Recently, the Office of the Comptroller of the Currency fined the following banks for bad foreclosure practices:
- America’s Servicing Co.
- Aurora Loan Services
- BAC Home Loans Servicing
- Bank of America
- EverBank/EverHome Mortgage Company
- Financial Freedom
- GMAC Mortgage
- IndyMac Mortgage Services
- MetLife Bank
- National City Mortgage
- PNC Mortgage
- Sovereign Bank
- SunTrust Mortgage
- U.S. Bank
- Wachovia Mortgage
- Washington Mutual (WaMu)
- Wells Fargo Bank, N.A.
- Wilshire Credit Corporation
The report found that these services were guilty of many wrongful acts, including foreclosing on homeowners while they are in the middle of a short sale, or a loan modification, misrepresentation, miscalculation of balances and a whole sleuth of other misdeeds such as:
- The mortgage balance amount at the time of the foreclosure action was more than you actually owed.
- You were doing everything the modification agreement required, but the foreclosure sale still happened.
- The foreclosure action occurred while you were protected by bankruptcy.
- You requested assistance/modification, submitted complete documents on time, and were waiting for a decision when the foreclosure sale occurred.
- Fees charged or mortgage payments were inaccurately calculated, processed, or applied.
- The foreclosure action occurred on a mortgage that was obtained before active duty military service began and while on active duty, or within 9 months after the active duty ended and the servicemember did not waive his/her rights under the Servicemembers Civil Relief Act.
The OCC fined these banks a huge sum of money and agreed on a settlement in which the government would no longer pursue these services for their misdeeds.
Here’s the kicker….because these banks are too large to fail…our government have agreed to pay the fines on their behalf. It’s like saying “Timmy, you’ve been a bad boy. I am going to fine you $100. Don’t do that again. By the way, here’s a $100 for you to pay the fine.”
The government did not call this a bail out in fear of citizen upheaval. Instead, they call it a settlement fund.
However, the upside to this is this. If your primary residence was in foreclosure between Jan 2009 and Dec 31, 2010 and you were foreclosed by one of the above servicers, then you might be entitled to between $2000 to $50,000 from the government. Look, if you’ve already lost your home…this could be free money to help you move on with your life. Seriously, this is real. Please pass this on to all your friends.
You are entitled to a free independent foreclosure review which may also reveal actionable items which you can privately sue your servicer for their misdeeds. These are fully admissible evidence because they are direct from the government and is very hard for the servicer to refute in court.
However, you must submit your request by July 31, 2012.
If you are interest in more information about this
free independent foreclosure review, click here.
Please forward this to your friends. This is important.
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