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