Class Action Filed Against Bank of America For Foreclosure Fraud

One of the biggest perpetrators of foreclosure fraud has been hit with a class action lawsuit on behalf of homeowners.  It’s about time.

The suit, filed in federal court in New Jersey, accuses Bank of America and two subsidiaries of a “pervasive and willful” disregard of the facts and the law in their “undisciplined rush to seize homes.”  The suit further alleges that numerous foreclosure proceedings in New Jersey are in doubt as the bank filed and jammed through these proceedings without holding the necessary rights rights as the mortgagee or assignee at the time of foreclosure.  According to the complaint, the allegations affect thousands of foreclosures, leaving in question just who owns what in New Jersey residential real estate.

And that’s just one state.

In support of their claims the putative plaintiffs (the class has not yet been certified) cite a recent and well-publicized admission by a Bank of America official in a Massachusetts foreclosure case that she signed thousands of foreclosure complaints without reviewing them.  That’s called fraud.

The plaintiffs also point to the bank’s voluntary foreclosure moratorium from Oct. 8 to Oct. 18 as an acknowledgement, and indeed a legal admission, that “in all of their foreclosure cases, they, as a moving party, prosecute their claims with a complete disregard of whether or not they have met their burden.”  That is unethical and sanctionable conduct.

Among the named plaintiffs are a homeowners whose binding arbitration agreement ending his foreclosure was ignored by Bank of America, who pressed ahead with trying to seize his home anyway and a woman who, after receiving a mortgage modification, was found in default by Bank of America when when made mortgage payments at her new, reduced rate.

The complaint also blasts the judicial system for an inexcusable deference to Bank of America at the expense of homeowners.  When called by judges to case management conferences, lawyers representing the bank often fail to show up.  When Bank of America refuses to negotiate in good faith judges do nothing about it, leaving homeowners to battle foreclosures after Bank of America has negotiated a modified mortgage and then later refused to honor the terms.

So far Bank of America has no response to the lawsuit.

photo courtesy of respres via Flickr

35 comments

Quanta Kiran
Quanta Kiran5 years ago

Thanks.

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Benny Rees
Benny R5 years ago

Congratulations to anyone, who took a civic stand, and divested their funds from the Bank Of America! This is the only language such monstrous banks understand.... I hope that BoA loses.

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Jimmy D.
Jimmy D.6 years ago

Is there any class action against Bank of America or Countrywide in Massachusetts? I like to join.

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TakeBack A.
TakeBack A.6 years ago

Dear GOD! I thought I was the only one who had dealings with the evil Bank of America bunch!!! Check your state! Many class action lawsuits pending in several states.

I read the post about the small business above. I can believe it. I contracted with them and they were the most corrupt, evil, knowingly exploitative bunch of bas-tards. I would love to see them go under. under under.

Keep posting comments on every article you see about how awful they are. Their stock prices are dropping like a stone. All of their dirty deeds are coming out now.

Also, see if Julian Assange (WikiLeaks) might take up our cause. Maybe he will post a page of B of A antics as told by the victims (us).

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Joe M.
Joe M.6 years ago

Any class actions in Texas happening I will join.
Some one needs to stop them

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Glenn Lowe
Glenn Lowe6 years ago

EVERYONE TELL OBAMA TO CRASH THE BIG BANKS NOW!

The Fed and their complicit banks must be abolished to save the Republic!
It’s the only thing we can do. CRASH THE BIG BANKS NOW “Too Big Too Fail” apparently means “Too Big To Succeed” and “Too Big for their own Wallets”

The sooner the better. Why don’t we ask a 3rd grade math student what he thinks? The real problem is that a politician who could do something about it has his own mathematical challenges about healthy economies. “Bite the hand that feeds him” (by indicting Banksters), or make millions putting children in the streets for power and profit.

Apparently ALL politicians are going to make the same choice over and over again. They have always sold the souls of your children and their future and they always will. Take the big Banksters out of the picture. Build a local banking system that cares about its community and helps it thrive instead of sucking the life out of it by bribing and fixing the entire system for itself, taking us all of a cliff with it.

Crash all the big banks now. Create new local Banks only = No more Wall Street Banksters.

Problem Solved! J Glenn Lowe

Die Banker Die - A Tribute to the Wall Street Banksters that suck the life from all of us and our economy just to get a nice Christmas Bonus - http://www.youtube.com/watch?v=YGFZ1Jj3ui8

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Jeremy P.
Jeremy P.6 years ago

Does anybody know if there are organizations out there looking for negative stories about Bank of America that show their perverse lack of empathy in the small business arena. What happened to us will make the rapid foreclosure process look innocent. However, we cannot claim that they have broken any laws...but their decisions have collectively put an 8 year old small business...(over 80 employees around the country)...because they would not loan us 150K when a customer of ours decided not to pay our final invoice of 187K. Four months later we were out of business. Their lawyers have now put in writing that the Bank's interest must be paid before any more employees can be repaid what is owed to them.

It would be different if the amount of assets we had were insufficient to cover BOA's interest. However, knowingly putting us out of business and then demanding money before our employees is extremely unbecoming...especially after they were bailed out and reported record profits.

There is nothing to litigate here...I offer only the truth about what happened to us. But we are broke and about to lose our homes.

Does this interest anybody???

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John W.
John W.6 years ago

Does anyone want to join a class action in Utah? Please let me know asap. We want to file papers pronto!

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Shannon G.
Shannon G6 years ago

@Beth, where does the statistacal data showing that the Obama administration saved 3-4 million jobs? I have been searching for this data and can find it no where but comming out of the mouth of the Obama administration and their media lackeys.

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Beth C.
Beth C6 years ago

The banks were bailed out with TARP monies which were signed into law by GW Bush not Obama. The Stimulous which saved about 3-4 million jobs was an Obama bill.

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