Misapplied Payments: Homeowners File Suit Against Servicer, Trust Over Alleged Breach of Contract
SAN FRANCISCO – Martinez property owners have filed suit over their mortgage payments.
John Roemer and Paula Roemer filed a complaint on June 21 in the U.S. District Court for the Northern District of California against Fay Servicing LLC, U.S. Bank Trust National Association, Bank of America N.A., and Does 1 through 50 alleging breach of contract and other counts.
According to the complaint, the plaintiffs allege that Fay Servicing sent them inflated monthly payment demands on behalf of U.S. Bank that they claim were inconsistent with the terms of their loan modification. The plaintiffs holds Fay Servicing LLC, U.S. Bank Trust National Association, Bank of America N.A., and Does 1 through 50 responsible because the defendants allegedly failed to apply plaintiff’s January payment to the loan, resulting in a past due balance in their statement and placing their loan in default.