Wednesday, April 27, 2011

GMAC Commits Mortgage Fraud - Federal Judge in C'ville Finds in Favor of Homeowners

RealCentralVA has the story about some Palmyra homeowners who were beleaguered by national mortgage lender GMAC for a year and a half, unable to get a HARP mortgage mod nor receive accurate documents/disclosure.  At issue was a particular kind of mortgage insurance...which the homeowners didn't know was attached to their mortgage.   US District Court (Western District of VA) Judge Norman K. Moon found in favor of the plaintiffs, who were represented by MartinWren P.C., which also posted about the case on the firm's blog.

Judge Moon issued a summary judgment before trial (documents here; fascinating).  This left the jury to award damages--except that GMAC offered a settlement to homeowners, on condition of confidentiality.  What would you have awarded these folks, knowing that they endured stress, doubt, uncertainty, and pain over their home, for a year and a half?

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