The rates of foreclosures have been astounding in most every state since the on-set of the recession. Loan modification is one avenue for reprieve that many homeowners have turned to as a means of staying in their homes. However, one major bank in Florida and the rest of the country, Bank of America Corp, has been hit with allegations of purposely mishandling loan modification applications for profit. The allegations are being brought forth by former employees and are being denied by the bank.
Homeowners involved in the suit against the bank have offered up statements from former employees. Those employees claim they were given financial incentives to disrupt the process. There are also allegations that the bank falsified documents or data that they gave to government agencies. They also describe a systematic process of disqualifying homeowners in large groups twice a month regardless of their loan modification status.
Bank of America Corp contends properly handling loan modifications is a more profitable scenario and therefore, they would have no cause to purposely disrupt the process for qualifying homeowners. They also contend the workers who provided statements had ulterior motives as they were fired from the bank. They point to six out of seven past employees specifically.
Bank of America is currently amongst a number of other financial institutions who have settled with homeowners based on wrongdoings pertaining to foreclosures of homes. Florida authorities contend the bank has not lived up to the deal pertaining to that settlement. For many homeowners, regardless of the settlements and accusations, having up to date information and the facts about the loan modification process may help them in their time of need.
Source: Source: chicagotribune.com, “BofA rejects ex-workers’ claims on how it treats troubled homeowners,” Jonathan Stempel, July 12, 2013