A group of homeowners has filed a class-action lawsuit against Aurora Loan Services LLC, claiming the servicer misled them into paying to have troubled mortgages reviewed by the company, with promises of loan modifications, only to have their property foreclosed with little or no notice.
Filed in the U.S. District Court for the Northern District of California in San Jose, the suit seeks to represent homeowners who paid the Littleton, Colo.-based company money in exchange for the company's help in curing delinquent mortgages.
‘We intend to prove that Aurora's workout plan was nothing more than a cynical ploy to take advantage of homeowners desperate to hold on to their homes,’ says Steve Berman, managing partner of Seattle-based Hagens Berman Sobol Shapiro LLP and the attorney representing the proposed class. In March, Hagens Berman filed a suit against Bank of America,claiming the bank systematically slowed down the loan modification process.
In the Aurora suit, attorneys allege that the servicer agreed to halt the foreclosure process and work with homeowners to modify or resell their loans in exchange for between three and six months worth of mortgage payments.
The suit contends that, after a period of months, Aurora foreclosed on the homes without giving the borrowers any notice that their requests for loan modification were denied and without allowing borrowers access to any method for ending their loan deficiency, despite the provisions of the workout agreements.
The complaint, which can be found on the law firm's website, accuses Aurora of negligent misrepresentation, unjust enrichment, breach of the implied covenant of good faith and fair dealing, violation of the California Unfair Business Practices Act and other violations of California law.
SOURCE: Hagens Berman