15 Financially Struggling Texans File Lawsuit Alleging BofA Screwed Them Over When Seeking Loan Modifications To Avoid Foreclosure

In Austin, Texas, Texas RioGrande Legal Aid announces:

• Fifteen low-income Texans are suing Bank of America for operating a home loan system that forces struggling homeowners into foreclosure by purposefully misleading them, preventing them from modifying their loans, and ignoring agreements for lower monthly payments.

• Represented by Texas RioGrande Legal Aid (TRLA),(1) [...] the families allege that they tried to work with Bank of America on loan modifications and foreclosure prevention when tough economic times hit. Instead of providing them with the information necessary to save their homes, Bank of America provided inconsistent information, lost important paperwork, and failed to notify them of the status of their loans. In cases where forbearance and loan modification agreements were made, Bank of America ignored the arrangements and put homes up for foreclosure even though families made their payments.

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• According to the lawsuit, it is standard practice for Bank of America to ignore agreements made with homeowners in order to force them into foreclosure. In addition, Bank of America intentionally provides homeowners with misleading and inconsistent information about their loans, illegally ignores requests for information, and sets up unreasonable barriers to keep families from saving their homes.

For the TRLA press release, see Bank of America Practices Force Homeowners to Face Foreclosure.

(1) According to their website, Texas RioGrande Legal Aid is a nonprofit organization that provides free legal services to the residents of Southwest Texas in a 68-county service area who are unable to afford the fees of attorneys in private practice. In eight of the counties, TRLA also provides representation in criminal cases through its Public Defender Division. TRLA also serves migrant and seasonal farm workers throughout the states of Texas, Louisiana, Arkansas, Mississippi, Alabama, Tennessee and Kentucky.