Thursday, November 24, 2011

Nungaray case: well, this is depressing.

Sad case: home borrowers think they've worked out a loan modification agreement to hold off foreclosure. They make a couple of payments on it, which the loan "servicer" accepts. So, OK, the servicer and Bank of America have asked for some financial information that the borrowers never do send them. Also the servicer and bank never actually do sign the supposed agreement. But what happens next is unfair: servicer and bank return the payments, foreclose, and evict the borrowers. California Sixth District appellate court sides with the servicer and the bank. The case is Nungaray v. Litton Loan Servicing, LP et al., and I don't think it's fair that the court opinion implies the borrowers were trying to pull a fast one. These borrowers weren't seeking something for nothing. They were trying to pay off a debt as soon as they could. So why the kneecapping?

Also, it sounds like the list of villains should include the unnamed "business entity" that helped these folks to negotiate something that wasn't technically speaking a nailed-down agreement.

Anyway, depressing.

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