If you think Bank of America is curbing their predatory practicies now that they’ve ousted Ken Lewis as chairman, think again. Check out this ad I came across:
Have You Had Difficulty Negotiating A Short Sale With Your Lender?
To approve a Short sale of your primary home, did the Lender make you sign a note or letter stating you must repay the difference between your loan and the sale amount, even if you never refinanced your home?
Did the Lender force you into Foreclosure and Bankruptcy?
We are a group of individuals (not attorneys) concerned with the way certain Banks have treated troubled borrowers and are investigating their practices, especially in light of the billions of dollars banks have received in TARP Monies. Some of these ill-advised business practices may even be illegal under California law, and costing taxpayers millions of dollars.
This is not a solicitation of business. We want to hear from you. Confidentiality assured.
Please call 1-866-981-8781 and leave a confidential message. Thank you.
What prompted this ad is that Bank of America has apparently been screwing over troubled mortgage borrowers who are attempting to negotiate short sales on their homes. Borrowers who can’t afford to keep their homes have to work out a deal with their bank, selling short on their home at whatever the market value is currently in order to avoid foreclosure altogether. Bank of America, however, is forcing these troubled borrowers to sign deficiency letters, meaning the borrower has to repay the difference between the sale price and the remainder of the existing loan on the property, which could easily force borrowers into bankruptcy.
What’s odd is that banks get far less in foreclosure than in short sales, so it would be in their best interest to work something out. What’s more, Bank of America recently announced it was easing its policy on short sales, requiring 5 percent of short sale proceeds instead of 10 percent. But this ad makes it sound like Bank of America is still having it both ways with troubled borrowers.
In California, Bank of America’s predatory behavior might be violating the law, since they are refusing to bless a short sale if the borrower does not sign a deficiency letter, even when the borrower’s home has not been refinanced. If you know anyone, particularly in California, who has had difficulty negotiating a short sale, urge them to call 1-866-981-8781 and leave a confidential message. Bank of America has already taken tens of billions in our taxpayer money through the bailout; we can’t allow them to continue screwing homeowners at every turn.