Is Your Mortgage Company Acting In Bad Faith?

As the foreclosure crisis presses on, there have been many lawsuits related to mortgage companies acting in bad faith when homeowners attempt to get mortgage modifications under the HAMP program. The vast majority of those lawsuits revolve around the idea that mortgage companies are deliberately deceiving, misleading and manipulating homeowners facing foreclosure for their own financial benefit. Do you think you’ve been a victim of mortgage industry bad actors?

Below are a few signs that you mortgage company may be acting in bad faith:

  1. You have applied for a mortgage modification; but the mortgage company has continuously lost your paperwork even while you move closer to foreclosure.  Many lawsuits are alleging that mortgage companies purposely “lost” mortgage modification documents because they did not really want to help the homeowner stop foreclosure .
  2. Your mortgage company “approved” you for a temporary/trial mortgage modification only to quickly deny you for a permanent modification and then inform you that foreclosure was imminent. Litigants against mortgage companies have claimed that mortgage companies have “approved” homeowners facing foreclosure for temporary modifications with no intentions of ever approving them for permanent modifications.  This type of deception has railroaded homeowners into foreclosure when they could have saved their home by filing bankruptcy.  The incentive for mortgage companies?  According to some litigants, mortgage companies mislead homeowners about their permanent modification chances because they just wanted to keep some money coming in for the mortgage payment, even if foreclosure seemed inevitable.
  3. Your mortgage balance has mysteriously been inflated.  Litigants in lawsuits against various mortgage companies complained the mortgage companies were misapplying payments so that they could artificially inflate the homeowner’s balance and charge excessive penalty fees even as the home was headed to foreclosure.