Ten homeowners resorted to federal court for help with their mortgages this week, saying Bank of America broke promises to modify their payments.
The civil case, filed Wednesday in Ohio, says the 10 troubled borrowers attended a federally sponsored loan modification event last October in Cincinnati. Some had previously tried to get loan modifications, a process that can be so lengthy and frustrating that regulators and lawmakers are pressuring lenders to improve.
During the event, the homeowners met with Bank of American representatives who offered each borrower a loan modification and promised written agreements would arrive by mail "within weeks," according to court documents filed by lawyers from the Legal Aid Society of Southwest Ohio.
No one has received the documents or had their mortgage payments reduced, the filing says. They have called to follow up and received no help. One woman has received notice the bank has begun foreclosure proceedings on her home.
"Today, after months of agonizing worry and having experienced every manner of deception, confusion, avoidance, indifference and incompetence at the hands of BOA, Plaintiffs are no closer to receiving the promised loan modifications," the civil lawsuit says. "As a result, Plaintiffs are living with the daily trauma of imminent foreclosure and loss of their homes…"
A Bank of America spokeswoman said in an e-mail today that the bank can't comment on the lawsuit because it hasn't yet been served.
"Bank of America is committed to helping customers facing financially difficulties remain in their home," the statement said.
To see the lawsuit: http://media.charlotteobserver.com/static/images/pdf/BoAComplaint021010.pdf
Are you struggling to get a loan modification? I’d like to hear from you. Please e-mail me, shopkins@charlotteobserver.com or call direct, 704-358-5173.
Friday, February 12, 2010
Homeowners sue Bank of America
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27 comments:
Be part of the solution and move your money out of the "To big to fail" banks and move it to community banks and credit unions.
Or, stop blaming the banks for your problems and perhaps take some responsibility for the contract that you signed.
They should be a part of the solution and sell their houses and rent apartments that they can afford. It isn't the banks responsibility to help the borrower who is defaulting on their contract with the bank. They shouldn't buy what they can't afford which is one the first lessons you should learn regarding your finances. If they were defaulting on their payments on their Porches you wouldn't be so sympathetic. Well, this is the same exact concept.
Can't help but wonder how many of these people went on trips, bought new cars, wide screen TVs, etc. and are now crying because they can't pay their bills...
Sorry plaintiffs, but your alleged "daily trauma" is not a "result" of BofA's actions. In fact, it's a result of you having been fiscally irresponsible. I hope that you and your ambulance-chasing attorney all get thrown out of court on your hind ends and that you're forced to pay BofA's legal fees to defend this frivolous lawsuit.
Be part of the solution and pay your mortgage at the terms you agreed to, or be prepared to lose your home, per the terms you agreed to.
I love how things like this become news before a case has even been heard. Maybe the people at this event who presented themselves as Bank of America were not really employees, but instead scammers trying to take advantage of the situation. Getting names of people in distressed situations.
So these people didn't pay their mortgages and are now going to sue the person that is loaning them the money? If I were the bank I'd be taking possession of these homes today and throwing them out.
1st problem - federal sponsered program - red tape starts & ends w/ feds. I'm not giving BOA a break here, just to big to fail is our gobt.
Not enough information. What was the nature of the promised assistance? Were these folks keeping current with their mortgage payments? What damages might the suers be seeking? Surely they don't expect to et away with not making good on their obligations.
The judge should throw this out. These people have no legal standing, they are the ones in violation of a binding legal contract. You can't sue a company for not bailing you out. Unbelieveable.
The government said there would be help for the home owners LOL. All our government did was raise the hope of thousands of desperate people, then only to become homeless. While the banks are getting 0% interest loans from our tax money, they are ripping the rest of us off with 6% loans and only make it available to 20% of the population. There is nothing different about the banks now than they were in the 30's. They are more than happy to foreclose on your house. They have already written off a percentage of houses as bad loans and the feds bought up all the bad mortgage bonds, so it's all profit what ever they get for your house.
I read the complaint - here are some folks who are down on their luck. Guess what? If you can't pay your debts, then you deserve foreclosure.
Sorry, but thats how it works in this country.
Every single instance is a homeowner who had every excuse in the book why they couldnt pay the debt they signed on to.
Sorry - why not all go move in together so you can cry on each others shoulders...
Bust up these big banks. not only are they too big to fail, acting as hedge funds, private equity firms, insurance companies, brokerage firms etc. They are also giant bureaucracies where one hand does not know what the other hand is doing. Plus their business models have morphed into profitability based on fees and exorbitant interest rates, not on sound banking practices. I hope they get inundated with lawsuits...
"Be part of the solution and move your money out of the "To big to fail" banks and move it to community banks and credit unions."
Totally agree!! I will not even use a BOA ATM machine!
Its bad enough you are too sorry to make your own house payments, and now you are going to sue because you are not getting a bail-out.
They need to stop all of the bailouts everywhere, and at all levels, and let the chips fall where they may. Perhaps that will help some people learn how things are really supposed to work in this country.
Amen to that, I second that motion........then the banks will want to cooperate with us..........
I work for a local credit union...and I'm here to tell you that if you DON'T move your financial business to a credit union, you're losing BIG time. My company did NOT take TARP funds...is stronger than ever...and is being proactive with our memberws who are facing financial shortfalls, including foreclosure. I'm proud of working there...and I'm one of their collections staff. I get more 'thank you's than anything else.
"Bank of America is committed to helping customers facing financially difficulties remain in their home," the statement said.
Nothing could be further from the truth. In all these months, any company, even the most poorly managed, could figure out how to fix the issue of helping folks re-finance or modify their mortgages.
The bank is more concerned about their bottom line than customers and it is going to take a national run on the bank to get their attention. If every savings account holder and Merill Lynch investor started moving their money elsewhere. BofA would find a way to fix things tomorrow!!!!
Let's make a difference people!!!
Bank of America=Corporate Terrorism
They should never have been allowed to get as big as they are.
Greed Greed Greed I hope someday all the shareholders lose every penny they have invested in BOA
Sounds like a bunch of BOA people to me. I have had the same job for 12 years. I am not asking for a free ride, I am asking for some help. I am making 40-50% less than I did when I bought this home. I am single and didnt "overbuy". I drive an 8 yr old car that is paid off...was told I qualify and that my monthly payment would go from $1100 to $850. That isnt free, but it would help for now. This bank and this gov't program are a joke.
What many fail to understand in the world of banking is that: they all have insurance and many have collected and written off losses off the balance sheet.
Yes it is a business but banks and collection agencies are nothing more than a psychological terror preying upon the people who truly are victims.
Trust me the bankers are laughing all the way to their piggy banks, read my lips America..........they don't care about your life once they have your money......they don't care if drop dead right now.
The main problem is that these people got loans for FAR MORE than the house and property was worth.
They should sell the overpriced home, wait a few months, and then get the same house and acreage in a different development for at least 1/3 less.
Abandon the mega banks! They're far too big and powerful. Support your local community through community banks and credit unions.
http://moveyourmoney.info/
Below is a link to my story on BofA.
It is a little to long to post here as a reply so I did a web page.
http://www.automatedhd.org/bank_of_america/
To everyone who has responded with stone throwing please consider yourself lucky if you have not experienced the financial crisis head on. Although some people may have over extended their finances in the first place, many people were thrown into the lions den head first through job cutbacks and layoffs. Please be a little more compassionate and less critical of those that did not ask for the cards dealt to them. Also, has anyone of you ever had to deal with Bank of America. I have and currently are dealing with them and believe me, they are as misguided and troublesome as their reputation that proceeds them.
all you high and mighty people that are surving this fraudlent period in american history.and think it should be a dog eat dog economy you need to watch out because it is going to create anarchy and when your neighbor sees you doing well he might come over and beat your skull in with a baseball bat to even the playing field.this problem was created by bankers not a man that wants to own a home.the greed is not the home owner its the banks.so watch your self big boy you might be next .thank you and have a nice day.
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