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Federal Court to Hear BofA Loan Modification Class Action Lawsuit
By Matt O’Donnell
A federal court is set to hear claims from multiple class action lawsuits that say Bank of America improperly administered the federal Home Affordable Loan Modification Program, costing homeowners their chance to avoid foreclosure.
Homeowners across the country sued Bank of America last year after trying, unsuccessfully, to participate in HAMP. Bank of America accepted more than $25 billion in government bailout money, as part of the Troubled Asset Relief Program (TARP), that was intended to help struggling homeowners make their mortgage payments and avoid foreclosure. Companies that accepted money under TARP are subject to mandatory inclusion in the Home Affordable Modification Program (HAMP) — a government program designed to stem the foreclosure crisis by providing affordable mortgage loan modifications and other alternatives to foreclosure to eligible borrowers.
“Though Bank of America accepted $25 billion in TARP funds and entered into a contract obligating itself to comply with the HAMP directives and to extend loan modifications for the benefit of distressed homeowners, Bank of America has systematically failed to comply with the terms of the HAMP directives and has regularly and repeatedly violated several of its prohibitions,” states one of the Bank of America HAMP class action lawsuits filed in Missouri last year.
Homeowners across the country subsequently sued Bank of America last year for either failing to grant permanent loan modifications or failing to even acknowledge they received modification applications, despite the homeowners meeting the qualifications necessary to receive help.
The Bank of America HAMP class action lawsuits were consolidated into one case: In Re Bank of America Home Affordable Modification Program (HAMP) Contract Litigation, Case No. 1:10-md-02193-RWZ, United States District Court, District of Massachusetts.
Updated July 21st, 2011
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55 thoughts onFederal Court to Hear BofA Loan Modification Class Action Lawsuit
is it to late to join this law suit. I have tried several times to get loan modifacations andbeen denied.
I called BOA to ask about a modifications or if I qualified for one. I have never been late on payments. This was Sept 10th, on Sept 17th I receive a letter stating how sorry they were I was having trouble making my payments and assigned me rep that I could call anytime with questions. At the bottom of the form was a disclaimer stating that this was the debt collection department. I have never signed anything or agreed to a modification. Now everytime I call I get a recording stating this is a collection agency of the bank and being recorded. Ive left several messages with BOA to tell them Im not interested in loan mod. Now my account is in collection department. How do I get this resolved? They said I needed to call again and tell them to recode my loan. Heck I never ever thought a simple phone call could result in this negativity. I feel trapped now and fear my credit scores will be effected by their error.
I have been pushed around for a home loan modification for 39 months now by Bank of America. I can tell you without a doubt BOA has no intensions of doing anything about our problems. The TARP contract with BOA has not enforced BOA to abide by their commitment to help home owners. We all need to contact our state, local, federal representatives. It’s an election year so let’s take advantage of it and demand they interceed on our behalf against BOA. Bank of America’s executives are nothing but a pack of theives, “life, liberty, and the pursuit of happiness” please, lets see which politician is willing to stand with home owners.
Have been “trying” to work with BofA for 3 months on a loan mod. Assured I qualified and submitted paperwork, and submitted paperwor, and submitted paperwork. Asked for the sme documents over and over and over again. CAn’t get a supervisor to talk to because automated system requires the loan number to be entered and once you do, you’re routed to your Account Manager.
We were not late of upside down on our mortgage but we applied for a modification to try and lower our rate. Received a document from BoA asking us to make several modified (lower) payments for a few months while the modification was being processed. What they were really trying to do is to get me to underpay my mortgage for 5 months in order to turn my current and up to date mortgage into a delinquent mortgage in order to qualify us for the HAMP program (they didn’t tell us that part) . In the end we did get a lower rate, but the cost for us is that they reported that we did not make a mortgage payment for 5 months which severly lowered my credit score. If they had only explained what they were doing, we would have told them that we were not interested.
I tried for 3 1/2 years to get a loan modification with BOA and finally had to hire a legal firm to help. BOA said I didn’t qualify for Home Affordable Program, But I was told by the legal firm that I did. All BOA did was add interest, late charges and whatever they wanted to to my loan. All they did was raise my monthly payment and increase the length of my loan.. Can I join this lawsuit?
Thanks Sue Liliestedt
u are correct when things happen to us we had money to pay for a year 2009 we experience losing our egg nest paying 1600 for cobra …having no jobs and opportunity. we called and was told to get any job…and we did but was told it wasn’t enough. we tried to work with them until this day..called Freddie mack, contacted elective representatives. We have perm job paying debt and getting things together…we will pull an income of 120,000. our mortgage is 147,000 and all they want to do is talk about short sale and if we move during holidays offered a 50.00 gift card. Our house is valued at township at 468,000 they did a appraisal saying it was 398,000. We had a home equity with WF and they told us if BOA makes a modification we will assist you …now BOA just wants us out and place foreclosure on credit report…where will we go?
It’s just outrageously unfair that those of us paying on time and not late cannot get the lower rates without having higher PMI scam insurance forced on us. This is a shameful situation to put anyne through. I hope to join a class action about this problem
ON 11/09 I RECEIVED A MODIFICATION ( HAVE DOCUMENTS)FOR THE AMT OF 1829.00 FOR 3 MONTH S,I PAID FOR 9 MONTH AND WAS TOLD DID NOT QUALIFY BALANCE AS OF 10/09 321.910.34 AFTER PAYING 9 MONTHS THE LOAN WAS SOLD AS OF 12/15/11 TO SLS, AT THAT TIME LOAN BALANCE WAS THE SAME ! 321.910.34 I CALLED BOA ON 5/10/12 WAS TOLD MONEY WAS APPLIED. DOCUMENTS SAY DIFFERENT. I REQUESTED PAYMENTS THAT WERE APPLIED IN WRITING AS OF TODAY. WILL I GET THAT PROOF ? IF YOU CAN HELP PLEASE CALL 508-326-1073. AS OF TODAY NO MODIFICATION.
My husband and I have been two years trying to work with Bank of America, Homes Affordable and the HAFA program. Due to him being put on permanent disability in 2005, we have gone through and tried every program. We were accepted into the HAFA program after all modifications were denied. Our house has been on the market since 2005. We were finially in the deed in lieu process through B of A and HAFA. We were told by HAFA and B of A that it was within 30 days of being over. We has taken two years to get to this point. They called me three days ago and told me that Genworth, our PMI said no. They don’t think it’s a good time. FOR WHO? I ask. We are now thrown out of the HAFA program and have lost all the time we invested for nothing. They want us to list the house again and start over. No one ever told us that they could erase everything we did with a checkmark in the NO box. We are devistated and now I can’t get anyone to talk to me about what’s next.
Is it to late to be added to this this lawsuit? I have applied for a loan mod. and had to continue to send my information in over and over.