A Detroit homeowner is bringing suit against her two lenders after she was denied a loan modification, which, if she prevails could start a trend of denied homeowners running to court to sue their lenders. The homeowner, who could no longer afford her mortgage payments after getting a divorce, applied for the Federal Home Affordable Modification Program (HAMP) in an attempt to save her home. Her lender, Bank of America, told her she had to be behind on her mortgage before she could be considered for HAMP.
So, taking the advice of Bank of America, she stopped making her mortgage payments. Shortly after missing her payments, she received a letter from Bank of America approving her for a temporary modification but a short time later she received an additional letter from Bank of America saying her modification was denied because she made too much money. As a result, the homeowner has sued both Bank of America, the servicer, and Fannie Mae, the owner, for inducing her default then denying her modification. Bank of America says that Fannie Mae, as the owner of the loan, is the entity that denied the modification.
Hopefully, the homeowner prevails in this suit as millions of homeowners experienced similar circumstances when attempting to get HAMP modifications. Many people have called the HAMP program an abject failure as the majority of those homeowners who obtained loan modifications fell out of their modifications, either forcibly or voluntarily. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer today to see what foreclosure alternative options may be available to you.
