Archive for August, 2011

Bank of America Increasingly Under Fire

Wednesday, August 31st, 2011

It looks like Brian Moynihan picked the wrong week to quit smoking. In addition to Attorneys General Biden and objecting to Bank of America’s proposed $8.5 billion settlement with Bank of New York Mellon, and a group of whose loans are part of the mortgage pool have also objected to the settlement. It would appear that the settlement is effectively scuttled at this point in time.

To make matters worse, new lawsuits keep cropping up.

U.S Bank hasagainst Bank of America to force a buyback of up to $1.75 billion of mortgages that it claims did not conform to the representations made by Countrywide. According to the lawsuit, 66% of the loans in the pool were misrepresented by Countrywide. U.S. Bank had initially requested that BoA buy back the loans pursuant to the trust agreement, but BoA has refused to do so. A full buy back could put the estimated cost of BoA’s purchase of Countrywide over $32 billion dollars. Given that BoA purchased Countrywide for $2.5 billion, we’re looking at a pretty bad investment. No wonder BoA is trying to unload its Countrywide assets as soon as possible.

For attorneys looking for some pattern and practice evidence, to U.S. Bank’s complaint, which lists each bad loan in the pool and why it is bad. I especially like the columns labeled “Missing Documents” and “Fraud.” (Hat tip to .)

But wait, there’s more.

Most likely the biggest bombshell dropped this week is the lawsuit filed against Bank of America by the . You can find the complaint . Nevada AG Catherine Cortez Masto does not pull any punches with the State’s allegations. In addition to calling out the predatory lending practices of Countrywide, the complaint also calls out the massive securitization failure that CW perpetrated.

Paragraph 53 of the complaint states, “In addition, Countrywide did not disclose to investors that it failed to properly transfer mortgages to the securitization trusts from which they were sold.” It continues after some redacted text, “Because Countrywide was provided copies of these reports, it had specific, detailed knowledge that the transfers were invalid. This meant that investors would not have an enforceable or secured interest in the mortgages.”

If that wasn’t bad enough, the complaint also assigns some blame to Bank of America, in particular for its deceptive loss mitigation and foreclosure practices. In particular, it discusses the significant delays that BoA customers experienced when requesting a loan modification. Instead of a response time of 30 to 45 days as stated on BoA’s website, most consumers experienced at minimum a 90 day wait before hearing anything from the bank.

The complaint also claims that BoA misrepresented that trial modifications would become permanent modifications. As many people I’ve seen can attest, this was a common practice. Sadly, instead of actually converting trial mods into permanent mods, most people were simply put into a perpetual trial modification. When BoA finally got around to filing its foreclosure lawsuit, those trial mods turned into massive arrears that would have to be paid off to avoid foreclosure.

The complaint also accuses BoA of foreclosing while borrowers were in pending modifications, inaccurate credit reporting, failing to deliver promised loan modification paperwork, and other bad behavior. Bad behavior takes on many forms, and BoA is an exemplar of that idea. The suit also claims that BoA misrepresented its standing to foreclose upon Nevada homes and collect payments from borrowers. Most of the State’s theory is based on the idea that since CW never properly transferred mortgages into the trust pools, the PSA prevents BoA from now asserting any interest in the underlying loans.

The entire complaint should be required reading for every judge that hears mortgage foreclosure cases in Illinois. Nevada is a non-judicial foreclosure state. That means that there is no courtroom procedure that could protect home owners from the misdeeds of our major lenders. Illinois has a process designed to bring some procedural formality to foreclosures, yet we see the same issues complained of in Nevada’s pleadings.

Foreclosure defense attorneys should also read this complaint — it effectively confirms the suspicions that many of us have had over the years. I am excited to see if this goes all the way to trial. My sense would be that AG Masto isn’t too interested in settling with BoA/Countrywide again.

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Is It Potential To Lease A Residence After A Short Sale?

Wednesday, August 31st, 2011

Hello thanks for visiting my title is Jason Zweigle. In the present day we’re talking about selling your property and renting. There’s such an enormous stigma. Most people that I sit down with which can be contemplating a short sale are so apprehensive about not proudly owning a home and having to rent. They surprise if somebody will hire to them they usually’ve been a homeowner for 15 years.

Well, here’s the great news. Primary, in over a hundred short sales that I’ve accomplished, I’ve never seen one in all my sellers go homeless. Property managers and owners that have funding or rental properties understand what’s going on in immediately’s financial system and at this time’s market and they’re going to hire you a home. Quantity two, this market is constant to slide. Prices aren’t ticking up. So even in the event you owned a house or stayed in your home, likelihood is it’ll continue to lose value. You’re going to pay for upkeep, property taxes and most certainly an overpriced mortgage. Renting right now or leasing are great options to dwelling ownership. I am in real property and I imagine it’s a good time to rent a house and wait and see what this market is going to do.

So please, do not let not proudly owning a house be your massive stumbling block when you’re going through considering a short sale or foreclosure or mortgage modification. Be wary of mortgage modifications with out precept reductions. Loan modifications with out principle reductions profit one individual, the bank. The bank will get all their money and you’re still sitting in a house that’s overpriced and undervalued. It does not really make a whole lot of fiscal sense.

So if you wish to talk extra about short sales , loan modifications, renting vs. buying, I’m here to talk. You possibly can attain me at 1-800-646-0362. My name is Jason and that is my direct mobile phone number. Let’s have a chat, and have an awesome day.

Get more help from short sale Realtor, Jason Zweigle, at

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