Bank of America Foreclosure Defense

Bank of America is one of the biggest financial institutions in the country. In 2021 alone, Bank of America funded $53.7 billion in first mortgage loans. Unfortunately, just because a bank is big does not mean that it always acts fairly, and this has held true for Bank of America, as well. The bank has been the subject of many complaints and lawsuits over the years and many of them involve claims of unlawful foreclosures.

While the financial institution does outline remedies for homeowners facing foreclosure on its website, the company does not always treat customers fairly. If Bank of America has contacted you to notify you of foreclosure, it is critical that you speak to a Fort Lauderdale foreclosure defense lawyer as soon as possible.

What is Bank of America?

Bank of America is a multinational American investment bank and financial services holding company. The Bank of America Corporate Center is located in Charlotte, North Carolina, but its auxiliary and investment banking headquarters are located in Manhattan. The financial institution was originally founded in San Francisco.

Bank of America is the second-largest bank in the country, just behind JP Morgan Chase. Classified as one of the ‘Big Four Banks’ in the United States, the institution serves over ten percent of all bank deposits in the country. Due to this large market share, the bank’s business activities have resulted in a number of different investigations and lawsuits pertaining to mortgage and financial disclosures. These complaints date back to the financial crisis of 2008.

Home Loan Modifications to Avoid Foreclosure

While many of the major banks in the country provide many options for homeowners facing foreclosure, the Bank of America website outlines just one. This is a home loan modification and it is only available to homeowners who have conventional mortgages. This means the property is not insured or owned by the federal government. A home loan modification can make mortgage payments more affordable by modifying different parts of the mortgage including the interest rate, the monthly payment amount, and even the term of the loan.

Bank of America outlines many eligibility requirements for those who wish to obtain a loan modification. These are as follows:

• You must be experiencing financial hardship that makes it difficult to pay your mortgage.
• Your loan cannot be insured or owned by the federal government.
• The mortgage must be the primary mortgage on your property.
• You must have made a minimum of six payments in full during the term of the loan.
• You cannot have exceeded the modification limits outlined by the owner of the loan.
• Your property must have one to four units and it must be a house, condo, or manufactured home, although some owners of buildable lots may also qualify.
• All borrowers named on the loan must agree to participate in the loan modification.

Even with all of the above requirements, Bank of America states on its website that there may be additional eligibility requirements. As such, the institution can deny loan modifications even when a borrower meets the above requirements.

Lawsuits Involving Bank of America

Bank of America has been the subject of many different lawsuits and complaints. One that made national headlines originated out of Tennessee, and it was actually Bank of America that was the plaintiff.

Chapter 13 bankruptcy often provides homeowners with a way to avoid foreclosure and keep their home. During a Chapter 13 bankruptcy, the borrower makes payments for three to five years to the bankruptcy trustee. The trustee then distributes the payments to different creditors and lenders, including those providing mortgage loans. In 2012, Bank of America challenged the Chapter 13 defense, stating that the bankruptcy trustee had not properly distributed payments.

Eventually, Bank of America withdrew its lawsuit against the Tennessee bankruptcy trustee. Still, the move shows just how far the institution is willing to go to force homeowners into foreclosure. Fortunately Bank of America was not successful with their litigation, as it could have made it extremely difficult for millions of homeowners across the country.

The year following the lawsuit against the bankruptcy trustee, Bank of America regularly denied borrowers who qualified for a loan modification. To do this, the company offered employees incentives to push homeowners into foreclosure. In a lawsuit filed in Massachusetts, six former employees admitted that they were told to lie to customers. While the lawsuit was filed in Massachusetts, it included dozens of borrowers across 26 states.

Do You Need a Fort Lauderdale Foreclosure Defense Lawyer?

If Bank of America holds your mortgage loan and they are now threatening foreclosure, you may think the situation is hopeless. Fortunately, it is not. There are many options to avoid foreclosure and perhaps even keep your home and we have a lot of experience handling cases against Bank of America, including helping our clients foreclosure on Bank of America. However, unless you work with an attorney, it can be very difficult to know what these are. You may want to contact a lawyer in any of the following situations:

• Bank of America has started foreclosure proceedings or a short sale while the institution is still reviewing your loan modification.
• The institution has refused to review or honor your loan modification.
• The bank has not responded to your application for a loan modification within the required 30 days.
• The institution has refused to accept a mortgage reinstatement or a mortgage payment.
• You were declared to be in default and the bank threatened you with foreclosure even though your mortgage payments are current and up to date.

Unfortunately, the above are just a few unfair tactics Bank of America has tried to force homeowners into foreclosure. If you have been notified of possible foreclosure, it is critical to speak with a lawyer right away.

Our Foreclosure Defense Lawyers in Fort Lauderdale have Experience with Bank of America

At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys have extensive experience working on cases involving Bank of America and we will put that knowledge and skill to work for you, too. Call us now at (954) 523-4357 or fill out our online form to schedule a free consultation.