A law firm in Ohio has filed a class-action lawsuit in the Cuyahoga County Court of Common Pleas on behalf of foreclosure victims.
The lawsuit alleges that loan servicers and those hired by the servicers to manage foreclosure proceedings engaged in fraud by falsifying mortgage paperwork for the foreclosures and even foreclosed on properties they did not own.
Marc Dunn had originally represented the case of one of the plaintiffs in the class action. That was Linda A. Clark of Lakewood, who was sued for foreclosure. However, the defendant's lawyers discovered false and misleading documents produced by the lender processing service.
The Cuyahoga County Court of Common Pleas dismissed the foreclosure suit and Linda Clark remains in her home today.
The federal government recently agreed to settle such matters with the five largest mortgage lenders for a $25 billion settlement, which is being distributed to states to help homeowners who have been wrongfully foreclosed. However, the banks and lenders who did not agree to or participate in the federal settlement are open to litigation for fraudulent foreclosure practices.
One such case in Cuyahoga County is that of Carla Duncan, also a client of the former Ohio AG. Carla is challenging a robo-signed document which was used to assign her mortgage to Indymac nine months after the company went under.
Carla Duncan's case is being heard separately by the same court in Cuyahoga County and is not part of the class action suit, which has six other plaintiffs in addition to Linda Clark. The eight defendants include four firms that are based in Jacksonville, FL, two in Cleveland, OH and one each in Twinsburg, OH and Coppell, TX.
The class action complaint alleges fraud, conspiracy to commit fraud, violation of the Ohio Consumer Sales Practices Act, and slander of title. It also seeks injunctive relief against foreclosure actions being taken against plaintiffs.
Did you know?
The $25 billion foreclosure settlement includes $20 billion for refinancing and mortgage modifications.
If you are being wrongfully foreclosed by a mortgage lender, you can apply for a loan modification. You may also be able to file a whistleblower lawsuit. These can be filed by private citizens against lenders who may have violated the False Claims Act and defrauded the FHA with fraudulent mortgage papers.