Attorneys general in Arizona and Nevada filed civil lawsuits Friday against Bank of America Corp., alleging that the lender is misleading and deceiving homeowners who have tried to modify mortgages in two of the nation’s most foreclosure-damaged states. Bank of America violated Arizona’s consumer fraud law by misleading consumers who tried to reduce their monthly payments to keep their homes, state Attorney General Terry Goddard said.
Hundreds of homeowners kept making their mortgage payments because Bank of America repeatedly assured them that their loans were being modified. Instead, many lost their homes anyway. According to Goddard, "They were deceived into continuing to make mortgage payments when they had no hope of saving their homes.”
Nevada and Arizona are among the states hardest hit by homeowners who have defaulted on mortgages in the last few years as adjustable payments soared, people lost their jobs, and home values collapsed. One out of every 99 households received a foreclosure notice last month in Nevada, according to RealtyTrac Inc., and Arizona’s rate wasn’t far behind.
The Arizona attorney general’s office was deluged with consumer complaints and launched an investigation more than a year ago. The Arizona lawsuit, filed in Maricopa County Superior Court, alleges that the bank has repeatedly violated the consent agreement that was expected to lead to loan modifications for thousands alleging that Bank of America failed to make timely decisions on modifications and went ahead with foreclosures. The lawsuit asks for contempt citations against the bank for violating the consent agreement with the state. It also seeks restitution for consumers, civil penalties, legal fees, plus $25,000 for each consent agreement violation and up to $10,000 for each violation of the Arizona Consumer Fraud Act.
Nevada’s complaint accuses the bank of operating its loan modification program in violation of the Nevada Deceptive Trade Practices Act. It seeks civil penalties and restitution along with other fees.
For more info on foreclosures, loan mods, short sales, buying or selling real estate in todays complex evolving housing market contact me directly at 561-306-6736 or email : ges.rellc@ymail.com
http://ges-realty.com
George E. Sinacori
GES Real Estate, LLC
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