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Home » Federal Court Rejects Bid to Dismiss Loan Mod Class Action
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Federal Court Rejects Bid to Dismiss Loan Mod Class Action

December 5, 2011
A Federal judge in California rejected a servicer’s motion to dismiss a putative class action that accused the servicer of wrongly rejecting a borrower's mortgage modification application and of improperly starting foreclosure proceedings.In Gaudin v. Saxon Mortgage Services Inc., the plaintiff argued that a trial modification plan provided to her by the lender represented a binding contract that required Saxon to evaluate the plaintiff under the Home Affordable Modification Program, and to provide a permanent loan mod, provided all conditions of the trial plan were satisfied.In requesting a dismissal, Saxon argued that the trial plan only required it to evaluate the borrower’s eligibility for a modification, and did not require Saxon to offer a modification.
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