Wrongful Foreclosure; Temporary Loan Modification; Void Sale: Tender Not Required

  In Chavez v. Indymac Mortgage Services the court allowed a wrongful foreclosure case to proceed where the borrower complied with all the terms of the temporary loan modification and timely signed and returned the loan modification agreement. Continue reading

Under HAMP Successful Completion of Temporary Modification Requires Permanent Modification

  Under the federal Home Affordable Mortgage Program (HAMP) when a borrower enters into a trial period plan (TPP), a form of temporary loan payment reduction under HAMP, the borrower and lender enter into a Trial Period Agreement — a written contract enforceable under state law. If a borrower complies with the terms of a TPP, and the borrower’s representations remain true and correct, the loan servicer must offer the borrower a permanent loan modification. If the lender fails to offer a permanent modification the borrower may sue the lender or loan servicer for breach of contract as HAMP does not preempt or otherwise displace state law causes of action. West v. JPMorgan Chase Bank. Continue reading