Hagens Berman Files Class-Action against Aurora

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Posted on21 August 2010. Tags: aurora loan services, california, class action, foreclosure fraud, hagensberman, loan modification

ns Berman Files Class-Action Suit Against Aurora Loan Services LLC http://stopforeclosurefraud.com/2010/08/21/hagens-berman-files-c

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SAN JOSE, Calif., Aug. 20 /PRNewswire/ A group of homeowners today filed a class-action lawsuitagainst Aurora Loan Services LLC, claiming the mortgage company duped them into paying tens ofthousands of dollars each to have troubled mortgages reviewed by the company with promises of loanmodifications, only to have their property foreclosed with little or no notice.

The suit states that Aurora reaped more than $100 million in what the court documents call illicit profits

from the alleged scheme.

Filed in the U.S. District Court for the Northern District of California in San Jose, the suit seeks to representhomeowners who paid the Littleton, Colo.-based company money in exchange for the companys help incuring delinquent home mortgages.

In exchange for between three and six large monthly payments, Aurora said it would halt the foreclosureprocess and work with homeowners to restructure, modify or resell the loan, allowing homeowners a chanceto keep their homes, the suit states.

We intend to prove that Auroras workout plan was nothing more than a cynical ploy to take advantage of

homeowners desperate to hold on to their homes, said Steve Berman, managing partner of Seattle-basedHagens Berman Sobol Shapiro LLP and the attorney representing the proposed class.

The suit contends that, after a period of months, Aurora foreclosed on the homes without giving theborrowers any notice that their requests for loan modification were denied and without allowing borrowersaccess to any method for ending their loan deficiency, despite the provisions of the workout agreements.

The suit states that the workout agreements provided for four methods for ending loan deficiency: bringingthe loan current, refinancing with another lender, modification of the terms of the loan at the discretion ofAurora and another workout option at the companys discretion.

The past three years have been tough enough on homeowners without them having to worry about beingpreyed upon by unscrupulous loan services, Berman said.

The complaint outlines the stories of two married couples who engaged Aurora in an attempt to forestallforeclosure. The first couple, from San Jose, refinanced their home with a mortgage company in early 2006.Two years later, the couple suffered economic setbacks in the form of poorly performing investments and atemporary loss of work. In late 2009, the couple contacted Aurora and signed one of the so-called workoutagreements.

Over the next several months, the couple paid a total of $33,500 in return for Auroras promise to work onmodifying the terms of the loan, among other possible outcomes. In May 2010, the family was served with a


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Notice to Vacate, indicating their home had been sold in foreclosure. The family had received no prior noticethat the foreclosure process had been completed. In addition, Aurora did not notify the family that it had beendenied a loan modification, according to the complaint.

In another instance, a second San Jose couple refinanced their home in mid-2007. Two years later, the couplesuffered financial hardship as a result of an illness and the death of a parent, which led to increased expensesand loss of income. In early 2009, the couple contacted Aurora and signed one of the companys workoutagreements, the complaint alleges.

Over the next several months, the family paid a total of $23,700 in return for Auroras promise to work onmodifying the terms of their loan. Like the first couple, the family was served with a Notice to Vacate in lateJune 2010, signaling their home had been sold in foreclosure. The family was not told prior to receiving thenotice that the foreclosure process on their home had begun, according to the complaint.

Weve heard of cases like this a lot over the last few years, Berman said. Wed like to bring strugglinghomeowners some sense of relief.

The complaint, which can be found at www.hbsslaw.com/cases-and-investigations/aurora, accuses Aurora ofnegligent misrepresentation, unjust enrichment, breach of the implied covenant of good faith and fair dealing,

violation of the California Unfair Business Practices Act and other violations of California law.

Hagens Berman believes the workout agreements were fraudulent in nature and seeks to have the agreementsdeclared void. The firm also seeks an injunction against Aurora forbidding the company from continuedoffering of its deceptive workout agreements, restitution to be determined at trial, damages to be determinedat trial and trial and attorneys fees.

If you entered into a so-called workout agreement with Aurora, you are encouraged to join this case.

About Hagens Berman

Seattle-based Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in

San Francisco, Chicago, Boston, Los Angeles, Phoenix and Washington, D.C. Founded in 1993, HBSScontinues to successfully fight for consumer rights in large, complex litigation. More about the law firm andits successes can be found at www.hbsslaw.com.

Contact: Mark Firmani, Firmani + Associates Inc., 206.443.9357 or [email protected]

SOURCE Hagens Berman Sobol Shapiro LLP

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Hagens Berman Files Class-Action against Aurora