Lender Wrong About Foreclosed Homeowners' Liabilities: Suit

Law360, New York (July 19, 2012, 2:41 PM EDT) -- A California man on Tuesday filed a proposed class action against Ocwen Loan Servicing LLC, alleging it gave credit agencies false information that he was liable for the difference between his mortgage and the price for which the home sold after it was foreclosed.

Jeffrey Kuns claims the California Consumer Credit Reporting Agencies Act prohibits “deficiency liability” for people in his situation, in which he had a nonjudicial foreclosure and the home was used by less than five families.

Kuns says he bought a house in...
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