Loan mod nightmare by prominent attorney and laid off homeowner

Written by Biloxi

We keep hearing everyday of deceptive loan modifications by banks to homeowners. Here is a story of the loan modification hell by Bank of America by a laid off homeowners and a prominent Las Vegas attorney.

Linn B. Taylor, a laid off truck driver from Tennessee, is suing Bank of America for breach of contract of loan modification, violation of Tennessee Consumer Protection Act, and negligence. Mr. Taylor is asking for $100,000. Here is the story. Mr. Taylor  agreed to modify mortgage payments. Mr. Taylor send his payments, and they were cashed. However, Bank of America began to reject three payments and didn't cash those three payments. Bank of America declined Mr. Taylor of a loan modifcation and threaten to foreclose on his home.  When Mr. Taylor asked Bank of america represenative why they rejected his three payments yet cash the other payments, Mr. Taylor told the court that the bank representative told him,  "We don't have to accept [the modified] payments if we don't want to."  Here is the Mr. Taylor's lawsuit. Click here.
In the case of prominent Las Vegas attorney Matthew Callister and his wife, Mr. Callister accused Bank of America of not only deceiving him with a loan modification but stalling for approval of a short sale of his home in Utah. Mr. Callister sues Bank of America for violation of Nevada Deceptive Trade Practices Act.

Here is Mr. Callister's story:

Callister this week sued the bank in Clark County District Court, charging he and his wife have been trying for nine months to get Bank of America to approve a short sale for a property in Park City, Utah, but that "Bank of America has been repetitively stalling the approval of the short sale in an attempt to foreclose upon the home first."




Callister said in the suit that he and his spouse Jacqueline purchased the property as both an office and as the place they will retire, but now "defendants have intensely intervened with every possible effort by plaintiffs to short sale the home or to modify the loan."



"Defendants have done everything possible to avoid compliance with federal programs," charges the suit filed by Mathew Callister through his law office Callister + Associates LLC. "Bank of America has made a pattern of telling consumers, such as plaintiffs, that short sales are an available option. However, Bank of America makes these statements knowing that these statements are misleading and in fact, a short sale will not be approved."



Callister said Friday that instead of pursuing the case he filed this week, it was dismissed and he sued the bank over the same issues in state court in Utah. He said he's also considering filing an additional suit in behalf of hundreds of other borrowers or joining an existing suit filed against Bank of America by the Nevada Attorney General's office in Clark County District Court Dec. 17.

The abuse and refusal of the banks to negotiate in good faith with borrowers is a never ending story. The constant nickeling and diming the homeowners with excessive charges and the threats of foreclosure to the homeowners will continue to hurt Bank of America' finances and reputation. It will be much harder for Bank of Bank of America to repair and rebuild.  Bank of America had posted this week their 4th quarter $1.6 billion quarterly loss.