Nevada Lawsuit Nails Bank of America For All Aspects of Mortgage Operations, Seeks to Help Miami Homeowners

Nevada’s once limited lawsuit against banking giant Bank of America has been expanded recently, now targeting nearly all aspects of its mortgage operations, Pro Publica reports.

As Miami Foreclosure Lawyers have blogged about for months, every state’s attorney general has been investigating banks, looking into their mortgage operations on a state-by-state basis. Some states have been more aggressive than others. But it appears that the main goal, collectively, is to get a big payday from banks for their transgressions.
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Sadly, most experts don’t know where the money will go and what stipulations will be put in place to make sure banks don’t repeat the problems at some point down the road. The banks are fighting for assurances they won’t get sued again, while states are seeing dollar signs. What remains to be seen is whether homeowners will get anything or just get thrown to the side as usual.

While the states and the banks duke it out to determine how much money exchanges hands, homeowners must focus on fighting foreclosure in Miami, or wherever they are. Many of the issues that are being brought up in these state-filed lawsuits are issues that must be attacked in an individual homeowner’s foreclosure case.

The sneaky tactics, robo-signed documents, inaccurate paperwork and other problems happen all the time, even as banks have curtailed filing foreclosures to review their processes. In some cases, it may be possible to show that a bank doesn’t even know who actually owns your house because of bundles of mortgages that have changed hands several times.

As the article states, the new lawsuit Nevada has filed could have consequences outside the state. The lawsuit actually jeopardizes the nationwide settlement that the five largest U.S. banks and states have been working on for months. The banks are pushing for a settlement over 50 state lawsuits.

The lawsuit alleges that Bank of America, and the mortgage giant Countrywide that it acquired in 2008, deceived homeowners at nearly every stage. Borrowers were duped into taking out loans they couldn’t afford and then victimized by deceiving mortgage modification programs, the lawsuit alleges. The bank also used fraudulent documents in filing foreclosures.

Pro Publica reports that Nevada’s lawsuit, along with New York Attorney General Eric Schneiderman’s stepped-up investigations of the banks, could affect the settlement. Schneiderman was recently removed from the executive committee of governors working toward a settlement for working to “undermine” a quick settlement.

Officials in Nevada and New York, as well as Massachusetts and Delaware, oppose a broad waiver of claims against banks as part of a settlement with banks. The Nevada lawsuit also alleges Bank of America breached its agreement in 2008 with states to implement a mortgage modification program to address allegations that Countrywide used deceiving marketing and lending practices to defraud borrowers.

These allegations may seem shocking, but not for Miami Foreclosure Lawyers who have seen this sort of thing for many years now. Banks will do anything to try to get an edge, even if it means burying homeowners. So, start by fighting back.

If you’re battling foreclosure in Miami or the surrounding areas, contact Jacobs Keeley for a confidential appointment to discuss your rights. Call (305) 358-7991.

More Blog Entries:

Mortgage Servicer Sues Lending Processer Over Robo-Signed Docs in Miami Foreclosure Cases: August 20, 2011
Banks Still Looking For a Break Even After Foreclosure Mess in Miami, Nation: August 3, 2011
Additional Resources:

Nevada Wallops Bank of America With Sweeping Suit; Nationwide Foreclosure Settlement in Peril, by Paul Kiel, Pro Publica