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Bank Of America Claims Death of Child Not a Hardship

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  • Time4change | | 12 Oct 2012, 03:09 PM Agree 0
    Why does this not surprise me?
  • William Matz | | 13 Oct 2012, 12:55 PM Agree 0
    The reports of B of A misconduct are legion. They go well beyond those addressed in the AG settlement. (I addressed some in my OCT 2010 Niche Report article.) Moreover, insider/whistleblower reports confirm that the "errors" are not just admin slipups, as management often claims, but often the result of express bank policies. My suspicion is that the banks are trying to foreclose whenever possible in order to "scrub" their portfolios before courts really begin addressing the endemic fraud and misrepresentation in mortgage origination that led to the current crisis.

    One of my clients (another atty, no less) received her written mortgage mod agreement in the mail and later the same day got a call that her home had been sold at foreclosure. However, she had the last laugh on B of A. After fighting for another year (in the house-no payments) she learned that due to the large number of foreclosures and delinquent HOA dues, the HOA had to levy a $20,000 special assessment. After learning that it made no economic sense to retain the unit. So she moved out, leaving B of A a vacant home and an additional $20,000 personal obligation B of A would have to pay.

    Unfortunately, B of A may not even be the worst. There seems to be a race to the bottom among the banks and servicers as far as outrageous conduct. Fortuntely, judges are finally waking up to this and realizing that the real problem is not deadbeat borrowers.
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