Another chapter in the ongoing foreclosure mess started last Friday when the states of Arizona and Nevada sued Bank of America for alleged foreclosure fraud. The lawsuits are very similar in scope, and basically allege that Bank of America engaged in deceptive practices specifically with regard to mortgage servicing, loan modification, and foreclosure.
Arizona Attorney General Terry Goddard said in a press release:
“Bank of America has been the slowest of all the servicers to ramp up loss mitigation efforts in response to the housing crisis. It has shown callous disregard for the devastating effects its servicing practices have had on individual borrowers and on the economy as a whole”.
The Arizona complaint alleges that Bank of America committed fraud in Arizona, and mislead borrowers about foreclosure and loan modification programs in the following ways (quoted from the press release):
The Nevada lawsuit has essentially similar allegations. Nevada Attorney General Catherine Masto said in a press release:
“We are holding Bank of America accountable for misleading and deceiving consumers. Nevadans who were trying desperately to save their homes were unable to get truthful information in order to make critical life decisions”.
It appears that both states are seeking monetary penalties and fines for the lenders. It will be interesting to see if these suits go anywhere, and what else may be turned up in the course of the investigation. As the suit develops I will do my best to keep you up to date here.
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Mary Seip
December 20, 2010 @ 10:54 pm
My daughter is experencing the same problem with Bank of America. Please let me know if you can help her.
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Barbara Ann Jackson
December 21, 2010 @ 3:43 am
Investigate lawyers who unlawfully cause homelessness via deliberate foreclosure fraud
Whether or not some people never should have been given mortgage loans; and whether or not homeowners oppose foreclosures, it is urgently important to look white collar foreclosure activities! Also, illegal, fraudulent foreclosure causes useless deeds for property sales; title insurance denials, blight –and more. http://chn.ge/eU2zAm
Furthermore, some PREDATORY mortgage loans are issued for the very purpose of borrower default so that properties can become flipped, repeatedly (hence blight); and lenders gain tax credits, mortgage-default insurance, and more! Additionally, too often, not only has the lender NOT filed foreclosure, certain homes wound up being flipped by self-dealing foreclosure mill lawyers who execute simulated auctions whereby “straw buyers” fraudulently “credit bid”!
White collar foreclosure fraud entails intentionally fraudulent foreclosures naming defunct mortgage companies, or having no ownership of notes; unfair fees beyond “Acceleration Clauses” that impairs borrowers’ ability to repay arrears; falsified Bankruptcy Court motions to “Lift Stay” for accomplishing”simulated” foreclosure auctions via “straw buyers.” And lawsuits against foreclosure lawyers for fraud and “Unfair Debt Collection Practices,” generates more lawyer fees.
Scores of homeowners do not contest foreclosures because of: not having knowledge of the law in order to recognize legally challengeable foreclosures or fraud; lack funds to pay for attorneys to represent them; homeowners are told to come to foreclosure auctions with money that they do not have, so they stay away from foreclosure auctions. It is extremely troubling that there are families living outdoors, and people strapped with illegal “deficiency judgments” whose homes have been confiscated via real estate racketeering!
Foreclosure lawyers are officers of the court knowledge of applicable laws and civil procedure is not required from mortgage lenders, nor loan servicers. In states that require judicial foreclosures, FORECLOSURE LAWYERS are the ones who file lawsuits to seize and sell property; and lawyers are responsible for filing and recording foreclosure property deeds. *Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers @ http://chn.ge/eU2zAm
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