Class Action Lawsuits Filed Against National Banks for Overcharging Foreclosed Homeowners
Stueve Siegel Hanson and Snyder Law Firm have filed class action lawsuits against seven large national and regional banks in Kansas federal court alleging the banks have overcharged numerous foreclosed homeowners who “redeemed” their properties — essentially buying back the properties from the banks after the banks bought the properties at foreclosure sales.
The lawsuits allege that the redeeming homeowners were charged for a full year’s worth of hazard insurance on the properties, even though only a few months of insurance are typically needed.
The banks were likely reimbursed for the unused insurance, but instead of passing the reimbursements to the foreclosed homeowners kept the reimbursements as an undeserved windfall.
The defendant banks include Wells Fargo, U.S. Bank, Bank of America, NationStar Mortgage, CitiMortgage, Bank of New York Mellon, and Fidelity Bank.
While the lawsuits allege the unlawful bank practices have taken place in Kansas they assert a national class as well, which would encompass other states where foreclosure redemptions are permitted.
If you believe you may have been the victim of these practices, please call us at 816.714.7105 or fill out a contact form below.