US Sues BOA for $1B – How Might This Affect Your Foreclosure?
Look at the value of your house. Has it plummeted in the past few years so that you owe more on it than its present value? If so, particularly if you face foreclosure because of job loss, the US Government’s lawsuit against BOA for predatory lending practices of Countrywide, whose assets and liabilities BOA now owns, might give you the ammunition you need to demand a mortgage cram-down from the Court as a form of relief.
The Financial Crisis Inquiry Commission Report generalized this reality in early 2010. Now the Government’s lawsuit will produce discovery that could provide you with factual evidence to prove that Countrywide/BOA behavior caused YOUR house to collapse in value, thereby injuring you and causing you specifiable damages.
Remember that Courts exist to give redress to injured persons. The lender bank (mortgagee) claimed you (the mortgagor) caused an injury by failing to make the mortgage payment.
But if the Government prevails in the lawsuit or proves the predatory lending accusation, then that could mean the bank cheated YOU (injured you) by selling you a loan for a possibly overpriced house that you did not qualify to buy. The lawsuit might prove that the predatory lending schemes actually caused the collapse of your house value. That could mean the bank injured you both when you bought the house AND while you owned it.
Of course, if you falsified your loan application, then YOU committed a federal felony under 18 USC 1001, so you should open your eyes before pursuing remedy for all your injuries.
Consult a competent attorney (ideally a “well-connected” law firm) about your legal rights in this matter. I would shy away from traditional foreclosure defenders because most of them seem only to want to bilk you out of money you should pay the lender, just to delay the inevitable foreclosure.
Bank of America sued by US for $1B
|The prosecutor, Preet Bharara, said he was seeking more than $1 billion, but the suit could ultimately recover much more in damages.
“This lawsuit should send another clear message that reckless lending practices will not be tolerated,” Bharara said in a statement. He described Countrywide’s practices as “spectacularly brazen in scope.”
He also charged that Bank of America has resisted buying back soured mortgages from Fannie Mae and Freddie Mac, which bought loans from Countrywide.
|The Justice Department is seeking $1 billion from Bank of America, alleging the bank committed fraud by selling defective mortgages from a program it says was known within the bank as “the Hustle.”
Those mortgages were purchased by government-backed mortgage finance firms Fannie Mae and Freddie Mac, resulting in over $1 billion in losses for taxpayers and countless foreclosures, according to the complaint announced Wednesday the U.S. Attorney for the Southern District of New York.
The suit alleges that “the Hustle” was a nickname for the bank’s “High-Speed Swim Lane” or HSSL program, designed to streamline the mortgage origination process. But the government alleges it was “intentionally designed to process loans at high speed and without quality checkpoints, and which generated thousands of fraudulent and otherwise defective residential mortgage loans.”
The government says the program was started by mortgage lender Countrywide Financial, but continued after it was purchased by Bank of America in 2008.