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Predatory Mortgage

Mortgage Servicer Accused Of Pushing Homeowners Onto Its Auction Site

When Benita Guzman moved from the San Joaquin Valley to Southern California to be closer to family, she was confident that her husband, Alfonso, would find work as a carpenter. The couple bought a $370,000 home in San Jacinto, California, in 2006 with $50,000 in savings, including money withdrawn from Alfonso’s retirement account. But the housing bubble burst the following year. “Nobody was building houses anymore,” remembers Benita, 66. She took various jobs working in payroll, including on Native American reservations, but the couple was ultimately unable to keep up with mortgage payments. The Guzmans managed to hold on to their home for another decade, finally defaulting on their loan in 2018.

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