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

dawn casey 1 week ago
I have not paid my "loan" for 3 yrs and just now am in foreclosure. while I wasn't paying my "loans" I researched the Mortgage Backed securities and all the deception and fraud contained in each. I found out, when I applied 10 times for a loan mod with Nationstar, who denied me, stating the "owner"doesn't participate and we have to abide by their wishes, I wrote the :owner" Bank of NY Mellon and asked them "why"? They responded by stating, "we don't own your loan and have no say in the modification or disposition of your property, I told Nationstar, that unless and until they provided the owner of the loan, I was NOT going to pay them ever again. Some rep gave me a phone no. for the owner, and guess who answered Nationstar, I went crazy on the person that answered the phone, felt bad but couldn'thelp it. NOW IN foreclosure with heloc serviced by bofa and had the letter from BONY stating no legal power to enforce despite this pertinent evidence the moron judge awarded summary judgement in their favor, I have a decent attorney that I am spoon feeding the how to's, and filed a judicial complaint against this new to foreclosure know-nothing, The nationstar, first lien lost bid for SJ now want a settlement hearing which I told them to shove. Going to sue each and every entity that collected my loan payments on behalf of no true owner. The note never made it into the REMIC trust per PSA cut off date regulations and any assignment is proof of that, if they had endorsed the note properly and got it into the PSA in a timely manner, they would be able to enforce, but anyone in foreclosure with a trustee as plaintiff, is NOT legal as the trustee has no fiduciary duty to enforce, or foreclose or do anything in court for that matter and servicers like BofA are using their names to foreclose without their knowledge. The loan was sold prior to our signing it, which in doing so, created the money lent, so we're the creditor and banks the debtors, yet they charge interest and fees, get paid for sale to trust, investors, insurance and now want a fourth payoff. This is insanity at its worst and the idiot judges who have no clue about modern money mechanic and how money is created, believe that we were actually given any money, yet no bank can or did loan us a dime, they sold our note so many times, profiting the entire way, get bailed out by our hapless, sellout government, and STILL want our homes??? This is a disgrace to the entire country and I am going after the foreclosure mill attorney's when I win my huge settlement, as I intend to sue them all for any and all violations committed against me and my family, and I only "borrowed $150,000 all toll, and now they are claiming I owe over $200K,NOT going to happen assholes. These too big to fail bank cartels are only elephants and even elephants can be eaten one bite at a time and I am going to take a huge bite, as should anyone else that finds themselves in the loan mod insanity game when the truth is, they (servicers) have no power to change the loan terms and because of their haste and greed they have no clue who does, so NO one ever gets a legal, true loan mod and should stop wasting time trying. Instead, stop paying your mortgage and sue them to the wall, I have seen too mang folks just walk away, without a fight. There is a great book, Clouded Titles, by Dave Kreiger and a websiute filled with lawsuits filed against the banks, on Scrib that you can use to even write your own legal docs. Pro Se is not as hard as you may think and if you don't feel you know enough to go it alone pay for the course offered by Jurisdictionary, which is a step by step guide on how to file, what to state, motions and anything else you need to fight these low life bottom feeders. I also watch youtube videos endlessly, listening and taking notes. I have found cases that are exactly like mine and the homeowner prevails, if you state your affirmative defenses, include each and every issue, you have a very good chance to have summay judgement dismissed in your favor, then the ball is in your hands and move to sink their lying ship and have the attorneys sanctioned for bringing fraud into the court. ask to see the retainer contract with whomever is bringing the foreclosure and I guarantee you it will be the servicer when the atty is alleging they represent the plaintiff. also write a letter to named plantiff and ask them what part they play in your loan, I bet, it is not to foreclose, as only a servicer whose fiduciary duty it is to buy back the note at full value, could legally foreclose, but the servicers don't do it, they use trustee as plaintiff and that is highly illegal and immoral and are just stealing that which they, nor anyone else is entitled to. Your home is your castle and your right to own. This country needs to wake up to the level of corruption in all corners of our government, the banksters, the CIA, the FBI, they are all =corrupt and out for themselves and more wealth of the backs of the middle and lower class folks who don't know they can fight this fraudclosure without an attorney, just do your research and you will be amazed at the wealth of useful information available to anyone who looks for it. Sue them even if you have already lost your home, sue the attorney foreclosure mill, the judge and anyone else that had a hand in the theft of your home. STAND UP for your constitutional rights or our children will be left holding an empty bag of nothingness. If you have children, you owe it to them to fight like a wild animal and make the banks fight harder and more costly to steal from you, don't just roll over and let them make you think you owe them a dime, they owe us, and they have made enormous profits off of our signed note, which, once converted into certificates and sold to investors, HAD TO BE DESTROYED to avoid IRS and NY Trust violation of double dipping, yet these clowns proport to hold the certified "copy" of it anyway and this is an argument I have yet to hear made and may use it despite the judges fear of being the first to set precedent. Most judges are invested with the banks via their pension plans and see no reason to rock their boats, look into the judges financial disclosure to see if there is a conflict of interest. Don't leave any rock unturned, research everything. I had a Bloomberg audit of my loan done by fraudstopper.org and they found note and mortgage took two different paths, nullifying the loan, robo-signing and the trust had been paid in full. Please feel free to contact me via email if youy have any questions, as I want to leave this world a better place for having been in it and am willing to share all that I have learned in the last three years abnd would love to help anyone facing foreclosure. d.casey1u7@yahoo.com Thx for reading until the end of my long winded rant. God Bless
dawn 5 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 9 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 10 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 sale....so 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 3 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!

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