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The Honolulu Advertiser
Posted on: Friday, August 28, 2009

Singer sues bank in foreclosure


By Curtis Lum
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Todd Rundgren

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A singer who gained popularity in the late 1960s with the song "Hello It's Me" has filed a lawsuit here against a Washington-based bank, asking a judge to stop the financial institution from foreclosing on his Kaua'i home.

Todd Rundgren filed the complaint Wednesday in state Circuit Court and alleged that representatives from Washington Mutual misled him and his wife, Michele, when the couple refinanced a loan on their property in Kilauea. The lawsuit, filed by attorney Gary Dubin, lists as defendants Washington Mutual Bank and JP Morgan Chase, which acquired WaMu in September 2008.

The Rundgrens are asking for a temporary restraining order to halt foreclosure actions, as well as an undetermined amount in damages and attorneys fees.

Tom Kelly, spokesman for Chase, declined comment because of the pending litigation.

The Rundgrens allege they refinanced a mortgage on their Kaua'i home in February 2008 for $3 million. But they said WaMu representatives created a false loan application that exaggerated their gross monthly income and then tricked them into signing the application.

The lawsuit did not state how far behind the Rundgrens are in their mortgage payments. But Dubin said because of the terms of the loan, his clients were unable to keep up.

"They just found themselves in a loan, which was in terms of their terms, were different than what they had thought and it was just a mess," Dubin said yesterday.

He acknowledged that the Rundgrens did not read the mortgage document at the time they signed it, but he said very few people do.

"I can tell you this: I never read mine either," he said. "The clients who come to see me, the single word they always use is 'trust.' They trust the loan broker who was so nice to them. They trust that it was a big-looking company."