Consumer Law

Foreclosure Relief Law Project seeks to stop Minnesota foreclosures

By Sam Glover

Mortgage loan modifications are hard to come by, especially since banks are foreclosing before consumers have a chance to get a modification. In an effort to halt foreclosures in Minnesota so that consumers can get modifications, the Foreclosure Relief Law Project has filed a class action on behalf of homeowners, and asked the Minnesota U.S. District Court for an injunction.

If successful, the lawsuit will stop foreclosures until the government and lenders put fair loan modification procedures in place. FRLP wants lenders to have to explain loan modification denials, so that consumers and advocates will get a better idea when they are eligible.

From FRLP:

The lawsuit is modeled after similar lawsuits filed in the early 1980s, which sought and successfully stopped all farm foreclosures until the government ensured that the farmers? procedural due process rights were not violated when administering a similar foreclosure prevention program.

Foreclosure Relief Law Project files class action lawsuit to halt foreclosures in Minnesota | Housing Preservation Project

(photo: country_boy_shane)

Full post as published by Caveat Emptor on July 31, 2009 (boomark / email).