The Cincinnati Enquirer reported yesterday that a Northern Kentucky couple
is suing their mortgage holder, SunTrust Bank, Inc. to stop foreclosure proceedings on their Alexandria, KY home.
The interesting twist on this case is that the couple had been encouraged by SunTrust to apply for the Federal Government supported HAMP (Home Affordable Modification Program). The couple qualified due to high medical bills for a child, and successfully got their monthly payment reduced a few hundred dollars as of May 2009. The couple stayed current with their modified payment amount, yet SunTrust filed to foreclose in December 2009.
The couple is suing to halt the foreclosure process, to have SunTrust train their employees on the HAMP requirements, and for actual and punitive damages and lawyers fees. Additionally, they're seeking class action status. Due to the couple's lawsuit, SunTrust is declining comment as most corporations typically due with pending litigation.
At first glance you'd suspect a system failure within SunTrust and not correcting the system to reflect the new mortgage amount. However, you'd suspect the homeowners would have gotten the usual legal warning letters from the bank about being behind on payments and warning of a pending foreclosure?
It would appear that SunTrust shouldn't be foreclosing based on successful use of HAMP and the sellers staying current with the modified payments, but if the owners did receive warning letters and didn't address them, perhaps there is some shared fault.
We'll keep watching the paper and see how this one turns out!
Hope you're having a great week!
Liz and Bill aka BLiz
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®
This is a very tangled web and I think we will see ramifications from this unless someone in the government with a powerful pen meddles in the process and doesn't allow it to unravel in a proper manner. I don't believe this will be an easy thing.
Oct 14, 2010 01:41 AM
GreatNorfolkHomes.com (757) 560-0881 - Chesapeake, VA
Serving Chesapeake, Norfolk, VA Beach
Ugh! This stuff makes me so mad! The statistics on how few people have actually been helped by HAMP make it even more maddening when people who have actually succeeded with HAMP facing foreclosure.
Oct 14, 2010 01:41 AM
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)
Wat a quagmire! It great numbers it looks like banks were doing loan mods to "buy time" and not actually stop the foreclosure process entirely.
Oct 14, 2010 01:46 AM
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA
Hearing about all this. .I made an investment already and I secured the domain name 1IllegalForeclosure.com
Did you have 1IllegalForeclosure.com ?
Call my office!
Oct 14, 2010 02:12 AM
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs
Doug, It is definitely convuluted, and now even more lawyers involved. Who knows where this leads!
Kathryn, The article indicated most lawsuits have been against the banks for denying access to HAMP...this one seems to be a different spin.
Charita, Almost sounds like left hand didn't know what right hand was doing at the bank.
Fernando, You might be able to sell that domain to some lawyer!
Oct 14, 2010 02:16 AM
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!
Interesting.............I'm curious to find out the outcome............keep up posted.
Oct 14, 2010 02:20 AM
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs
Roger, If it's like most court cases, they'll quietly settle and disappear from sight! If we see any follow ups in the paper we'll post them! You've got to think the foreclosure will have to be stopped in this case.
Oct 14, 2010 02:35 AM
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
I recently settled on a property where the owners had applied for a loan modification from BoA. The modification was never completed and though they were current on their payments BoA decided to foreclose on the property. There was almost 100K in equity in the property as well. Fortunately the process was halted and all turned out okay in the end. But what a fiasco for the buyers and the seller.
Oct 14, 2010 02:47 AM
Retired - Seattle, WA
The banks are still operating under the greed mentality and they have too many employees with power who have no idea what they are doing, what others in the firm are doing, nor what it the right thing to be doing.
Oct 14, 2010 02:58 AM
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs
Cindy, I'm still baffled as to how the banks can start foreclosure when people are current on payments. Is there any kind of check and balance for the bank with the court system??
Glenn, We've run into the same type of thing trying to refinance with Wells Fargo. We're current, been a client for 12 years, never a miss (in fact OVERPAY each month), but trying to get an interest rate reduction without paying ridiculous closing costs? Apparently not in their vocabulary.
Oct 14, 2010 03:03 AM
CR Property Group, LLC - East York, PA
Serving York and Adams County, PA
A lot of these banks are treating people like a production line instead of human beings. They treat you like just another number in the scheme of things. Their turnover ratio is very high because of the stress level they have put on their employees and they can't train them fast enough to have a good understanding of each situation. It becomes a trickle down affect and creates such major heartache. Good points as always.
Oct 14, 2010 03:17 AM
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs
Don, There's just little to no incentive within the banks to do it right. We ARE just an account number, and the people crunching the paperwork don't have any reason to go above and beyond. I'd think after awhile you'd become numb to the real problems people have or become jaded by the stories attempting to sway the bank.
Oct 14, 2010 03:26 AM
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR
Liz & Bill - Miss this case and unfortunately I'm sure there a ton of similar ones out there.
Oct 14, 2010 01:35 PM
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs
Michelle, It just showed up in our daily paper last night, so I think still pretty new to the courts. You just never know what will come up next in the foreclosure circus!
Oct 14, 2010 01:52 PM
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!
L & B ~ nothing surprises me anymore. I just feel for the home owner that is being put through the nightmare.
Oct 14, 2010 02:37 PM
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs
Dawn, We wish it surprised us, but we're like you...too many bizarre things to expect otherwise.
Oct 14, 2010 03:03 PM
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches
Such a rotten mess and the problem here is: It all started at the TOP! I'd expect these folks will probably end up owing their home "free and clear". It will be interesting to see how this plays out, provided the bank is able to show all of their paperwork and correspondence, etc. It's probably spread out over 6 states and 35 different loss mitigators who all work for Suntrust.
Oct 14, 2010 04:01 PM
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs
Tish, Wouldn't totally surprise me if they get the deed given to them to drop the suit! The loan was for $144k, so it wasn't huge to start with! Just crazy......
Oct 14, 2010 04:05 PM
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