Bank of America Class Action Alleges Unauthorized Home Searches

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A homeowner alleges in a class action lawsuit that Bank of America searched her home without permission in violation of federal law.

According to the Bank of America class action lawsuit, plaintiff Gloria Tirado’s home was subject to an inspection while she was occupying the home in violation of Federal Housing Authority regulations.

Tirado says that other homeowners were subject to the inspection and also charged by the bank after they defaulted on their mortgages; however, the bank improperly conducted these inspections because the homes were clearly occupied and the mortgages were subject to Federal Housing Authority regulations.

According to the Bank of America class action lawsuit, Bank of America’s “default related inspection fees violate the regulations promulgated pursuant to the United States Department of Housing and Urban Development (‘HUD’), and the contractual language of its assigned mortgage agreements.”

The Bank of America class action lawsuit contends that under the HUD regulations, once the bank observes that a home with a defaulted mortgage is still occupied, inspections are supposed to stop. Further, the regulations prohibit mortgage companies from assessing inspection fees on homeowners who have defaulted on their mortgages.

However, the plaintiff alleges that she and other homeowners who defaulted on their mortgage serviced by Bank of America have been assessed home inspection fees. According to the Bank of America class action lawsuit, the plaintiff has been assessed $155 in inspection fees even though she has clearly been occupying the home at issue.

The plaintiff says that she was initially served a complaint for foreclosure in May 2017. According to the Bank of America class action lawsuit, the plaintiff has been hit with multiple inspection fee charges since, but has “continuously occupied” the home.

“After conducting its first inspection of the Property, BOA, knew, or should have known, that Tirado occupied the Property,” contends the Bank of America class action lawsuit. “Even though BOA knew, or should have known, that Tirado occupied the Property, BOA continued charging her account for inspection fees.”

The plaintiff alleges that she is not the only homeowner subject to improper inspections by Bank of America.

“This action is based on the same legal theory, namely liability for BOA’s failure to comply with HUD regulations and the FHA mortgages it services by conducting and assessing fees for unauthorized and unnecessary property inspections of homes which, although in default, are owner-occupied,” the BOA class action lawsuit states.

The Bank of America class action lawsuit seeks to represent a nationwide Class of homeowners subject to the allegedly unfair inspection fees along with an Illinois subclass.

The plaintiff is seeking reimbursement for improperly assessed fees as well as a court order stopping the allegedly improper home inspections.

Tirado and the proposed Class are represented by Jeffrey Berman and Patrick Solberg of Anderson & Wanca, and Arthur Czaja of The Law Offices of Arthur C. Czaja and Associates.

The Bank of America Home Inspection Class Action Lawsuit is Gloria Tirado v. Bank of America NA, Case No. 2108 CH 8116, in the Circuit Court of Cook County, Illinois.