Charlotte, NC based Bank of America, the second largest bank in the U.S., has been accused of hindering investigations by regulators into the ways in which they process foreclosures and mortgages.
The suit was filed in Arizona, a state overwhelmed by high unemployment and foreclosures. William W. Nixon a regional inspector general for HUD claims Bank of America hindered investigations of their mortgage lending practices, and their lawyers wouldn’t allow employees to answer questions about the changes made to their foreclosure practices. Bank of America also refused to allow regulator a walk-through of their document execution group.
The inspectors general also stated that BofA, did not have proper paperwork in place when filing for reimbursement from the Federal Housing Authority for foreclosed properties that caused them to lose money.
The bank denies allegations that they hindered investigations. Last week the federal government denied subsidies to Bank of America along with five other major mortgage lenders for their poor participation in modifying troubled mortgages. Seeking the advice of a foreclosure lawyer is inevitable if a person is refused modification.
Many people who face foreclosure have attempted to have their loans modified and have been denied. A foreclosure attorney may make it possible for a person to keep their homes of the bank is unwilling or unable to help. Major Banks have also wrongfully foreclosed on people, but a foreclosure lawyer can defend these people from negligent foreclosure practices.
