California Real Estate Fraud Report

You have just entered the #1 private-sector resource on the Internet for real estate fraud. In doing so, you have voluntarily left the dimension of the conventional real estate world and crossed over to the Dark Side, the realm where greed, dishonesty and evil are the order of the day. Sign up for a free subscription to this comprehensive news resource and receive weekly, timely news reports about real estate fraud, mortgage fraud, short sale fraud, REO fraud, title fraud, loan fraud, appraisal fraud, affinity fraud, loan modification scams, securities fraud and elder financial fraud.


9th Circuit Court Rules that Lenders Must Make Trial Modifications Permanent

Local Mortgage broker Dan Dobbs sent me this recent court ruling to post regarding HAMP and temporary loan modifications, which I have reprinted verbatim.

The 9th Circuit Court of Appeals in San Francisco ruled this month that lenders are required under HAMP to make a temp loan modification permanent upon completion of a set of trial payments.

Now, homeowners can bring a “contract claim in federal court”against mortgage servicers who fail to offer a modification once the homeowner has met the terms of a trial-payment plan.

The decision in Corvello v. Wells Fargo is binding for lower federal courts in 9th Circuit states. The decision follows a similar ruling by the 7th Circuit in Chicago.

Legal experts point out that it’s not binding for state courts, but it’s likely to be taken into consideration by courts that had routinely rejected mod cases in the past.

In the case, plaintiffs Phillip Corvello, Karen and Jeffrey Lucia, whose 2 cases were consolidated before the appellate court, each said Wells Fargo offered them a trial-payment plan.

Once they made the required payments, they weren’t offered a permanent mod plan as Wells promised.

“It allowed banks to avoid their obligations to borrowers merely by choosing not to send a signed modification agreement, even though the borrowers made both true representations and required payments,” the court ruled.

The court called the idea that Wells Fargo could be allowed to keep the trial payments unfair and an injustice that would be averted by its ruling.

You can read more about this ruling at JD Supra Law News and

© Copyright 2007-2017 Monique Bryher

Legal Disclaimer.

The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

ALL RIGHTS RESERVED. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the author, except for the inclusion of BRIEF QUOTATIONS in a review.


Copy Protected by Chetan's WP-Copyprotect.