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  • Mary K. Lenahan, J.D., Realtor

Class Action Against Bank of America for Abusive Loan Modification Consolidated with over 20 Other Actions


Bank of America Center, Financial District San Francisco

Bank of America Center, Financial District San Francisco

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.     Read More by Levi Pulkkinen, SeattlePI.comstaff
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The Seattle lawsuit was filed in May 2010 by the Seattle law firm Hagens Berman Sobol Shapiro.   The case title is Kahlo v. Bank of America NA et al, U.S. District Court, Western District of Washington, No. 10-00488.
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On October 29, 2010, this action was transferred to Massachusetts District Court and consolidated with over 20 other  actions against BofA  and now bears the case number 1:10-cv-11876-RWZ.   The lead case number is 1:10-md-02193-RWZ and is assigned to Judge Rya W. Zobel.  The consolidated class action is limited to loan modifications under the HAMP (Home Affordable Modification Plan) which involves a 3 month loan modification trial period.    You can view briefs filed by parties in this action on-line for a nominal fee by simply registering for a Pacer Account.   PACER (Public Access to Court Electronic Records)   View the index of  documents filed in the case select the documents you want to view all for a very small fee.   Pacer is updated daily.
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There is also an action by 15 individual plaintiffs against Bank of America pending in Southern Texas District Court for loan modification abuse.  The case is entitled Harryman et. al. v. BAC Home Loans Servicing L.P. and Bank of America, N.A. , and bears the case number of 6:10-cv-00051. A copy of the Complaint in that action on 6-29-10 is attached.
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“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property – until their children wake-up homeless on the continent their fathers conquered.”
Thomas Jefferson, 1802
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Possible Sources for Help against Abusive Loan Modification
If you have been a victim of loan modification abuse you may want to file a complaint with the Comptroller of Currency and see if the Bank voluntarily refrains from foreclosing.
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The Comptroller of Currency is a US federal agency  whose purpose is to regulate and supervise national banks  and the federal branches and agencies of foreign banks within the U.S.  I am told there is a complaint form on its website:  occ.treas.gov.
You can also contact this agency by:
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Comptroller of Currency
Consumer Assistance Group
1301 McKinney St. #3450
Houston, TX 77010
FAX:  713 336-4301
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Other Resources:
File a complaint with the Office of the California Attorney General
800.952.5225
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Los Angeles County Dept. of Consumer Affairs
800.973.3370
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Los Angeles Neighborhood Housing Services provides free foreclosure prevention assistance.
888.89-lanhs
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For Free Loan Modification Help
See Neighborhood Assistance Corp of American  at NACA.com
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9 Responses

  1. [...] Class Action Against Bank of America for Abusive Loan Modification (mklenahan.wordpress.com) [...]

  2. Hello. I am desperate to find out how to get in the Massachusetts class action law suite against bank of america. I can’t find it on your site, I went to the link re: your paragraph, I am in Missouri, so I would like to know how do I sign up in Massachusetts. I just called the atty genl there, their office is closed today, can you please help me with this? My house is set to sell in 2 wks.
    thank you

    • Dear Tracey:
      Joining a class action will not generally stop a foreclosure. You need to speak to a MO lawyer.
      Consider contacting the MO State Bar to see if it has a Foreclosure Assistance Program or a pro bono attorney assistance program.
      Here in CA, generally, only a Court Order or a Bankruptcy filing can halt a foreclosure.
      To explore whether obtaining a Court Order on a “rush” basis is feasible, you will need to speak to a MO attorney.
      Bankruptcy will only stop a foreclosure briefly, unless you bring the loan current (if you file a Chapter 7) or if you are capable to paying the mortgage arrears back over a 3 or 5 year re-payment program under Chapter 13/ and/or strip the junior liens off if they are under water.
      Bankruptcy however, is an important and limited right which should be used only after consulting with an attorney.
      You may also want to file a complaint with the Comptroller of Currency and see if the Bank voluntarily refrains from foreclosing. I am told there is a complaint form on its website: occ.treas.gov.
      You can also contact this agency by:
      Comptroller of Currency
      Consumer Assistance Group
      1301 McKinney St. #3450
      Houston, TX 77010
      FAX: 713 336-4301
      There are no guarantees, but I understand that complaints to this regulatory body can influence a lender’s/servicer’s conduct.

      CLASS ACTION AGAINST BOFA LIMITED TO HAMP MODIFICATIONS
      According to Attorney Bonnie McCormick with Hagens Berman Sobol Shapiro LLP, the law firm which filed the action in Seattle which is now consolidated in MA, the consolidated action is limited to HAMP modification plans. Under HAMP there is a 3 month trial modification period. (HAMP = Home Affordable Modification Plan).

      For more information on the Class action you may feel free to contact Attorney Bonnie McCormick at 206-623-7292.

      Good Luck Tracey!

  3. [...] Resources for Mortgage Modification are listed in Class Action Against Bank of America for Abusive Loan Modification Consolidated with over 20 Other A… [...]

  4. I was totally screwed by BoA when I fell on hard times and tried to use their making home loans affordable program… How do I get on the class action against them? In my situation they put me on the trial period for a modification and told me to pay lowered payments for the 3 month trial period which lasted 6 months and required me filling out and mailing/faxing the same documents to them at least 5 times before I was told I was dropped from the program due to missing documents. Later I was informed by a BoA representative that all the documents were in my file, and she could place me in an appeals program, however I would “have to make my loan current before she could proceed with that”. Yes, that’s right… they had gone back over the 6 month trial period, adjusted my on time payments of the amount I was told to pay to show that I had made partial payments, tacked on late fees, and reported to the credit agencies that I had not had my loan current for over 6 months, was now in foreclosure and had to pay thousands to get current. Successfully screwing my credit to the point that I was unable to refinance to a non-corrupted servicer and putting me so far behind that I was unable to make monthly payments on other things screwing my credit even more…

    I would LOVE to join on a class action against them but have no idea how… any help would be GREAT… I live in MN

    • I would love to be a part of the class action lawsuit against bank of America to see further details of my story please look up BOA versus HOA mortgage meltdown for details of what happened to me after my modification.

      • By the ways news story against BOA can be googled or located on YouTube … BOA vs HOA mortgage melt down KYVN news contact 13 with Darcy Spears..I live in Vegas an would love to be in this class action

    • I have been dealing with the same situation in massachusetts. We should speak about how to proceed.

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