RHI Class Action Lawsuits New York Transit Accident Claims – New York Life Insurance Class Action Law Suit. The RHI or refinancing home equity relief is an underhanded scheme by which homeowners with decent credit histories get huge loans without proper credit research and approval. But, just as the name suggests, the entire process of a homeowner getting RHI relief through these loans is fraudulent.
The scam behind RHI has earned it a place in the category of “Ten Most Wanted Mortgage Frauds” and has resulted to a new crop of victims. This is because RHI companies have used aggressive strategies and methods to lure people into their traps.
These predatory lending companies lure borrowers through loans like loan modification, and refinance. Then, they convince them that if they accept loan modification, they can eliminate their debt. In exchange, they make some fake promises like lower monthly payments, increased equity, and tax benefits. They do all these in order to get hold of their money. But, most importantly, they have no interest in helping borrowers maintain a sound financial situation.
The entire process of RHI involves giving out huge loans to borrowers without verifying their financial condition. Once the borrower accepts the loan, he is given no choice but to pay it back on time. So, in case of failure to pay back the loan, the borrowers will be subjected to the RHI scheme.
The borrowers are then forced to deal with their creditors regularly, either by calling them or writing threatening letters. They are also given little or no chance to redeem their position, as they will be asked to return all the money that they owe.
But, the worst part of this whole scenario is that, the RHI companies know what is coming. They know that the government will soon come up with some rules and regulations to control the mortgage industry. In such a situation, they will not be able to survive. Any kind of loan scheme that involves high-pressure or dishonest approach cannot stand any chance of survival.
After the FDIC warned the lenders about the fraud, they were forced to suspend their activities temporarily, until the Federal Trade Commission takes its decisions. But, the settlement process will go on and the lenders have to pay compensation claims to the homeowners.
As of now, there have been at least four cases where the homeowners filed for the RHI class action lawsuit. These are the case of California homeowners, New York homeowners, Connecticut homeowners, Michigan homeowners and Washington homeowners.
In the California homeowners’ case, the plaintiffs are fighting for more than $500 million. They are seeking to recover money from the lenders who actually gave out the original loan. These homeowners claim that they were misled into signing up for an expensive mortgage scheme which they did not understand.
In the New York homeowners’ case, they are also asking for the recovery of funds. The plaintiffs claim that the New York City mortgage company charged them a high rate of interest after the first mortgage. When the homeowners defaulted on the second mortgage, the second company started offering them more expensive loans, without explaining the risks involved.
In the Connecticut homeowners’ case, they are arguing for the same reasons as the New York homeowners. The plaintiffs claim that the Connecticut mortgage company did not give them proper information, even when the Connecticut homeowners had already signed up for the mortgage scheme. When the Connecticut homeowners defaulted on the third mortgage, the fourth mortgage company started charging high rates of interest, and did not provide enough information. After the third mortgage went into default, the lender offered the homeowners with another loan, which offered them a fixed interest rate that has a higher interest rate.
And, finally, the Connecticut homeowners claim that the mortgage company in question, Securacom, has failed to pay them their share of mortgage money. They are asking for compensation because they claim that the bank is trying to avoid paying any money. Even though the bank has been granted a foreclosure notice, they are still delaying payments because they want to sell the property. It is also claimed that they have not returned any of the money they lent to the homeowners.
In the Washington homeowners’ case, the class action lawsuit will determine if the bank was negligent when it offered them adjustable rate mortgages. The lawsuit will also examine how the company violated the FHA rules, and whether or not they had a reasonable basis for doing so. The New York case will determine how the New York City mortgage company violated the New York law, and will review whether or not the homebuyers were defrauded.