Anyone who has ever stood toe to toe with a low-level debt collector at any of the nation's besieged banks has one thing in common: They've been lied to.
A recent California appeals court decision could have an impact on that devious practice.
In Aceves vs. U.S. Bank, the bank allegedly promised to negotiate a loan modification for a distressed homeowner but actually intended to proceed with a foreclosure on the customer’s house.
(What's that, you say? The banks lie? Yes, everyday, unchecked ... until now.)
Claudia Aceves apparently was behind on payments and her Chapter 13 bankruptcy protection filing was imminent, according to a report from DS News. But a representative from the bank allegedly told Aceves that they would modify her loan instead so she wouldn't have to file the bankruptcy.
Aceves did not file for bankruptcy protection, which would have allowed her to stay in the home, at least temporarily, and the bank foreclosed, claiming, “an oral promise to postpone either a loan payment or a foreclosure is unenforceable.”
In January, the court ruled that oral contracts normally aren't enforceable, but, “under this doctrine a promisor is bound when he should reasonably expect a substantial change of position, either by act or forbearance, in reliance on his promise, if injustice can be avoided only by its enforcement.”
In essence, because the homeowner was pursuing a valid solution to keep the home and avoid a financially and emotionally devastating foreclosure, and then abandoned that plan because of the outright lies of a bank employee, the bank breached a legal oral contract when it foreclosed, the court ruled.
Bank negotiators and debt collectors lie more than they don't. Their job is to collect as much money as possible from people in trouble, regardless of the tactic, regardless of the impact to the homeowner. It was only a matter of time before someone finally stood up and said, "Enough!" Let's hope this ruling stands.
But in the meantime, put on your bullet-proof vest and get some help. Any homeowner facing foreclosure must have a seasoned, experienced representative to stand in the gap on their behalf and fight for them. Someone who can sniff out the "Monkey Talk" and keep a homeowner from making a major mistake. There is just too much at stake.
Call us today if you need help or if you have questions about your situation.
Or, for a free copy of the Brand-New Special Report, “9 Alternatives to Inland Empire Foreclosure,” call 1-800-941-1900, ext. 9009; email Report@DreamBigRealEstate.com, or visit www.DreamBigRealEstate.com.
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