In January 2013, our firm reached another confidential settlement agreement with a mortgage lender on a wrongful foreclosure claim. Our client was current on her mortgage payments when her loan was transferred to a new lender. The new lender needed proof of her insurance and property tax payments. The plaintiff provided those documents to the new lender and continued making her normal monthly payments thinking everything was fine.
However, a few months later, she received a statement informing her that her monthly payments had almost doubled based on insurance and taxes the new lender had calculated. For the next year, the Plaintiff fought the lender on this problem. After numerous telephone calls and discussions, she became extremely frustrated. She was forced to hire a lawyer to contact the lender on her behalf, but that failed to resolve the problem as well.
A foreclosure was initiated on her home as the new lender failed to resolve the error in their system. Our firm filed suit on her behalf to stop the foreclosure and save her home. After several years of litigation, a settlement with the lender was reached. The lender agreed to pay cash for our client’s damages and provide a very favorable modification on her existing loan. This resulted in a total settlement in excess of $150,000.