The bank of America is facing a massive bank of America foreclosure lawsuit containing explosive declarations made by former employees. It is the result of a consolidation of 29 lawsuits filed against the bank and is seeking class-action status. The lawsuits allege that the bank failed to follow its standards by improperly allowing homeowners to go through trial modifications under the government’s Home Affordable Modification Program (HAMP). The trial period for HAMP was supposed to last three months but often stretched much longer than that.
Thomas filed a bank of America foreclosure lawsuit
A Nevada attorney general has filed a bank of America foreclosure lawsuit. Top prosecutors are investigating the bank’s use of Robo-signers, which sign hundreds of documents each day. The documents are sworn to the court. The lawsuit alleges that the bank knowingly mistreats borrowers by delaying or denying loan modifications. The lawsuit also alleges that Bank of America paid employees bonuses to push homeowners into foreclosure.
In the suit, Thomas and Bindu Varghese, along with several others, claim that Bank of America is ignoring their legitimate mortgage default. Both failed to make their mortgage payments on time, and Bank of America eventually sold the home using a nonjudicial foreclosure. The plaintiffs are seeking more than $1 billion in damages. The lawsuit has a high success rate and is being watched carefully by the government.
Bank of America settled
A bankruptcy judge rejected a proposed Bank of America settlement after deciding that the mortgage company had wrongly foreclosed on the home of a California couple. The court ordered Bank of America lawyers to renegotiate the settlement. If the judge approves the settlement, it would end a bitter battle the Sundquists have been fighting to save their home since the recession hit the housing market. Now, the couple can look forward to receiving a settlement worth $69 million.
The Bank of America settlement involves two separate federal actions relating to its foreclosure practices. The federal government and 49 state attorneys general crafted a settlement that provided cash payments to affected homeowners. The borrowers received checks for an average of $1,480 each. Most of those affected received $500 or less. In the previous case, the Bank of America settlement was only part of the settlement. A recent report from a monitor of the foreclosure process for Bank of America alleges that the company did not comply with federal mortgage rules.
Bank of America faces civil charges
A foreclosure lawsuit filed against Bank of America has uncovered several instances of reckless behavior on the part of the company. In one such case, a Bank of America contractor entered a home while the borrower was not home, cut water lines, damaged flooring, and poured antifreeze into sinks. While Iannelli was away, the contractor reportedly cut through her walls, electrical wiring, and water lines to gain entry.
Other instances of wrongdoing include a lack of communication between the banks and borrowers. The failure to respond to borrowers’ complaints about missing or stolen documents, or failing to provide documents required by law could result in criminal charges and/or civil penalties. Banks that did not respond promptly to complaints of improperly filed documents may face criminal or civil liability. Meanwhile, cities were robbed of tax revenue as vacant homes sat on their streets. Lastly, cities were forced to provide police and fire protection for vacant homes.
Bank of America violated standards it promised to abide by
The federal government recently settled a case alleging that Bank of America violated the foreclosure laws and standards it had previously promised to follow, resulting in a $5 million settlement with the bank. This settlement covers two cases: one in which the federal government intervened in a foreclosure lawsuit filed by the plaintiff, and one in which Bank of America was accused of failing to properly communicate information to mortgagees and failed to comply with requests for information.
A Miami foreclosure lawsuit against Bank of America has added the bank as a cross-defendant. Miami-Dade Circuit Judge Bronwyn Miller added the bank as a defendant and set a hearing for Monday. Jacobs alleged Bank of America committed criminal contempt of court and breached the RICO Act. The bank cited a Florida case in which a court allowed an adversary to “go on a fishing expedition,” which was found to violate discovery rules.
Bank of America mistreated struggling homeowners
According to a recently filed lawsuit, employees at Bank of America lied to struggling homeowners seeking loan modifications and then rewarded them by pushing them toward foreclosure. Six former employees said that Bank of America ignored their application and told them they would not be able to qualify for loan modifications. They were also paid bonuses for pushing struggling homeowners toward foreclosure. The bank was accused of using an opaque and unfair foreclosure-avoidance program to enrich its executives.
The homeowners’ case also details how Bank of America mistreated them by not returning phone calls, making false claims about loan status, and taking action toward foreclosure without first informing them. Bank of America’s scheme allowed struggling homeowners to suffer in desperation for months while holding out the carrot of federal assistance. This is a common theme in these cases, and one could understand why these homeowners are angry with the bank.