Nevada AG questions Bank of America foreclosures

[blackangst1]

THIS may be the start of something (hopefully). Many of the big banks have certainly been involved in questionable business practices, but none stand out like BofA. Definately not good news for Buffett.

Nevada Attorney General Catherine Cortez Masto hit Bank of America with a new charge Tuesday: That it’s been foreclosing on homes it had no authority to foreclose on.

The allegations were made in an amended complaint in a lawsuit initially filed in December charging the banking giant had harmed struggling Nevada consumers by failing to help them modify their mortgages and had deceived some by leading them to believe their loans would be modified — but then foreclosed on them anyway.

Bank of America’s misconduct in misrepresenting its mortgage modification program continues through the present and has been confirmed in interviews with consumers, former employees and other third parties and through review of relevant documents,” Tuesday’s complaint charged.

In Tuesday’s filing, Masto sought to revoke a 2009 settlement she reached with Bank of America over loan abuses involving its Countrywide Financial Corp. unit, charging the bank has breached the settlement terms.

 

[Atreus21]

THIS may be the start of something (hopefully). Many of the big banks have certainly been involved in questionable business practices, but none stand out like BofA. Definately not good news for Buffett.

Something about this doesn't make sense. Banks have very little incentive to foreclose in this economy, where homes are worth so little, and very much incentive to keep its clients' payments coming in, even if reduced. Why would they be chomping at the bit to reclaim homes when home prices are falling?

 

[her209]

Look what happened to the NY AG when he tried to slow down the settlement that would let the banks off scott free
http://www.nytimes.com/2011/08/24/business/schneiderman-removed-from-mortgage-inquiry-panel.html

 

[EagleKeeper]

Something about this doesn't make sense. Banks have very little incentive to foreclose in this economy, where homes are worth so little, and very much incentive to keep its clients' payments coming in, even if reduced. Why would they be chomping at the bit to reclaim homes when home prices are falling?

Possible that there are no payments coming in from some properties.

People get behind and feel that they are going to lose it all; why pay for nothing. Store the cash to restart in a rental. Milk the foreclosure as long as possible. As you stated, the bank should have no interest in turning them out; loss of payments.

 

[MomentsofSanity]

Something about this doesn't make sense. Banks have very little incentive to foreclose in this economy, where homes are worth so little, and very much incentive to keep its clients' payments coming in, even if reduced. Why would they be chomping at the bit to reclaim homes when home prices are falling?

Look at the other little trick the banks have been pulling on foreclosures lately. They go through the process and leave homeowners thinking they have been foreclsed on, then they don't complete the process leaving house sitting empty and the "former" owners sitting on huge fees etc...

 

[PokerGuy]

Something about this doesn't make sense. Banks have very little incentive to foreclose in this economy, where homes are worth so little, and very much incentive to keep its clients' payments coming in, even if reduced. Why would they be chomping at the bit to reclaim homes when home prices are falling?

It's not that the banks are "chomping at the bit" , it's that their crappy records indicate that it's their property and payments have not been received etc when that may in fact not be the case. They then start foreclosure proceedings even though they don't have the right to do so.

 

[blackangst1]

BofA Scraps Mortgage Business

Bank of America Corp. (NYSE:BAC) has planned to let go of its mortgage business in order to shrink its balance and to boost the company’s capital ratios to increase its hold on the quality of mortgage credit. This move by the Bank of America Corp. is a bold one and quite painful as well.According to a report by the Wall Street Journal, Bank of America, which is the largest bank in the United States is making plans to exit the corresponding mortgage operations through which it purchased the mortgage loans originating from various small lenders and then sell them, all the while servicing the loan and charging a particular fee for the same. According to the wall Street Journal, the company may send pink slips to more than 1000 employees by Wednesday.​

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[EagleKeeper]

Above indicates that they are deeper in the outhouse hole than they will admit.

When they are unloading everything to clean the books; the majority is rotten to the core and they know it.

They will have to sell these loans off at a great discount; people are going to be going over the offerings with a fine tooth comb.

 

[ElFenix]

THIS may be the start of something (hopefully). Many of the big banks have certainly been involved in questionable business practices, but none stand out like BofA. Definately not good news for Buffett.

i had a potential client come to me with basically this same problem. BoA's repo people and their modification people aren't talking to each other.