Lawsuits Claim Banks Failing to Honor Loan Modifications

Consumer lawyers in Western Washington say they are seeing increasing instances of banks failing to honor home loan modifications.

“It scared the heck out of me. I pretty much lost it because I thought I was going to lose everything,” said Adella King of Enumclaw.

King says her home of 20 years was foreclosed upon after her bank denied that she had been granted a modification.

King says Bank of America gave her the loan modification – a reduction in her monthly payment – in 2013 after her husband’s death. But later that year, she says, BOA sold the loan to Green Tree Loan Servicing.

“(Green Tree) said they had received the documents but that there was no record of a loan modification,” said King.

After weeks of negotiation, King came home one day to find a foreclosure notice tacked up on her front door.

“They never once told me that my home was in foreclosure or my loan was in default. They just took my money, and then sold (the house) at auction,” King said.

More here…

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