Man Sues Over Allegedly Improper Foreclosure of His Home

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A group of banks, law firms, and loan servicers are facing a proposed class action that was removed to California federal court this January and accuses the parties of wrongfully collecting on defaulted mortgage loans. The complaint summarizes the plaintiff’s allegations in the following statements:

The plaintiff says he fell behind on two mortgage loans, in part because the defendants charged him excessive fees for servicing the loans. He argues that they initiated foreclosure against him without proper authority and collected proceeds from the foreclosure sale that should have been paid to the original creditors. On top of that, the defendants allegedly continued demanding the remaining portion of the debt and reporting it to credit bureaus even after the property was foreclosed, in violation of California state law.

The suit claims the defendants “received and retained at least $1,345,000.00 to which they were never entitled” as purported compensation “for services [they] never performed and expenses [they] never actually incurred.”

The complaint names the following entities as defendants:

• The Wolf Firm, a Law Corporation
• RCO Legal, P.S. (formerly known as Routh)
• Crabtree & Olsen P.S.
• Northwest Trustee Services Inc.
• JP Morgan Chase Bank N.A.
• Chase Home Finance-TX
• Select Portfolio Servicing Inc.
• Wamu Asset Acceptance Corp.