Monday, April 25, 2016

Firm Sues Caliber Home Loans for Dual Track Violation and Wrongful Foreclosure

When a Satellite Beach resident received a loan modification offer from Caliber Home Loans, she thought her foreclosure ordeal was finally over. While Ocwen, the prior servicer of the homeowner’s loan, had commenced a foreclosure action against her years earlier before the scheduled foreclosure sale, Caliber offered the homeowner a trial loan modification. 
Sued for Dual Track Violations and Wrongful Foreclosure 
On November 12 , 2015, Caliber offered the Satellite Beach resident a trial loan modification. The homeowner accepted and began making payments on the loan modification.  She made her first trial payment prior to its December 1, 2015 due date and made her second trial payment before a January 1, 2016 due date.  She was then sent an agreement to turn the trial modification into a permanent modification.  She then timely signed the agreement and returned it to Caliber.  Caliber’s lawyers, when the consumer was at the early stages of the loan modification process, rescheduled the foreclosure sale date to January 6, 2016.  The homeowner, who did not have a lawyer at the time, trusted Caliber when they told her that as long as she made her payments she did not need to worry about the foreclosure action. 

On Thursday, December 31, 2015, Caliber’s lawyers filed a motion to re-schedule the sale that was set for just three business days later on Wednesday January 6, 2016.  Unfortunately, after Caliber’s lawyer waited until New Years Eve, just three business days before the scheduled sale, they never obtained a hearing on their motion to cancel the foreclosure sale.  A judicial foreclosure auction was held on January 6, 2016 and the plaintiff in the foreclosure action was the winning bidder. 

When the homeowner called Caliber to make her next loan modification payment, Caliber informed her that they completed the foreclosure on her home and would not be able to modify her loan.  At this point, the homeowner hired Shuster & Saben to vacate the foreclosure sale and sue Caliber violation of a Federal law that prohibits “Dual Tracking” and makes it illegal for a loan servicer to continue to prosecute a foreclosure action while the homeowner in making payments pursuant to a trial loan modification.  This federal law is found at 12 Code of Federal Regulations 1024.41, also referred to as 12 C.F.R 1024.41. .  The firm’s three count complaint against Caliber seeks damages for violation of 12 C.F.R. 1024.41, for breach of the loan modification agreement, and violation of the Fair Debt Collection Practice Act.  To review a redacted copy of the lawsuit failed against Caliber please click here.  In the underlying foreclosure action the firm has stopped Caliber from executing on a writ of possession and moved to vacate the foreclosure sale.    Hopefully, in the near future, a Brevard County jury will be able to award our client appropriate damages against Caliber Home Loans.