Homeowners in southern Nevada who have found themselves caught up in the current foreclosure crisis have filed a class action lawsuit to prevent further foreclosures, and to get restitution for those who've already lost their homes.
The lawsuit has been filed against the California bank Indymac, which was bought out by OneWest Bank, after facing potential bankruptcy itself at the beginning of the crisis.
The suit alleges that Indymac did not deal in good faith with customers borrowing money and used deceptive and unfair practices, such as focusing on minority groups and selling them loans the bank knew those clients couldn't pay.
One plaintiff, Luis Benito, secured a loan through Indymac and was told that the monthly payments would never exceed $2000. "Then I get this letter saying that my payment was going up on the first from $1,700 a month to $2,700 a month," he told Channel 8 Las Vegas Now Eyewitness News. Benito could not afford the increased payment and ended up in default of his loan.
Even then Indymac allegedly led him to believe he could save his home, indicating by letter that they would contact him within 30 days with a decision. However, Indymac reportedly never contacted Benito and his home was sold.
The suit could potentially involve tens of thousands of people.