The suits against us bank filed by the minority homeowners in a California federal court accuse the bank of negligence. The suits claim that both lenders entered into financial arrangements with the borrowers and accepted federal funds for participation in the program, but the minority plaintiffs say that neither of them provided permanent home loan modifications. The lawsuit argues that the bank violated the Federal Settlement Procedures Act by not offering loan modifications on time.
According to the lawsuits against us bank, the loan modifications the borrowers received were too few and far between. The plaintiffs also say that the bank failed to comply with the Federal Housing Administration’s guidelines by failing to provide permanent home loan modifications on time. The lawsuit also claims that the bank was in violation of the settlement process itself when it failed to notify the homeowners in writing and then failed to follow up on that notification with another communication about their application. In addition, the plaintiffs say that they never received any letters from the bank indicating the status of their application or any indication that the bank received the application and was still reviewing it.
The plaintiffs who filed the lawsuits against us bank say that the bank had an obligation to help homeowners in need of home loan modification. They claim that the bank owed them some kind of payment or even a bill. They say they have been the victims of the bank’s negligence since the bank failed to live up to its responsibility of offering the loan modifications on time.
The lawsuits against us bank do not stop there. The plaintiffs also argue that the banks failed in their duty of protecting the homeowners’ rights to due process, and that the banks also violated the FHA guidelines by refusing to notify the borrowers that the modification programs had been discontinued and again failing to follow up after receiving a notice of discontinuance. These suits may be brought by the homeowners themselves or by their attorney, or by their attorneys.
For the banks, the lawsuit filed by the plaintiffs against us bank is the latest in a series of losses they have suffered. In one of the earlier lawsuits, the bank lost its right to a lawsuit settlement when a judge ruled that it had improperly structured a loan modification agreement. In this case, the bank had made changes to a borrower’s original contract to increase monthly payments and lengthen the time period of the loan.
The lawsuit may also be useful because it is a class action lawsuit and can serve as a benchmark for class actions filed by homeowners nationwide. Many people have been successful at the state level suing the banks to hold them responsible for foreclosures. In this case, the court may award more than the value of the loan and possibly make the homeowners eligible for a state award, which may compensate them for not only the loss of the loan and the fees associated with obtaining the loan, but also for the lost equity that has been accrued on the property since the loan was taken out.
If the lawsuit is successful, it would also allow the borrowers to obtain the compensation that many homeowners deserve and that the Federal Housing Administration is required to distribute to eligible homeowners who are unable to make mortgage payments. For some, this may include the difference between the amount owed on the home and the amount the lender has left on the property.
If you are a homeowner who has been harmed by the negligence of the US bank, you should contact a legal professional immediately to discuss your options. You may also want to contact an attorney who specializes in these types of cases to discuss the lawsuit, and get a better understanding of the requirements, deadlines and procedures involved in filing a lawsuit against us bank.