Bank of America Mortgage Borrowers Getting Class Action Settlement Money

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Some Bank of America mortgage borrowers will be seeing checks in the mail soon worth around $40 or more, thanks to a class action lawsuit settlement approved in April.

The Bank of America class action settlement resolves claims that the lender caused borrowers to overpay their taxes by failing to report to the Internal Revenue Service over $1.5 billion in mortgage interest paid by consumers on option adjustable rate mortgage (“option ARM”) loans.

Class Members of the Bank of America option ARM class action lawsuit (Horn v. Bank of America) include all U.S. consumers who made payments of deferred interest on their option ARM loan with Bank of America in 2009, 2010, 2011, 2012, or 2013.

Class Members who received amended Forms 1098 for Tax Year 2010, 2011 or 2012 will automatically receive $40 per amended form.

Class Members who made payments of deferred interest in 2009 and submitted a timely Claim Form will receive a payment equal to 75 percent of the estimated tax deduction value (20%) of their payments of deferred interest in 2009. The claim filing deadline was July 13, 2014.

All payments will be mailed no later than Aug. 20, 2014, according to the Settlement Administrator, Garden City Group.

At least one TopClassActions.com viewer has reported receiving a check from the Bank of America option ARM settlement on Aug. 25.

We provided claim filing instructions in April, so if you received money let us know!

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The case is Richard Horn v. Bank of America NA, Case No. 12-cv-01718, U.S. District Court, Southern District of California.