CLASS ACTION LAWSUIT AGAINST BANK OF
AMERICA – BAC VICTIMS CAN JOIN THE LAWSUIT
Bank of America Home Loans
Date Filed: March 22, 2010
Court: U.S. District Court
Ticker Symbol: BAC
Washington homeowners sued Bank of America claiming the lending giant is
intentionally withholding government funds intended to save homeowners
from foreclosure. Hagens Berman represents plaintiffs in the
class-action lawsuit. Attorneys are interested to speak with other
eligible home owners who were intentionally deferred or wrongfully
declined a permanent mortgage adjustment per the Home Assistance
Modification Program (HAMP).
The case, filed in U.S. District Court, claims that Bank of America
systematically slows or thwarts Washington homeowners’ access to
Troubled Asset Relief Program (TARP) funds by ignoring homeowners’
requests to make reasonable mortgage adjustments or other alternative
solutions that would prevent homes from being foreclosed.
Bank of America accepted more than $25 billion in government bailout
money financed by taxpayer dollars earmarked to help struggling
homeowners avoid foreclosure. One in eight mortgages in the United State
is currently in foreclosure or default.
Bank of America, like other TARP-funded financial institutions, is
obligated to offer alternatives to foreclosure and permanently reduce
mortgage payments for eligible borrowers struck by financial hardship
but, according to the lawsuit, hasn’t lived up to its obligation.
Bank of America services more than 1 million mortgages that qualify
for financial relief, but have granted only 12,761 of them permanent
modification, reported the U.S. Treasury Department.
According to the TARP regulations, banks must gather information from
the homeowner, and offer a revised three-month payment plan for the
borrower. If the homeowner makes all three payments under the trial
plan, and provides the necessary documentation, the lender must offer a
Bank of America continues to ignore TARP regulations and instead
creates more financial pressure on homeowners, the court filing states.
The lawsuit charges that Bank of America intentionally postpones
homeowners’ requests to modify mortgages, depriving borrowers of federal
bailout funds that could save them from foreclosure. The bank ends up
reaping the financial benefits provided by taxpayer dollars financing
TARP-funds and also collects higher fees and interest rates associated
with stressed home loans.
If you received an inadequate response from Bank of America for a
home loan modification request after April 13, 2009, you are encouraged
to join the suit.
Please visit: http://www.hbsslaw.com
for more info.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is a consumer-rights class-action law
firm with offices in San Francisco, Seattle, Chicago, Boston, Los
Angeles, and Phoenix. Since 1993, HBSS continues to successfully fight
for consumer rights in large, complex litigation. More about the law
firm and its successes can be found at http://www.hbsslaw.com.
Filed under: foreclosure