A group of homeowners is suing Homecomings Financial, a Bloomington-based loan servicer handling nearly 800,000 mortgages, accusing it of charging dubious fees as it processes homeowners’ monthly payments.
The lawsuit, filed Thursday in U.S. District Court in Minneapolis, is the latest in a slew of legal actions around the country against mortgage lenders and the servicers who process payments for them since the crash of the subprime mortgage industry. Attorneys are seeking national class status.
The plaintiffs are five homeowners in Michigan, Illinois, California, Kentucky and Florida. They allege that Homecomings uses deceptive fees to deliberately put borrowers into default in order to maximize profits. The charges violate state and federal laws, they charge, including the Fair Debt Collection Practices Act and the Truth in Lending Act.
According to the complaint, Homecomings:
– Charges borrowers to use its electronic “speedpay” feature, which plaintiffs said they use only because Homecomings can’t process checks in a timely fashion;
– Tacks on fees for bogus “property inspections,” a drive-by check to see if someone lives in the house, sometimes several times a month;
– Places borrowers with high-cost homeowners’ insurance even when they already have it; and
– Issues overly complicated account statements, making it hard for borrowers to know what they owe.
Read the rest of the story at TwinCities.com
{ 9 comments… read them below or add one }
Hi! I live in Murrieta, Ca. I am trying to modify my loan and already filled out an application and sent it in everthing that was required on 1-16-08. I’ve emailed to make sure they have recieved it and they emailed me back that they did recieve it and they sent it over to their concerned department for review. They said to call if I had any more questions. I called their Collateral Department I talked to 3 different people trying to get any info about my loan modification. The first person put me on hold and never returned. He was located in India. The next person that got on the phone was also located in India. I asked her to transfer me to someone in the United States . She put me on hold and another person from India got on the phone. I asked him to please transfer me to someone in the United States. He then hung up on me. I wasted 30 mins on the phone. It was truly frustrated.
I emailed someone yesturday hoping to get any info on my loan modification and I’m waiting. I am running out of time. I would greatly appreciate your help. Thank You for your time and hope to hear from you soon.
Thank You,
B Mikaele
I see. The whole bru-ha-ha with being knight in the shining armor is simply business solicitation. This is based on assumption that there are also non-FREE assitance.
It is good to see that seedy mortgage lenders aren’t getting away with these actions. The “property inspections” part is rediculous.
I have been trying desperartly to get someone to help me do a loan modificaztion on my home I was told that a supervisor was looking it over and this was 3 days ago. I have been on the phone all morning trying to get some answers, still nothing My sale date is coming up fast (Feb. 19, 2008) and still nothing I don’t want to loose my home. PLEASE HELP ME i HAVE TRIED EVERYTHING THAT I KNOW TO DO.
This is common run around from the lenders. This is why third party groups have a greater success, they are knowledgeable and can HELP.The lenders are overwhelmed and cannot keep up with the calls so they have outsourced to India.
Hi Moe: I haven’t been able to log onto loansafe to respond to Poppy’s comment.Its one busy place!! If you read her last post she asked me to email you with my email address so you can forward it to her. I don’t want to put it out for public view and I don’t know if you can see it on loansafe or here. If you can can you please give it to Poppy.
Thanks,
nitag
Hi, I have been asking for a ‘loan mod’ from Countrywide for almost a year. I am 9 months behind but only owe about $8,000 in arrears. It was due to the $200/mo eventual increase as I am on a fixed income. Not that I can’t handle a reasonable loan, I was ’snookered’ into signing papers fast and didn’t know they were changing me to a ARM instead fo the fixed rate I had for the previous 25 years. Yes I have been at this same residence for 30 yrs this yr.
Also, I have briefly spoken to an Attorney, and going over a few items on my Re-Fi docs, he noted at least three FEES plus the ‘prepay clause’ and was ready to contact Countrywide for me. I didn’t have the $1500 at the time but heard some take cases on contingency.
Please advise if you have any further ideas on this as I am sending another hardship letter today and they should contact me beg of next week.
Thank you for your site & concern,
Barbara Webb
ph #951 785-0308
We sent in $1,400. by acendent. They said that they would send all of it back, not once buut twicethey said this. now when we called today (2/22/2009) to check on it they are charging us for inspection fees . no one ever came by. this is a rip off. they say that they sent 3 checks out on the 17 of Feb. If so then where is our money? They will not work with you at all. no matter how good your credit is.
Brenda
ph# 706