Ocwen Loan Servicing and Wells Fargo Bank have been hit with a proposed class action wherein a Massachusetts property owner claims the companies failed to follow the terms of her mortgage contract before taking foreclosure actions.
The plaintiff claims the defendants sent her a right to cure notice that stated, in part:
“[Y]ou can still avoid foreclosure by paying the total past due amount before a foreclosure sale takes place…”
The case says this statement was false because pursuant to the plaintiff’s mortgage agreement, the time period during which she could reinstate an accelerated loan would expire five days before the date of the property’s foreclosure sale. The lawsuit claims the right to cure notice violated Massachusetts law because it failed to “properly” inform the plaintiff of her “right to reinstate after acceleration.”
The suit argues that the defendants’ alleged failure to provide proper notice of default in accordance with the terms of the plaintiff’s mortgage contract renders all foreclosure actions void, including the acceleration, foreclosure, and sale of the property.