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

Anna 5 days 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 1 week 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 2 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 3 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 3 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 6 months 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. 6 months 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.
Louis F DeWeaver III 7 months ago
Bank of America and Wells Fargo have flagrantly violated their obligations under the National Mortgage Settlement in relations to all mortgage modification. Our complain is against Bank of America (the servicer) and Wells Fargo (the owner of almost all of BOA loans) relating to the timeline for processing mortgage modifications, and include failures to comply with requirements such as those providing that borrowers receive written acknowledgement of receipt of a loan modification application within three days. As well as the enormous unexplained fees that they cannot even explain. They continue to use stall tactics and lies to avoid letting qualified families to participate in the loan modification process. I have personally taped recorded phone calls with Bank of America associates outright lying, attempting to discourage me from applying for a modification program, as well as prolonging the process in order to discourage me from continuing the progress. I ask that you join me and go after Bank of America and Wells Fargo for flagrantly violating their obligations under the National Mortgage Settlement in relations to the mortgage modification programs and processes. Bank of America is trying to make money off us during our hardship!! I don't know how they get away with this after our president has given them billions of dollars to help people not make money off people in financial hardship situation. Kept all of your documentation. I recently read an article which was published in Banker & Tradesman about this scam which has happened to thousands of homeowners in the same situation.We are not alone. Many of us do not have the incomes to hire an attorney, but we need to band together and take them down. I'm just another little fish in BOA's shark tank. I only hope that you join me in this fight so the normal working people will not be victims anymore. BOA should not be in business! I feel that we are suffering unjustly due to the misinformation given to us and mistakes made by uninformed and unqualified BOA employees. This is BOA's racket, scamming and defrauding its customers in plain sight. Hello, government, are you listening? The Banks got their bailout, where is ours??????? Sign the petition. www.change.org/petitions/stop-the-financial-terrorists-bank-of-america-and-wells-fargo-from-ripping-off-americans
Johanna Boman 8 months ago
We are currently fighting Bank of America with accusations that we have not made our mortgage payments for May and June of 2013. As B of A has made two serious mistakes in the past with our account, we have been walking in and handing the check to a B of A representative on the 1st of each month and have been issued a reciept. They have sent us fed ex paperwork to apply for mortgage assistance and letters telling us we are delinquent. Upon calling, emailing and sending a certified fed ex letter with copies of our receipts, we have received no response from B of A. Instead another letter was issued stating we missed June's payment and billing us for July (which had been paid on 1 July). The one representative who has helped us in the past two incidences is working with us and according to my husband, upon his last visit (#2) to her office, she made a very curious face and when my husband asked if there were any banking errors on our part, she stated "no, but that she needed a little more time to investigate this". Today he will visit again and demand a print out of all payments since January 2013. B of A are bullies and I would like to see a class action suit if anyone else is having this same issue with them. We must band together and fight!
Ponciano Manzo 9 months ago
Well 3 years ago I got hurt on the job, and then let go because my employer would not accept me on light duty, so my income dropped 50%, Bank of America had me go through a 3 month trail period, then sent me a modification loan contract agreement, which had to be notarized and returned with a cashiers check, I keep giving my monthly payment which was actually $50.00 more than before the modification, but I gave them, well 4 months go by and I get a letter saying I was denied for the modification? After I signed a contract and sent a cashiers check, I went through this to still lose my home? It makes no sense, I lose my job ask for help too keep my home, and was told I was, then months later they tell me sorry but we changed our minds, can they do that? Someone please help me find some help, too keep my home. I have all the mail they sent me and dates that I tried calling them which was a lot because they never return calls, until you get mad. I'll be waiting for help, I have until Aug-12-2013 to Appeal the Decision,

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