Facing Foreclosure: Filing Lawsuits
BOSTON (CBS) — A growing number of homeowners facing foreclosure are going to court over accusations that HAMP, the Home Affordable Modification Program, has failed to deliver promised relief.
Gary Klein with Roddy, Klein and Ryan in Boston has filed five separate lawsuits on behalf of dozens of clients.
“In each case, the borrowers allege they were promised permanent loan modifications and followed through on their end of the bargain, making temporary loan modification payments, and the loan modifications were never delivered,” says Klein.
WBZ NewsRadio 1030′s Mary Blake reports.
“Sophia,” of Dorchester, says that’s exactly what happened to her. She was in her home for five years with her two children and her husband. She tried to get a loan modification and nothing happened. She says the bank kept losing the paperwork and she ended up in foreclosure. She says she paid the bank $5,000 to prevent the auction, but was told two months later that the auction was going to take place anyway and she would get her five thousand dollars returned to her.
Sophia turned to City Life, an organization that works to prevent evictions. Steve Meachem, City Life organizer, says they have been able to get a lot of families’ homes back at much less than loan value, on average, 55 percent of loan value. City Life has been holding weekly vigils to protest Boston evictions.