15 Texans File Class action suit against Bank of America

15 Texans File Class action suit against Bank of America

15 Texans File Class action suit against Bank of America

By Lani Rosales on July 15, 2010 | AgentGenius.com

Here at AG, we’ve written about how Bank of America has foreclosed on homes by continuing the foreclosure process even after the home was successfully sold to a new buyer who didn’t even have a loan through Bank of America and we’ve covered how they have foreclosed on addresses they never even had a loan on despite dispute and direct correspondence.

AG columnist, Russell Shaw has remained our most vocal advocate for homeowners and agents having to battle Bank of America. His “Bank of America retard division for short sales” article that outlines the unfair, irrational and possibly illegal behavior of Bank of America remains one of the most read articles here at AG on most days, almost a year after it was originally published.

In steps the Texans

We’ve awaited the day that someone stood up to the documented abuses in a fashion that would impact Bank of America’s bottom line, and today, a group of homeowners are no longer taking it lying down. In true Texas fashion, a class action complaint was just filed and a jury trial has been demanded. Today,
the Texas Housing Justice League joins the 15 homeowners in the suit against Bank of America and its subsidiary BAC Home Loans Servicing.

Interestingly, the claim is using RESPA (Real Estate Settlement and Procedures Act) as grounds for the complaint. The other eight claims are as listed below:

  • Count Two: Breach of Contract – Loan Modification Agreement
  • Count Three: Breach of Contract – Forbearance Agreement
  • Count Four: Breach of Contract-Promissory Note and Deed of Trust
  • Count Five: Violation of the Texas Property Code
  • Count Six: Breach of Oral Contract-HAMP Trial Modification
  • Count Seven: Unreasonable Collection Efforts
  • Count Eight: Intentional Misrepresentation
  • Count Nine: Texas Debt Collection Act

About the plaintiffs:

According to the Texas Housing Justice League, “Plaintiffs are and represent people who purchased their first homes between 1994 and 2006, usually with loan assistance from the Federal Housing Administration and the U.S. Department of Veterans Affairs. Their loans were all serviced by Defendant BAC, which is a wholly owned subsidiary of Defendant Bank of America, N.A.”

They continue, by noting that “The lawsuit complains not of poor customer service by BAC, but of a systematic home loan servicing scheme that includes hours of telephone runaround, misleading and inconsistent information, lost correspondence, verbal abuse, and extensive delay, all of which have documented costs not only in terms of money, but in health. The facts in this case reveal the harsh reality that underlies the loan servicer’s press statements about loan modifications and forbearance agreements following collapse of the U.S. housing market.”

A suitable summary of the suit:

Denver Realtor, Kristal Kraft says, “In the interest of time, I will now use only the keywords describing the gripes against Bank of America as accused by the Texas Homeowners.

Scheme, misleading, inconsistent, lost correspondence, verbal abuse, extensive delay, money, health, harsh, shuffled, no resolution, dysfunctional, barrage of misinformation, misdirection, deliberate inactivity, abuse, harassment, yo-yo. blocked at every turn, labyrinth of transfers, hundreds of hours on the telephone, transferred, never speak to same person again, contradictions, complaints meet with resistance, no supervisors available, unaccountable departments, asked to sign same documents three, four or even five times, negotiators who would not return telephone calls, not isolated incidents, pattern and practice by Bank of America.’

What will happen next?

One of the Plaintiff’s lawyers, Robert Doggett said on ForeclosureBuzz.com, “It would be hard to imagine that Bank of America and BAC will fight the facts of the case; the question will likely be whether they can get away with it. The servicer will likely claim that poor “customer service” is something that must be accepted like a slow waiter or a bad movie. The difference is of course that homeowners are not merely customers that should expect to be mistreated and lied to — homeowners have a contract with the holder of their home loan and these servicers are the agents for the holder — and moreover, servicing a home loan is not in the realm of someone forgetting your fries or being tricked into seeing Gigli.”

For the full claim, click here.

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3 Responses to “15 Texans File Class action suit against Bank of America”

  1. Heather Fuller says:

    Last May 2010 My husband & I were embroiled in a mess with GMAC and USAA. We were trying to sell our home. We had executed two contracts and a back up contract. We had an independent appraiser who had done an appraisal for the primary buyer and we had a contract for that amount. We filled out all the necessary paperwork for the lender for a short sale. We first filled out the paperwork last August 2009 and again in December 2009 when we got the contracts.

    Instead of even talking to our Realtor or to us, they scheduled the property for foreclosure of May 2010! It doesn’t make any sense why they were insistent on foreclosure when we knew the property wasn’t worth any more that they are getting at that time. We are convinced there was something else driving the lender towards foreclosure. Lori our realtor at the time has the entire file and can explain it better to a reporter in person. The interesting thing is that the pay off of the loan from 1 year ago (2009) is tens of thousands less than the pay off they they quoted 2010 & this is after they have added in fees and penalties. So the “huge” loss is just their tacked on fees!

    PLEASE, PLEASE, PLEASE, PLEASE! The public needs to know what is really going on! I believe our tax dollars is being spent so that these companies can take big write offs on these losses!

    Please call or email me Heather Fuller (817 897-2908 cell, info@urbantejas.com)

    or Lori who was our Realtor @ (817-475-5117 cell, lori@ftworthhomes.net) to discuss this. We think people will be very interested to know the truth about what is going on with lenders and where their tax dollars are really going.

    Sincerely,

    Heather M. Fuller

  2. david hill says:

    My daughter is currently trying to modify her loan and of course BOA is using every stall tactic in the book. How can she join the lawsuit or bring another against BOA.

    Thank You,

    David Hill

  3. tawana hood says:

    To whom it may concern,
    November, 2012 my wife and I were approached by Bank of America with options to pay a lower mortgage thru the loan modification process. At that time, the amount owed on our home exceeded the amount of which the house was worth. The loan modification option was presented to us as a way to lower monthly mortgage payments to fit the amount owed on the home. We were given a lower interest rate (3.25% vs. the original 6.25%) in which gave us the impression the overall amount owed would match the value of the home.
    After the very time consuming and endless amount of paperwork that was completed twice due to mistakes by Bank of America, the loan modification process was completed after 4 months. After almost a year of making all payments on time, my wife and I were astonished to find that Bank of America reported late payments to the credit bureaus for the months during the modification process. All records of on time payments were provided to Bank of America and after 90 days the remarks were removed from my wife’s credit report as well as mine.
    Now, after all of the mishaps listed above, my wife and I are in the process of selling our home. Once again, we are completely blindsided and outraged at the fact that a second (silent) mortgage was taken out on our home by Bank of America in the amount of $4,800 payable to HUD. This information was never outlined to us and this action is

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