Saturday, September 5, 2009

Recording Artist Sues Lender In Attempt To Fend Off Foreclosure; Says WaMu Reps Put Bogus Info In Loan Application, Tricked Couple Into Signing

In Kaua'i, Hawaii, The Honolulu Advertiser reports:

  • A singer who gained popularity in the late 1960s with the song "Hello It's Me" has filed a lawsuit here against a Washington-based bank, asking a judge to stop the financial institution from foreclosing on his Kaua'i home. Todd Rundgren filed the complaint Wednesday in state Circuit Court and alleged that representatives from Washington Mutual misled him and his wife, Michele, when the couple refinanced a loan on their property in Kilauea. The lawsuit, filed by attorney Gary Dubin, lists as defendants Washington Mutual Bank and JP Morgan Chase, which acquired WaMu in September 2008. The Rundgrens are asking for a temporary restraining order to halt foreclosure actions, as well as an undetermined amount in damages and attorneys fees.


  • The Rundgrens allege they refinanced a mortgage on their Kaua'i home in February 2008 for $3 million. But they said WaMu representatives created a false loan application that exaggerated their gross monthly income and then tricked them into signing the application. [... Dubin] acknowledged that the Rundgrens did not read the mortgage document at the time they signed it, but he said very few people do. "I can tell you this: I never read mine either," he said. "The clients who come to see me, the single word they always use is 'trust.' They trust the loan broker who was so nice to them. They trust that it was a big-looking company."

For the story, see Singer sues bank in foreclosure (Rundgren suit stems from $3M Kauai home refinancing).

No comments: