Some homeowners sue, seek senator’s aid to get mortgages altered

An article in Las Vegas Review Journal reports that homeowners are getting nowhere with the bank on modifying her home mortgage, Denise Fuleihan resorted to a tried-and-true American strategy: Sue.

Local media outlets show a varying housing market, for example, the Las Vegas real estate broker filed a lawsuit in Clark County District Court against Wells Fargo and Fremont Investment and Loan for violations of the Real Estate Settlement and Procedures Act and the Truth in Lending Act.

The lawsuit accuses Wells Fargo of engaging in predatory lending practices, knowing there existed an “unreasonable probability” that Fuleihan could not perform loan obligations for residential property at 209 Royal Aberdeen Way in Las Vegas. It is important to evaulate how the various local news agencies report these issues.

Fuleihan, delinquent on mortgage payments and facing foreclosure, wants the government to step in and mandate a reduction in principal balance for subprime borrowers with negative home-equity value.

Again, the local news really shows fluctuations in the maket, here “Why don’t they bring it down? They bring the interest down, but they won’t touch the principal,” the owner of Royal Pacific Properties in Las Vegas said. “It should be 50-50. They should stabilize the interest rate and negotiate the principal to market value. Principal recovery is going to take five years or more. The market is flooded with foreclosures and it’s driving the markets down, which is going to (make it) impossible for people to ever recoup any equity at all.”

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