It is important for homeowners who enter into forbearance agreements with their mortgage lender to comply with the terms of those agreements.
In a recent appellate division case the appellate panel affirmed the lower court’s dismissal of plaintiff’s case on summary judgment. The facts of the case involve a plaintiff who defaulted on her mortgage. A foreclosure action was filed and while it was pending the plaintiff entered into three separate forbearance agreements with the bank. Unfortunately, she defaulted on each of those agreements and was evicted from her property. The plaintiff filed a motion to vacate the foreclosure judgment and a separate action asserting consumer fraud, common law fraud, negligence and breach of contract based on a theory that the banks employees allegedly made false statements to induce her to make substantial payments under the forbearance agreements despite intending to foreclose on the mortgage. The appellate division affirmed the lower court’s ruling and summary judgment was granted in favor of the bank against the plaintiff. If you would like more information about this case or if you wish to discuss a legal matter with us, please do not hesitate to contact me at 973-949-3770 or via email at email@example.com. We answer legal questions on a daily basis and would be happy to discuss your matter with you.