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Snyder Law Firm Files Class Action Lawsuits Against National Banks for Overcharging Foreclosed Homeowners

by | Firm News

OVERLAND PARK, KS – September 30, 2020 – Homeowners who have just lost their homes in foreclosure proceedings are always in a financially vulnerable situation—yet those are the victims who have been defrauded of hundreds and sometimes thousands of dollars each in a series of class action lawsuits filed by Snyder Law Firm LLC. Seven large national and regional banks are defendants in the cases that have been filed in Kansas federal court.

The lawsuits allege that the banks overcharged numerous foreclosed homeowners over many years. The overcharges took place when the foreclosed homeowners “redeemed” their properties—essentially bought back the properties from the banks after the banks bought the properties at foreclosure sales. The lawsuits allege that the redeeming homeowners were charged for a full year’s worth of hazard insurance on the properties, even though only a few months of insurance are typically needed. The banks were likely reimbursed for the unused insurance, but instead of giving those reimbursements to the foreclosed homeowners, the banks kept the reimbursements as an undeserved windfall.

The defendant banks include Wells Fargo, U.S. Bank, Bank of America, NationStar Mortgage, CitiMortgage, Bank of New York Mellon, and Fidelity Bank. The lawsuits allege that the unlawful bank practices have taken place in Kansas, but the lawsuits assert a national class as well, which would encompass other states where foreclosure redemptions are permitted. Snyder Law Firm LLC—which focuses on complex commercial litigation and other litigation matters—is working with Stueve Siegel Hanson LLP in prosecuting the cases. Stueve Siegel Hanson is based in Kansas City, Missouri, and is a national litigation firm that has recovered billions of dollars in damages and relief for its clients in class actions and many other types of cases.