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Couple alleges loan servicer violated mortgage servicing rules

FLORIDA RECORD

Saturday, November 23, 2024

Couple alleges loan servicer violated mortgage servicing rules

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MIAMI – A couple alleges a loan servicer failed to comply with certain regulations regarding mortgage servicing rules.

Hendrik and Elizabeth Kidson filed a complaint on Sept. 19 in the U.S. District Court for the Southern District of Florida against Ditech Financial LLC citing the Real Estate Settlement Procedures Act.

According to the complaint, the plaintiffs allege that on Nov. 9, 2013, they were filed with a foreclosure action by Green Tree Servicing LLC, a loan servicer that formally merged with the defendant in 2015, for the plaintiffs' property in Cutler Bay.

The suit states the plaintiffs' counsel submitted a loss mitigation application to Ditech in June, but the defendant has failed to timely respond to plaintiffs' counsel. As a result, plaintiffs allege they have suffered actual damages in the form of emotional distress, the constant fear of losing their property, embarrassment, and anguish as a result of the ongoing failures of the defendant to address the plaintiffs’ concerns relating to their loan, while simultaneously seeking to foreclose upon that loan. 

The plaintiffs hold Ditech Financial LLC responsible because the defendant allegedly refused to comply with Regulation X and RESPA, refused to correct the errors of which they were advised, refused to sufficiently respond to plaintiffs’ loss mitigation application and failed to take timely action to respond to a borrower’s requests.

The plaintiffs request a trial by jury and seek judgment in their favor, to be provided with a written notice, damages, costs, attorney’s fees and other relief that the court may deem just. They are represented by Michael A. Citron and Matthew Yerachmiel David Bavaro of Loan Lawyers LLC in Fort Lauderdale.

U.S. District Court for the Southern District of Florida Case number 1:16-cv-24005

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