Robbie Hargett Feb. 23, 2016, 2:28pm


SACRAMENTO, California (Legal Newsline) - Eleven U.S. citizens are suing a loan servicer and its affiliate, alleging they illegally charge fraudulent "property inspections."

Eugenio and Rosa Contreras, William and Melva Phillips, Teresa Barney, et al., individually and for all others similarly situated, filed a class action lawsuit Feb. 12 in U.S. District Court for the Eastern District of California Sacramento Division against Nationstar LLC, Solutionstar LLC and Does 1-1,000, alleging breach of contract, unjust enrichment and violations of consumer protection statutes in several states.

The suit states Nationstar and its affiliate, Solutionstar, use an automated default servicing platform to illegally, unfairly, fraudulently and repeatedly charge defaulted loan borrowers multiple "property inspections" that are not required by lenders, not permitted by lender guidelines and often violate state and federal regulations.

  

The complaint states the defendants charge these illegal property inspections in an effort to create as many defaulted loans as possible, as a loan servicer's interest in a defaulted loan is greater than the actual mortgage note owner's interest.

The plaintiffs and others in the class seek compensatory and exemplary damages, injunctive relief, restitution, interests, attorney fees and costs. They are represented by attorneys Dean Kawamoto, Derek Loeser, and Gretchen Obrist of Keller Rohrback in Seattle, and by attorney Thomas Eric Loeser of Hagens Berman Sobol Shapiro in Seattle.

U.S. District Court for the Eastern District of California Sacramento Division Case number 2:16-CV-00302-MCE-EFB

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U.S. District Court for the Eastern District of California
501 I Street
Sacramento, CA 95814

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