How current events impact your business and real estate holdings

Monday, June 07, 2010

Mortgage Borrowers receive $108 million from Bank of America

According to the Associated Press, Bank of America has settled federal charges that Countrywide Financial Corp. (which it acquired about 2 years ago), collected excessive fees from about 200,000 borrowers in foreclosures. Now those borrowers will get a huge refund, which is very much deserved. The fees at issue were charged against borrowers who were behind on their mortgage (who obviously couldn’t afford the charges without these nasty fees) and they were substantial fees of thousands of dollars. Moreover, Countrywide misstated the fees to borrowers and misrepresented the amount borrowers owed.

Lieb at Law always recommends that borrowers in foreclosure closely examine their statements and we routinely order Reinstatement Packages to determine how much the bank is charging. It is our position that if borrowers & their representatives do not stand up for themselves they will face abuse. Here is an example of big banking abusing the little guy yet again. Hopefully, lenders will learn the tail of Countrywide and will choose to work with a struggling homeowner rather than charge them more once they are already behind. Otherwise, lenders will keep facing lawsuits. Keep your eyes open & if you believe your lender is maintaining abusive practices contact an attorney immediately.

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