Class action suits filed against US Bank and Bank of America by Attorneys Marc Dann and Jim Douglass for failure to fulfill obligations under the Federal Home Affordable Modification Program

On February 7, 2011, attorneys Marc Dann and James Douglass filed two similar class action lawsuits – one against US Bank Home Mortgage and the other against Bank of America and BAC Home Loan Servicing, LP.  Both banks have failed to offer permanent loan modifications to eligible homeowners participating in good faith in the Home Affordable Modification Program (HAMP) despite entering into agreements with these homeowners and accepting Federal funds to participate the program.

Both Bank of America and US Bank agreed to participate in the HAMP program when they accepted funds from the Federal government as part of the Troubled Asset Relief Program (TARP).  Under HAMP, the banks are to offer permanent affordable loan modifications to participating eligible homeowners that make payments during a three month trial period.  The banks receive $1000 from the government for each HAMP modification.

Parma homeowners Richard and Mary Hlavsa, who have a Bank of America mortgage, and a Cleveland homeowner with a US Bank mortgage sought help from Dann and Douglass after they entered into agreements with their respective banks to participate in the HAMP program, provided all necessary documentation, made the required payments and were never offered permanent loan modifications.

“Banks Like Bank of America and US Bank are not negotiating in good faith. In both of these cases the bank made written promises to the borrowers that the bank subsequently broke.,” said Dann.  “In breaking their promises to these homeowners, Bank of America and US Bank are also breaking their promise to the US government and to the taxpayers. The net result for the Hlavsas and the client in the US Bank case is that there is no resolution to the ongoing stress and uncertainty of foreclosure. This is exactly the type of problem the HAMP program was designed to solve. ”

Dann and Douglass believe that Bank of America and US Bank have failed to keep their promise to many others in addition to their clients.

“I feel trapped and cheated,” said Mr. Hlavsa.  “I keep paying into this program because I want to keep my home but I have no idea what is happening to my money or if, without a loan modification, I can still lose my house.”

The lawsuits will ask that the Cuyahoga County Court of Common Pleas accept the cases as class action suits and declare that Bank of America and US Bank are in breach of contract and must offer permanent modifications in accordance with the agreements they have made.  The lawsuits further seek that the court order Bank of America and US Bank to properly train those entering into HAMP agreements on their behalf and to pay court costs and fees, as well as actual and punitive damages, to these clients and others like them.

“Bank of America and US Bank are taking advantage of people that are trying to make things right and completely disregarding the promises they made to both these individuals and the government when they took taxpayer money,” said Douglass.  “By ignoring their obligation to pull people out of foreclosure, the banks are also standing back and allowing our community to continue to deteriorate.  It must be stopped.”

 

For more information Contact Marc Dann

For Homeowners facing Forclosure contact Law Office Of Marc Dann Co.LPA

 

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6 comments on “Class action suits filed against US Bank and Bank of America by Attorneys Marc Dann and Jim Douglass for failure to fulfill obligations under the Federal Home Affordable Modification Program
  1. Daniel. facey says:

    My Daniel. Facey I live new York,I have mortgage loan with us bank I am trying to do a modification with them .But it not easy they give you the run around a lot.I would like to be a part of that class action lawsuite.Please sen me information.

    • Len Bendolph says:

      Sir, I tried to get loan modification from U S Bank three times each time they manage to lose some of my paper work. What US bank done for my mortgage,they paid my house insurance and taxes on my home before the loan was approved. Then they went up on my mortgage payment by adding a $145 to repay them.

  2. MARY JIMENEZ says:

    I WAS IN THE SAME BOAT AS LEN BENDOLPH APRIL 8, 2011. US BANK DID THE SAME FOR ME, BUT AFTER THEY RAISED MY PAYMENT AS PER LOAN MODIFICATION, I DID NOT HERE ANOTHER WORD FROM THEM, UNTIL IN FEBRUARY I RECIEVED A NOTICE FOR SALE FOR MAY 11.2011. NO FORCLOSURE NOTICE, NOTHING. SO I DID SOME RESEARCH AND FOUND A LAW GROUP WHO HAS GOTTEN THE BALL ROLLING ON MY MODIFICATION,. SO WE WILL SEE WHAT HAPPENS

  3. Tandi Bergsma says:

    I have been in this process three times. Got approved after making several months of payments. I communicated with the bank at least every few days before the approval and once a week after the approval. When one day I called and they told me they made a mistake, that they decided I don’t qualify anymore. I am furious and called my attorney immediately. After being told that everything is great and I should be recieving my new paperwork any time, they lead me on for months.

  4. Sarah says:

    I would like to be part of this class action suit. We went to mediation with US Bank and we were told we would have 6 months to sell the house in a short sale and then they would forgive the rest. Within that time frame we had 2 offers on the house for more than the county assessed the property value at and they sat on the offers, kept “losing” out paperwork, and then we finally found out through an advertisement from another realtor that our home was up for auction on the 7th of November! Not only did the bank go forward with the foreclosure and not uphold their part of the mediated agreement, they bought back my home for roughly $6,800! Now they are sending us a 1099-A form stating the “Fair Market Value” on the home is over $175,000 (which is roughly $22,000 more than our loan)! This is just a bold faced lie. The houses in our neighborhood have all been selling between $20,000 and $50,000. The other fun part of this is that the house had a pool when we bought it, but the leaks in the pool were never fixed by the prior owner (and that was part of our agreement) so we had the pool filled in which would DECREASE the value of the home from original value when we bought it. These people of crooks and I don’t know what to do about this. I want to file my taxes, but I think I’m stuck right now. Please help if you can! Thanks!

  5. donna says:

    I have had the same thing happen to me. I was told my modification was approved. I kept paying my payments over the 3 month trial ended up to be approximately 9 month then January 1st I get a call from US Bank stating my modification was denied and for closure process would continue. Plus they never applied my payments to my mortgage they had sitting in suspense status. I had to hire attorney.

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