The New York Times’ Gretchen Morgenson wrote a great article last month rounding up a number of recent cases of bankruptcy court judges doing what the government seems unable to do: reviewing how and why homeowners are losing their homes, and holding lenders and servers responsible for their bad acts. The article covers the Louisiana case I wrote about yesterday, plus two others in Delaware and New York. The New York case is especially interesting to me because I have a current client dealing with exactly the same issue: the lender refused to accept a payment made by a borrower in bankruptcy, then tried to take action against the borrower for not making the payment!

Lenders have gotten away with these abuses for a long time, but I think these recent decisions show that the pendulum is beginning to swing back in favor of the consumer.