Washington homeowners have sued Bank of America because the bank is refusing to part with government funds that were to be used to help homeowners who were facing foreclosure. The Bank of America class action lawsuit attorneys want to communicate with eligible home owners who believe were prevented from or wrongfully not allowed a permanent mortgage adjustment as stated in the Home Assistance Modification Program (HAMP). The bank has over a million morgages that potentially can be helped but only offered help to 12,761 mortgage holders.
This lawsuit which has been filed in U.S. District Court, makes the claim that Bank of America attempts to slow or prevent Washington homeowners from accessing the Troubled Asset Relief Program (TARP) funds. It is stated that they deliberately ignore the homeowner’s wish to make adjustments to their mortgage or in fact any other different solutions that would stop their homes from foreclosure.
Bank of America received over twenty five billion dollars in government bailout money. This is money that had been financed by U.S. taxpayers and was specifically put aside to help homeowners who were facing difficulties so that they could try and avoid foreclosure. The bank, by accepting the money, was obliged to try and help homeowners find ways around foreclosure by reducing monthly mortgage payments. The lawsuits states that this did not happen.
The bank should be offering a revised 3 month payment plan and if this is successful then they must offer this as a permanent modification to the mortgage plan. The lawsuit claims this is not happening and that the bank interfered with requests from homeowners and denied them funds to help prevent them from entering foreclosure. The result was that Bank of America benefited from the funds and additionally acquired additional fees and interest rates from the homeowners.
Homeowners who did not receive an adequate response from the bank after April 13, 2009 can join the suit.
During July, 2011 Bank of America lost its bid to get the lawsuit dismissed. The judge stated that homeowners who qualified for HAMP and did not receive any modification could continue with claims against the bank.
More information related to Mortgage Modification Lawsuits