Facts

Plaintiff Mark Gin owned a home. The original mortgage lender, IndyMac, went out of business and the loan was subsequently taken over first by the FDIC and then by defendant OneWest Bank. When Plaintiff applied for a loan modification, the bank engaged in the practice of dual-tracking, or processing the loan modification very slowly, while a separate department simultaneously moved forward with the foreclosure. OneWest informed Plaintiff that he qualified for a loan modification and would get a response within 30-60 days, but then filed a notice of trustee sale and foreclosed on the property.

Plaintiff sued Defendant, alleging fraud and that Defendant violated a 2009 law requiring lenders to give an additional 60 days before filing a notice of trustee sale to allow for loan modification discussions.

Damages

Plaintiff sought remodeling costs, lost equity in the home, and punitive damages.

Result

Verdict for fraud and wrongful foreclosure in the amount of $13,500 for Plaintiff. No punitive damages were awarded.

Other Information

Lenders Processing Services Inc. was dismissed with prejudice on Aug. 28, 2012. Deutsche Bank National Trust Company Inc. was dismissed without prejudice on Sept. 19, 2012.