Bank of America Smacked with Foreclosure Fraud Lawsuits

Sunday, March 11, 2012

Update: The editors of AllGov would like to thank all the people who have been sharing their Bank of America loan stories on this page. To learn more about the government’s limited attempt to help distressed homeowners and how to apply for a review, please look at this story: Government Accused of Allowing Bank of America to Investigate Itself about Foreclosures.

 
Although Bank of America (BoA), along with other big banks like Wells Fargo, Citibank, Ally/GMAC and JPMorgan Chase, recently reached a very favorable settlement of potential criminal fraud charges related to their mortgage lending practices, two recently unsealed civil fraud lawsuits against BoA reveal they may not be out of the woods just yet. Such whistleblower suits allow individuals, usually former employees, with knowledge of fraud committed against the federal government to bring suit on its behalf and collect a portion of any damages awarded. The federal government has until March 16 to decide whether to intervene in these suits on the side of the plaintiffs.
 
Two such fraud suits filed against Bank of America shine a bright light on abuses in the mortgage industry that led to the 2007 housing crash and continued as late as 2011. In a case filed in July 2011 and unsealed March 7, former BoA subcontractor employee Gregory Mackler alleges that BoA misled borrowers to keep them from participating in the taxpayer subsidized Home Affordable Modification Program (HAMP), because mortgage modifications cost BoA money.
 
Among the tactics allegedly used were stalling the review of applications by assigning them to employees who were on vacation or who had actually already been fired. Concerned borrowers were also told that their complaints were still being reviewed when in fact they had secretly been labeled as “incomplete.
 
Bank of America also violated a promise, made by BoA to the federal government as a condition of getting $45 billion from the federal bank bailout, to help borrowers get into HAMP, when the bank was actually pushing borrowing to accept non-HAMP loans at worse rates. This conduct, argues Mackler, made “a mockery of a program designed by Congress and the Treasury Department to help millions of struggling American homeowners.”
 
In another whistleblower case filed in 2009 and unsealed in February 2012, former BoA subsidiary employee Kyle Lagow alleges that Countrywide Financial Corp., now owned by BoA, created a scheme to inflate housing prices by manipulating property appraisals, ultimately leading to more foreclosures. Those inflated prices, the complaint alleges, included thousands of Federal Housing Administration backed loans, the default of which cost the federal government money.
-Matt Bewig
 
To Learn More
New WhistleblowerCcases Allege Continued Bank Fraud (by Amy Biegelsen and Emma Schwartz, iWatch News)

Bank of America Forecloses on Houses without Mortgages (by Noel Brinkerhoff and David Wallechinsky, AllGov) 

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Comments

Cmthomreg 5 months ago
After being laid off we applied for a modification through BOA. 13 months later and numerous run arounds from BOA we received a letter from BOA that they would no longer accept our partial payments. These were trial payments we were told to continue paying from CS at BOA. We then were told we had to come up with 30,000.00 or we would be in foreclosure. We never received a notification of decline on our modification. We hired an attorney and after 3 years are going to trial on Monday. Now our modification is being looked at seriously by BOA and they are asking for a delay so they can get it through the system. Our attorney has told us that most of the time the judge is siding with the banks. Am I crazy or are the judges being paid off!!!!
Deb McElfish 5 months ago
Was with Countrywide, sold to BOA, did loan mod with thousands of $$$ fees tacked on, and no lowering of interest rate. Felt I had no choice, it was either accept their terms or pay ALL fees due(accumulated during modification). How was this helpful or legal????
vanessa 6 months ago
OMG, I have been a victim; I worked my way from 49,000 which they said was not enough to present 125,000. paying a majority of bills and my son and mother would contribute making house hold income of 180,000 and the mortage is at 7.5% 2,394 monthly. I paid substantial amount of my debt as indicated. next year I will be debt free. I have bee fighting with them for 3-4 years.No one knows the regulations...2009 freddie Mac said no LTV and Limit paper work. BOA said 2009 I was too debt heavy and needed to show I could pay...I was asking for 18 months and then to be placed at my orginal mortage or modify what I owed would be placed at the end...Now the money I saved I have to pay a lawyer...this is crazy.
Anna 8 months ago
My Sister was a victim of the Home Loan Mod. program, She was approached in her mortgage monthly bill saying since you had excellent credit you may qualify for a lower interest rate. (of coarse who would not want that, her husband was laid off at this time as well, so she looked into it) Now mind you their mortgage was through CountryWide, then sold to BOA in 2008 from what I gathered. They were never late on their mortgage! They had excellent credit. Up until they said if you would like to pay 6 mon. trial we then will be able to see if you qualify for the home mod. loan. Everything was going fine, paid the amount they said, next thing I know months later she gets a FORECLOSURE letter saying she is 6 months behind, and owes the total of 1700.00 before such a date. Months of conflict over this issue, even after the 1700.00 was borrowed from family members to try to save not only her home but it was the family home for decades! Still after paying the monies they said that they were behind on, still constant harassment daily calls and staying on HOLD for HOURS only to be transferred to someone who said oh the papers got lost? or we didn't fill in something etc.. my sister then went to a Representative in our area for much needed assistance, The file was left with their office, she got a letter from them stating they would be looking into this for her and get back to her in 2 weeks. It was fannie mae freddie mac related issue. Unfortunatley, my sister could not take the constant pressure of losing her home, and not being able to fight them any longer, she ended up in the ED with a Nervous Breakdown triggered by the immense stress Bank of America put on her for months..weeks etc. The Rep never was able to get back to her as far as I know, for she did not make it the additional 2 weeks, before her mental state was totally disabled by the stress they inflicted upon her. Do to this there was a violent incident with her husband on the morning of Nov. 7 2010, which she does not remember happening, however it is stated in the ED report she was admitted for bizarre behavior with psychotic features, she apparently hit her husband with a bat. They had NO MARRIAGE troubles in the past, were a loving happy couple. Due to this inpatient stay that lasted 32 days, she endured 17 forced medications, forced ECT treatments, and has been going to out patient at another facility for 3 years ever since this incident that was caused no doubt by Bank of America Harassment, they are mentioned through out her care as the financial stressor that was the trigger of her mental state. SHE HAD NO HISTORY OF MENTAL ILLNESS OR DEPRESSION, Or VIOLENCE. Her husband could not understand what had happened to his wife mentally, filed for divorce in March 2010. She was not allowed home ever again when she was discharged. The house was sold in the divorce before foreclosure could take it away, they were paid off, and so was citi bank for the home repairs made. they were forced to sell the house at a loss, and walked away with 2,000 dollars each, which had to go to the divorce lawyers. They WERE married over 25 years! IS THERE AWAY TO SUE BANK OF AMERICA FOR WHAT HAS HAPPENED TO MY SISTER'S LIFE. HER FAMILY WAS DISMANTLED, HER MARRIAGE LOST, HER HOME, AND HER 16 YEAR OLD BECAME LIKE A ORPHAN DUE TO WHAT HAD HAPPENED, AND LIVED ON THE STREETS FOR 2 YEARS! PLEASE....ADVISE. I CAN TELL YOU THIS THE MEDICAL REPORTS ARE IN ORDER, AND SHE DESERVES SOME KIND OF COMPENSATION. SHE ALSO NOW SUFFERS FROM BRAIN DAMAGE due to the entire ordeal of being over medicated in the inpatient to get her stable, and also the ECT shock treatments of 12 ordered. 3 administered into a otherwise Healthy woman 43 years old. She also was on the medication zoloft, and weaned off it slowly aprx. 2 months before the incident happened with her husband, HOWEVER, FACTS ARE AND ARE IN HER RECORDS. WAS ON ZOLOFT FOR 14 YEARS, FOR IBS (irritable bowel syndrome) Pain!! Not Depression or mental illness of any kind!
Renee Fields 8 months ago
I have been a homeowner for 17 years, never late or missed a payment. 3 years ago I became ill with a heart condition that required immediate attention. Current on my payments with BOA, I called them to tell them of my situation and upcoming trouble to make our mortgage payments. The representative I talked to said because we were current there were no programs available to us. She recommended we miss 2 payments to become elgible. So I did. The harassing phone calls started from BOA, I continually explained the situation and was told by BOA representative that we don't qualify for any of their programs. With utter shock, I didn't know what to do-so much stress, I am facing multiple heart surgeries, have 2 small children, am young with a bright future(a nurse myself), a great credit score..all gone just like that. BOA started foreclosure process-I requested a mediator, which was unsuccessful. The modification that BOA offered was 400.00 higher than my original payment. I started noticing that there are many questionable statements that they would send with the amounts owed, arreages, etc..red flags waved brightly. I applied to work with SAVE THE DREAM, and guess what BOA did? they sold our loan to another bank, court date was changed 4 times due to this new bank. On their statements that they started sending, the amounts did not match with BOAs amounts for arreages, payoff amounts, etc.. How the hell do they come up with these figures? Getting ready to go to court with this new bank and guess what? they again sold the loan to another bank putting me further behind almost to the point where I have barely a chance to pay arreages..then my husband got prostate cancer. I had already been thru 2 heart surgeries in a year, my kids are stressed, dx with anxiety, so I agree to a short sale. instead of it relieving stress it actually caused more. My kids don't want to move, we don't want to lose the home we built. in the short sale they will take a 100 grand loss, why cant they work with us at the short sale price? there should be some laws put in place-this should be illegal. the banks screw us anyway we turn..instead of bailing them out the gov should have bailed the americans out..so now, I am cancelling the short sale, iam gonna sue BOA and I am gonna fight for my house..they will have to drag me out of here..i don't know how they sleep at night knowing they are taking homes from kids, from families that have so many memories, that really don't want to lose their homes. how is that freedom, liberty or justice?
Cynthia 10 months ago
My boyfriend put my name on his house. I agreed with this arrangement. Wanted to help him because his wife passed away young and he was left with their two young children. Ages 6 and 10. Four years later I found myself with two children and their Daddy, working full time and maintaining my new family and roll as a substitute mommy. It doesn't stop there. I was diagnosed with Multiple Sclerosis 8/2008 and one month later lost my job at Kumon North America. Outstanding employee and never missed a day of work due to my new challenge in life. We knew I would never work again because of the horrible treatment from Kumon North America. So we were asking BOA for help before we started to fall behind. Never late on the Mortgage or Credit Cards. BOA said we didn't need help because we were not behind in payments. So now with repeating yourselfs over and over and over of our situation and submitting the same paperwork over and over and again we have been informed of being in foreclosure. Two kids, dog, Daddy and I will be losing a home with many memories. Only house the children ever lived in good and bad ones as their Mommy died there from congenital heart failure. So I want to thank BOA for their lack of compassion. Not wanting to answer questions nor help us as a family who has worked hard to keep us a strong healthy family. Note both children have finished college and they will succeed in life due to their father's fine examples. Now to find a home for four people and a much loved dog I look to heaven for continued strength to keep a smile on our faces and not to become harden towards anyone.
Mike H 11 months ago
B.O.A (Bunch Of A--holes) is my nick name for them, they strung me along on a modification that appeared to go through at first then all of sudden it was denied for no apparent reason. After that they kept me chasing the bone that was on a pole dangling it in front of me making me think i was going to finally reach it for three years.After receiving foreclosure letters from there attorneys I finally put my house up for a short sale and it sold for a fraction of the cost owed.
jim T 11 months ago
going on 4 years of utter dishonesty from B (S) of A, for now Ive become the poster child for all their illegal practices (dual tracking ect). There latest and greatest scam is the goal roping policy of hooking you up in a re-mod that earns them in the neighborhood of 165,000 more over the course of the new loan, at the same interest rate. But THEN after they hide and you feel forced to sign it, turn it in in a timely manner, they refuse their own deal, because they didn't read your court docs, then refuse your payments because of some guy on the west coast I was told in 3 hrs. of run around phone talks on the west coast. Then for the next months trying to trick you (like in dual tracking) of false income statements cos they think your in a 13? Then jamming their mod thru a judge withholding the damming evidence, and its approved, just one problem---- your NOT in a BK. then try to collect for ten months of refused payments then posting for a lien sale because they and the 2nd (little brother greentree, originally theirs, and both formally countrywide loans) were p8ushed thru at the chapter 7 deadline. What a great bunch of people. consider that when you brag about your b of a profits warren buffet....
Tom larson 1 year ago
I had some friends that were going to walk from there home financed with Bank of America in April 2011. I didn't think the should do that since the home could be rented to cover the cost of holding it. Any way long short they bought a new house in GA. April 2011 we made an agreement with attorney and it was signed and notarized the same month. Basically Tile goes in my name and they keep the mortgage in thiers since the house is upside down. I've been making the payments since then and the Quit Claim deed was filed by the county a few weeks later. May 2011 August 2011 they do a loan modification and of course want me to send them the difference in payment. I know there is a lot wrong here, can Bank of America be held for any thing since they should have checked before they closed that there customers no longer owned the home?
james a. 1 year ago
I have been dealing with bank of america for like 36 months trying to get my mortgage modified to a payment that I can afford every month since my better half lost her job and had to go on ssi. They keep telling us that they want to help us keep our home but it is a bunch of bull, because it is the same old same old all the time with this bank they took the bailout money but are not helping anybody from what I under stand. Can anybody please tell me how to join in on the lawsuit against boa, or why do the big wigs of boa need such a big bonus at the end of the year while everybody in this country is trying to survive pay check to pay check.

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