An ex-Bank of America employee in court documents has alleging that Bank of America gave bonuses out to their employees for foreclosing on homeowners.
It is alleged that employees were rewarded with gift cards and cash incentives to meet specified quotas of foreclosures.
Well, what do you know, this statement says that they were told to postpone and drag out the home modification requests. Hmmm, I wonder if all those homeowners that called us to do a short sale for them here in Wellington, Royal Palm Beach, Lake Worth, Port St Lucie, Miami and Cooper City and West Palm Beach after they were served with those home modification decline notices and on the same day being served with their foreclosure lis pendens papers.
We always did find that too much of a coincidance.
One of the loss mitigation specialists said that they were drilled on knowing that it was their job to maximize the banks’ fees by pushing out the modification process by “any means we could”. While I totally get that the bank is to look after their investors and shareholders it is not ethical to lie about it. Just say you are not doing loan modifications! Don’t pull people along in false hopes.
They were instructed to tell the homeowners when they called in to check the status of their modification request that their modification was under review when in fact it was not under review.
Homeowners who were turned down for permanent loan modifications have hired attorneys to take their claims to court. The attorneys representing the homeowners say that they have more than one witness. That they have at least 7 former employees that are verfifying the allegations.
Bank of America has denied the allegations.
Bank of America Lay Offs Heading to Ft Lauderdale
Bank of America announced that they will be laying off 675 people in Ft Lauderdale offices. They are laying off 30,000 employees nationwide. This is about 10% of their work-force.
The lay-offs will being in mid-October and into the end of the year.
The leases at two of their offices in Ft Lauderdale are expiring and they will not be renewing those leases. This is where many of the lay-offs will take place.
Many of the people being laid off work in the loan modification department at Bank of America.
Bank of America is #2 in Florida for deposits only trailing behind Wells Fargo.
However, Bank of America took over a lot of toxic loans from Countrywide Mortgage. They also took over Merril Lynch and settled claims against Merril Lynch for $315 Million. They bought Merril Lynch for $50 Billion.
Bank of America also agreed to pay $11.8 Billion to resolve allegations over foreclosure abuses. Part of the settlement is helping homeowners to refinance their mortgages and help the with foreclosure settlements.
Bank of America has begun to contact about 200,000 homeowners nationwide who may be eligible for forgiveness of their mortgages. You may be eligible for HAFA which gives you up to a $3000 cash incentive at closing. You may also be eligible for Bank of America’s incentive program and get another additional up to $35,000 to do a Wellington short sale.
If you or someone you know is behind in their mortgage payments or soon will be, contact Nestor Gasset and Katerina Gasset at 561-753-0135 to learn more about the different options that may be available to you instead of foreclosure. We rarely suggest that foreclosure is the better option. Think about doing a Wellington short sale.