Rick Rogue, Niche Report
By now, I should be numb to the suffering caused by Bank of America and other large lenders and mortgage servicers. That’s what they want but instead, I am fighting angry. So are millions of homeowners too. If you think we climb the soapbox a little too often in this blog, read this story first and then make your own decision.
The genesis of this story is a lawsuit filed in the Orange County Superior Court. Noel and Debra Lesley filed suit against Bank of America, Ocwen Financial and Litton Loan Servicing earlier this year claiming breach of contract, intentional infliction of emotional distress and violation of California’s Business Code. The facts will shock you.
The Lesleys fell behind on their mortgage payment after their child became extremely ill. They had to cash in their life savings in an attempt their son’s life. Ultimately, their efforts failed and their boy died.
Notwithstanding that they were broke, the Lesleys didn’t ask for a forbearance of any amount of the loan. Instead, they asked to participate in a loan modification program designed to let people with hardships remain in their homes. They owed $350,000 on a home that was now worth probably half that. Not an uncommon occurrence in Southern California. If the hardship modification was granted, the Lesleys could stay in their home, get back on their feet and the investor who owned the note would be made whole. Makes sense, right?
The obvious answer was apparently not so obvious to Litton and Bank of America.