Culik Law Wins Important Victory in Loan Modification Case Against SunTrust
In a recent decision, a motion for summary judgment filed by SunTrust was denied in Massachusetts federal court. This motion would have essentially ended a hard fought loan modification case brought by Culik Law. Successful decisions like this are important because they set a new precedent for helping consumers fight back in cases where mortgage servicers do not abide by the rules.
The claims brought in the case are based on the bank’s failure to honor a permanent loan modification given to the homeowners in 2010. SunTrust assigned blame for its failure on the homeowners, claiming that they did not fully execute and return the written agreement. The homeowners alleged that they did in fact return the document, signed and witnessed by a notary, by the method in which they were instructed, and the bank has simply refused to honor the contract to modify the loan. The lawsuit involves claims of breach of contract, promissory estoppel, the Massachusetts Consumer Protection Act, ch. 93A, and the Fair Credit Reporting Act.
SunTrust claimed in its motion that there were not significant factual disputes as to whether the defendant could be held accountable under these four counts as a matter of law. The Judge disagreed and the case will continue to move forward.