More people suing banks over foreclosures

[n2doc]

Robert Selna, Chronicle Staff Writer

Monday, January 24, 2011


Struggling Bay Area homeowners are joining an emerging national trend by suing banks for breaking contracts when the lenders refuse to make temporary loan modifications permanent - even though owners have done their part.

The lawsuits reflect growing frustration among homeowners who believe that banks are treating them unfairly, and they follow failed attempts by the government to force lenders to fully consider modifications before foreclosing. The suits have twin goals: to make mortgage modifications stick, and to raise the national profile of such cases so banks reform their practices.

Lawyers who filed class-action suits in U.S. District Court in San Francisco last year against JPMorgan Chase and Wells Fargo are expecting rulings in the coming months that will determine whether their claims can move forward.

Most of the lawsuits involve agreements between homeowners and banks under the federal government's Home Affordable Mortgage Program, in which lenders agreed to participate as part of the taxpayer-funded bank bailout. Others relate to letters from banks implying that borrowers can avoid foreclosure by making reduced mortgage payments for a trial period.



Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/01/23/MNG31H7DUJ.DTL

[fasttense]

1. America is in the midst of a foreclosure crisis that is worse than it was

during the Great Depression and yet not one word about it in the State Of The Union address.

[earth mom]

3. Your post should be an OP all it's own. nt

[mdmc]

2. ..