Attorneys hit Nevada foreclosure processors with class-action suit
30 January 2012
Two attorneys announced Monday they’re suing six companies they claim have been processing Nevada home foreclosures without authorization.
Attorneys Nicholas Boylan of San Diego and Shawn Christopher of Henderson said they filed suit last month in Clark County District Court and are seeking class-action status on behalf of 16 Nevadans named as plaintiffs and potentially thousands of more plaintiffs as class members.
The lawsuit claims the foreclosure processors engaged in debt collection activity even though they were not licensed in Nevada as debt collectors.
The suit asserts counts including consumer fraud, unjust enrichment and elder abuse as some of the homeowners were age 60 or over.
“The plaintiffs are Nevadans who not only lost their houses in one of the hardest-hit real estate markets, but were also adversely affected by foreclosure companies that did not follow the law during the foreclosure process. The case was filed as a class-action lawsuit because there are thousands of potential plaintiffs who were victims of these foreclosure companies,” said Christopher, of Christopher Legal Group.
The suit seeks unspecified compensatory damages and a requirement that the companies return fees paid to them “for their respective illegal and improper debt-collection activities.”
The companies named in the suit:
• Quality Loan Service Corp., believed to be a California corporation.
• Appleton Properties LLC, a Nevada company.
• MTC Financial Inc. dba Trustee Corps. and believed to be a California corporation.
• Meridian Foreclosure Service dba MTDS Inc. dba Meridian Trust Deed Service, described in the lawsuit as a Nevada and California company.
• National Default Servicing Corp., believed to be an Arizona company.
• California Reconveyance Co., described as a California company.
Requests for comment were placed with the companies or attorneys who have represented the firms.
Last month’s lawsuit is on top of one filed by Attorney General Catherine Cortez Masto in 2010 against Bank of America, charging it’s been foreclosing on homes it had no authority to foreclose on.
Bank of America has denied wrongdoing in that lawsuit, which also claims it harmed struggling Nevada consumers by failing to help them modify their mortgages and had deceived some by leading them to believe their loans would be modified — but then foreclosed on them anyway.
Last month’s suit against the foreclosure processors is also in addition to suits filed by Cortez Masto and homeowners last year against Lender Processing Services Inc. over alleged widespread robosigning problems involving forged signatures on foreclosure documents.
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