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Ditech's Bankruptcy In Limbo, Opposes Borrower Damages

Ditech is still awaiting a decision on whether or not it will be able to move forward with filing for bankruptcy. As it awaits the decision the company has reportedly objected against paying borrowers damages.

"Plaintiffs in the case against Ditech, which is currently trying to sell Reverse Mortgage Solutions (RMS) as part of a bankruptcy plan, are pushing for the company to pay damages to a class of borrowers and debtors who have allegedly been impacted by the company. Ditech responded Sunday saying it objects to the claims," according to Reverse Mortgage Daily.

"Ahead of the appointed judge’s expected ruling on the company’s bankruptcy plan – on which the fate of the attempted sale of RMS depends – Ditech should be able to remain focused on fulfilling bankruptcy obligations without the additional scrutiny provided by this additional legal obstacle, the company says."

The plaintiffs in the case are seeking monetary damages outside of the proposed bankruptcy plan, according to the report. What happens next depends solely on the decision from the judge.

To learn more about the current legal battle between Ditech and borrowers, click on the image above.

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