In April 2013, our firm reached another confidential settlement agreement with a mortgage lender on a wrongful foreclosure claim. After a divorce, our client asked for a modification with her mortgage lender. She was current on her mortgage payments when she received a loan modification under the Home Affordable Modification Plan. (HAMP). She signed the paperwork, sent it in and began making her new lower monthly payments.
Unfortunately, a few months later she received a statement informing her that her monthly payments had returned to what she was paying prior to the modification and she was severely in arrears on the loan. She contacted the mortgage company and was informed by multiple representatives that because her ex husband had failed to sign the HAMP documents, it was invalid. However, a quick review of the documentation found that a signature by an ex-husband was not necessary for a HAMP loan to be approved or implemented. She continued contacting her mortgage company, and was never provided any additional answers.
A foreclosure was initiated on her home and after the sale of her home, suit was filed against her for the repossession of the home. After almost 2 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 $210,000.