Saturday, September 24, 2011
Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against BofA
NEW YORK, Sep 23, 2011 (BUSINESS WIRE) -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") ( http://www.rgrdlaw.com/cases/bofaaig/ ) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Bank of America Corporation ("BofA") /quotes/zigman/190927/quotes/nls/bac BAC -0.16% common stock during the period between February 25, 2011 and August 5, 2011 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/bofaaig/ . Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges BofA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. BofA is one of the largest financial institutions in the world.
The complaint alleges that during the Class Period, defendants misled investors by failing to disclose that BofA potentially owes American International Group, Inc. ("AIG") over $10 billion. Specifically, defendants' statements during the Class Period were materially false and misleading for failing to disclose that between 2005 and 2007, BofA and two companies that BofA acquired -- Merrill Lynch & Co., Inc. ("Merrill Lynch") and Countrywide Financial Corporation ("Countrywide") -- and their subsidiaries sold AIG over $28 billion in residential mortgage-backed securities ("RMBS"), and that as a result of these sales, AIG suffered losses in excess of $10 billion and BofA was potentially subject to suit for those losses. Throughout the Class Period, defendants repeatedly informed investors about the claims of other entities for their RMBS losses but not about the massive losses suffered by AIG.
Fixing the foreclosure process more than a year out; Acting OCC head
Examining the extent of mishandled foreclosures at the largest mortgage servicers and fixing a broken system will take more than a year, according to Acting Comptroller of the Currency John Walsh.
Last fall, servicers were found to be signing foreclosure affidavits en masse and without a legal review of the loan files in a scandal that became known as robo-signing. Federal regulators and state attorneys general found oversight and procedural problems across the entire industry and forced 14 of the largest banks — firms that serviced 68% of the mortgages in the U.S. — to sign consent orders. The actions also included two firms that handled documents in foreclosure cases: Lender Processing Services (LPS: 14.18 +2.31%) and Mortgage Electronic Registration Systems.
They agreed to hire third parties to examine nearly 4.5 million foreclosure files for any potential financial harm and to establish new policies to properly evaluate borrowers for a slew of other options before proceeding with a foreclosure.
"Unfortunately, such a complex process will take another year and more to complete," Walsh said before the Institute for International Finance Friday. "I wish it could be completed more quickly, but it’s important that it be done correctly and in a way that assures fair treatment for homeowners who underwent foreclosure proceedings."
Friday, September 23, 2011
Interstate Notary Fraud Uncovered At Detroit Foreclosure Mill
Back in July, MFI-Miami exposed how Orlans Associates in suburban Detroit was violating the Michigan Notary Public Act by filing affidavits and mortgage assignments at County Register of Deeds offices across Michigan containing notary signatures that did not match the Notary’s application on file with the Michigan Secretary of State.
MFI-Miami has discovered this epidemic of notary fraud was not just contained to Michigan. With the help of John O’Brien, the Southern District Register of Deeds in Essex County, Massachusetts, MFI-Miami has discovered nearly15 mortgage assignments filed between May and July of 2010 from Orlans and that were allegedly notarized by Kelly Marie Holowecki. These signatures clearly do not match the signature on her Notary application that is on file with the Michigan Secretary of State. These assignments also include robo-signed signatures of Michigan attorney Marshall Isaacs, an attorney at Orlans Associates.
Holowecki Notary Assignments
Wells Fargo accused of forging loan documents by Las Vegas attorney
A Las Vegas attorney who represents people facing foreclosure has accused Wells Fargo of forging loan documents. The allegation is the latest sign that efforts to hold mortgage lenders accountable are escalating in Nevada.
In court papers filed this month in Clark County District Court, attorney Dave Crosby alleged bank employees committed forgery and fraud in making a $350,000 loan to a father of four who was unemployed at the time.
“They forged signatures, they backdated documents,” Crosby said. “We’ve got them cold.”
Crosby said the bank has presented two deeds of trust for the same property. One bears the signature of Olivia A. Todd, who on Jan. 27, 2010, was identified as an assistant secretary with MERS, Inc., a mortgage servicer from the Phoenix area and a co-defendant in the lawsuit.
But on Feb. 16, 2010, Todd’s signature appears on a second deed of trust, where she is identified as the firm’s president. Both assignments were notarized as authentic, Crosby said in court papers.
Check out the rest here…
In court papers filed this month in Clark County District Court, attorney Dave Crosby alleged bank employees committed forgery and fraud in making a $350,000 loan to a father of four who was unemployed at the time.
“They forged signatures, they backdated documents,” Crosby said. “We’ve got them cold.”
Crosby said the bank has presented two deeds of trust for the same property. One bears the signature of Olivia A. Todd, who on Jan. 27, 2010, was identified as an assistant secretary with MERS, Inc., a mortgage servicer from the Phoenix area and a co-defendant in the lawsuit.
But on Feb. 16, 2010, Todd’s signature appears on a second deed of trust, where she is identified as the firm’s president. Both assignments were notarized as authentic, Crosby said in court papers.
Check out the rest here…
Talks on US mortgage abuses hit key stage on Friday
The largest US mortgage servicers will meet federal and state officials in Washington on Friday to try to reach a settlement over allegations that the banks broke federal rules and state laws in their treatment of distressed borrowers.
But the meeting is clouded by continued squabbling between the states as to the size and scope of penalties to be paid by the banks for their alleged failings in processing foreclosures.
The Illinois attorney-general estimated that in a final accord, Bank of America would pay $7.8bn, more than Wells Fargo and JPMorgan Chase combined, according to an internal document prepared by the state described to the Financial Times.
JPMorgan would pay $3.8bn, while Wells could pay about $3.5bn, according to people familiar with the document. Citigroup would be asked to pay about $1.4bn and Ally Financial, which is 73.8 per cent owned by the US Treasury, would pay $860m.
Check out the rest here…
But the meeting is clouded by continued squabbling between the states as to the size and scope of penalties to be paid by the banks for their alleged failings in processing foreclosures.
The Illinois attorney-general estimated that in a final accord, Bank of America would pay $7.8bn, more than Wells Fargo and JPMorgan Chase combined, according to an internal document prepared by the state described to the Financial Times.
JPMorgan would pay $3.8bn, while Wells could pay about $3.5bn, according to people familiar with the document. Citigroup would be asked to pay about $1.4bn and Ally Financial, which is 73.8 per cent owned by the US Treasury, would pay $860m.
Check out the rest here…
Thursday, September 22, 2011
Kentucky Attorney General Backs New York’s Schneiderman In National Foreclosure Settlement Talks
NEW YORK — Kentucky Attorney General Jack Conway has added his name to a list of state law enforcers who fear that a settlement being negotiated among government officials and big banks isn’t backed by a sufficient investigation into potential wrongdoing.
As law enforcers approach a deal with banks to settle allegations that the companies improperly foreclosed on American homeowners, the banks are pushing for a broad release from liability for actions that have not yet been fully investigated, Conway said in a Thursday email to the Progressive Change Campaign Committee, obtained by The Huffington Post.
By raising these concerns, Conway has aligned himself with New York Attorney General Eric Schneiderman and law enforcers from other states who have questioned the adequacy of the groundwork underlying the settlement talks.
“Today’s economic crisis was caused by Wall Street acting improperly,” Conway, a Democrat, said in the email. “Every American has paid the price — with families losing their homes, investors losing their money, and many Americans losing their jobs. There should be absolutely no criminal or civil immunity given to banks for activity that has not yet been investigated.”
Check out the rest here…
As law enforcers approach a deal with banks to settle allegations that the companies improperly foreclosed on American homeowners, the banks are pushing for a broad release from liability for actions that have not yet been fully investigated, Conway said in a Thursday email to the Progressive Change Campaign Committee, obtained by The Huffington Post.
By raising these concerns, Conway has aligned himself with New York Attorney General Eric Schneiderman and law enforcers from other states who have questioned the adequacy of the groundwork underlying the settlement talks.
“Today’s economic crisis was caused by Wall Street acting improperly,” Conway, a Democrat, said in the email. “Every American has paid the price — with families losing their homes, investors losing their money, and many Americans losing their jobs. There should be absolutely no criminal or civil immunity given to banks for activity that has not yet been investigated.”
Check out the rest here…
Countrywide protected fraudsters by silencing whistleblowers, say former employees
In the summer of 2007, a team of corporate investigators sifted through mounds of paper pulled from shred bins at Countrywide Financial Corp. mortgage shops in and around Boston.
By intercepting the documents before they were sliced by the shredder, the investigators were able to uncover what they believed was evidence that branch employees had used scissors, tape and Wite-Out to create fake bank statements, inflated property appraisals and other phony paperwork. Inside the heaps of paper, for example, they found mock-ups that indicated to investigators that workers had, as a matter of routine, literally cut and pasted the address for one home onto an appraisal for a completely different piece of property.
Eileen Foster, the company’s new fraud investigations chief, had seen a lot of slippery behavior in her two-plus decades in the banking business. But she’d never seen anything like this.
“You’re looking at it and you’re going, Oh my God, how did it get to this point?” Foster recalls. “How do you get people to go to work every day and do these things and think it’s okay?”
Protesters Dump Trash at Bank of America President's Beacon Hill Home
Upset over Bank of America's foreclosure practices, protesters dump trash in front of Robert Gallery's Beacon Street home.
A Charlestown-based coalition led helped organize a Bank of America protest on Wednesday, where participants dumped several bags of garbarge at a bank president's home on Beacon Hill.
Participants hauled several bags of garbage from at a foreclosed Bank of America property in Malden to the site, and left them outside president Robert Gallery's home -- they were unloading fury. The event was organized by MassUniting, which is based in Charlestown.
"We're here today because of the loan-servicing abuse that's going on in America," Antonio Ennis, of Dorchester, announced through a bullhorn in front of Gallery's 95 Beacon St. home before listing demands the bank must meet to avoid a large protest scheduled at their downtown headquarters Sept. 30.
Read on.
Wednesday, September 21, 2011
UBS' biggest shareholder breaks silence about $2.3 billion rogue trading scandal
The biggest shareholder in UBS broke its silence about the $2.3 billion rogue trading scandal that has engulfed the Swiss group, criticising “lapses” in the bank’s controls ahead of a pivotal UBS board meeting in Singapore.
Government of Singapore Investment Corporation (GIC), Singapore’s sovereign wealth fund, was already sitting on a substantial loss on its 6.4 per cent stake in UBS before last week’s shock disclosure that a 31-year-old trader on the bank’s “Delta One” desk allegedly lost billions by taking unauthorised futures positions.
Oswald Grübel, UBS’s embattled chief executive, met GIC as the bank’s board gathered to review the implications of the scandal, and to consider sweeping changes to the bank’s business model in a long-scheduled meeting timed to coincide with the Singapore Grand Prix.
“[We] discussed the alleged fraudulent trading that led to the large financial loss for UBS,” GIC said in a rare statement. “GIC expressed disappointment and concern at the lapses and urged UBS to take firm action to restore confidence in the bank.”
Solyndra CEO And CFO To Plead The Fifth
From Reuters:
In the letters sent to the House Energy and Commerce Committee's Subcommittee on Oversight and Investigations, attorneys for Solyndra CEO Brian Harrison and CFO W. G. Stover said they advised their clients not to provide testimony during the hearings.
The bankrupt company's $535 million federal loan guarantee is being investigated by the House Energy and Commerce Committee.
Harrison is represented by Orrick, Herrington & Sutcliffe and Stover is represented by Keker & Van Nest.
Solyndra's offices were raided by the FBI two days after the company filed for bankruptcy, although the FBI did not say what prompted the raid.
According to Reuters: "Solyndra LLC's chief executive and chief financial officer will invoke their Fifth Amendment rights and decline to answer any questions put to them at a Congressional hearing on Friday, according to letters from their attorneys obtained by Reuters."
In the letters sent to the House Energy and Commerce Committee's Subcommittee on Oversight and Investigations, attorneys for Solyndra CEO Brian Harrison and CFO W. G. Stover said they advised their clients not to provide testimony during the hearings.
The bankrupt company's $535 million federal loan guarantee is being investigated by the House Energy and Commerce Committee.
Harrison is represented by Orrick, Herrington & Sutcliffe and Stover is represented by Keker & Van Nest.
Solyndra's offices were raided by the FBI two days after the company filed for bankruptcy, although the FBI did not say what prompted the raid.
According to Reuters: "Solyndra LLC's chief executive and chief financial officer will invoke their Fifth Amendment rights and decline to answer any questions put to them at a Congressional hearing on Friday, according to letters from their attorneys obtained by Reuters."
Bank of America-ReconTrust to Face State Court Judicial Process in Illegal Homeowner Foreclosures
Salt Lake City, UT) - St. George attorney John Christian Barlow, representing homeowners who have lost their home to the Bank of America's (NYSE: "BAC") foreclosure machine ReconTrust, may have finally achieved a measure of success in the battle of Utah homeowners against ReconTrust's illegal foreclosures.
Federal Judge Clark Waddoups Thursday returned to Utah Fifth District Court in St. George a case in which ReconTrust was named as a third-party in the complaint claiming immunity under the National Bank Act in an unlawful detainer action. (ORDER and MEMORANDUM DECISION)
Attorney Barlow explains the legal steps taken to help Utah homeowners protect their rights under State statutes in this exclusive interview with KCSG News.
Federal Judge Clark Waddoups Thursday returned to Utah Fifth District Court in St. George a case in which ReconTrust was named as a third-party in the complaint claiming immunity under the National Bank Act in an unlawful detainer action. (ORDER and MEMORANDUM DECISION)
Attorney Barlow explains the legal steps taken to help Utah homeowners protect their rights under State statutes in this exclusive interview with KCSG News.
Biloxi Buzz for Wednesday
Koch Brothers 'Educate' Congress With Free Vacations
Former Afghan President Assassinated
FREE TO SERVE: 'Don't Ask, Don't Tell' Is History
Tea Party Favorite Named One Of Congress's 'Most Corrupt' Members
Americans Now Believe Feds Waste Over Half Their Money
WATCH: Cat Drops Off, Picks Up Owner At Train Station Daily
The issue of whether or not a property is more environmentally friendly when compared to neighboring homes is not currently taken into great account during the appraisal process. It's a practice that should end, according to a recent white paper from...
Contractors broke into Ohio home at least three times, couple says in suit
Contractors working for an Ohio property management company broke into a couple’s West End home at least three times, stole their cat and other items and damaged the property, the couple claims in a federal lawsuit filed on Wednesday in Pittsburgh.
The complaint by Ken and Margaret Karpa of Windgap is the second lawsuit filed by Monroeville attorney Jeffrey Suher that claims a mortgage holder hired Safeguard Properties of Brooklyn Heights, Ohio, to secure a property that was in foreclosure proceedings.
The Karpas claim the PNC Financial Services Group hired Safeguard and that Safeguard hired unnamed local contractors who broke the lock on the Karpas’ back door and took a coin collection and their cat. The contractors also damaged their china and stepped on pictures of their daughter, the lawsuit says.
Full story here…
The complaint by Ken and Margaret Karpa of Windgap is the second lawsuit filed by Monroeville attorney Jeffrey Suher that claims a mortgage holder hired Safeguard Properties of Brooklyn Heights, Ohio, to secure a property that was in foreclosure proceedings.
The Karpas claim the PNC Financial Services Group hired Safeguard and that Safeguard hired unnamed local contractors who broke the lock on the Karpas’ back door and took a coin collection and their cat. The contractors also damaged their china and stepped on pictures of their daughter, the lawsuit says.
Full story here…
Tuesday, September 20, 2011
Nevada AG puts Bank of America on notice over foreclosures
Call it Nevada’s version of David versus Goliath.
As foreclosures continue and homeowners cry foul against lenders in their bids to stay in their homes, Nevada’s Attorney General Catherine Cortez Masto is taking on Bank of America in federal court. And the issue is going to heat up as Cortez Masto’s office investigates BofA and other parties in the foreclosure process. She says criminal charges are likely coming to the industry soon, which could provide more ammunition for her foreclosure fraud case.
Cortez Masto wants to revoke a 2009 settlement with BofA over loan abuses involving its Countrywide Financial Corp., saying the bank has violated its terms. She claims the banking giant has harmed homeowners by failing to modify their mortgages and maliciously deceived some by telling them their loans would be modified, then foreclosing on them. BofA denies the allegations.
As foreclosures continue and homeowners cry foul against lenders in their bids to stay in their homes, Nevada’s Attorney General Catherine Cortez Masto is taking on Bank of America in federal court. And the issue is going to heat up as Cortez Masto’s office investigates BofA and other parties in the foreclosure process. She says criminal charges are likely coming to the industry soon, which could provide more ammunition for her foreclosure fraud case.
Cortez Masto wants to revoke a 2009 settlement with BofA over loan abuses involving its Countrywide Financial Corp., saying the bank has violated its terms. She claims the banking giant has harmed homeowners by failing to modify their mortgages and maliciously deceived some by telling them their loans would be modified, then foreclosing on them. BofA denies the allegations.
Foreclosure complaint? Stand by for a new toll free number
--Banks Plan Website, Ad Campaign To Solicit Complaints On Foreclosures
--Lenders Do So Under Orders From US Bank Regulators
--Process Of Finding Affected Borrowers 'Time Consuming,' OCC's Walsh Says
WASHINGTON (Dow Jones)--Major U.S. banks plan to launch a common website, toll-free phone number and advertising campaign in the coming weeks to solicit complaints from consumers harmed by problems in foreclosure processing, a top regulator said Monday.
Last spring, U.S. regulators ordered major banks and thrifts to overhaul their foreclosure practices, finding that 14 lenders filed foreclosures with improper documentation and lacked sufficient staff to properly handle distressed borrowers. The banks have now picked independent consultants to identify any borrowers that were harmed by foreclosure processing problems.
The regulators have decided to require that banks set up a single process for consumers who want a review of their case, rather than a separate one for each mortgage company. Homeowners can request a review if their foreclosure happened on a primary residence in 2009 or 2010.
Acting Comptroller of the Currency John Walsh, speaking at a conference held by the American Banker newspaper, stressed that the reviews will be independent of the mortgage companies.
The process of reviewing foreclosure cases requires a "strong quality control process to ensure each institution is treating cases of financial harm in a consistent way," Walsh said. Any compensation for consumers, he said, will be judged on a case-by-case basis.
The complaint process affects the nation's largest home-loan servicers, including Bank of America Corp. (BAC), J.P. Morgan Chase & Co. (JPM) and Wells Fargo & Co. (WFC). Banks say their reviews haven't uncovered evidence of wrongful foreclosures but have acknowledged weaknesses in their processes.
Regulator defends Bank of America deal with Fannie Mae
Source: The Charlotte Observer
Bank of America Corp.'s sale of mortgage servicing rights to Fannie Mae, a transaction that spurred a congressional inquiry last week, "made sense for both companies," the regulator of the government-controlled mortgage giant told reporters.
"We are certainly concerned about ensuring that these higher risk mortgages are adequately and appropriately serviced, and this was an arrangement that helped to realize that goal," Edward DeMarco, acting director of the Federal Housing Finance Agency, said after remarks at a mortgage conference sponsored by the N.C. Bankers Association.
Mired in Foreclosures
After the robo-signing mess exploded last September, court officials in Florida, the nation's busiest state for foreclosures, required lenders to swear that all the information in their foreclosure lawsuits was "true and correct."
The new affidavits have made judges quicker to pounce on obvious flaws in foreclosure documents, such as when the loan amount doesn't match the number included in the lawsuit. But some judges say the foreclosure process suffers from broader problems beyond their control.
"Our ability to delve behind what's asserted in the affidavits is really limited," says Jennifer Bailey, a ...
Read on.
The new affidavits have made judges quicker to pounce on obvious flaws in foreclosure documents, such as when the loan amount doesn't match the number included in the lawsuit. But some judges say the foreclosure process suffers from broader problems beyond their control.
"Our ability to delve behind what's asserted in the affidavits is really limited," says Jennifer Bailey, a ...
Read on.
California foreclosures set to surge
California default notices spiked 55% in August, and the number may keep rising in the coming months as mortgage servicers shake off the robo-signing freeze, according to RealtyTrac Senior Vice President Rick Sharga.
In August, servicers filed 28,961 default notices in California, the first stage of the foreclosure process in the state, RealtyTrac showed. Another filing tracker ForeclosureRadar found a similar boost in foreclosure starts along the West Coast and said Bank of America (BAC: 6.9491 -3.89%) led all major banks with a 116% jump in August alone.
"The industry has not yet returned to normal or necessary foreclosure activity levels, but progress is certainly being made," a BofA spokesperson said.
Read on.
In August, servicers filed 28,961 default notices in California, the first stage of the foreclosure process in the state, RealtyTrac showed. Another filing tracker ForeclosureRadar found a similar boost in foreclosure starts along the West Coast and said Bank of America (BAC: 6.9491 -3.89%) led all major banks with a 116% jump in August alone.
"The industry has not yet returned to normal or necessary foreclosure activity levels, but progress is certainly being made," a BofA spokesperson said.
Read on.
Monday, September 19, 2011
Profit from Punishment: Private prison lobby locking 'n' loading up on cash
This story is ignored by the media. Public prison industries answer to the public whereas private prison companies answer to shareholders. And those shareholders are corporations which lobby to lawmakers. One of the largest private prison company is Corrections Corporation of America which was connected to the Texas indictment of former Vice President Dick Cheney and former Attorney General Alberto Gonzales in 2008(District Attorney Juan Guerra accused Cheney and Gonzales of engaging in organized criminal activity of a privately run federal jail).
Capital One Merger Presents Federal Reserve With 'Too Big To Fail' Test
(ALEXANDRA ALPER, Reuters) - Consumer groups will try to convince the Federal Reserve this week that rubber stamping the Capital One Financial Corp (COF.N) takeover of ING Groep NV's (ING.AS) online banking unit would prove that "too big to fail" is alive and well.
The Fed is holding the first of three nationwide hearings on Tuesday on the $9 billion deal that observers are characterizing as a test case for how the U.S. government will view big-bank mergers after the 2007-2009 financial crisis.
The Fed is holding the first of three nationwide hearings on Tuesday on the $9 billion deal that observers are characterizing as a test case for how the U.S. government will view big-bank mergers after the 2007-2009 financial crisis.
Sunday, September 18, 2011
Obama Millionaire's Tax: President To Seek New Tax Rate For Wealthy
WASHINGTON -- President Barack Obama is expected to seek a new base tax rate for the wealthy to ensure that millionaires pay at least at the same percentage as middle income taxpayers.
A White House official said the proposal would be included in the president's proposal for long term deficit reduction that he will announce Monday. The official spoke anonymously because the plan has not been officially announced.
Obama is going to call it the "Buffett Rule" for Warren Buffett, the billionaire investor who has complained that rich people like him pay a smaller share of their income in federal taxes than middle-class taxpayers.
A White House official said the proposal would be included in the president's proposal for long term deficit reduction that he will announce Monday. The official spoke anonymously because the plan has not been officially announced.
Obama is going to call it the "Buffett Rule" for Warren Buffett, the billionaire investor who has complained that rich people like him pay a smaller share of their income in federal taxes than middle-class taxpayers.
Paralyzed Oregon man, living on $22,000 a month and able to pay, fights foreclosure
Robert Galanida was a skinny teenager when a drunken driver rammed the pickup he was riding in, hurtling him to the blacktop and paralyzing him from his shoulders down.
With the help of multimillion-dollar legal and insurance settlements, he and his mother now live comfortably on annuity payments of $22,000 a month.
So they are at a loss as to why his mortgage servicer, Bank of America, has repeatedly tried to evict him from his Tualatin home. Custom-built 14 years ago for less than $400,000, it boasts wide halls and doorways to accommodate his wheelchair and an air purification system to keep his body temperature and breathing in check.
How did someone who could so clearly afford a $4,800 monthly loan payment fall so far behind?
Galanida, 41, stopped payment in 2009, insisting a discrepancy arose in his loan after Bank of America took it over from troubled Countrywide Home Loans. Bank representatives told him to continue withholding payments while they investigated, his mother said.
But then, without offering Galanida a workaround plan, the bank foreclosed on his home, sold it to another lender and tried to evict him. Galanida's pleas for help from federal authorities and Oregon Attorney General John Kroger haven't resolved matters.
"I am not aware of any options to save the house," a paralegal with Bank of America's law firm told Galanida on July 29.
Galanida's case exemplifies the flawed foreclosure and modification practices that have befuddled distressed homeowners and led to dozens of lawsuits against Bank of America in Oregon alone. The bank now faces a crisis in investor confidence amid mushrooming legal bills and loan costs linked to the Countrywide purchase.
With the help of multimillion-dollar legal and insurance settlements, he and his mother now live comfortably on annuity payments of $22,000 a month.
So they are at a loss as to why his mortgage servicer, Bank of America, has repeatedly tried to evict him from his Tualatin home. Custom-built 14 years ago for less than $400,000, it boasts wide halls and doorways to accommodate his wheelchair and an air purification system to keep his body temperature and breathing in check.
How did someone who could so clearly afford a $4,800 monthly loan payment fall so far behind?
Galanida, 41, stopped payment in 2009, insisting a discrepancy arose in his loan after Bank of America took it over from troubled Countrywide Home Loans. Bank representatives told him to continue withholding payments while they investigated, his mother said.
But then, without offering Galanida a workaround plan, the bank foreclosed on his home, sold it to another lender and tried to evict him. Galanida's pleas for help from federal authorities and Oregon Attorney General John Kroger haven't resolved matters.
"I am not aware of any options to save the house," a paralegal with Bank of America's law firm told Galanida on July 29.
Galanida's case exemplifies the flawed foreclosure and modification practices that have befuddled distressed homeowners and led to dozens of lawsuits against Bank of America in Oregon alone. The bank now faces a crisis in investor confidence amid mushrooming legal bills and loan costs linked to the Countrywide purchase.
Subscribe to:
Posts (Atom)