronger, like California, Illinois, Arizona and Massachusetts, to pursue claims in their own states.
The problem is not so much that the lender refused to modify loans, but rather that it appears to have “willfully failed” to make modifications that were likely to be successful – “either in bad faith or for its own economic benefit,” explained judge Rya Zobel. However, Zobel did reject claims of borrowers who asserted that they were “intended beneficiaries of HAMP” but who never entered the program, and she also refused to block 37 foreclosures on homeowners claiming to be in “imminent danger [of foreclosure]” during the pending lawsuit.
Do some research and find out if it makes sense for you to join a suit in your state if you feel that you might have been affected.
Diyloanmodkit.com
