• DYE CULIK PC | Consumer Protection Division

Culik Law Defeats Motion To Dismiss Homeowner’s Lawsuit By Mortgage Servicer Saxon


saxon

This is the second time in this case Saxon has tried to prevent the homeowner from bringing these claims, and it is the second time Saxon has lost.

Saxon has been widely accused in lawsuits of violating the rights of consumers related to loan modifications in connection with its taxpayer-funded government contract under which it promised to help at-risk homeowners.

In this case, the judge found that Saxon committed “misrepresentations, omissions, or misleading statements regarding the loan modification.” Saxon offered the homeowner a trial loan modification under the Home Affordable Modification Program under which it promised to provide a permanent modification, but then refused to provide the modification and tried to foreclose. These violations were alleged to breach Saxon’s contract with the consumer, and to be violations of the Massachusetts Consumer Protection Act, M.G.L. Chapter 93A.  

Saxon also was alleged to have contacted the homeowner numerous times after he notified Saxon that he had an attorney, a violation of the federal Fair Debt Collection Practices Act.

The court concluding by stating “The record supports a finding that Defendant violated the FDCPA, both 15 U.S.C. § 1692c and 15 U.S.C. § 1692f, and that Plaintiff suffered actual damages as a result.” A pretrial conference has been scheduled by the court.

#foreclosureprevention #Mortgageservicers #Saxon