Homeowners: Loan Modifications Led Them To Foreclosure

LOS ANGELES (AP) — Some struggling homeowners say they’re being unfairly foreclosed on despite making all their payments under trial mortgage modification programs.

They equate that to mistreatment by banks who agreed to help borrowers when they took part in the government’s $700 billion Wall Street rescue.

Attorneys in California, Kentucky, Massachusetts and other states are seeking class-action status for lawsuits accusing banks of breach of contract for not making trial modifications permanent.

Banks say they’re helping these homeowners as much as they can and insist they’re not flouting their obligations.

Federal officials say some borrowers had previously been offered trial modifications although they don’t qualify for permanent ones, but new regulations should stop that from happening.

(© Copyright 2010 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


One Comment

  1. alex says:

    banks are just greedy

  2. Amy says:

    Corporate America is greedy. They held their hands out for stimulus money and continue to cut jobs and consolidate their work force leaving those who are left to work like slaves.

  3. marina says:

    banks and their workers a nothing but liers and thieves they dont help anybody and have empty promises

  4. 2958 says:

    Big corporations driving economy down!!! They only care about filling there pockets with money, and forget about the working class!!!

  5. Pam says:

    This is sad…this is happening to my son and his family right now. He lost his job and took a job that is 1/3 of his previous salary…because that was all there was available for him. The bank offered to do a trial loan modification and in the end of the 10 month period they were told they not only could not keep their home, but had to pay the bank an aditional $15,000 for the loss the bank took during this trial period. They paid their mortgage as agreed not only during the trial period but also the whole while they have owned their home….this is outrageous and something or someone needs to stop this from happening

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