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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
Hi, my name is Maria, and I paid , $3500 for home loan modification to inova key group in 2009 that’s what they been called, ,but they changed the name to smuckler group, I did a consumer report as a victim of fraud. I never got the loan modification and I loose my house, the question I have , I never got my money back and not even know what happened with those people who fill report too , I don’t know what happened if smuckler group paid. Back everything, or if we won the suit against them, please if somebody know something let me know at talaverajudith48@gmail.com thanks
To Whom It May Concern:
Today it is with much emotion that I write this letter. I came to the United States from Peru at a very young age to provide a better life for my children and family and have always believed in the American way of hard work, honesty, and perseverance. Though life has not always been easy I embraced the struggle believing that life is what you make it and full of ups and downs. As a proud man who has seldom ever complained about anything I felt it was important for the first time in my life that I exercise my rights as a United States Citizen and document a mortgage process where I feel I was misled, misguided and lied to in an egregious way that has caused me to lose one of the only physical possessions I had in my home. I realize you probably read many letters daily about those who have dealt with hardships but I asked that you please take time to look deeply into my case as I feel the extenuating circumstances surrounding it are unique and deserve attention. Below I have provided a timely and documented the entire process in hopes that someone would read this and help me!
On March 26, 2008 I executed a note and deed of trust in favor of lender Bank of America and
the trustee was named PRALAP Inc.
This loan was recorded at the office of the County Recorder for Los Angeles County on May 5, 2008.
Before recording the instruments related to the loan on May 5, 2008, Bank of America, released a deed of trust recorded on 7/24/2006 and on April 24, 2008.
Also on May 16, 2008 Pacific financial released its deed of trust recorded on January 5, 2004.
According to Freddie Mac, on November 13, 2008 Freddie Mac acquired the loan upon which I believe my property was wrongfully foreclosed upon by Bank of America.
There is NO ASSIGNMENT of the loan recorded by BOFA, or by Freddie Mac until this day.
On 07/09/2010 Quality Loan Servicing caused to be filed a Notice of Default as agent for unknown
beneficiary. The beneficiary was not named on the Notice of Default.
While a Substitution of Trustee document was created by Quality Loan Servicing on or about August 26, 2010, notarized in Texas, I do not believe Bank of America were beneficiaries of the loan at that time. I believe this document was fabricated to permit Quality to foreclose on my property.
On 10/12/2010 a Notice of Trustee Sale was caused to be filed on behalf of unknown beneficiary/ies by Quality Loan Servicing.
On 10/29/2010 both a release of pending action was recorded.
Again on 02/03/2012 a Notice of Default was caused to be recorded by Quality Loan Servicing Corp.
According to the notice, to find out the amount borrower must pay or arrange to pay to stop foreclosure the borrower must contact bank of America, N.A. Successor by merger to BAC home loans servicing, FKA Countrywide home loans servicing LP.
However at the time of such publication Freddie Mac was still the beneficiary and no such assignments reflected in the record.
Bank of America was either lender, or beneficiaries at the time of publication of the notice of default nor were they proper parties to appoint Quality loan servicing to be substituted as a trustee to facilitate a foreclosure.
On 05/09/2012 a Notice of Trustee Sale was published and my property at the time foreclosed by a party without authority to do so by Freddie Mac the beneficiary of the mortgage loan.
Whether or not this loan was securitized by Freddie Mac is yet to be determined.
Enclosed I have provided documentation of all recorded instruments which will show that Substitution of trustee may not have been recorded.
Based on the above timeline and supporting documentation provided with this letter I would ask that Bank of America strongly consider the reimbursement of $550,000 costs associated with this process in reference to case/loan# 6049062216. This entire process has caused great emotional and financial hardships to my family creating additional costs to relocate, start over and to pay for legal counsel to try and get back what I feel was wrongly taken from us. I would ask that anyone who would read this letter would please genuinely review my case as if it were their own family member going through this. I am proud of the Country that I live in and have always believe that justice and fairness would prevail. Today I ask for the help of someone I do not even know in hopes that all is not lost. I plead for HELP!
Personal Regards,
Luis Enrique Soto
I also had a countrywide mortgage that was taken over by Bank of America. I tried repeatedly to get help from the bank to do a loan modification, and I was told over and over that my loan did not qualify. My loan situation fit all the HARP guidelines and I assembled all the necessary paperwork to get into the program. BofA just stonewalled me. I feel that Bank of America did intentionally act in a way that hampered my access to the federal HARP program. The banks got the bail out and consumers got the shaft.
Basically I experience the same as the aforementioned cases, let mortage get six months behind, get all receipts of money spent for the period of six months or more then I could become eligible for a home modificatiions loan, when I did as they requested to become eligible. They sent a foreclosure notice, or pay the sum of 2, 400.00 or more or loose my home. I had to get this money any way I could in order not to loose my home. Every statement I have made, I have verification and letters from BOA to support my claims. Please let me know how I can get in the class Action Case, because during this time, I was suffering with my legs and my husband was sick, later I had two knee replacements and my husband no longer works.
How do I sign up or become part of this class action Suit against Bank of America
Please contact me to be included if the class action lawsuit is still taking place. I am on the verge of hiring my own attorney. My loan was paid up with additions to Taylor Bean and Whitaker when BofA obtained my loan in 2009. Not only did I send in certified checks but the checks were returned to me (BofA charged me $60 to return my certified checks to me) but when I finally went to court 5 times with the Clerk of Courts telling the Mediator on the 5th trip that if I was in that courtroom again my case would be dismissed with prejudice and I would have my deed (as if it were paid in full). I finally was able to work with the CEO office (for the 4th time) where someone actually TRIED to assist me. After years of phone calls, paper submission, recorded phone calls on my end (had BofA employees tell me out of all the loans they had worked on mine was the worst nightmare they had witnessed) modifications sent in, time away from work, federal taxes due to no interest to write off, depression, stress, insomnia, and so I did receive a permanent loan modification. I bought my home for $210K, when BofA obtained my loan I owed $194K (paid that much off in 1.5 years) when I received my loan modification they charged me so much “past interest” that my new loan amount was $239K (and this was with the bank waiving all my administrative fees). What this bank has done is criminal and negligent. If at all possible to be included in the lawsuit I have all paperwork, phone logs, recordings and so on. May God bless each of us that has had to endure this hardship.
How does one go about being included in this Class Action?
We ended up having to Shortsale our home because time after time BofA would not help us to get modified. Then we had bad credit as a result. It was such a pain they kept denying us and not even helping us and then after we shorts old they marked our credit as a foreclosure when we followed all the guidelines. We tried to follow up over and over and just kept saying its in review and then all of a sudden it would be denied. We couldn’t wait any longer because we didn’t want to go into debt trying to pay our mortgage. I would like to find it where we can be apart of this lawsuit. They sent my mom $2500 from this lawsuit, not sure if we go even received anything in the mail regarding this.
Same story for me. They should not be allowed to do this to the entire country! When is anyone going to do something about it????? I think we should start a new Class Action. I am now in the process of short saling a home I can afford, they just won’t take the payments. Every time I send one, they send it back.
Hearing each person’s story sounds so familiar to my own story. I started my loan modification process in about 2010. Unfortunately I basically paid someone to take care of everything and they ended up going out of business. From that point I took many hours out of my day to get paperwork together, fax papers to BOA, and phone calls to BOA, and then getting nowhere. I am now homeless living with family. I would like to know more information regarding any lawsuit that is going on so that I can get in on it as well. I am not happy with BOA which is saying it nicely.
My husband was shot off a roof in Iraq and died. Bank of America refused to let me in the hamp program and I was not late at all never. Our family was forced to short sale because they tried to foreclose on a home that was not behind in payments. It’s awful!!