Bank of America has been practicing unlawful and illegal practices for years, according to a recent class action lawsuit filed by thousands of borrowers. The bank is guilty of repeatedly violating the Fair Debt Collection Practices Act (FDCPA), court rulings, Fannie Mae’s governing guidelines, and the rights of American borrowers. Bank of America is being deceptive, misleading, and unfair in its servicing of its home mortgages, the complaint maintains. The class action lawsuit is seeking compensation for past and future losses suffered as a result of Bank of America’s predatory lending policies, illegal foreclosures, and abusive servicing practices.
Bank of America’s deceptive policies have devastated the housing market and forced millions of homeowners into foreclosure. The class action lawsuit contends that Bank of America has been illegally denying mortgage payments to eligible borrowers in order to force them into bankruptcy. In addition, Bank of America’s foreclosure policy violates the right of redemption, which allows borrowers to reclaim their homes after they have been illegally foreclosed upon. Bank of America’s foreclosure policies also allow for late fees and other legal fees to be charged to borrowers in attempts to force them into mortgages, which Bank of America knew were illegal and therefore forced borrowers into default and foreclosure.
Bank of America’s illegal foreclosure policies enabled it to acquire more property than it actually had on hand, thereby increasing its risk of loss. Further, Bank of America’s failure to perform required property inspections on its foreclosed properties resulted in many homes being unnecessarily foreclosed upon, pushing further costs onto Bank of America borrowers. Further, Bank of America’s refusal to perform required home loan repairs and maintenance releases a substantial additional burden upon borrowers. Finally, the class action lawsuit contends that Bank of America’s refusal to carryout necessary home loan modifications increases its risk of loss even further, forcing further losses on Bank of America borrowers.
The basis of the complaint is that Bank of America’s policies, which are unlawful, caused it to lose money during the time it owned these illegally foreclosed homes. To amend its policies, the bank must first implement a plan to carry out required home loan repairs and maintenance, which would increase Bank of America’s assets and reduce the number of foreclosures. However, Bank of America did not comply with its obligation to make these necessary repairs and maintenance releases prior to foreclosing on the properties. As a result, as a direct result of Bank of America’s unlawful conduct, millions of Bank of America borrowers have been subjected to unlawful foreclosure, which increased Bank of America’s overall losses during the time it owned these properties.
After Bank of America’s announcement that it would not pursue an agreement to modify the terms of its mortgage loans in light of the financial crisis facing America, the complaint was filed against Bank of America by the United States attorney general. On December 4th, Bank of America received a complaint of a class action in a U.S. district court in Manhattan, New York. The complaint was also accompanied with an estimate of approximately $1.75 billion in damages. In response to Bank of America’s decision not to negotiate with the United States government to modify the terms of its mortgage loans in light of the financial crisis, the bank filed a motion to dismiss the complaint.
On December 9th, the complaint was granted class action status by the court. On January 3rd, the court ordered Bank of America to reimburse the United States government for damages incurred due to the bank’s inability to comply with the provisions of the FHA guidelines. The government will also award Bank of America losses based on the amount of money the bank misjudged in its home loans. The court found that Bank of America’s filing of fraudulent bills was made in bad faith, contrary to the proper administrative practices of the bank. Also, the bank repeatedly violated the provision of the Real Estate Settlement Procedures Act (RESPA). The RESPA Act restricts certain transactions in home loans, requiring the bank to give advance notice of its intent to foreclose, and provide an opportunity for the borrower to settle the loan prior to the foreclosure.
Where do I find more information on this lawsuit?
Can I do anything to bank of America for erroneously foreclosing on my property in Paulden Arizo0na in 2008?