Bank of America, the nations largest servicer of home mortgages, has declared that it is against writing down the mortgage debt of borrowers whose home are underwater and who have defaulted on their mortgage loans. Federal agencies, along with Attorney General's from all 50 states, are making a sustained push for a settlement over the robo-signing scandal that arose in the fourth quarter of 2010. Experts estimate that more than $1 billion in mortgage debt is underwater and many want much of that debt to be included in any sort of settlement.
But Bank of America has voiced its opposition to that sort settlement. Bank of America CEO Brian T. Moynihan stated that "there's a core problem that if you start to help certain people and don't help other people, it's going to be very hard to explain the difference...our duty is to have a fair modification process." The head of Bank of America's Legacy Asset Servicing Terry Laughlin, whose department services delinquent mortgages or mortgage in default, voiced his fear that such a settlement would encourage borrowers current on their mortgages to intentionally default.
While Bank of America opposes writing down underwater mortgages, it continues to point to its "success" in modifying mortgages under HAMP, which appears to run counter to the most recent HAMP numbers. If you are facing a Florida Foreclosure Lawsuit from Bank of America, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to see what foreclosure alternatives may be available to you.
