Homeowner Sues BofA Over HAMP Modification

Stephen Rodd, a private lawyer, who is working for Ms. Freeman, said Bank of America violated the HAMP rules as his client has respected the federal loan modification program. He has also said her modification was denied after her file was transferred from one of Bank of America subsidiary to another.

Yes, it is about time someone took at least one of these lying, greedy banksters to court for violating a federal program.  Actually, they all should be taken to court for violating many federal laws not just one program called HAMP.

Those of us who write about these crooked banks and their pursuit of foreclosures by any means available to them – lawful or not – get frustrated by the lack of real “lawful” actions against them for committing crimes that any of us would go directly to jail for.

Bank of America, in particular, has always been – in my opinion – a greedy, outside the law institution who would profit regardless of laws, morals or just good corporate citizenry.  I remember when BofA was the only bank in the country who would offer mortgage loans to illegal aliens.  Yes, that’s right.  Anyone in the mortgage business at that time knew that this was not allowed.  It was against Fannie and Freddie regulations as it was against all sub prime regulations yet, BofA did not care and offered these loans through their own retail organization. 

BofA also was great for offering credit cards to illegal aliens as well giving them obscene rates in the 30’s.  Bof A also was great for offering their zero interest credit cards then boosting the rate ot over 25% if you were ONE day late on your payment.  Yes, just ONE DAY LATE!

BofA should be exposed for many of their illegal and faulty activities NOT rewarded with failed acquisitions like Merrill Lynch and Countrywide Bank then given our tax dollars to bail them out.  

OK, enough of my rant, now back to the story.

This is a story of how one homeowner applied for and received a “trial” loan modification, followed the rules to get it, made her new payments each and every month and on time but them was denied a permanent modification.

Ms. Freeman, 50, purchased her house in 2000. In 2006, she refinanced her mortgage loan for $418,000 with a California-based company which was later acquired by Bank of America. In October 2009, a Bank of America subsidiary, offered Ms. Freeman a trial period plan under HAMP. The homeowner can make modified payments for three months and if he satisfies all the trial-period requirements, the bank offers him a permanent loan modification.

According to Ms. Freeman’s statements, she had made the payments until February, when she received a notice saying the servicing of her loan would be transferred to another Bank of America subsidiary, BAC Home Loans Servicing. In July, BAC informed Ms. Freeman she was not eligible for the HAMP program because she had not made all the required payments.

This is not the only case, in fact, I would have to say just from the reading I have done since HAMP came into being that this is the case for most homeowners and again, not just with Bank of America but with ALL of them.

I never have understood why any owner of a mortgage would rather take a loss on their investment instead of getting a full repayment even at a much much lower rate of interest.  Is not a 1% return on investment with a full repayment of principal not better then foreclosing and taking less then the original investment?  Of course not.  But this then brings up the question of WHO IS REALLY FORECLOSING and WHO IS REALLY PROFITING FROM FORECLOSING.

You see, the BofA “subsidiary” referred to in this article for one is not the Bank part of BofA.  It is not a chartered banking institution.  It is a regular corporation like you or I could set up and is set up by the bank to act as a bookkeeper and collection agent for the TRUE owners of the loan.

Unfortunately, these bank subsidiaries always represent themselves to be THE BANK and THE OWNER of the mortgage note.  And more unfortunately, the same government that came up with the HAMP program and allocated all those millions to it to SAVE homeowners is the same government that REWARDS these non bank subsidiaries of the banks by repaying them up to 80% of thier implied losses.  In otherwords, these subsidiaries tell the government that they lost “X” number of dollars on the foreclosed home because they had to sell it for far less then was owed on it and the government will give them 80% of this “so called” loss.

The system and our government is built to prevent our citizens from prevailing.  It was the “system” and our government that encouraged the crazy lending to boost the economy for political purposes (it began back with the Clinton Administration) and it is the “system” and our government who is now working to destroy the average American financially.  It is a move to make us all economic slaves to the “elite” that “they” – our government – has established to rule our country.  In fact, it is our government that has given our country to these “elite” banksters.

I applaud attorney Stephen Rodd and homeowner Ms. Freeman for having the GUTS to stand up and take a position against an organization most people fear and dare not take on.

Read the full story…click here

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Comments

  • Barbara Ann Jackson  On December 19, 2010 at 4:44 PM

    LAWYERS WHO FILE FORECLOSURES SHOULD BE INVESTIGATED

    Scores of homeowners do not contest foreclosures because:
    1. They don’t have knowledge of the law in order to recognize which aspects of foreclosure are legally challengeable or even fraudulent.
    2. Even those who identify wrongdoing, lack funds to pay for attorneys to represent them.
    3. Homeowners are told to come to foreclosure auctions with money that they do not have, so they stay away from foreclosure auctions.

    These homeowners are oblivious about sometimes “straw buyers” and sometimes lawyers in charge of foreclosures, obtaining illegal ownership of people’s homes, and pay literally nothing through “credit bids;” and that those recorded deeds from such auctions are Null! For these very reasons, there needs to be a probe of lawyers who file foreclosures.

    Also, the average lay person doesn’t know about legal requirements of “standing” that prevents their homes from being repossessed via non-existent lenders, or via lenders who have no ownership of promissory notes.

    Yet, courts are supposed to enforce “standing” and compliance with established laws! Illegal, defective, fraudulent foreclosure causes useless deeds for property sales; title insurance denials –and more!

    Further, after certain foreclosure auctions (via simulation) result in fraudulent –NOT lender acquisitions, by lawyers or straw buyers, the common scenario becomes property flipping, neighborhood blight, rodents, and so on!

    *Sample of fraudulent foreclosure acts:

    -Deliberately use defunct lenders, lenders without “standing” for false civil and bankruptcy foreclosure proceedings
    -Create and conceal malpractice foreclosure delays and engineer billable litigation
    -Orchestrate sham foreclosure auctions; property never acquired by lenders, but ‘straw buyers’
    -Commit actionable wrongs (unfair debt collection, fraud, various torts) that create lawsuits
    – Foreclosures naming defunct lenders, illegally recorded property deeds, flipping, blighted communities
    -Unconscionably create false deficiency judgments against property owners after straw buyers acquire homes for pennies on the dollar
    -Intentionally false Bankruptcy court “Motion to Lift” and “Proof of Claim” on behalf of non-existent lenders which conceals fact of a “non-secured” mortgage debt
    -Involved in fraudulent collection of property damage insurance, as well as mortgage-default insurance
    – Fraudulent foreclosures abet loss of property taxes to city revenue, and invites rodents, vagrants
    – Thousands of families made unlawfully homeless from null foreclosure proceedings

    Foreclosure lawyers are officers of the court. Lawyers are required to know applicable laws and civil procedure. This knowledge is not required of mortgage lenders, nor loan servicers.

    *more @ Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers
    http://www.change.org/petitions/view/request_for_congressional_foreclosure_panel_to_examine_foreclosure_lawyers#

  • lucy  On February 28, 2011 at 9:58 PM

    JP Morgan Chase has been screwing us since 2008; they just told us today they won’t mod our mortgage loan (not in default) b/c “we don’t have an emergency. Our monthly gross is only $2,2002,600, while our mortgage, which is exactly half that lesser amount, means we qualify for about $400 reduction. BTW, last Oct., a tv investigative reporter in NE Ohio did a story about how we suddenly had a $400 jump in our escrow. After our own research, found out city of seven hills, OH ripped us off on a sewer tax assessment, charging us thirty percent more over 20 years. So when escrow jumped up accordingly (which we never bargained for or were told about), it looked like it was the county tax assessors’ fault. Turns out, city is getting kick-back over 20 years, plus JP Morgan Chase (“chase your tail”) added on $222 monthly shortage spread for 12 months; our morgage jumped from $903 to $1300 in one month, and we are expected to pay it for years to come. Today, JP Morgan Chase Your Tail turned down our loan mod request, pretending we’ve enough income. Whether using front end or back end, our monthly gross is only about twice our mortgage cost. JP Morgan are evil bastards. My consolation is sleeping at night. They will all face the same fate as that guy in the movie “Ghost,” the traitor that killed Patrick Swayze’s character. Nice, big, sharp piece of window glass — SLICE!!!!!!!!! Spew. Oh, it feels so good to write that!!!!!!

  • lucy  On February 28, 2011 at 10:00 PM

    sorry, made a mistake; I WISH our monthly income was $2,2002,600 (except maybe with the comma in the right place)! I meant to write between $2,000 and $2,600. Shoot! However, I DID mean to write the part at the end about bloody revenge!!!

  • Charlie  On January 31, 2012 at 2:42 PM

    Bank of America is offering rates at 4.75% with a 720+ score. That sucks! These programs are bull. Other banks offer 3.75% but because the HAMP program has to be fulfilled by your current lender, you’re stuck. I realize that everyone needs to make money to stay in business but raping the consumer should be illegal in situations that were caused by poor lending practices. If there is a rate that i am eligible for, let me get it. The fact that my house is worth less because of foreclosures shouldn’t be my problem. Be responsible BofA do the right thing and be fare or the future will be very bad for you.

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