Homeowner Sues Mortgage Servicer over HAMP Loan Denial

Yahoo!Finance reports an Associated Press story from Los Angeles that a homeowner who applied for a loan modification under the Home Affordable Modification Program (HAMP) is suing Saxon Mortgage Services, Inc. for breach of contract and deceptive debt collection.  The homeowner alleges she complied with all the requirements of this mortgage-servicing unit of Morgan Stanley, including making monthly payments well beyond the three they initially asked for, and providing the necessary documentation, only to be turned down for the HAMP loan.  Saxon allegedly dragged out the process for months and turned down her application, saying she did not make the payments.  The complaint was filed in U.S. District Court for the Northern District of California.

 

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