Mortgage Lenders Network U.S.A., based in Connecticut, has sued the Malones claiming they haven't paid their bills. However, the company's lawyer refused to comment on the issue.

On the other hand, the Courts have sided with the Company's claim that the Malones agreed to a settlement to prevent foreclosure. The settlement calls for Mortgage Lenders to get a portion of the fire insurance money.

The settlement demands Mortgage Lenders to get a portion of the fire insurance money. However, Barb Malone says her lawyer has made the settlement without her consent and after firing the lawyer, lost a couple of technical battles in court.

According to the Consumer advocates, the Malone case is not unusual. Geoff Smith with Woodstock Institute said that these cases where Borrowers are making payments or maybe they miss a payment and the servicer doesn't credit their payment in a timely manner and they are consistently behind in their payments and they're consistently in default and they're consistently paying fees and fines.

By M. Sese
http://realestatepress.org