Roseville, California (PRWEB) November 11, 2011
On Tuesday October 25, 2011, United Foreclosure Lawyer Network (UFAN) filed suit in Superior Court in Sacramento (case # 34-2011-00112919) on behalf of borrowers allegedly injured by the lending practices of Aurora Bank and other people believed to have misled borrowers.

The complaint alleges that Aurora was one particular of the significant players in a scheme to make quickly, easy income at the expense of proper mortgage underwriting procedures. By packing subprime loans into mortgage backed securities that were sold to investors, a bank could recoup the funds lent quickly. The suit argues that this procedure encouraged lenders and mortgage brokers to aggressively push higher-expense subprime loans on any individual they could convince to sign on the dotted line.

According to court documents, plaintiffs argue that due to the fact of the sale of their loans, they did not obtain the benefit of the contract for which they bargained. Plaintiffs, believing they would be placed into a standard Lender/Borrower connection, later identified that they did not have a lender with whom they could deal. Servicers are restricted in producing alterations to contracts when situations are unforeseeably changed. Furthermore, loan servicers have an incentive to foreclose whereas a lender has the incentive to modify a loan if it would be much more profitable in the extended run. If numerous of the home owners had been still in the traditional lender/borrower relationship, they could have restructured the mortgage for a far more desirable result for both parties. In the present circumstance, the only entity profiting is the loan servicer. The complaint specifics how many Plaintiffs diligently sought modification of their loans but had been denied either because the servicer had no authority to grant a modification or since the servicer chose not to grant a modification.
