Hagens Berman Files Class-Action Suit Against Aurora Loan Services LLC http://stopforeclosurefraud.com/2010/08/21/hagens-berman-files-class-ac...

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Categorized | CONTROL FRAUD, STOP FORECLOSURE FRAUD, aurora loan

servicing, class action, corruption, foreclosure, foreclosure fraud, foreclosures,
investigation, lawsuit, mortgage modification

Posted on21 August 2010. Tags: aurora loan services, california, class action, foreclosure fraud, hagens
berman, loan modification

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Hagens Berman Files Class-Action Suit Against Aurora Loan Services LLC http://stopforeclosurefraud.com/2010/08/21/hagens-berman-files-class-ac...

SAN JOSE, Calif., Aug. 20 /PRNewswire/ — A group of homeowners today filed a class-action lawsuit
against Aurora Loan Services LLC, claiming the mortgage company duped them into paying tens of
thousands of dollars each to have troubled mortgages reviewed by the company with promises of loan
modifications, only to have their property foreclosed with little or no notice.

The suit states that Aurora reaped more than $100 million in what the court documents call “illicit profits”
from the alleged scheme.

Filed in the U.S. District Court for the Northern District of California in San Jose, the suit seeks to represent
homeowners who paid the Littleton, Colo.-based company money in exchange for the company’s help in
‘curing’ delinquent home mortgages.

In exchange for between three and six large monthly payments, Aurora said it would halt the foreclosure
process and work with homeowners to restructure, modify or resell the loan, allowing homeowners a chance
to keep their homes, the suit states.

“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,” said Steve Berman, managing partner of Seattle-based
Hagens Berman Sobol Shapiro LLP and the attorney representing the proposed class.

The suit contends that, after a period of months, Aurora foreclosed on the homes without giving the
borrowers any notice that their requests for loan modification were denied and without allowing borrowers
access to any method for ending their loan deficiency, despite the provisions of the workout agreements.

The suit states that the workout agreements provided for four methods for ending loan deficiency: bringing
the loan current, refinancing with another lender, modification of the terms of the loan at the discretion of
Aurora and another workout option at the company’s discretion.

“The past three years have been tough enough on homeowners without them having to worry about being
preyed upon by unscrupulous loan services,” Berman said.

The complaint outlines the stories of two married couples who engaged Aurora in an attempt to forestall
foreclosure. The first couple, from San Jose, refinanced their home with a mortgage company in early 2006.
Two years later, the couple suffered economic setbacks in the form of poorly performing investments and a
temporary loss of work. In late 2009, the couple contacted Aurora and signed one of the so-called workout
agreements.

Over the next several months, the couple paid a total of $33,500 in return for Aurora’s promise to work on
modifying the terms of the loan, among other possible outcomes. In May 2010, the family was served with a

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Hagens Berman Files Class-Action Suit Against Aurora Loan Services LLC http://stopforeclosurefraud.com/2010/08/21/hagens-berman-files-class-ac...

Notice to Vacate, indicating their home had been sold in foreclosure. The family had received no prior notice
that the foreclosure process had been completed. In addition, Aurora did not notify the family that it had been
denied a loan modification, according to the complaint.

In another instance, a second San Jose couple refinanced their home in mid-2007. Two years later, the couple
suffered financial hardship as a result of an illness and the death of a parent, which led to increased expenses
and loss of income. In early 2009, the couple contacted Aurora and signed one of the company’s workout
agreements, the complaint alleges.

Over the next several months, the family paid a total of $23,700 in return for Aurora’s promise to work on
modifying the terms of their loan. Like the first couple, the family was served with a Notice to Vacate in late
June 2010, signaling their home had been sold in foreclosure. The family was not told prior to receiving the
notice that the foreclosure process on their home had begun, according to the complaint.

“We’ve heard of cases like this a lot over the last few years,” Berman said. “We’d like to bring struggling
homeowners some sense of relief.”

The complaint, which can be found at www.hbsslaw.com/cases-and-investigations/aurora, accuses Aurora of

negligent misrepresentation, unjust enrichment, breach of the implied covenant of good faith and fair dealing,
violation of the California Unfair Business Practices Act and other violations of California law.

Hagens Berman believes the workout agreements were fraudulent in nature and seeks to have the agreements
declared void. The firm also seeks an injunction against Aurora forbidding the company from continued
offering of its deceptive workout agreements, restitution to be determined at trial, damages to be determined
at trial and trial and attorneys’ fees.

If you entered into a so-called workout agreement with Aurora, you are encouraged to join this case.

About Hagens Berman

Seattle-based Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law firm with offices in
San Francisco, Chicago, Boston, Los Angeles, Phoenix and Washington, D.C. Founded in 1993, HBSS
continues to successfully fight for consumer rights in large, complex litigation. More about the law firm and
its successes can be found at www.hbsslaw.com.

Contact: Mark Firmani, Firmani + Associates Inc., 206.443.9357 or mark@firmani.com

SOURCE Hagens Berman Sobol Shapiro LLP

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This work is licensed under a Creative Commons Attribution 3.0 Unported License. In accordance with Title
17 U.S.C. Section 107
Disclaimer: The information herein should not be taken as legal advice and is not a substitute for the
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