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Flagstar Bank was hit with a home loan modification lawsuit by an Ohio couple alleging that the bank did not follow federal guidelines when they applied for a mortgage modification by engaging in a process known as “dual tracking.”
Plaintiffs James G. and Patricia G. filed the home loan medication lawsuit in an Ohio federal court against Flagstar, alleging the company violated the new rules regarding home loan modifications when the couple fell behind on their mortgage in 2014, ultimately leading the bank to begin foreclosure proceedings.
The home loan modification lawsuit holds that Flagstar Bank illegally and incorrectly processed the loan modification request, leading to the foreclosure of their home in Sycamore Hills, Ohio.
The foreclosure proceeding started less than a month after their loan modification request was submitted, the mortgage modification lawsuit says.
One sticking point in the home foreclosure lawsuit holds that the bank “dual tracked” the home loan modification request. This means that Flagstar bank allegedly started foreclosure proceedings while telling James and Patricia that their loan home loan modification request was still being process.
New federal rules designed to protect homeowners in this situation went into effect in January 2013, creating a newer minimum standard to try and protect homeowners facing foreclosure.
Additionally, many states have laws banning dual tracking. This home loan modification lawsuit holds that Flagstar bank’s handling of the situation failed to meet federal requirements before going into foreclosure.
During the economic collapse in the 2000s, home loan borrowers took major hits. In the case of James and Patricia, they suffered a sudden decrease in income, like many.
In response, the government passed new legislation, laws and regulations, including the HARP programs to try and mitigate the problem. On top of this, many states offer additional protections for those seeking home loan modifications.
These laws and regulations typically restrict dual tracking, and require a greater degree of transparency and make it easier for borrowers to try and improve the situation, to try and head off foreclosures and the further economic damage they do for all parties.
Home loan modification lawsuits like this one have been filed by homeowners affected by the housing collapse, who allege that banks have not followed new rules to try and protect homeowners from foreclosure.
This home loan modification lawsuit seeks to recoup legal fees, specifically the cost of fighting a foreclosure they allege violates federal rules. Their home loan modification lawsuit holds that the practice of dual tracking and other delays they experienced in the process of requesting a home loan modification were illegal.
The home medication lawsuit seeks to halt foreclosure preceding and to have their home loan modification request processed properly.
Join a Free Home Loan Modification Class Action Lawsuit Investigation
If you applied for a home loan modification to avoid foreclosure and were denied because your bank didn’t follow the current mortgage modification guidelines, you may be eligible to participate in a class action lawsuit to resolve this problem:
- Bank of America
- Nationstar Mortgage
- Ocwen Loan Servicing
- Seneca Mortgage Servicing
- Green Tree Servicing
- PHH Mortgage
- Select Portfolio Servicing
- PNC
- Citigroup
- US Bank
- Walter Investment Management Corp.
- Cenlar
- JP Morgan Chase
- Wells Fargo
- Flagstar Bank
- GMAC
- One West
- Caliber Home Loans
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13 thoughts onLawsuit: Flagstar Practiced ‘Dual Tracking” During Home Loan Modification
To whom it may concern.other aspects may leed to knew lawsuits.as quicken loans.was known for a pratice of paying off apraisal companys to falsify value jacking up insurence costs and property tax rates for the loans and sales of these areas also forced placed insurence in indiana the state forced the insurence companys to settle for over chatging jacking up rates.so please look into these things.so you can sue.like nation star llc mr cooper.bank of american .tie all the evidence from those cases together from stock fraud to value equity and insurence fraud ect look threw the suits supena the evidence from the lawyers courts and build a huge case to make them forfit the homes and propertys. To the resident buyer.free and clear including removal of easments ecomberam
Nces and all mineral and resources rights..its to protect the home owner and thier hiers and straighten this economy out
Flagstar was doing a HARP loan refinance/modification for us in 2013, and knowing that we were experiencing a financial hardship, said we had a “clear to close” but drug it out for four months, bleeding us out. Eventually we ended up in foreclosure. Luckily we were able to sell the house out from under them. Being in Denver, with the current booming housing market, the value of the house has gone up in value $140,000 since then. Makes me sick. Worse yet, I had to move my family out of state since I can no longer afford to live there anymore… Miss my home, my friends, and the lovely state of Colorado every day still. I basically lost everything because of their crooked attempt to regain possession of our home.