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Classes Claim Illegal Fees in Foreclosures

CLAYTON, Mo. (CN) - Four companies, including GMAC Mortgage and BAC Home Loans charge illegal attorneys fees during foreclosures, according to two class actions in St. Louis County Court.

Lead plaintiff Mimi Fowler filed both class actions, one against BAC Home Loans Servicing, Kozeny & McCubbin LC and Kozeny Lenders, the other against GMAC Mortgage, South & Associates PC and South Lenders.

Fowler says Missouri law limits compensation for a trustee's services to a commission on the amount of sale: 2 percent of the first $1,000, 1 percent of the next $4,000 and 0.5 percent of any amount over $5,000.

She says the defendants charged attorney's fees for legal work connected with the foreclosures. She says she paid $650 in attorney's fees in November 2009 and another $520 in attorney's fees in December 2010 to reinstate her mortgage.

The class consists of all Missourians who reinstated their mortgage loan and paid attorney's fees in foreclosure proceedings for Missouri real estate from Nov. 7, 2006 to the present. Fowler seeks actual damages and $3,000 in punitive damages for each class member. She estimates that both classes number in the thousands.

She is represented by Jonathan Andres with Green Jacobson, of Clayton.

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