Menu
Talk to a Bankruptcy Lawyer Today.
Evening and Weekend Appointments Available.
513-621-7902

Bank of America's Loan Modification Practices Result in Lawsuit

On Friday, Bank of America was slapped with a lawsuit by two state attorneys general. They are accusing the mortgage-lending giant of fraudulently dealing with homeowners who requested loan modifications for their home mortgages.

In Friday's lawsuit, the attorneys general for Nevada and Arizona have accused Bank of America of a multitude of fraudulent practices against homeowners. They allege Bank of America had a practice of promising homeowners that they would not be foreclosed upon while they were trying to obtain a loan modification, but proceeded with foreclosures anyway. Bank of America is also accused of falsely informing customers that they could not obtain a loan modification unless they were in default on their loans. Additionally the lawsuit alleges Bank of America had a practice of backing out of loan modifications after a trial period and fabricating reasons for denying loan modifications.

This lawsuit comes as attorneys general across the nation are conducting a coordinated investigation into the practices of mortgage lenders. Investigators believe many lenders had sloppy and inaccurate paperwork policies on documents that were used in foreclosure cases. The robo-signing controversy involved bank employees using automated signatures on hundreds of documents each day that were supposed to be sworn declarations in support of their foreclosure proceedings.

The lawsuits also allege that Bank of America's actions were not confined to just Arizona and Nevada and that their practices extended to mortgages throughout the country. Across the country, borrowers are reporting frustration with the loan modification processes of lender banks.

While loan modifications are one possible means of stopping foreclosure proceedings, there are other options available, including filing for bankruptcy. If you have questions about stopping foreclosure, an experienced bankruptcy and loan modification attorney can inform you of your options under the law.

Source: The New York Times, "Two States Sue Bank of America Over Mortgages," Andrew Martin and Michael Powell, 12/17/2010

No Comments

Leave a comment
Comment Information

Contact The Rose Law Office Today For A FREE Initial Consultation

Phone 513-621-7902
Fax 513-621-6402

Office Locations

The Rose Law Office
35 East 7th Street,
Suite 610

Cincinnati, Ohio 45202

Phone: 513-621-7902
Fax: 513-621-6402
Cincinnati Law Office Map

The Rose Law Office
6020 Cheviot Road
Colerain, OH 45247

Phone: 513-621-7902
Fax: 513-621-6402
Colerain Law Office Map

//