S.F. Elderly Woman Fights Foreclosure, Predatory Lending
In May 2006, Lopez obtained a third loan on behalf of Session, whose cognitive impairment made it difficult for her to understand the terms of the loan. Later that year, she defaulted on the third loan without ever having made a payment. Ebright recorded a notice of default on the property in 2007, but continued charging fees and interest rates, exhausting the equity left in the home, before filing for foreclosure.
In the end, the loans and fees left Session over $400,000 in debt, court documents say.
Session, said she was
never given proper notice of the foreclosure, and while she was in the hospital, the home was purchased for
$101,000 by the only bidder present -- Ann Ebright.
Both parties signed an agreement for Ebright to return the title to Session in exchange for monthly payments to pay down a $300,000 debt on the home. Kennedy filed a complaint in 2010, claiming elderly abuse, predatory lending, and a violation of the Equal Credit Opportunity Act. However, last week, United States District Court Judge Wiliam Alsup ruled that this case was not in violation of the Equal Credit Opportunity Act due to a two-year statute of limitation.
Since the final loan was filed in 2006, it exceeded the two-year statue of limitation, he said.
Ms. Session got out of the hospital in 2008 and a notice of default had already been recorded by defendants. The home was sold at a non-judicial foreclosure sale in December 2008. Yet plaintiff did not file this action until November 2010.
The judge also dismissed claims that Session was targeted because of her race; however, he is giving her until April 10 to amend her complaint.