Warren County Ohio Real Estate News and Observations

Foreclosure Follies, Another Wrinkle

The Cincinnati Enquirer reported yesterday that a Northern Kentucky coupleForeclosure Follies is suing their mortgage holder, SunTrust Bank, Inc. to stop foreclosure  proceedings on their Alexandria, KY home.

The interesting twist on this case is that the couple had been encouraged by SunTrust to apply for the Federal Government supported HAMP (Home Affordable Modification Program).  The couple qualified due to high medical bills for a child, and successfully got their monthly payment reduced a few hundred dollars as of May 2009.  The couple stayed current with their modified payment amount, yet SunTrust filed to foreclose in December 2009.

The couple is suing to halt the foreclosure process, to have SunTrust train their employees on the HAMP requirements, and for actual and punitive damages and lawyers fees.
Additionally, they're seeking class action status. Due to the couple's lawsuit, SunTrust is declining comment as most corporations typically due with pending litigation. 

At first glance you'd suspect a system failure within SunTrust and not correcting the system to reflect the new mortgage amount.  However, you'd suspect the homeowners would have gotten the usual legal warning letters from the bank about being behind on payments and warning of a pending foreclosure?

It would appear that SunTrust shouldn't be foreclosing based on successful use of HAMP and the sellers staying current with the modified payments, but if the owners did receive warning letters and didn't address them, perhaps there is some shared fault.

We'll keep watching the paper and see how this one turns out!

Hope you're having a great week!
Liz and Bill aka BLiz

REALTORS(S) Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of RE/MAX Elite
Elizabeth & William Spear
Ask for us by name if you visit the office!

EHO Two locations: Lebanon & Mason, OH
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Bill direct: 513-520-5305     
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18 commentsLiz and Bill Spear • October 14 2010 08:36AM
Foreclosure Follies, Another Wrinkle
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The Cincinnati Enquirer reported yesterday that a Northern Kentucky couple is suing their mortgage holder, SunTrust Bank, Inc. to stop foreclosure proceedings on their Alexandria, KY home. The interesting twist on this case is that the couple had… more