In a class action lawsuit filed in federal court in Boston last week, former employees stated that they were regularly rewarded for denials and referrals to the foreclosure department, including with cash bonuses and gift cards. The same former employees claimed that they were encouraged to perform en masse denials and to give bogus reasons for denying or stalling HAMP loan modification applications.
According to this article in the Star-Advertiser, this is not the first time Bank of America and other mortgage servicers have been accused of such behavior. Numerous lawsuits have already reached settlements to avoid further inquiry into such practices.
You may be one of the homeowners currently struggling with a loan modification, feeling as if you keep submitting the same materials over and over to no avail. We specialize in helping out people in this situation – often bankruptcy can be the key to obtaining a successful loan mod through lowering your debt-to-income ratio and stalling pending foreclosure actions. Please contact us now if you would like to discuss your options both in bankruptcy and otherwise.