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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dawn 2 months ago
countywide originated Heloc w.non-disclosure of the terms of 10 year interest only, payments doubled thereafter BOA filed an assignment at countempty clerk office in 2015 when they actually began servicing in 2008, the entire time, I attempted to get loan mod. to no avail and they refused to change by due date to coincide with my SSD so incurred late fee every month, now they are attempting to foreclose and just last week provided an endorsed note previously no endorsement, BOFA is using Bank of NY mellon, trustee as plaintiff when I have a letter from BONY stating "we have no legal right to foreclose on your as" I have a great attorney in NJ that had my first mortgage foreclosure dismissed, which was made easy by the blundering foreclosure mill atty Buckley Madole who messed up the assignment dates and they did not coincide the three "new" notes brought in as evidence. Before that, these dummies tried to foreclose in front of my first mortgage, extorted $8000 from me and refiled foreclosure using KLM Law Group, who had to change their name to hid their previous misdeeds what I want to know is if my loans were securitized, and note was turned into certificates, how is it that no one is arguing the fact that once a note is securitized it must be destroyed per IRS, SEC and NY trust law, and if not, they are double dipping, which is securities fraud.?? am I missing something here, as this is quite obviously a blunder that has yet to be argued as far as I know.
sherry rolfe 6 months ago
initial purchased a home with country wide ,after purchsed of the home ,within 3 days of purchase that I was lied to pertain to home country wide stated they will assist me with the home buy giving me the options of them taken the home back , or assist with a new HOME. THEY LIED when BANK OF AMERICA took over the loan I TOLD THEM MY STORY ABOUT COUNTRY WIDE I HAVE BEEN PAYING ON A HOME AND NEVER BEEN ABLE TO LIVE IN IT SHAME ON COUNTRYWIDE AND BANK OF AMERICA WHAT HAS HAPPENED TO CREDITABILITY AN HONESTY IN THIS WORLD NOT BOA TO MAKE A LONG STORY SHORT ME AND MY FAMILY HAVE BEEN HOMELESS ,AND I WORKED HARD FOR US TO HAVE A HOME ONLY TO BECOME HOMELESS.
Kimberly Sturgis 7 months ago
Bank of America called me several times during my nervous breakdown telling me I was foreclosing and all I had to do was sign a document to start a quick sale so I could at least get out from underneath the loan and profit $3000. They called me back and said everything is going well at call this appraiser"David" who appraised my $90,000 home at $19,000! Which didn't matter to me because I was moving out since I couldn't afford it on my own, however, I never signed any documents to start a quick they must've forged my name! This was approximately 2007
BOA lost my mortgage and I lost $108,000 while they finally found it,even though they forclosed on me. Terrible! Ned help, and I am disabled. Bernard R, Garthe Annandale MN 2 years ago
BOA lost my mortgage in the tune of $108,000.00 Then they foreclosed on me with a ridiculous sale to another Bank, and a low below average that was way below the market. Something has to be done! Thank you. 612-222-5643
Jerri 2 years ago
Was told by BOA that I was three months behind when they raised my mortgage payment I had been paying for 8 years without my knowledge. Sent in paperwork for a modification and my payment went up again. Undue stress and no sleep is playing havoc with my sleep. Now I owe more than what I started with 8 years ago!
Cmthomreg 3 years 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 3 years 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 3 years 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 3 years 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 3 years 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, 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 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?

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