A case being tried in Oregon this week addresses a real problem plaguing homeowners across the Ohio and country who seek a modification of their mortgage.
The plaintiffs in Lengyel v. JP Morgan Chase currently being litigated in Washington County Circuit Court in Hillsboro Oregon raise the question of whether or not JP Morgan Chase can be held responsible for the harm that it does to homeowners facing financial difficulty who reach out for help.
The Lengvels, being represented by the very capable attorney Terry Scannell, argue that Chase induced them into defaulting by telling them that it was the only way that the would be considered for a modification of their loan, and then, after entering into a trial payment plan and accepting payments Chase foreclosed on them anyway.
In addition Chase just failed to properly compute their ability to pay a modified mortgage and refused to listen to the Lengvel’s pleas to check their math.
To homeowners who are facing foreclosure this is not an unfamiliar fact pattern. Nor is the conduct of misleading and defrauding homeowners limited to Chase. In our practice we have seen such abuses by virtually all of the nation’s mortgage servicers. Time after time homeowners trust the promises of lenders to review them for modifications in good faith. Chase, Bank of America, Wells Fargo, Citicorp, GMAC and their sub-servicers have committed in a federal court consent decree in the National Mortgage Settlement.
Yet every day our firm’s clients tell current tales of abuse by lenders that echo the claims of the Lengvels in their lawsuit.
The judge overruled Chases motions for judgment on the pleadings. I look forward to hearing what a jury has to say about the abusive practices of America’s Loan Servicers.
I look forward to framing similar claims for our clients in defense of foreclosure and for those who have been victimized in the past.
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