Nevada Homeowners Sue Bank of America; Seek Class Action Status

Fifty Las Vegas area homeowners banded together in hopes of forcing Bank of America to follow mortgage laws.   The charges involved in their suit include wrongful foreclosure, breach of contract, and unfair lending practices.

When accepting bailout funds, the homeowners allege, the government required all accepting lenders to engage in good faith negotiations.  All lenders guaranteed by Fannie Mae or Freddie Mac are required to follow the guidelines established by HAMP.  

Bank of America is one of those lenders.  BoA was aware of the requirements involved in HAMP and received bailout funds, since lenders and servicers were given the opportunity to opt out of participation in the program.  Since they did not opt out, BoA appears to be choosing to ignore the requirements established under the HAMP guidelines.  And now these Nevada homeowners, who are already struggling financially, have been suffering from BoA’s bad lending practices.

One borrower joined the Nevada suit because BoA refused work with her in making smaller payments, which she could afford.  According to her, she acted in good faith by notifying the lender that her income had been cut in half due to the recession and BoA's reply was not one of good faith – informing her that the same amount was due, regardless of her decreased earnings. She believes the only way the bank will meet her half way is if they are forced to. 

The group filing suit in Nevada is seeking class action status and is hoping the court will place a hold on any foreclosures and evictions until the suit is decided.

Similar suits are forming all across the country including a class action case against CitiBank filed by the Massachusetts class action attorneys at Phillips & Garcia.  If you believe that you are the victim of some sort of consumer fraud, we want to hear your story – contact us for a FREE consultation.