The defendant borrowers had moved for summary judgment dismissing a mortgage foreclosure action and directing the lender “to modify its mortgage in accordance with the terms of a trial period modification plan” (TPP) offered by the lender under the Federal Home Affordable Modification Program (HAMP) and an order waiving all interest accrued on the loan from implementation of the HAMP offer to the resolution of the action and “expunging any alleged deficiencies in payment.” The court denied the defendants’ motion.

The borrowers had obtained a mortgage in connection with the purchase of their home in 2004. The borrowers sought a “judicially imposed loan modification and other relief” pursuant to the TPP, which had been entered into in September 2009. The borrowers cited “deceptive and bad faith conduct on the part of the plaintiff and its representatives in corresponding with the [borrowers] in connection with their unsuccessful attempts to secure a permanent modification of the…loan” (modification) and “the plaintiff’s bad faith and prejudicial conduct in prosecuting this action other than in accordance with court rules and notions of fairness and justice.” The borrowers had paid “principal, interest, taxes, insurance and escrow” until May 2009. When they experienced financial difficulties in 2009, the defendants began a 27-month “pursuit of a modification….”

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