Loan Servicer Gets Tagged With Class Action Suit Accusing It Of Pocketing Cash For Bogus Loan Modifications, Then Foreclosing With Little Or No Notice

From a press release from the Seattle, Washington-based law firm Hagens Berman Sobol Shapiro LLP:

• A group of homeowners [] filed a class-action lawsuit against Aurora Loan Services LLC, claiming the mortgage company duped them into paying tens of thousands of dollars each to have troubled mortgages reviewed by the company with promises of loan modifications, only to have their property foreclosed with little or no notice.(1)

• The suit states that Aurora reaped more than $100 million in what the court documents call "illicit profits" from the alleged scheme. Filed in the U.S. District Court for the Northern District of California in San Jose, the suit seeks to represent homeowners who paid the Littleton, Colo.-based company money in exchange for the company's help in 'curing' delinquent home mortgages.

• In exchange for between three and six large monthly payments, Aurora said it would halt the foreclosure process and work with homeowners to restructure, modify or resell the loan, allowing homeowners a chance to keep their homes, the suit states.

For more, see Hagens Berman Files Class-Action Suit Against Aurora Loan Services LLC.

(1) The complaint accuses Aurora of negligent misrepresentation, unjust enrichment, breach of the implied covenant of good faith and fair dealing, violation of the California Unfair Business Practices Act and other violations of California law, the press release states.