Caliber Home Loans and its parent company Lone Star Funds are being sued by one of their vendors over their foreclosure practices, reports HousingWire staffer Ben Lane.
Chronos Solutions, formerly known as Matt Martin Real Estate Management, is accusing the companies of failing to pay approximately $2.9 million in expenses to Chronos for work done on foreclosures owned by Lone Star Funds.
Here’s how Lane explains it:
Chronos’ lawsuit states that after foreclosing on a property, Lone Star Funds uses Caliber to sell the property for the highest price possible, which is often done by repairing and making other improvements to the properties.
That’s where Chronos comes in.
According to the lawsuit, Caliber used Chronos for a variety of services, including obtaining an estimated sales price for a foreclosed property either “as is” or “with repairs.”
Chronos would then present these estimates to Caliber, which would then decide whether to follow Chronos’ recommendation and then whether to obtain bids for the suggested repairs or not.
The New York Department of Financial Services is reportedly looking into both Caliber and Lone Star after receiving complaints from consumers about their foreclose practices.