Friday, December 17, 2010

Arizona Attorney General Charges BANK of AMERICA with Mortgage and foreclosure fraud

December 17, 2010 -- In a HISTORIC move Terry Goddard has initiated a lawsuit against Bank of America for FRAUD.   In recent news Bank of America has seemingly been more concerned with resuming foreclosures post haste.  Attorney General Terry Goddard knows how to go out of office with a bang.

 The charges in our opinion are right on the target, this is only an opinion, but if you sit in court on any given day, it is the same story time and again. People tell the judge, "but we were in modification."  Some even have been told they were approved. Now Bank of America wants to resume with haste to speed up foreclosures?  BOA did respond to the AG announcement and you read that here: BOA response

Below are the highlights of the announcement with links to further information, including the proposed Borrower's Bill of Rights. The full announcement is on

Terry Goddard Charges Bank of America with Mortgage Fraud

(Phoenix, Ariz - Dec. 17, 2010) Attorney General Terry Goddard announced that his Office today filed a lawsuit against Bank of America Corporation and its affiliated companies (“Bank of America”) alleging violations of the Arizona Consumer Fraud Act and violations of the consent judgment entered in March 2009 between Arizona and the Countrywide companies owned by Bank of America.

The lawsuit, filed in Maricopa County Superior Court, was triggered by hundreds of consumer complaints and follows a year-long investigation into Bank of America’s residential mortgage servicing practices, particularly its loan modification and foreclosure practices.

The complaint asks the court to hold the defendants in contempt for violating the consent judgment and to order them to pay restitution to eligible consumers and civil penalties, attorneys’ fees, and costs of investigation to the State. It further asks the court to order the defendants to pay up to $25,000 for each violation of the consent judgment and up to $10,000 for each violation of the Arizona Consumer Fraud Act.

The complaint also alleges that Bank of America has violated the Consumer Fraud Act by misleading Arizona consumers about its loss mitigation process and programs, including matters such as:
• Whether homeowners must be delinquent on their mortgage payments to be considered for a loan modification.
• How much time it would take to receive a decision from Bank of America on a modification request or a short sale request.
• Whether foreclosure would proceed while a modification or short sale request was pending, or while a homeowner was making trial payments.
• Whether the homeowner had been approved for a loan modification.
• Failure to provide valid reasons why the homeowner was declined for a modification.
• Whether the homeowner would be approved for a permanent modification if the consumer successfully made all trial modification payments

As a result of Bank of America’s deceptive practices, many homeowners who were already contending with other financial hardships have been led to unnecessarily deplete their dwindling savings in futile attempts to obtain the promised relief and save their homes.

Goddard urged all homeowners who are in or are facing foreclosure to seek assistance as soon as possible. Homeowners can speak with a HUD-approved housing counselor by calling the Arizona Foreclosure Prevention Helpline toll-free at 1-877-448-1211. Borrowers who believe they have been the victim of mortgage fraud or other scams should contact the Attorney General’s Office at (602) 542-5763 or by filing a complaint on the Attorney General’s website, at Additional foreclosure prevention resources are also available on the Attorney General’s website.
Copies of the 2009 consent judgment and today’s complaint are attached. For additional information, contact Janey Pearl at (602) 542-8019.
mp3 Terry Goddard on Bank of America Mortgage Fraud.mp3
pdf BofAComplaint.pdf
pdf FAQ’s regarding the State’s Lawsuit against Bank of America
pdf Arizona Borrower's Bill of Rights

Foreclosure Resource Center

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