Pending Lawsuits Allege Pattern of Wrongful Foreclosures and Administrative Misdeeds That Shows Need for Consumer Protection against Major US Bank
Hidden Hills, CA (Vocus/PRWEB) January 25, 2011
Facing a national storm of criticism over treatment of homeowners and illegal mortgage foreclosures, and most recently sued by Arizona and Nevada over home-loan modification programs intended to keep homeowners who borrowed from its Countrywide mortgage unit out of foreclosure, Bank of America is being exposed as a leading factor in creating the problems homeowners face in the ongoing foreclosure crisis, according to Mitchell J. Stein, Esq. of Mitchell J. Stein & Associates.
“There is a disturbing pattern of the way Bank of America treats people being revealed through consumer feedback and the tremendous amount of negative media coverage, which simply put, is consistently terrible,” said Mitchell J. Stein, Esq., a 25-year award-winning litigator, trial lawyer, and philanthropist dedicated to protecting consumers and victims’ rights in reigning in abusive practices of banks, lenders and others. “It is vital that the behaviors of the banks that have helped create this crisis get national attention to help protect consumers, resolve the crisis and understand the Banks’ true role in it.”
While all 50 U.S. states are investigating whether banks and loan servicers used false documents and signatures to justify hundreds of thousands of foreclosures, Bank of America was sued in December, 2010 by Arizona and Nevada over home-loan modification programs intended to keep homeowners who borrowed from its Countrywide mortgage unit out of foreclosure. A judgment in 2009 to resolve a lawsuit alleging Countrywide engaged in fraud required the Bank create a loan modification program for former Countrywide borrowers in those states.
“According to the Arizona attorney general, instead of working to modify loans on a timely basis, Bank of America apparently proceeded with foreclosures while borrowers’ requests for modifications were still pending,” said Mitchell J. Stein, Esq. “This is another of many examples in the foreclosure crisis of Bank of America allegedly ignoring the law to pursue profits above people.”
In the Arizona and Nevada suits, the bank is accused of misleading consumers about requirements for the modification program and how long it would take for requests to be decided. The bank provided inaccurate and deceptive reasons for denying modification requests, according to the suits.
“From throwing people’s belongings into the street during wrongful foreclosures to foreclosing on homeowners working for loan modifications, there is a typical and despicable lack of consideration by the Bank for its customers, especially people in jeopardy of being evicted because the Bank repeatedly doesn’t fulfill its legal responsibilities in dealing with them and their mortgages,” said Mitchell J. Stein, Esq.
The Arizona lawsuit seeks a court order holding the bank in contempt for violating the agreement and requiring it to pay as much as $25,000 for each violation of the accord plus as much as $10,000 for each violation of the state’s consumer-fraud law. Nevada’s complaint seeks unspecified civil penalties and restitution.
The Arizona case is Arizona v Bank of America, CV2010- 33580, Maricopa County Superior Court (Phoenix). The Nevada case is Nevada v. Bank of America, Eighth Judicial District Court, Clark County (Las Vegas).
ABOUT MITCHELL J. STEIN & ASSOCIATES
Mitchell J. Stein & Associates is a California-based law firm founded by M.J. Stein, Esq. a 25-year award-winning litigator, trial lawyer, financier, and entrepreneur who has represented many of the world’s largest companies and has been involved in some of the highest profile cases in the Nation’s history. The Firm’s philosophy is based on the belief that their clients’ needs are of the utmost importance and, as a result, a high percentage of the Firm’s business has been from repeat customers and referrals. The Firm’s practice areas include Complex Litigation, Bank Problems, Mergers & Acquisitions, Commercial and Residential Foreclosures , and Bankruptcy Litigation. Mr. Stein is also the founder of VIPS Foundation (Victims of Injustice Pain and Suffering), through which victims nationwide, over the last 15-years, have received assistance following unfortunate events that subjected them to oppression or mistreatment. In that regard, Mr. Stein received the inaugural Mitchell J. Stein Benefactor Award from the National Organization for Victims Assistance (NOVA) for his work in protecting victims’ rights. Visit http://www.mjsteinassociates.com or http://www.dobielaw.org for more information.
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