Wednesday, March 03, 2010

Increasing numbers of Californians are suing lenders to avoid foreclosures

On a street of bland ranch houses just west of Highway 101, the Levermans' three-bedroom, $655,000 home stands out with its jaunty orange and terra cotta paint job and immaculate yard studded with animal figurines.

"For me, it's my palace even though it's old," said Leverman, who speaks little English.

California Foreclosed Home

To make the initial monthly payments of about $2,500, her husband and sons worked long hours as cooks. But in 2008, her husband lost his job and her sons' hours were cut back, just as the variable-rate mortgage payment shot up to $4,353.

The increase shocked Leverman, who'd signed the English-only documents without understanding the terms. The family then wasted $6,500 on three loan modification "experts" who didn't accomplish anything.

The last straw was when Litton Loan Servicing refused to grant them a permanent loan modification, claiming their third trial payment was late — even though they had a Western Union receipt showing it arrived on time. An attorney for Litton did not respond to requests for commen

Increasing numbers of Californians are suing lenders to avoid foreclosures - San Jose Mercury News

1 comment:

Anonymous said...

Nice. They got home with 0 down payment. No wonder it costs now just around 500K.