In October 2012, our firm reached a confidential settlement agreement with one of the larger mortgage lenders in the country on a wrongful foreclosure claim.
Our clients, after years of dealing with this mortgage company, were able to place this matter behind them. Due to declining health, the husband of this family had to take a less paying job a few years back. This placed them in a financial bind, and they asked their mortgage company for help.
The lender agreed to put them into a modification, and reduced their mortgage payments by about $120 a month. Excited, they submitted all the paperwork, signed all the necessary documents, and sent in the required funds to accept a permanent modification on their home.
Then the nightmare began.
After months of paying the new amount, the lender notified the borrowers that they were almost ten thousand dollars behind and that foreclosure would take place. Extremely confused and upset, the borrowers contacted the lender on numerous occasions and were assured that this “glitch” would be resolved.
In fact, it never was and their home was foreclosed after the borrowers had made every single mortgage payment under their new agreement. After almost two years of litigation, and a few months before trial, a settlement was reached. The borrowers received a cash payment for their damages and the mortgage lender agreed to waive the mortgage completely, resulting in a free home.
In all, the total value of their settlement was over $300,000.00.