Foreclosure-Process Victims Cry Foul

As Wells Fargo joins the growing number of banks that had to admit there were problems with their foreclosure process, one can only wonder how many more lawsuits will be filed on the behalf of homeowners who were denied modifications.

So far 700,000 people were denied modification through the Home Affordable Modification Program (HAMP). Most of the lawsuits trying to stop foreclosures are based on the theme that banks denied homeowners permanent modifications even though the homeowners were making payments on time.

One California lawyer, Damian Nassiri told The Los Angeles Times that banks misled borrowers into accepting trial loan modifications "to get some kind of money out of them." He said the banks knew that they couldn't "dump all these properties out on the market all at once because we would have another Depression."