The Bank "We Want to Help You" Scam Continues

Bruce Bierhans

Attorney
(866) 735-1102 Ext 540

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A follow up to my recent comments regarding the banks repeated representations that they want to help homwowners modify their mortgages. Last Sunday in a local newspaper, , there was a letter written by a disabled mother of three. She had been working with at least 8 representatives of her mortgage lender that had represented to her that a modification was in the works. Nothing had yet been finalized and she still faced foreclosure. She was referred by the paper to her local HAC (Housing Assistance Corporation) . This week, we received a call from a woman that refinanced her home with Chase. Apparently, the lawyer (who may not be a lawyer) that closed the loan is nowhere to be found...nor are the refi proceeds. The bank is still threatening foreclosure. These stories are all too common. Every day, the banks run press releases indicating that they are modifying loans and want to help their customers stay in their homes. Yet,in our experience, even when confronted with undisputed evidence of fraud and violations of the Truth in Lending Act (TILA) and the Massachusetts Consumer Credit Cost Disclosure Act (MCCCDA), the banks are still defending against lawsuits rather than engaging in good faith settlement discussions. In addition to filing lawsuits, we have also been in touch with representatives of the Obama administration. We and our mortgage loan auditors have proposed ideas regarding solutions which would assist homeowners that were victimized by fraud, but have the wherewithal to pay their mortgages at reasonable levels and remain in their homes. Unlike John Thain, fromerly of Merrill fame, most consumers are not purchasing $1400 wastebaskets! At the moment, there is still an inaugural euphoria sweeping the nation. However, unless the courts and the Congress take steps to require the now "taxpayer owned" banks to act like responsible corporate citizens, that euphoria will diminish fast for those that have no place to live.