Bank of America may have to face the music when they confront thousands of homeowners who were looking for Home Affordable Modification Program (HAMP) assistance. Some homeowners filed a claim alleging Bank of America wrongfully denied them modifications of their home loans under HAMP and seeking the modifications they never received. The Complaint also asks for damages for wrongfully denied home loan modification.
The motion to dismiss filed by Bank of America was denied by the Judge on the case. The modification-seekers told an eerily similar story of their attempts to work with Bank of America: the bank was untruthful about the status of the loans in question and in some cases even lost paperwork or were just totally unresponsive.
The attorney for the homeowners is basing the claim on the theory that Bank of America, by not modifying these loans, is taking Federal (TARP) bailout funds without helping struggling homeowners in return. In reality, TARP funds should have accounted for modified payments from homeowners while also keeping Bank of America afloat.
While a loan modification is possible, it is just one step of the potential foreclosure alternatives available to struggling homeowners. There are many other options available before modification, and certainly a great number of options after a denial of modification. If you are having trouble making mortgage payments or you are already in the process of foreclosure, be sure to contact a Florida Foreclosure Defense attorney to determine what foreclosure alternatives may be available in your case.
