RealEstateLawCenter
   

Real Estate Law Center Opposes Bank of America

 

On behalf of its clients who have faced predatory lending practices, damage to their credit rating, and in some cases, foreclosure, Real Estate Law Center took action against one of the largest financial institutions in the country — Bank of America.

Bank of America leads other banks in the US for deposits, but its actions during the mortgage crisis unraveled and showed that its practices were shoddy and not in the interest of its customers. Bank of America paid out (with Ally Financial Inc., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co.) billions of dollars as part of a lawsuit initiated by the state attorney generals of New York, Massachusetts, Florida, California, Delaware, and other states to settle its part in the crisis. As part of that agreement, Bank of America eliminated about $100,000 from the mortgages of California borrowers.

The bank also purchased Countrywide, which is now infamous for its part in pushing no- income and subprime mortgages at any cost. This was true even for customers who could have qualified for traditional mortgages. Those mortgages, which are now Bank of America's, played a direct role in the housing and financial bubble of securities derived from those subprime loans. When the sale price for houses fell, the bonds and derivatives collapsed as well.

While Bank of America was made to modify loans and reevaluate its foreclosures, the bank threw up as many road blocks as possible to homeowners. Many faced with the very real prospect of being homeless while bank executives continued to be awarded with annual bonuses of millions of dollars. Real Estate Law Center was formed to take the banks to task for their predatory lending practices.

In many cases, banks stacked the deck against consumers attempting to modify their loans to make it as difficult as possible. But joining together with Real Estate Law Center and initiating a mass tort action, the banks are legally compelled to deal with the homeowners and address their grievances.

The remedies Real Estate Law Center has been able to achieve include a reduction in interest payments and a reduction in monthly mortgage payments. However, the firm cannot guarantee the same results for all the cases it takes on.

Though the mass tort lawsuits Real Estate Law Center utilizes seem like class action lawsuits, the two are very different. Class action lawsuits are undertaken and paid for by attorneys. If a settlement is reached, very little reaches the actual people affected. Mass tort lawsuits are paid for by the plaintiffs; however, and because the cost is spread out among many people, the price is reasonable. More importantly, the plaintiffs receive most of the award.

With a history of indifference and its track record of maximizing profits at the expense of doing the right thing to the people affected by its’ mortgage policies, many are losing faith in Bank of America. Real Estate Law Center; however, will take the bank to task and ensure the voices of its clients are heard.

 
 

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