In the past it was argued that borrowers lacked standing to complain if servicers and lenders failed to modify loans because they were not parties to the Making Home Affordable modication contract between HUD and loan servicers and lenders.

However, Judge Lorenz of the Federal District Court for Southern California has ruled in the Marques case that a borrower is a third-party beneficiary of that modification contract.

Martin Andelman has written about this in his exultant way.

This is only a trial court decision. It is unpublished. Marques has to refile his case because of a technical problem. However, other judges will be able to read this case and look to it as persuasive precedent.