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Homeowners File Class Action Suit Against Bank of America for Not Helping Them With Mortgage Problems

In a potentially wide-ranging lawsuit, two Seattle-area homeowners have filed a class-action suit against Bank of America claiming the bank has failed to work with owners facing foreclosure.

Filed Tuesday, the potentially wide-ranging lawsuit alleges Bank of America failed to keep up its end of the deal cut with the federal government in early 2009 when it took $25 billion and promised to work with homeowners struggling to make their mortgage payments.

By participating in the Troubled Asset Relief Program — TARP — the bank agreed to assist loan recipients to reduce payments to levels they could afford, Seattle attorney Steve Berman said in court documents. Berman alleged the bank’s foot-dragging has failed his clients, Kamie and Daniel Kahlo, and hundreds of other Washingtonians.

“We intend to show that Bank of America is acting contrary to the intent and spirit of the TARP program, and is doing so out of financial self interest,” said Berman, managing partner of Hagens Berman Sobol Shapiro, according to a statement.

Read the full story here.

Homeowners File Class Action Suit Against Bank of America for Not Helping Them With Mortgage Problems
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Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
  • Irish23567

    Bank of America refused to modify my loan even after it was brought to their attention that they had a major TILA Violation on my mortgage papers….they foreclosed and auctioned off my house in May….Where was the gopvernment then to help me…Now they stop foreclosures to go over paperwork……..How about giving me back my house now that its been trashed??????

  • Irish23567

    Bank of America refused to modify my loan even after it was brought to their attention that they had a major TILA Violation on my mortgage papers….they foreclosed and auctioned off my house in May….Where was the gopvernment then to help me…Now they stop foreclosures to go over paperwork……..How about giving me back my house now that its been trashed??????

  • paulo

    Correction: I’m current on my first with Citi, the payment on that is $1588.00 a month.

  • paulo

    I’m trying to settle my second trustee with BOFA, but they keep saying that BOFA dosen’t do settlements. According to HUD, BOFA indeed do settlements;
    I owe $100K on my second, I’m 4 months behind, my payment is $3035.00 a month. I’m current on my second (Citi) my payment is $1588.00. If BOFA foresclosure they have to pay pay citi first ($270K). The house house is worth about $365K. I’m trying to get BOFA to take $20K and forgive the remain amount. Do you think that is possible? Thank you.

    • magda_525

      Bank of America gave me a modification that turned out to be more than what the original loan amount.  Reason for this was that this was my second home and since it wasn’t “owner occupied” they would not work with me.  Long story short, this battle was on going for 2 and half years.  This was an owner occupied home.  One of their inspector came to verify that I did live at the home and they finally did foreclosured on the house.  Fannie Mae and the US department kept telling me that I did qualify.  They are a bunch of scammer and the US goverment has done nothing to see what they are doing to us homeowners.

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