Thursday, October 6, 2011

Foreclosed Homeowner Scores Lawsuit Settlement With Predatory Lender Requiring Bankster To Rescind Sale, Return Title To Home

In Chico, California, the Chico Enterprise Record reports:

  • Very soon, Jan Poythress should once again hold the title to her home in northeast Chico, her attorneys said last week.


  • Faced with hefty debts, Poythress fell prey to a persistent salesman who convinced her over the phone to take out a loan she could not repay. When she didn't make the loan payments, several companies that were involved took legal action against her. As a result, one firm, Instant Mortgage Lending of San Diego, foreclosed on the home, took possession of it, and tried to evict Poythress.

  • Lawyers from Legal Services in Northern California,(1) which is based in Chico, blocked the eviction. Evanne O'Donnell, managing attorney for Legal Services, said Poythress got invaluable pro bono help from two private attorneys, Douglas Jacobs of Chico and Wayne Silver of Sunnyvale.

  • The lawyers sued Instant Mortgage Lending, accusing it of fraud and "predatory lending," which, among other things, refers to lending without regard for a borrower's ability to repay.

  • Jacobs said last week a settlement had been reached in the case, in which Instant Mortgage agreed to rescind the foreclosure and return the house to Poythress. Jacobs said Silver has demanded that Instant Mortgage make good on its promise and return the title to Poythress.

For more, see Chico woman wins fight against "predatory lender" to keep home.

(1) Legal Services of Northern California is a federal, state and local-funded legal services program providing civil representation to low-income clients in 23 counties in Northern California.

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