Bank of America Smacked with Foreclosure Fraud Lawsuits

Sunday, March 11, 2012

Update: The editors of AllGov would like to thank all the people who have been sharing their Bank of America loan stories on this page. To learn more about the government’s limited attempt to help distressed homeowners and how to apply for a review, please look at this story: Government Accused of Allowing Bank of America to Investigate Itself about Foreclosures.

 
Although Bank of America (BoA), along with other big banks like Wells Fargo, Citibank, Ally/GMAC and JPMorgan Chase, recently reached a very favorable settlement of potential criminal fraud charges related to their mortgage lending practices, two recently unsealed civil fraud lawsuits against BoA reveal they may not be out of the woods just yet. Such whistleblower suits allow individuals, usually former employees, with knowledge of fraud committed against the federal government to bring suit on its behalf and collect a portion of any damages awarded. The federal government has until March 16 to decide whether to intervene in these suits on the side of the plaintiffs.
 
Two such fraud suits filed against Bank of America shine a bright light on abuses in the mortgage industry that led to the 2007 housing crash and continued as late as 2011. In a case filed in July 2011 and unsealed March 7, former BoA subcontractor employee Gregory Mackler alleges that BoA misled borrowers to keep them from participating in the taxpayer subsidized Home Affordable Modification Program (HAMP), because mortgage modifications cost BoA money.
 
Among the tactics allegedly used were stalling the review of applications by assigning them to employees who were on vacation or who had actually already been fired. Concerned borrowers were also told that their complaints were still being reviewed when in fact they had secretly been labeled as “incomplete.
 
Bank of America also violated a promise, made by BoA to the federal government as a condition of getting $45 billion from the federal bank bailout, to help borrowers get into HAMP, when the bank was actually pushing borrowing to accept non-HAMP loans at worse rates. This conduct, argues Mackler, made “a mockery of a program designed by Congress and the Treasury Department to help millions of struggling American homeowners.”
 
In another whistleblower case filed in 2009 and unsealed in February 2012, former BoA subsidiary employee Kyle Lagow alleges that Countrywide Financial Corp., now owned by BoA, created a scheme to inflate housing prices by manipulating property appraisals, ultimately leading to more foreclosures. Those inflated prices, the complaint alleges, included thousands of Federal Housing Administration backed loans, the default of which cost the federal government money.
-Matt Bewig
 
To Learn More
New WhistleblowerCcases Allege Continued Bank Fraud (by Amy Biegelsen and Emma Schwartz, iWatch News)

Bank of America Forecloses on Houses without Mortgages (by Noel Brinkerhoff and David Wallechinsky, AllGov) 

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claudia 5 years ago
I had a modification loan that tried to forclose on my home. When I mentioned knowledge of the scams BOA was accused of they decided to not foreclose and accept my payments. ( I was not paying because they informed me not to until they could reassess my loan). This was back in 2012. In any case they began accepting my payments again and never mentioned foreclosure again. Then Carrington became my lender, I was told BOA was over their limit so had to sell my loan. Now in 2019 I try to get refinanced and am told that I have an outstanding "Balloon" payment owed to BOA for $83,000. I bought my home in 2005 for $130.00, then due to job loss applied for an HARP refinance in 2011. How in the heck can I owe Carrington $115,000. and BOA $83,000. What kind of scam is this? Can anyone suggest what I might do, who might I see for help?
Michael 6 years ago
Dec 2010 called BOA do you inquire about the modification program. General information was taken, a package was sent. After reviewing I decided not to participate due to the fact that they’re adding an escrow account in to the mortgage which I did not have the money for at this time. Never signed anything never sent in any applications or documents, then on March 5, 2010 they started taking money out of my account without authorization. I now have them in federal court on my own due to the fact that I had to sell my investment property because of their wrongdoing.
dawn casey 7 years ago
I have not paid my "loan" for 3 yrs and just now am in foreclosure. while I wasn't paying my "loans" I researched the Mortgage Backed securities and all the deception and fraud contained in each. I found out, when I applied 10 times for a loan mod with Nationstar, who denied me, stating the "owner"doesn't participate and we have to abide by their wishes, I wrote the :owner" Bank of NY Mellon and asked them "why"? They responded by stating, "we don't own your loan and have no say in the modification or disposition of your property, I told Nationstar, that unless and until they provided the owner of the loan, I was NOT going to pay them ever again. Some rep gave me a phone no. for the owner, and guess who answered Nationstar, I went crazy on the person that answered the phone, felt bad but couldn'thelp it. NOW IN foreclosure with heloc serviced by bofa and had the letter from BONY stating no legal power to enforce despite this pertinent evidence the moron judge awarded summary judgement in their favor, I have a decent attorney that I am spoon feeding the how to's, and filed a judicial complaint against this new to foreclosure know-nothing, The nationstar, first lien lost bid for SJ now want a settlement hearing which I told them to shove. Going to sue each and every entity that collected my loan payments on behalf of no true owner. The note never made it into the REMIC trust per PSA cut off date regulations and any assignment is proof of that, if they had endorsed the note properly and got it into the PSA in a timely manner, they would be able to enforce, but anyone in foreclosure with a trustee as plaintiff, is NOT legal as the trustee has no fiduciary duty to enforce, or foreclose or do anything in court for that matter and servicers like BofA are using their names to foreclose without their knowledge. The loan was sold prior to our signing it, which in doing so, created the money lent, so we're the creditor and banks the debtors, yet they charge interest and fees, get paid for sale to trust, investors, insurance and now want a fourth payoff. This is insanity at its worst and the idiot judges who have no clue about modern money mechanic and how money is created, believe that we were actually given any money, yet no bank can or did loan us a dime, they sold our note so many times, profiting the entire way, get bailed out by our hapless, sellout government, and STILL want our homes??? This is a disgrace to the entire country and I am going after the foreclosure mill attorney's when I win my huge settlement, as I intend to sue them all for any and all violations committed against me and my family, and I only "borrowed $150,000 all toll, and now they are claiming I owe over $200K,NOT going to happen assholes. These too big to fail bank cartels are only elephants and even elephants can be eaten one bite at a time and I am going to take a huge bite, as should anyone else that finds themselves in the loan mod insanity game when the truth is, they (servicers) have no power to change the loan terms and because of their haste and greed they have no clue who does, so NO one ever gets a legal, true loan mod and should stop wasting time trying. Instead, stop paying your mortgage and sue them to the wall, I have seen too mang folks just walk away, without a fight. There is a great book, Clouded Titles, by Dave Kreiger and a websiute filled with lawsuits filed against the banks, on Scrib that you can use to even write your own legal docs. Pro Se is not as hard as you may think and if you don't feel you know enough to go it alone pay for the course offered by Jurisdictionary, which is a step by step guide on how to file, what to state, motions and anything else you need to fight these low life bottom feeders. I also watch youtube videos endlessly, listening and taking notes. I have found cases that are exactly like mine and the homeowner prevails, if you state your affirmative defenses, include each and every issue, you have a very good chance to have summay judgement dismissed in your favor, then the ball is in your hands and move to sink their lying ship and have the attorneys sanctioned for bringing fraud into the court. ask to see the retainer contract with whomever is bringing the foreclosure and I guarantee you it will be the servicer when the atty is alleging they represent the plaintiff. also write a letter to named plantiff and ask them what part they play in your loan, I bet, it is not to foreclose, as only a servicer whose fiduciary duty it is to buy back the note at full value, could legally foreclose, but the servicers don't do it, they use trustee as plaintiff and that is highly illegal and immoral and are just stealing that which they, nor anyone else is entitled to. Your home is your castle and your right to own. This country needs to wake up to the level of corruption in all corners of our government, the banksters, the CIA, the FBI, they are all =corrupt and out for themselves and more wealth of the backs of the middle and lower class folks who don't know they can fight this fraudclosure without an attorney, just do your research and you will be amazed at the wealth of useful information available to anyone who looks for it. Sue them even if you have already lost your home, sue the attorney foreclosure mill, the judge and anyone else that had a hand in the theft of your home. STAND UP for your constitutional rights or our children will be left holding an empty bag of nothingness. If you have children, you owe it to them to fight like a wild animal and make the banks fight harder and more costly to steal from you, don't just roll over and let them make you think you owe them a dime, they owe us, and they have made enormous profits off of our signed note, which, once converted into certificates and sold to investors, HAD TO BE DESTROYED to avoid IRS and NY Trust violation of double dipping, yet these clowns proport to hold the certified "copy" of it anyway and this is an argument I have yet to hear made and may use it despite the judges fear of being the first to set precedent. Most judges are invested with the banks via their pension plans and see no reason to rock their boats, look into the judges financial disclosure to see if there is a conflict of interest. Don't leave any rock unturned, research everything. I had a Bloomberg audit of my loan done by fraudstopper.org and they found note and mortgage took two different paths, nullifying the loan, robo-signing and the trust had been paid in full. Please feel free to contact me via email if youy have any questions, as I want to leave this world a better place for having been in it and am willing to share all that I have learned in the last three years abnd would love to help anyone facing foreclosure. d.casey1u7@yahoo.com Thx for reading until the end of my long winded rant. God Bless

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