Recently-filed complaints reflect disputes between borrowers and mortgage servicers over loan modification programs. Mortgage servicers may provide loan modifications to borrowers through their own programs. Some mortgage servicers may provide loan modifications to eligible borrowers through the Home Affordable Modification Program (“HAMP”), an Obama administration program.

In lawsuits currently pending in the federal courts, borrowers allege miscommunication and misunderstanding over loan modification programs. For example, some plaintiffs have alleged that they relied on statements made by representatives of loan servicers that no further payments needed to be made during the loan modification process, and that their reliance on those statements caused them to become delinquent on their loan. One plaintiff has alleged that he was told that the sale of a property would be postponed because of the loan modification process, and he seeks to have the court set aside the foreclosure of that property. The loan servicers will have a chance to respond to these allegations and other complaints alleging problems with loan modification programs.