Foreclosure trustee owned by BOA settles foreclosure lawsuit
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A settlement case signed today bars a foreclosure trustee company owned by Bank Of America from coming after homes in Washington state until it opens a physical-local office, as required by state law.
Recon Trust was sued by the State Attorney General nearly a year ago and is no longer doing business here. But the state says the final settlement is significant, because it makes it clarifies the position that all foreclosure trustees most abide by Washington's laws.
By law in this state, foreclosure trustee companies must maintain a local physical office in the communities where they're doing business. The staff must be accessible to homeowners during the foreclosure process, and foreclosure trustees must provide complete, accurate information about the loan, and how you can stop the foreclosure process-- if that's possible.
State investigators say it's important to remember these requirements because the AG's office is going after other foreclosure trustees that are operating illegally right now. If a company has started foreclosure proceedings against you, but does not have a local physical address, accessible staff and accurate information-- contact a HUD-certified Housing Counselor immediately and ask for foreclosure mediation.
By law, if your situation qualifies for mediation, the lender must provide some with authority to make decisions to talk with you and provide information about your loan. Mediation slows the foreclosure track to allow for a review of your situation.
This latest settlement includes a penalty of nearly $1.1 million which Recon Trust paid last year as part of the larger $25 Billion National Mortgage Settlement with Ally, Bank Of America, Citi, Chase and Wells Fargo.
The larger settlement includes compensation funds for each state, to provide "token" refunds to homeowners who wrongfully lost their homes due to illegal foreclosure proceedings. If you lost your home to foreclosure between January 1, 2008 and December 31, 2012 and feel the foreclosure was improper or illegal, you're urged to fill out a mortgage settlement form.
The state emphasizes that receiving monetary compensation as part of the National Mortgage Settlement will not interfere with any plans you may have to sue the lender.
BofA is by far the worst bank I have ever dealt with. Been trying to get them to lock me into a 30 yr fixed that would reduce my interest rate by over half but because I owe what it's worth and I am in good standing they refuse to work with me. So I will continue to take it in the shorts until the market gets better or they get some morals of some kind and offer a streamline refi.
It is fantastic time to refinance home mortgage. As Clark Howard says it is very tough to find these low rates for long time. Search online for 123 Refinance they found me THE lowest possible rate.
If 10% of the homeowners whose homes were illegally taken would bring legal action against the banksters, this national disgrace would come to a screeching halt. I can't help but wonder if this is the way those who fought and sacrificed so much during WW2 thought America would turn out a generation or two later. much
Not to bright BofA. Â Washington and Oregon have some of the strongest consumer protection laws in the country concerning lending. Â And the law is a good one--if decision making was done at the local level. Â Bank branch managers don't have the authority to look at a collection problem and make a decision. Â My only question is if the trustee is prevented from being a direct employee of the bank, but that is hyper technical. Â But ideally a consumer should be able to meet with a decision maker to review options. Â I miss the good old days...