From the 4closurefraud blog, another horrifying story of fraud, abuse and outright theft by the banksters:
The moral to the story below is if you are put into a “loan modification,” your regular payments will not be applied, late fees will
The moral to the story below is if you are put into a “loan modification,” your regular payments will not be applied, late fees will occur, your credit will be ruined because you are reported as NOT making your payments when in a modification, and once you sent in your trial payments, they deny you and foreclose.
The part that gets me the most is all those trial payments, even if you made 10 or more of them, are gone, not credited to your account.
From what I have seen, this happens in every single case…
In one of the more bizarre foreclosure cases, Bank of America is threatening to throw a West Hartford family out of their home even though the couple never missed a mortgage payment.
The largest bank in the United States earlier this month notified Shock Baitch and his wife Lisa (Friedman) Baitch that foreclosure action will start today – Christmas eve – unless the couple agrees to put their home up for a forced sale.
Because another unit of Bank of America erroneously reported to credit agencies that the family was seeking a loan modification, ruining their credit rating and as the result putting their mortgage into default.
All this is happening even though the bank – after admitting it erred and sent a letter of apology in September – handed this case to a special unit at Bank of America that is charged with dealing with severe customer issues. It promised to notify the credit reporting agencies that the couple were not deadbeats, but were good credit risks.
“I have never seen a case like this,” said Manchester attorney Wendell Davis, whose office handles many foreclosures.
Before taking the case, Davis said he thoroughly checked Baitch’s records and found that all his and his wife’s allegations were accurate.
“They have never even been late on a mortgage payment,” said Davis this morning in an interview.
Davis, a member of the Ct Bar Association’s foreclosure committee, said he is preparing a lawsuit to protect his clients because it’s the only way to hold Bank Of America accountable for its actions.
Once again, the banks are given a pass for their criminal behavior, while homeowners are given the shaft. Tuesday, the Office of the Comptroller of the Currency and the Federal Reserve announced the beginning of payments for some of those people whose homes were wrongfully taken from them and the settlements are, as Chris Hayes put it, "cartoonishly small." Read more...
Federal prosecutors hit Bank of America with a $1 billion lawsuit Wedesday, accusing the bank of mortgage fraud that contributed to the housing crisis. Bank of America became entangled in the scheme -- known as “High-Speed Swim Lane” or “Hustle” -- when it purchased Countrywide Financial in July 2008, just as the economy was slipping into recession. Countrywide, a mortgage lending giant, was already known for approving risky loans when it introduced its “Hustle” program to churn out more loans, effectively eliminating a system that ensured the mortgages were being made to buyers who could afford them. A top U.S. attorney said the bank’s fraud was “spectacularly brazen in scope.” Read more...
I believe this is what is known as "playing for time" -- as in, what can we force the politicians to do to cover our asses before we actually have to face the consequences?
Bank of America Corp. said it is placing a moratorium on all Read more...
Big banks, bailouts, secret bailouts, the defective and even fraudulent mortgages that have already led to foreclosure on millions of American's homes; finally, a mainstream media news source is asking why none of the companies involved - or their executives - have been prosecuted. Read more...
Bank of America is making it difficult to investigate them for fraudulent practices. Arizona's Attorney General, while conducting follow-up interviews on borrower complaints was made aware that the bank was quietly working to modify questionable loans, and requiring homeowners to sign non-disclosure agreements in return. Read more...