After falling behind on mortgage payments, an Altadena family was relieved to have their lender, Ocwen Financial Corporation, agree to a loan modification allowing them to keep their home, or so they thought. The family had worked hard to submit all necessary documents and information to their lender and were eager to accept the loan modification offered to them. They thought their Ocwen loan modification nightmare was over, but it was just beginning.
After making all required payments that had come due under the terms of the loan modification, the family learned their loan had been transferred to Nationstar, who promptly foreclosed on the property wrongfully and sold it to a company seeking to evict the family….who was still current on their mortgage payments. Nationstar scoured the file after the foreclosure and found a document they thought hadn’t been notarized as a justification for the foreclosure, but unfortunately for Nationstar the document actually had been signed a notarized properly.
It was only after the news media picked up on the story did Nationstar back off their position and unwind the wrongful foreclosure and honor the pre-existing loan modification agreement. Although the Altadena families story has a happy ending, for most borrowers, servicer abuses leading to aggressive foreclosure tactics and wrongful foreclosures do not end so well. Illegal foreclosure practices such as dual tracking, lost documents, and failure to review documents are still rampant in California.
Illegal foreclosure practices seem to be increasing, not decreasing in California.
If you feel you’ve been the victim of illegal foreclosure practices such as the ones described above, call the attorneys at McFarlin LLP to discuss your situation. Our consultations are free and confidential, we can be reached at: 888-728-0044.