Posts Tagged ‘ HAMP ’

Homeowners Latest Grind: Foreclosure Mills

October 28th, 2010. By LucyC

It seems that the banks just can’t stay out of the news these days—for all the wrong reasons. In addition to claims that they charge excessive fees and suspect overdraft charges, several banks are now facing lawsuits filed by emboldened homeowners, presumably with nothing left to lose, over their foreclosure procedures. And it looks like the homeowners may just have grounds.

Case in point, Bank of America (BoFA) was hit with a class action lawsuit in New Jersey last week by homeowners who allege the lender disregarded foreclosure process rules. Earlier this month BoFA imposed a nationwide moratorium on foreclosures and the sale of foreclosed homes after a government agency told BoFA it was worried about documentation problems.

Documentation problems? Read on…

It seems the banks have been hiring so-called “robo signers” or “affidavit slaves”—employees who literally sign hundreds of foreclosure documents a day, according to the Wall Street Journal, without carefully reviewing their contents. The Washington Post recently ran a story on a man who has signed as many as 10,000 foreclosure documents in one month. And, the suit brought against BoFA cites a statement made by a bank official in a Massachusetts foreclosure case who admitted signing thousands of foreclosure complaints without reviewing them.

Keep in mind that these people’s signatures—robo signers’ signatures—act as witness to the Read the rest of this entry »

Tags: BAC Home Loans Servicing, Bank of America, Foreclosure, GMAC, HAMP, LaSalle Bank, SunTrust
Posted in Class Action, Consumer Fraud, Emerging Issues, Financial | 4 Comments »