Aceves ruling: Foreclosed Homeowner Has Cause to Sue Bank for Fraud
What could become a landmark foreclosure ruling appears to be both a win and a loss, for mortgage servicers and foreclosure defense attorneys alike.
Palm Coast, FL – February 2, 2011
A California appeals court ruled that a former homeowner’s lawsuit against U.S. Bank (USB: 27.49 -0.61%) for fraud may continue after the bank allegedly reneged on a promise to negotiate a mortgage modification, opening the door for claims from potentially thousands of similarly situated troubled borrowers in the Golden State.
While the court ruled that a case for fraud–which includes claims for damages–could proceed, it also ruled that the homeowner, Claudia Jacqueline Aceves, lacked sufficient cause to get her home back after the foreclosure sale.
What could become a landmark foreclosure ruling appears to be both a win and a loss, for mortgage servicers and foreclosure defense attorneys alike. Mortgage servicers prevailed on issues of alleged defects in the foreclosure process, with the court ruling that none of the Aceves allegations of irregularities "would permit the trial court to void the deed of sale or otherwise invalidate the foreclosure." Aceves had claimed, for example, that the notice of default was defective and therefore void, a claim the court rejected outright. "Absent prejudice, the error does not warrant relief," according to the ruling.
Read More >>>> HousingWire [Jan 1, 2011]
Banks not accepting HAMP request.
Chase has denied a home owner the right to help by lowering payments or deferring payments, to an owner that has been up to date on every monthly payment in the only house he owns, by residing in his parents house while unemployed and renting his house to barely be able to pay her mortgage, taxes, insurance and HOA fee with the rental proceeds. Reason for Chase’s denied help was that, he rents his house…Well he does it to afford the mortgage by living at her parents while unemployed! Unfortunately 3 years after he purchased the small house and while religiously and comfortably paying his mortgage, insurance, taxes and HOA , he was laid off. Has Chase the right to denied the help while the increasing risk of foreclosure takes place, until this young man finds work?
Where is the help from the HAMP loans?