State of Arizona Sues Bank of America for Mortgage Servicing Fraud

This just came across the wires—or the nets, as inventor Al Gore calls it…      Let me get my hands on the complaint and I’ll post it.

Arizona sues Bank of America over mortgage servicing

SAN FRANCISCO Dec 17 (Reuters) – The state of Arizona has sued Bank of America Corp (BAC.N), alleging that the bank has consistently misled consumers about its home loan modification process, a source familiar with the situation said.

The lawsuit, filed on Friday by Arizona Attorney General Terry Goddard, accuses Bank of America of violating the state’s consumer fraud act, according to a draft copy of the lawsuit obtained by Reuters.

The state also says Bank of America violated a consent judgment over its loan servicing, and is seeking a $25,000 penalty per violation, according to the lawsuit. (Reporting by Dan Levine; Editing by Lisa Von Ahn)

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One thought on “State of Arizona Sues Bank of America for Mortgage Servicing Fraud

  1. Scores of HOMEOWNERS DO NOT CONTEST FORECLOSURES BECAUSE:
    1. They don’t have knowledge of the law in order to recognize which aspects of foreclosure are legally challengeable or even fraudulent.
    2. And even those who identify wrongdoing lack funds to pay for attorneys to represent them.
    3. Homeowners are told to come to foreclosure auctions with $$$$$$$ that they do not have, SO THEY STAY AWAY from foreclosure auctions.

    These homeowners are oblivious about sometimes “straw buyers” and sometimes lawyers in charge of foreclosures, obtain ILLEGAL ownership of people’s homes; and pay literally nothing through “credit bids;” and that those recorded deeds from such auctions are null! For these very reasons, there needs to be a probe of lawyers who file foreclosures. http://chn.ge/eU2zAm

    Also, the average lay person doesn’t know about legal REQUIREMENTS of “standing” that prevents their homes from being repossessed via non-existent lenders or via lenders which have no ownership of promissory notes.

    Yet, COURTS ARE SUPPOSED TO ENFORCE STANDING and compliance with established laws! Illegal, defective, fraudulent foreclosures are the cause of useless property deeds for real estate sales; title insurance companies refuse coverage on foreclosed properties –and more!

    Further, after certain foreclosure auctions (via simulation) result in fraudulent – NOT LENDER ACQUISITIONS, by lawyers or straw buyers, the common scenario becomes property flipping, neighborhood blight, rodents, and so on!

    *Sample of fraudulent foreclosure acts:

    –Deliberately use defunct lenders, lenders without “standing” for false civil and bankruptcy foreclosure proceedings.
    – Create and conceal malpractice foreclosure delays and engineer billable litigation.
    – Orchestrate sham foreclosure auctions; property never acquired by lenders, but ‘straw buyers’
    – Commit actionable wrongs (unfair debt collection, fraud, various torts) that create lawsuits
    – Self-dealing foreclosures which certain lawyers themselves obtain foreclosed properties for flipping.
    –Foreclosures naming defunct lenders, illegally recorded property deeds, flipping, blighted communities.
    – Unconscionably create false deficiency judgments against property owners after straw buyers acquire homes for pennies on the dollar.
    – Intentionally false BANKRUPTCY COURT “Motion to Lift” and “Proof of Claim” on behalf of non-existent lenders which conceals fact of “NON-SECURED” mortgage debt.
    –Involved in fraudulent collection of property damage insurance, as well as mortgage-default insurance.
    –Fraudulent foreclosures abet loss of property taxes to city revenue, rodents, vagrants
    – Thousands of families made unlawfully homeless from null foreclosure proceedings.

    Foreclosure lawyers are officers of the court. Lawyers are required to know applicable laws and civil procedure; this knowledge is not required from mortgage lenders, nor loan servicers. Lawyers are the ones who file those inadequate or questionable foreclosure which lead to useless property deeds and impediments to real estate sales; title insurance companies reluctance to cover foreclosed properties; mortgage default claims disputes due to defective foreclosures.

    *MORE info: Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers
    http://www.change.org/petitions/view/request_for_congressional_foreclosure_panel_to_examine_foreclosure_lawyers#

    Like

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