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What type of an attorney do we need to sue our Mortgage Company for Fraud & misrepresentation?

Roanoke, VA |

Our Mortgage company encouraged us to apply for a loan Modification. As part of the application process they also encouraged us to NOT make payments in the interem. They later denied this and tried to foreclose on our home. We had to file Ch 13 BK to save our home. Two years later they "again" encouraged us to apply for a loan modification for "people in bankruptcy". This time they supposively approved the application but then changed the terms more than once and never put anything in writing. We have not only endured years of anxiety dealing with this, but our credit is ruined as a result of bankruptcy , and we currently are once again facing possible foreclosure. This is NOT due to non-payment, but rather due to there fraudulent business practices. Unfortunately we are not alone!

Attorney Answers 1

Posted

Consult a foreclosure lawyer for help. Since your lender doesn't have to modify your loan (just like parties are never obligated to negotiate a contract they reached), this will be a tricky suit. I don't think you have a good chance with a fraud claim, since fraud requires a material misrepresentation of fact that you rely on, and I don't think you can prove reliance because you're not changing your position in reliance on anything they're telling you, like turning down a refinance from another bank. They're the only game in town for your loan because they own it, so there's no market they have to compete in.

But you may be able to claim some unfair business practice, such as in the "robo-signings." Yes, there are many people with similar complaints, so some lawyers are developing expertise in suing these banks. Whether they're successul, I don't know.

I'm only licensed in CA. This answer doesn't make me your lawyer, and neither do follow-up comments and/or emails and/or phone calls --- we need an actual agreement confirmed in writing before any attorney-client relationship is formed. Thiss answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.

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