Yesterday, a group of Ohio homeowners filed a lawsuit in federal court for failing to honor its agreement to modify their mortgages under federal loan modification programs. The ten families are asking the Court to order Bank of America to honor its agreements to modify their loans and to award them damages for the bank’s unlawful actions.
In late October 2009, the homeowners met individually with representatives of Bank of America at an event sponsored by the United States Department of Treasury. At the event homeowners sat down with representatives of Bank of America, discussed their circumstances, and homeowners provided documentation.
At these meeting after discussing the individuals circumstance and reviewing the financial documentation, Bank of America informed the homeowners they qualified for a loan modification and described the specific term of the modification. Bank of America also promised to send the confirming documents by mail within a few weeks.
However, none of the homeowners received the promised documents and Bank of America is ignoring the homeowners repeated attempts to inquire about the status of their modifications. Some homeowners have been advised they will penalized of they continue to inquire.
On particular family is now battling a foreclosure. All of the homeowners are asking the Court to order Bank of America to honor its promises to modify the mortgages and to award damages.
