Homeowners sue over loans

Loan modifications lead to lawsuits

Homeowners say banks aren’t living up to their end of the deal under trial mortgage changes.

One family’s tale 

Also: 

• Recent mortgage rates
• Robo-signing debate
• Investors sue as well

Banks under fire for failing to live up to terms of modified loans

It makes no sense at all for banks to agree to modified loan terms and then revert back to the original terms. Of course they're telling a different story but for obvious reasons there's little reason to believe them any more. They consistently play by whatever rules they find can benefit them the most and the federal government all too often allows them to get away with it. Fortunately a number of states are suing them and when you see the consistent problems across the country, it is hard to accept the story churned out by the banks.

How many more chances will the banks get before a grown up decides to step in and apply the rules? It's annoying that consumers continue to be treated differently than the banks.

Attorney Shennan Alexandra Kavanagh said several of the plaintiffs lost their homes after their payments reverted to their original sums that they were unable to pay. She said she believes tens of thousands of borrowers in Massachusetts alone could be covered by the suits if they get class-action status.

One of the lawsuits, against Bank of America Corp., was consolidated earlier this month with similar complaints in five other states, Kavanagh said.

Bank of America spokeswoman Shirley Norton said in an e-mail that the lender will continue aggressively defending itself against the cases.

More lawsuits have been filed against other lenders elsewhere.