The new accusations claim that the bank purposely hindered the review committee’s progress by being slow to produce documents and other information. The bank also made interviews difficult by either denying them or involving attorneys or having them present, making it difficult for reviewers to get useful information.

Bank of America maintains that it fully cooperated with reviewers and denies the accusations.

The review found that banks, including Bank of America, did not have proper paperwork in place that would have allowed the Federal Housing Administration to reimburse them for foreclosures sold for less than the remaining balance.

This is not the first time Bank of America has been accused of unfair foreclosure practices. In addition to the robo-signing and other fraudulent activities it has been accused of, the bank has also been sued over accusations that it routinely misled consumers about home loan modifications.

A link to the article discussing the latest case that accuses Bank of America of hindering the foreclosure review can be found here.

April saw foreclosure filings increase by 18% in the Orlando Metropolitan area, including Seminole County. This suggests the long-anticipated surge in foreclosure activity may be stating. It is unclear how Florida’s court will be able to handle a spike in foreclosure cases. Officials believe the current backlog will be easily absorbed, but there is some doubt as to whether the courts could take on another foreclosure surge.

As for prices, experts believe that prices will probably not go lower due to the ending of the rocket docket. More likely, prices will stagnate and remain at current levels until the foreclosure mess it sorted out.

Republicans announced Monday that they are considering a bill to end the HAMP program. Rep. Spencer Bachus is quoted as saying, “In an era of record-breaking deficits, it’s time to pull the plug on these programs that are actually doing more harm than good for struggling homeowners.” A treasury spokesman countered that the proposed legislation “would close the door to struggling homeowners seeking relief in the face of the worst housing crisis in generations.” The Obama administration pledged to put $75 billion toward the HAMP program, but to date only $1 billion has been used to help struggling homeowners.

The program’s lack of success is largely due to government red tape, lack of oversight, and bank mistakes and screw ups. About 2.7 million homeowners applied for HAMP assistance. Almost half of the homeowners who applied for HAMP did not qualify for the program to start with, and an additional one-quarter were disqualified after being initially accepted into HAMP. To break it down into actual numbers, of the 2.7 million applicants:

About 266,000 applicants were denied due to incomplete paperwork or forms lost by mortgage companies.
About 255,000 were ineligible for the program because they had an “affordable” mortgage, even if they were struggling to pay their bills in addition to their mortgage, or the loan amount exceeded the HAMP guidelines.
About 770,000 homeowners started the program, but were later disqualified, mainly for the same paperwork and eligibility issues discussed above. Very few of this number were disqualified for failing to make their trial payments on time.
In the Southern region, approximately 80 percent of homeowners who applied for HAMP assistance failed to complete the loan modification process.

Call with any questions, thanks!

If you do not file a written response to the bank’s Complaint, the bank will get a default judgment against you, which will make it easier and faster for the bank to foreclose on your home.

Once you file a written response, you have some breathing room to consult with an appropriate professional to discuss the best alternative for you and your family.

Hopefully courts in Florida will use the U.S. Bank case as persuasive precedent in deciding future decisions.