Former Homeowners Demand Return of Fees Charged for Unsecured Mortgage Loan

New to ClassAction.org? Read our Newswire Disclaimer

Cohen, Rosenberg, Maros, LLC has been named as the defendant in a proposed class action filed by two former homeowners who claim the company charged them $75,000 in unlawful fees to secure a new mortgage that never actually went through.

According to the suit, the plaintiffs took out a mortgage on their home and went into default, after which they took out a new loan for the same amount. The complaint says the defendant then contacted the plaintiffs and promised to secure them another mortgage “for up to eighty percent of the market value of the premises in full satisfaction of the then current mortgage/note/loan.” The suit notes that the agreement was written in English despite the plaintiffs’ inability to read and write the language.

The defendant allegedly charged the plaintiffs “excessive, exorbitant and usurious” fees, interest, and monthly payments that the plaintiffs understood would be held in escrow until the new loan was secured. The suit alleges that the closing on the new loan never happened, however, and that the defendant never returned the $75,000 it had collected from the plaintiffs.

The complaint then goes on to explain that the plaintiffs were forced to foreclose on their home and demanded that the defendant return their money. The company’s representative allegedly told them that “the money was seized by the foreclosing bank” and was “unavailable.”