HAMP and Bank of America Loan Modification Lawsuit Claims
Bank of America Mortgage Modification Lawsuit: Are You Facing a Bank of America Lawsuit? In my personal opinion the answer is probably yes. Bank of America is certainly no stranger to personal consumer lawsuit, Attorney General suits, and CFPB enforcement actions stemming from the flawed mortgage servicing agreements that the Bank of America has repeatedly had as their mortgage provider. This does not mean, however, that every case will result in a Bank of America mortgage modification lawsuit, or even that there will be more of these cases filed against Bank of America than any other lender.
Bank of America Mortgage Modification Lawsuit
The fact is that Bank of America received a record number of modifications last year, and that many of those requests for further litigation of principal and interest owed on Bank of America’s residential mortgages. Thousands of homeowners were able to keep their homes because Bank of America offered modifications based on the reasonable request of their lenders. Unfortunately, despite the hundreds of homeowner requests for modifications, it appears that not all of these requests were handled properly. Many homeowners were not properly advised about the importance of filing a mortgage mod application with Bank of America, did not follow up with attorney representation when their attorney requested additional information, or did not fully understand the nature of Bank of America’s loan modifications.
Although there are many factors contributing to the rise of bank owned foreclosure houses, one contributing factor is the loss of investor confidence in the mortgage payments of Bank of America and Countrywide. During the last few years, Countrywide and Bank of America were repeatedly troubled by investor fraud related to mortgage payments that collapsed or were left unpaid. As these banks were found to have knowingly defrauded investors of billions of dollars, investors were no longer as willing to lend to Bank of America or Countrywide, and foreclosures of Bank of America and Countrywide properties increased dramatically.
As I previously stated, in my opinion, the rate decrease at which Bank of America has allowed borrowers to become current on their loans is too good of a deal to pass up. However, I do believe that there are several instances where borrowers were overcharged for their loans by Bank of America, which requires them to file a Bank of America mortgage Modification lawsuit. The most obvious example of this would be a case where a borrower was sent a default notice after failing to repay his/her loan on time. The borrower was required by the bank to file a Bank of America Mortgage Modification lawsuit in the Eastern District of New York, requesting that the Eastern District Judge reduce the default amount.
In my opinion, the possibility of receiving a reduction in the amount due under the original mortgage contract is greatly improved when a borrower files a Bank of America HAMP modification with the help of an experienced attorney. The Eastern District of New York is a specialized law court that handles mortgage related issues. It is very likely that an experienced and competent attorney from Bank of America’s servicing division would be able to find errors or omissions in the servicing documents submitted by Bank of America to the Court, thereby preventing further penalties against the homeowner. It would also result in a significantly reduced amount due on the original loan. Therefore, it would be in the best interest of borrowers to seek counsel from a Bank of America attorney as soon as possible following the filing of an HAMP application.
Bank of America’s proposed class of loan modification plaintiffs have until the end of the month of August to submit their HAMP lawsuit claims to the Court. The Eastern District of New York is expected to issue a final ruling on the legality of Bank of America’s plans to settle HAMP lawsuit claims in less than one year. If no decision is issued in that timeframe, additional suits could be filed in other courts throughout the country. If you are one of those individuals, you should not delay in getting your lawsuit claim in the system, as the time frame allotted by the Court may be extended.