Class Action Suit Filed Against Mortgage Loan Modification Company Aurora Loan Services LLC

A class action lawsuit was recently filed against Aurora Loan Services LLC by a group of homeowners who claim that Aurora Loan Services LLC had deliberately mislead and cheated them out of tens of thousands of dollars each, by charging them a fee to have their troubled mortgages reviewed and modified in order to stop the foreclosure process and give them a chance to keep their homes, only to foreclose on their homes with little or no notice.

This class action suit was filed in the US District Court for the Northern District of California in San Jose by the Seattle based law firm Hagens Berman Sobol Shapiro LLP, and seeks to represent homeowners who had paid the Colorado based Aurora Loan Services LLC substantial sums in exchange for the company agreeing to help them to ‘cure’ their delinquent home mortgages.

The workout plan offered to these homeowners by Aurora had provided for four methods of dealing with their delinquent home mortgages - bringing the loan current, modification of the terms of the loan at the discretion of Aurora, refinancing with another lender, as well as another workout option at Aurora’s discretion. The homeowners had been required to pay a substantial amount of money for these services, which were settled over a period of 3 to 6 months, in monthly installments.

Steve Berman, the attorney representing the proposed class said, “We intend to prove that Aurora’s workout plan was nothing more than a cynical ploy to take advantage of homeowners desperate to hold on to their homes.” Berman, who is also the Managing Partner of the firm Hagens Berman Sobol Shapiro LLP, added, “The past three years have been tough enough on homeowners without them having to worry about being preyed upon by unscrupulous loan services.”