Baron and Budd Investigating Possible Mortgage Scam

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Consumer Alert: Scam Targets Homeowners Who Got Behind On Mortgage Payments, Later Became Current

Regardless of how these fees are being charged to you, we believe they are unlawful.

The national law firm of Baron and Budd is investigating a mortgage scam that banks and other mortgage lenders may be using to take advantage of consumers. The firm has found that certain mortgage lenders may be charging excessive fees to homeowners who have been 20 days or more late in making their mortgage payment, but later got caught up with payments. However, when a homeowner is late, the bank may tack on additional fees and other charges that must be paid in order for the loan to be considered current.

“Because these banks do not want homeowners to notice that they are being charged these additional fees, they typically try to hide them on people's loan statements as 'other fees' or 'other charges',” said Mark Pifko, attorney at Baron and Budd. “If you were in bankruptcy and were able to arrange for a payment plan to get caught up on your delinquent loan balance, these fees also may show up on your bankruptcy documents as 'miscellaneous charges' or 'miscellaneous fees,' or they may be lumped in with the attorneys’ fees. Regardless of how these fees are being charged to you, we believe they are unlawful.”

Baron and Budd has an established history of protecting what’s right for consumers who have been harmed by corporate misconduct. The firm prides itself on remaining on the front lines of significant litigation that impacts the lives of consumers. In 2011, the firm served on the Plaintiffs’ Steering Committee (PSC) in the excessive bank overdraft fee litigation, (In Re: Checking Account Overdraft Litigation, MDL No. 2161), which negotiated a $410 million settlement with Bank of America. Not only did this settlement help compensate consumers who were victims of the bank’s predatory practices, but forced Bank of America and other banks to change their overdraft fee policies. Baron and Budd is currently pursuing litigation against JP Morgan Chase over similar practices as part of the bank overdraft fee litigation (In Re: Checking Account Overdraft Litigation, MDL No. 2161).

If you are homeowner who got behind on your mortgage payments but is now current, you may have been charged unlawful fees. For a free legal consultation, call Baron and Budd at 1.866.844.4556 or email us at info(at)baronbudd(dot)com.

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Amanda Theaker
atheaker@baronbudd.com
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