Ohio Homeowners Take a Stand Against Bank and Fannie Mae Foreclosures

by on States

Before, majority of homeowners in Ohio affected by the rise in the number of government, bank and Fannie Mae foreclosures walk away from their properties or just wait until they get evicted. Now, however, more of them are taking a stand against lenders or taking steps to keep their homes from getting foreclosed.

Recently, a number of homeowners facing foreclosures in Cleveland and Parma has decided to sue several lenders that allegedly failed to provide them with a loan modification option. Class action suits have been filed against US Bank Home Mortgage, Bank of America and Home Loan Servicing LP. The lawsuits claimed that the banks have breached contract agreements under the federal government's modification program.

The owners of foreclosed homes in Ohio involved in the lawsuits accused the lenders of failing to offer eligible borrowers mortgage modifications. They claimed that the lenders named in the lawsuits have made agreements with the homeowners and have received federal funding for the purpose of participating in the government's modification initiative. Lawyers for the homeowners are requesting the courts to declare that the banks have breached contract agreements and must, then, offer permanent mortgage modifications to the homeowners.

According to housing industry observers, the case has a huge significance on the residential property market of Ohio, particularly now that the number of bank, government and Fannie Mae foreclosures is affecting not just homeowners who took out bad loans, but also those who have regular mortgages, but are suffering from unemployment.

The homeowners who are suing the banks have also alleged that the financial institutions have provided written promises which they subsequently refused to honor. The borrowers have also reportedly stated that the people employed by the banks to represent them should have proper training, particularly when it comes to dealing with cases of foreclosures. The homeowners are said to be seeking punitive damages and are calling on the banks to pay court fees.

Meanwhile, a representative from Bank of America has stated that they have completed more permanent mortgage modifications than any other lender in the country. The number of applicants has reportedly tripled as the number of bank and Fannie Mae foreclosures continues to increase in the state.

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