Nevada Bank Of America Unit Halts Foreclosures
January 25th, 2011
In Nye County, Nevada, a judge has ordered a unit of Bank of America Corporation to halt the majority of its foreclosures in Nevada pending investigation of allegations that the unit, Recon Trust, has been operating without a state business license and has been serving foreclosure notices without even being appointed a Bank of America trustee[1]. These are serious allegations under any circumstances, and just more bad news for the beleaguered lender who recently concluded a “deal” with government-controlled Fannie Mae and Freddie Mac that has led many people to accuse the bank and the government of a “backdoor bailout.” In the wake of all this, BofA posted severe losses for two straight quarters at the end of 2010 and many experts and analysts believe at this point that the best thing for everyone would be for the behemoth to be systematically dismantled before it soaks up any more taxpayer money[2].
The current issue in Nevada stems from the allegations of a Pahrump, Nevada woman who runs a children’s daycare out of her home. She has alleged that Recon Trust, a BofA unit servicing mortgages in Nevada, “served her with a foreclosure notice before Bank of America appointed Recon Trust as a trustee.” Should this prove to be the case, at least 100 homeowners in Nye County alone could be affected and the foreclosures conducted by Recon Trust would be in a position of being fought, revoked and even reversed. Both the trust and BofA could face lawsuits for damages as well as a continuing and burgeoning of the PR disaster that has plagued nearly all lenders in the wake of the robo-signing fiasco.
While BofA insists that not only are all papers and trusts in order, but that a similar lawsuit that it faced in Utah ended with the lender being entirely vindicated, the plaintiff is not stopping with simple allegations of paperwork issues. She is alleging that the bank, with which she has negotiated a temporary loan modification but failed four times to make that modification permanent due to “lost paperwork” that neither side will claim, refused to wait two weeks for an income tax return and failed “to advise her to save money she was paying to the bank during the temporary modifications.”
Bank of America is one of the world’s largest banks, and it stands to reason that it would also have some of the world’s largest problems. However, this bank does seem to be careening out of control in small instances like this one and in much larger instances, such as its recent losses in the stock market and the threat that many analysts feel it poses to the global financial system. One Reuters columnist has called BofA “too big to succeed.” Do you think that it is time to shut BofA down, and will the housing market be hurt or benefit as a result?
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[1] http://www.lvrj.com/business/bofa-unit-ordered-to-halt-foreclosures-114536739.html
[2] http://blogs.reuters.com/prism-money/2011/01/21/five-reasons-to-dismember-bank-of-america/
January 25th, 2011 at 10:16 AM
the Sooner the Better, that we shut these crooks down-to end their buddy plan with the US Treasury-not to mention the US Congress and the Congressional “oversight” Panel-and shred the SCAM called HAMP !
January 25th, 2011 at 8:41 PM
You wouldn’t beleive what I’ve been through with BofA during the past year with 3 seperate property loans I have with them. It is the most unorganized, mess of a company I have EVER seen. After 12 months of constant updates, repeated paperwork, calls, etc. I still can’t find anyone that can provide any information. I get calls from India and they have no knowledge of what BofA is doing with loans. It’s crazy and I can’t imagine that it’s by accident (they couldn’t have been profitable all those years working like this). I think it is a purposeful process designed to keep consumers confused and keep BofA from making commitments to ANYTHING just in case they can profit from another process later. Please destroy them someone!
January 25th, 2011 at 9:08 PM
Yes, BOA needs to pay dearly for what they have done. They are the biggest crooks out there. They assumed CountryWide knowing they were fraudulant and scamming people left and right. As far as I know no one has been able to obtain a loan mod. thru BOA. They are actually denying people even before the trial period ends. They want to suck the economy dry and then ask for more $$$. Who suffers, we the people. Shame on the government for allowing this to spiral out of control, we all knew the subprime market would crash. It’s all about greed and all of these big lender’s have their hands out. I am a mortgage officer of a local Bank, I see what people have to go thru just to obtain a mortgage, it’s not pretty. The refinance market is tanked, good quality borrowers cannot even get a refi due to appraised values flooded by the Foreclosure market. Let them fall flat on their face, this will show all the other Lender’s we are not going to take this crap anymore. This goes for Chase, Citi, GMAC, Wells Fargo etc. Someday you will get your payback.
January 26th, 2011 at 1:11 PM
Yes make em all pay for doing the people that work hard for there money a disservice especially BOA! I have tried for 8mos to get a loan mod from BOA. In the process they served me foreclosure papers then told me no loan mod until I get more income Well! That was the reason for the loan mod because I had no more money than the job I have now. BOA told me to get another job or just more income then I would be approved! Somebody need to do something about the Banking System the are the reason the this whole Mess!