Mortgage borrowers in default who’ve been charged excessively for property inspections may be in a position to bring a property inspection fee lawsuit against their lender.
In mortgage agreements, banks make provisions to protect their interest in the mortgaged property if a homeowner falls behind on mortgage payments. When a person does fall behind on mortgage payments, default provisions in their mortgage agreements can be triggered.
These provisions can include:
- monthly inspections of the property to make sure it is still occupied and being maintained.
- the creation of a Broker Price Opinion, or the broker’s professional assessment of the value of the property (used by the banks prior to a foreclosure sale)
Though these assessments only provide value to the bank, banks are legally allowed to charge property owners to cover the costs. There are legal limits to how much a bank can charge for these fees — typically, fees are only permitted if they are “reasonable or appropriate.”
However, in some cases, homeowners say that the fees they were charged are not “reasonable or appropriate.” Some homeowners do not know that they’ve been assessed these fees, and can be taken by surprise when they see that a fee has been applied. In other cases, homeowners believe that they have been assessed fees beyond what is allowed by law and what is necessary for the bank to protect the property.
If you were assessed a property inspection fee or a Broker Price Option by any of the following banks, you may qualify for a property inspection fee lawsuit investigation:
- Caliber Home Loans
- Flagstar
- Freedom Mortgage
- LoanDepot
- Quicken Loans
- Seterus
- U.S. Bank
Property Inspection Fee Lawsuit
If you have been assessed unfair fees by your lender after defaulting on your mortgage, a property inspection fee lawsuit could help you gain compensation for your financial injury, and could hold financial institutions accountable for violating the law.
Consumers have already filed property inspection lawsuits against financial institutions they believed were charging them improper fees.
In 2017, plaintiff Rena Nicholson filed a class action lawsuit against Nationstar Mortgage LLC. She said that she had a reverse mortgage with the company, and when she fell behind on her mortgage payments, the company charged her for a property inspection fee.
However, Nicholson claims that the company had the property inspected more frequently than was permitted by law, requiring her to pay a fee each time the property was inspected. Additionally, she says that the fees she was assessed for these inspections were too high, and that Nationstar profited from the fees.
According to Nicholson, Nationstar Mortgage made a practice of profiting improperly from property inspection fees charged to borrowers who had a reverse mortgage with the company and fell behind on their payments.
The Nationstar Mortgage LLC Property Inspection Fee Class Action Lawsuit is Rena Nicholson v. Nationstar Mortgage LLC of Delaware, et. al., Case No. 1:17-cv-01373, in the U.S. District Court for the Northern District of Illinois, Eastern Division.
If you were charged a property inspection or broker price opinion fee when you defaulted on your home loan, you may benefit from a consultation with a knowledgeable mortgage attorney.
Join a Free Property Inspection & Broker Price Opinion Class Action Lawsuit Investigation
If you were in default on your mortgage in the last three years with one of the following banks, you may qualify to join this property inspection fee class action lawsuit investigation:
- Caliber Home Loans
- Flagstar
- Freedom Mortgage
- LoanDepot
- Quicken Loans
- U.S. Bank
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2026 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
5 thoughts onProperty Inspection Fee Lawsuit Challenges Fees Assessed During Mortgage Default
my mother passed away from covid and they refuse to let me make a payment or put my name on the house and have been charging fees since 2005 I mean all kind of fees sometimes six seven times a month I have a lot of evidence against financial freedom and pH mortgage. please contact me
is there one about fay servicing
I was not only charged property fee inspections by quicken mortgage in access but I was charged foreclosure fees, attorney fees, and late fees. This was after my husband passed away suddenly in 2020 and they would not let me make a payment nor would they give me successor of interest. I paid almost 17,000 more for my home than I owed due to their want to make money off my property in the highest market ever. I was a widow with two children who lost her husband. They took advantage of me in the most vulnerable time in my life. The evidence I have against them has stacked up over the past two years.
I’m being charged for Inspection fee of 15.00
I have been charged fees unjustly. Please contact me!