Bank of America Class Action Seeks Foreclosure Hiatus Due To Coronavirus

A Bank of America class action lawsuit has been initiated by two homeowners in West Virginia who wish to temporarily stop foreclosures by the bank due to the COVID-19 pandemic.

Plaintiffs James and Lisa Shuff say that, during the nationally declared emergency, foreclosures can’t be carried out at an appropriate time period that is consistent with the mortgage contracts. The plaintiffs are allegedly threatened with foreclosure due to a series of unfortunate events involving their mobile home.

In 2005, the plaintiffs said they wanted to purchase a new mobile home and were directed to a 2005 model Fleetwood Inspiration. The salesperson reportedly told the Shuffs that he would be able to get the home financed through Countrywide Home Loans.

The Bank of America class action claims that the salesperson drew up the contract for the home and charged them $93,082.15 for the price of the home, which was far in excess of the actual value of the mobile home. The plaintiffs argue that the house is currently valued at $33,000.

Do you think foreclosures should stop due to the coronavirus? Get legal help by clicking here.

In addition, the Bank of America foreclosure class action maintains that Countrywide Home Loans agreed to finance the lot on which the house would be situated. Allegedly, Countrywide obtained an appraisal on both the land and the house for $107,000 but the plaintiffs say this amount was “wildly inflated.”

Not knowing that their loan was unfair, the plaintiffs allege that they closed on their house on July 5, 2005.  They claim that the closing was rushed and not conducted at a proper place where they could ask questions about the transaction. In addition, the couple argues that no attorney was present from whom they could seek advice on the transaction.

James Shuff states that he was injured at his place of work and had surgery in the spring of 2018, which caused the family’s income to change. The Shuffs then contacted the Bank of America and were reportedly told that they could modify their payments to three monthly installments of $1,107.

The Bank of America class action maintains that there was an apparent problem with their third payment, leading Bank of America to foreclosure proceedings on the Shuffs’ house on March 16, 2020. The Shuffs say that they have the money to make the monthly payments on the loan, but Bank of America will not accept the payments.

The plaintiffs claim that they were victims of a predatory lending scheme perpetrated by a manufacturing housing retail dealer and Countrywide Home Loans Inc. in which the lender and dealer initiated a home loan that exceeds the value of the property.

“The loan and modification were unconscionable, under all circumstances alleged, at the time it was made and/or was induced by unconscionable conduct, and therefore was unenforceable,” the Bank of America class action lawsuit argues.

In addition, the plaintiffs note that Bank of America, which is the successor to Countrywide Home Loans, increased the amount owed on their house to $142,000, which is more than double the value of the property.

The Shuffs state that they are bringing this class action lawsuit on behalf of other West Virginia homeowners who face foreclosure on their houses during the national and state declared emergency caused by the COVID-19 virus.

The plaintiffs would like to obtain an injunction which would stop the foreclosures during this time of crisis, according to the Bank of America class action lawsuit.

The Shuffs argue that, considering the national COVID-19 pandemic, “it is inappropriate to conduct non-judicial foreclosure sales because the public auctions cannot be conducted consistent with the principles of an appropriate time, place and manner of a commercially reasonable public auction, as required under West Virginia law and the parties’ contracts.”

The contract on the loan of the house, the Deed of Trust, and West Virginia Law mention that any foreclosure sale has to be conducted at a public auction, according to the Bank of America class action lawsuit. During the coronavirus outbreak, these requirements cannot be met.

In addition, the plaintiffs note that, given the national emergency caused by the outbreak of COVID-19 in which citizens are asked to self-quarantine and practice social distancing, commercial sales of foreclosed homes are not able to meet commercial reasonable standards.

The Shuffs claim that a preliminary injunction is needed to stop the defendant from foreclosing on their home in methods that are inconsistent with these standards.

In addition to the request for injunctive relief, the Shuffs are suing based on fraud as a defense of the contract in that the house loan was based on an intentionally inflated appraisal.

The plaintiffs note that if they knew that the value of their house was not $107,000, they would not have purchased it. Also, the Shuffs claim that they were damaged by their reliance on the honesty of the loan originator and the appraiser, who valued the house at higher price than it actually was.

The plaintiffs are represented by Bren J. Pomponio, Daniel F. Hedges, and Rachel J. Kincaid of Mountain State Justice Inc.

The Bank of America COVID-19 Foreclosure Class Action Lawsuit is James L. Shuff, et al. v. Bank of America, et al., Case No. 5:20-cv-00184, in the U.S. District Court for the Southern District of West Virginia.

Join a Free Coronavirus Class Action Lawsuit Investigation

If you believe your rights were violated in a way that is directly related to the coronavirus pandemic, you may qualify to join this coronavirus class action lawsuit investigation. 

Join Here

Read More Lawsuit & Settlement News:

Alex Jones Ordered to Stop Selling Coronavirus Cures

$1.6 Billion in Unpaid Hurricane Insurance Claims Persist in Puerto Rico

Manitoba Metis Federation Loses Lawsuit Against Government

Man Says Hernia Mesh Nerve Pain Has Ruined His Career