Foreclosure Defense Nationwide - Mortgage Foreclosure Help - Free Advice

Apparently the settlement that has not actually been finalized is a big win for the banks and a no win for homeowners.  This article from Foreclosure Defense Nationwide gives a few of the details as to how the home owners are actually getting shafted again.  The money that will be available is already being ear marked to help fill the holes in state budgets rather than be used to help and protect homeowners.  It is unbelievable what the banks have pulled off again and how they have gotten away with so much criminal activity.  So much for government protection.  

We have been receiving literally dozens of e-mails from homeowners inquiring as to what effect the bank settlements with various attorneys general will have on their foreclosure cases. Answer: NONE, for several reasons.
First, the Attorney General claims were just that: claims by attorneys general against the banks. Private litigants were not parties to the litigation, so they are not parties to any settlement. In fact, it has already been reported that the settlements have no effect on and do not preclude an individual pursuing legal relief against a lender.
Second, the settlements are not even finalized yet. They have to be filed in court, and once they are, the states which filed the lawsuits will be free to enact whatever procedures, processes, requirements, etc. they wish as to whether a homeowner “qualifies” for any settlement proceeds. As we all know from the loan mod scam, this process can take months or even years, and there are a million ways that a homeowner can be found to ultimately not “qualify”.
Third, and perhaps most revolting and insidious, is that several of the states have ALREADY announced that portions of the settlements will be diverted to state budgets. Specific instances include Wisconsin’s announcement that it plans to use $25.6 million of the settlement money to “plug holes in the state’s budget”, while Missouri has announced that it plans to put $40 million of the settlement money into the state’s “general fund”.

So, once again, the homeowners get nothing. In fact, it has been separately announced that because the attorney general lawsuits have been resolved that the banks will be ramping up individual foreclosures, obviously now because they will not have state governments and attorneys general examining what they do. Sad, but unfortunately true.

Foreclosure Defense Nationwide - Mortgage Foreclosure Help - Free Advice

Nevada vs Bank of America. State AG sues too big to fail bank

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Here is information from the Nevada Attorney General regarding the filing against Bank of America.
The Complaint alleges that Bank of America is:


1)Misleading consumers by promising to act upon requests for mortgage modifications within a specific period of time;

2)Misleading consumers with false assurances that their homes would not be foreclosed while their requests for modifications were pending, but sending foreclosure notices, scheduling auction dates, and even selling consumers’ homes while they waited for decisions;

3)Misrepresenting to consumers that they must be in default on their mortgages to be eligible for modifications when, in fact, current borrowers are eligible for assistance;

4)Making false promises to consumers that their modifications would be made permanent if they successfully completed trial modification periods, but then failing to convert these modifications;

5)Misleading consumers with inaccurate and deceptive reasons for denying their requests for modifications;

6)Falsely notifying consumers or credit reporting agencies that consumers are in default when they are not;

7)Misleading consumers with offers of modifications on one set of terms, but then providing them with agreements on different sets of terms, or misrepresenting that consumers have been approved for modifications.

Because of Bank of America’s false promises, many Nevada consumers continued to make mortgage payments they could not afford, running through their savings, their retirement funds or their children’s education funds. Additionally, due to Bank of America’s misleading assurances, consumers deferred short-sales and passed on other attempts to mitigate their losses. And they waited anxiously, month after month, calling Bank of America and submitting their paperwork again and again, not knowing whether or when they would lose their homes. Whatever the consumers’ particular circumstances, they all suffered the stress and frustration of being misled by Bank of America while trying to take responsible action to modify their mortgages so they could continue to make their payments and remain in their homes.

“We are holding Bank of America accountable for misleading and deceiving consumers,” said Attorney General Masto. “Nevadans who were trying desperately to save their homes were unable to get truthful information in order to make critical life decisions."
Bank of America’s misconduct in misrepresenting its mortgage modification program was confirmed in interviews with consumers, former employees and other third parties and through review of relevant documents. Former employees describe an environment in which Bank of America failed to staff its modification functions with employees who had the necessary training, skills and experience. According to employees, the modification process was chaotic, understaffed and not oriented to customers. Employees were even reprimanded for spending too much time with individual consumers.
“Consumers turn to their banking or lending institutions for answers when faced with a life changing decision such as saving their home,” said Attorney General Masto. “Bank of America’s callous disregard for providing timely, correct information to people in their time of need is truly egregious."


Sounds like the Nevada AG is listening to complaints from citizens.  I am sure there have been thousands or they would not be taken B of A to court.  The results of this case may have an impact on the housing crisis across the country.  If the bank is held accountable for their actions real change may come about in the mortgage and banking industry. 
Decision Points

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