Posted On: July 7, 2013

Birmingham Foreclosure Defense Vital in Wake of More Bank Abuse Allegations

The national foreclosure crisis, stemming from a slew of lender abuses, mortgage servicing oversights, sloppiness and alleged criminal acts by banks, is apparently far from over.
oldstylecharm.jpg
Our Birmingham foreclosure defense attorneys know that many times, banks receive default judgments in these cases because owners simply choose not to fight. Many borrowers don't understand their rights and mistakenly think they don't stand a strong chance of winning against the bank.

We understand that sometimes, you're just tired of fighting. But it may rile you to know that banks - at least one of them, anyway - was apparently actively working to tire you out and drain your finances and willpower -- so you would simply walk away.

In the last month, we have now had two sets of whistleblowers come forward to attest to the fact that Bank of America was engaged in systematic deception and fraud within its loan modification departments.

In the first round of lawsuits, brought by borrowers who had unsuccessfully fought to save their homes through the loan modification program, court documents revealed that the bank rewarded employees whose loan modification cases were transferred to the foreclosure department. These workers were given incentives such as retail store gift cards and certificates for free dinners. Additionally, workers were instructed to "lose" loan modification paperwork, requiring borrowers to resubmit document after document, endlessly dragging on the process.

And now, we have a second round of lawsuits with even more whistleblowers alleging misconduct by the nation's largest bank.

This case is a little more complicated, but here's the gist of it:

Over the last 12 months, there have been a number of non-bank servicers that have been quietly buying up the rights to service millions of mortgages previously held by Bank of America, as well as other large firms. These non-bank servicers don't originate loans, but they do process monthly payments and can initiate foreclosure proceedings if necessary.

Unlike the banks, these firms aren't subject to those multi-billion dollar settlement agreements, which mandated a reformed treatment of borrowers throughout the loan modification and foreclosure process. You may recall that some of these rules were things like establishing a singular point of contact for borrowers, halting foreclosure proceedings while a loan modification is ongoing, and establishing a system to properly facilitate payments.

With these non-bank servicers, those rules are virtually out the window again, even though the loans they bought are subject to those settlement terms at time of purchase.

What's worse, these non-bank servicers are not held to the same kind of federal oversight or standards as traditional banks. Complaints are already beginning to pour in regrading poor customer service and debt collection practices, hence the most recent lawsuit.

What all of this underscores is that your need for legal representation in your Alabama foreclosure case has not diminished and, if anything, has grown.

To speak with an Alabama foreclosure defense attorney, contact Eversole Law at 866-831-5292.

Additional Resources:
New Bank of America whistle-blower emerges: More customer abuse secrets, June 28, 2013, By David Dayden, Salon.com

More Blog Entries:
Alabama Foreclosure Defense Critical in Light of Renewed Deficiency Judgment Push, June 28, 2013, Birmingham Foreclosure Defense Lawyer