Lawsuit alleges Countrywide inflated foreclosure costs
February 29, 2008 by Deborah Boza-Va... commentPHILADELPHIA – Feb. 27, 2008 – Countrywide Financial Corp. has been reaping profits from “inflated, unverifiable or false” charges in foreclosure actions that threaten hundreds of thousands of homeowners, according to a lawsuit filed in federal court in Delaware.
The lawsuit, which seeks class-action status, takes aim at attorneys’ fees, property inspection charges and other assessments that mount up once homeowners run into trouble paying their loans. Lawyers for homeowners say Countrywide is collecting far more than what it costs to enforce its rights as a lender.
“The mortgage note says the lender shall be ‘paid back’ – those are the critical words, ‘paid back’ – for its costs of enforcement, so you would think that the borrower would have to reimburse their actual out-of-pocket expenses,” said Jeffrey Norton, one of the attorneys who filed the suit Monday. The rest of the story...
Posted in: Foreclosures
