Tuesday, December 21, 2010

Everyone Hates Bank Of America

Bank Of America twisting in the wind
The Attorney's General of Arizona and Nevada filed a lawsuit against Bank of America accusing it of engaging in "widespread fraud" by misleading customers with "false promises" about their eligibility for mortgage modifications.

Stacks of testimonies filed in state courts complain BOA assured their customers they wouldn't be foreclosed on during the modification process-but the bank lied and did anyway.

BOA is also accused of falsely telling people they had to be in default to qualify for a modification;
of promising modifications would be made permanent if they completed the trial period-only to renege on the deal and later make up bogus reasons for denying modifications.

Catherine Cortez-Masto Nevada's Attorney General said, "Bank of America's callous disregard for providing timely current information for people in their time of need is truly egregious."

A spokesman for Bank of America responded that Bank officials were disappointed that the lawsuits were filed-given the banks cooperation with the investigation.

Bank of America lie manual
 Many Nevada homeowners went through their savings, retirement accounts and children's college funds awaiting modifications only to be turned down-and in one case in Arizona, a couple was told a stop had been placed on the foreclosure and the modification was on the way only to find their house had already been sold.

Former employees have testified the banks training was not geared towards customer service but "to get the customers off the phone in less than ten minutes."

Another employee said the modification staff was "chaotic, understaffed and not oriented toward customers." One employee testified the bank directed them to lie-telling customers they were still in the modification process when in fact they weren't.

It's no surprise Bank Of America rated last nationwide on every home owner experience metric according to the lawsuit, and as Terry Goddard Arizona's Attorney General stated,

" I am filing this lawsuit today because, after years of delay and broken promises,Arizonans should not have to wait any longer to seek redress. Our homeowners and communities need and deserve relief. Bank of America must be held accountable for its deceptive conduct and failed commitments."

Home owners, the 50 states Attorney's General, and bilked investors aren't the only ones angry at Bank of America. Supporters of WikiLeaks-the whistle blower website have said Bank of America has stopped handling transactions for the site- including not processing donations from BOA customers.

WikiLeaks is set to release documents in January that targets a particular big bank. These documents are said to be so damaging to the bank that releasing them will bring it to its knees.

WikiLeaks released this warning on their website;

Does your bank do business with Bank of America? Our advice is to place your funds somewhere

Americas Banking Turkey
 Is this a warning of disaster to come? Is WikiLeaks telling Bank of America customers to take their money before the bank crashes-as predicted by many sometime in 2011 due to a little insolvency problem.

When a bank becomes insolvent it means it can't pay its debt. It may have assets but if they can't be converted to cash to cover those debts it may as well be bankrupt. And if a bank is in that much trouble then any savings you have over $100,000 isn't covered by the FDIC. They lose-you lose it's as simple as that.

But think on the bright side- at least you will still have some money left.

Where's my foreclosure notice?

Recently attorneys have noticed a strange void in the foreclosure practices of the banks-the lack of high end real estate foreclosure notices going to wealthy defaulters. Defaulting clients are approaching attorneys worried the sheriff will come by to evict them as they haven't heard a peep from the bank.

Some haven't made a house payment in over a year-and in several cases the bank is letting slide payments of $20,000 a month or more. Attorney's are speculating the reasons could be;

That homes once valued at say 5 million are no longer worth 5 million and keeping them on the books at full value keeps the banks asset level higher than it actually is -to pretend they aren't insolvent and keep the government from foreclosing on them. Also, The banks figure it's better to keep non payers in these homes to avoid paying property tax and insurance- which these financial giants can no longer afford.

No matter the reason -it still reeks of favoritism towards the wealthy who default- compared to that of the middle class.

Commercial Foreclosures ahead
Maybe the enormous losses coming from the gated communities- like a compounding snow ball -will finally push them over the cliff.

Maybe the bankers just don't want to ruin the property values in their own neighborhoods.

Or maybe they are stringing everyone along hiding the fact that-

too big to fail already has.

PS-coming soon to a bank near you-major commercial real estate foreclosures.

Look out -this one is gonna be the storm of the century.


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