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.