When the recession hit, many homeowners across the country were left scrambling to find a way to reduce debt and try to keep their homes. One way of keeping a home during the recession was to seek a mortgage modification. While mortgage modifications helped countless Florida homeowners and others across the country, some mortgage companies acted negligently. One company has been made to pay for the fraud they apparently committed against one homeowner.
The homeowner started experiencing trouble in 2010. He sought and got an agreement for a mortgage modification. According to the homeowner, his payments were to go from $2,100 a month for his mortgage to $1,500 a month.
The homeowner paid that amount for several months. Then, he received a letter saying his payments were actually supposed to be $2,300, which was more than his initial payment. He also then received a letter saying he owed the company $7,000, which he says didn’t even explain the additional amount at all. He tried to get the company to see the mistake but got nowhere, so he sued the company for fraud.
This man’s case shows how mortgage modification fraud can create confusion, frustration and distress that is unnecessary during an already stressful time. Anyone in Florida who applies for and is approved for a mortgage modification may benefit from understanding the terms fully and ensuring that the process is in accordance with the law. It may also benefit struggling homeowners to know their rights if they feel fraud is at play. In some cases, exploring the benefits of filing for bankruptcy can prove to be the best solution.
Source: new10.net, “Yuba Co. man awarded millions in mortgage modification fraud case”, Dave Marquis, July 19, 2014