Dec 10
27
Bank of America in Court Again
The attorneys general of both Nevada and Arizona have recently instituted yet another legal action. Last Friday (17th December 2010), they filed a lawsuit against lending giant Bank of America alleging both “widespread fraud” and “false promises” regarding eligibility/availability of mortgage modifications.
Specifically, the lawsuit accuses Bank of America of the following:
Falsely informing customers that mortgage modifications were only available to defaulting homeowners
Falsely promising that mortgage modifications would be permanent upon completion of a trial period
Falsely assuring customers that foreclosure proceedings would be halted while they were seeking mortgage modifications
Unjustly denying mortgage modifications
“Bank of America’s callous disregard for providing timely, correct information to people in their time of need is truly egregious,” said Nevada Attorney General Catherine Cortez Masto in a released statement. “[Because of Bank of America's actions, many homeowners made] mortgage payments they could not afford, running through their savings, their retirement funds or their children’s education funds.”
According to the attorneys general of Nevada and Arizona, the lawsuits were originally brought about after their offices were inundated with phone calls from angry customers who had unsuccessfully sought mortgage modifications. (A subsequent investigation – including interviews with customers and former employees and a review of documents – confirmed the allegations made by customers.)
