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Arizona and Nevada sued Bank of America Corp. for allegedly botching home-loan modification programs meant to keep homeowners who borrowed from its Countrywide mortgage unit out of foreclosure.
Instead of working to modify loans on a timely basis, Bank of America proceeded with foreclosures while borrowers’ requests for modifications were pending, a violation of a 2009 agreement, Arizona Attorney General Terry Goddard said Friday in a statement.
The Arizona lawsuit, filed in Maricopa County court, seeks a court order holding the Charlotte, N.C.-based bank in contempt for violating the agreement and requiring Bank of America to pay as much as $25,000 for each violation of the accord and up to $10,000 for each violation of the state’s consumer-fraud law.
Shirley Norton, a bank spokeswoman, didn’t immediately return a voicemail message.
LAWYERS WHO FILE FORECLOSURES SHOULD BE INVESTIGATED
Scores of homeowners do not contest foreclosures because:
1. They don’t have knowledge of the law in order to recognize which aspects of foreclosure are legally challengeable or even fraudulent.
2. Even those who identify wrongdoing, lack funds to pay for attorneys to represent them.
3. Homeowners are told to come to foreclosure auctions with money that they do not have, so they stay away from foreclosure auctions.
These homeowners are oblivious about sometimes “straw buyers” and sometimes lawyers in charge of foreclosures, obtaining illegal ownership of people’s homes, and pay literally nothing through “credit bids;” and that those recorded deeds from such auctions are Null! For these very reasons, there needs to be a probe of lawyers who file foreclosures.
Also, the average lay person doesn’t know about legal requirements of “standing” that prevents their homes from being repossessed via non-existent lenders, or via lenders who have no ownership of promissory notes.
Yet, courts are supposed to enforce “standing” and compliance with established laws! Illegal, defective, fraudulent foreclosure causes useless deeds for property sales; title insurance denials –and more!
Further, after certain foreclosure auctions (via simulation) result in fraudulent –NOT lender acquisitions, by lawyers or straw buyers, the common scenario becomes property flipping, neighborhood blight, rodents, and so on!
*Sample of fraudulent foreclosure acts:
-Deliberately use defunct lenders, lenders without “standing” for false civil and bankruptcy foreclosure proceedings
-Create and conceal malpractice foreclosure delays and engineer billable litigation
-Orchestrate sham foreclosure auctions; property never acquired by lenders, but ‘straw buyers’
-Commit actionable wrongs (unfair debt collection, fraud, various torts) that create lawsuits
– Foreclosures naming defunct lenders, illegally recorded property deeds, flipping, blighted communities
-Unconscionably create false deficiency judgments against property owners after straw buyers acquire homes for pennies on the dollar
-Intentionally false Bankruptcy court “Motion to Lift” and “Proof of Claim” on behalf of non-existent lenders which conceals fact of a “non-secured” mortgage debt
-Involved in fraudulent collection of property damage insurance, as well as mortgage-default insurance
– Fraudulent foreclosures abet loss of property taxes to city revenue, and invites rodents, vagrants
– Thousands of families made unlawfully homeless from null foreclosure proceedings
Foreclosure lawyers are officers of the court. Lawyers are required to know applicable laws and civil procedure. This knowledge is not required of mortgage lenders, nor loan servicers.
*more @ Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers
http://www.change.org/petitions/view/request_for_congressional_foreclosure_panel_to_examine_foreclosure_lawyers#