Bank of America sued by 15 Texans seeking foreclosure solutions – NMP Skip to main content

Bank of America sued by 15 Texans seeking foreclosure solutions

Jun 30, 2010

Fifteen low-income Texans are suing Bank of America for operating a home loan system that forces struggling homeowners into foreclosure by purposefully misleading them, preventing them from modifying their loans, and ignoring agreements for lower monthly payments. Represented by Texas RioGrande Legal Aid (TRLA), a provider of legal aid in Texas, the families allege that they tried to work with Bank of America on loan modifications and foreclosure prevention when tough economic times hit. Instead of providing them with the information necessary to save their homes, Bank of America provided inconsistent information, lost important paperwork, and failed to notify them of the status of their loans. In cases where forbearance and loan modification agreements were made, Bank of America ignored the arrangements and put homes up for foreclosure even though families made their payments. “These families were acting responsibly to try to save their homes,” said TRLA attorney Molly Rogers. “But with every bit of contact, Bank of America put up roadblocks to prevent them from succeeding.” Among the families named in the lawsuit is Austin resident Donna Batts. After applying for a loan modification in June 2009, Batts found herself facing foreclosure. TRLA helped Batts arrange a forbearance agreement to save her home. But even though she made payments according to that agreement, she received conflicting information as to the status of her loan. In March Batts’ mortgage payment was rejected and she was told her home was in foreclosure. Shortly thereafter she received a letter from Bank of America telling her to continue to make her payments or risk losing her home. While Batts still resides in her home, she continues to receive conflicting information as to the status of her loan and the steps necessary to avoid foreclosure. According to the lawsuit, it is standard practice for Bank of America to ignore agreements made with homeowners in order to force them into foreclosure. In addition, Bank of America intentionally provides homeowners with misleading and inconsistent information about their loans, illegally ignores requests for information, and sets up unreasonable barriers to keep families from saving their homes. “No matter what families do, Bank of America is determined to foreclose on these homes. A struggling family doesn’t stand a chance against them,” said Rogers. For more information, visit www.trla.org.
About the author
Published
Jun 30, 2010
CHLA Backs Bank Capital Proposal, Questions Impact On Mortgage Lending

Trade group supports lower mortgage risk weights but says broader market forces — not capital rules — drove banks' retreat from the market

Senate Passes 21st Century ROAD To Housing Act In 85-5 Vote

Sweeping housing package heads back to House after Senate clears final version with broad bipartisan support

MISMO Updates Business Glossary To Support AI, eMortgages

New definitions covering eHELOCs, remote online notarization, valuation modernization, and compliance initiatives aim to improve consistency

Underwriters Don’t Slow Down Loans. They Eliminate Uncertainty.

ndustry’s biggest bottleneck is not underwriting itself — it is the uncertainty that reaches underwriting too late in the process. When validation happens upstream, speed follows naturally.

MISMO Launches AI Governance Framework For Mortgage Lenders

New FRAME toolkit gives lenders, servicers, and technology providers a roadmap for managing AI risk while supporting innovation

CFPB Tells Lenders Immigration Status Can Factor Into ATR Analysis

CFPB frames immigration status as a potential ability-to-repay factor when future U.S.-based income is at risk