Wednesday, December 30, 2009

Homeowners Starting to Sue Banks

Las Vegas Homeowners in Default File Suit Against Bank
Posted: Dec 30, 2009 6:13 PM EST

Las Vegas Homeowners in Default File Suit Against Bank

LAS VEGAS -- A group of homeowners on the brink of foreclosure has formed a class-action lawsuit against their lender Bank of America.

That lawsuit -- which represents 50 homeowners -- accuses the bank of wrongful foreclosure, breach of contract, and unfair lending practices. According to federal law, lenders that accepted government bailout funds are required to take part in good faith negotiations with homeowners who are at imminent risk of default. But after months of getting nowhere with their lender, dozens of homeowners say they are now suing Bank of America in an attempt to force them to follow the law.

"I have an income and I could make some sort of reasonable payment if they would just work with me but they have no intention of working with me. The only way they're gonna work with me is if they're forced to," said Deanna Forsyth, suing her lender.

Forsyth says after she lost nearly half her monthly income due to the recession, she contacted her lender directly to try and modify her mortgage to include a lower monthly payment. Like most of the homeowners involved in the suit, Forsyth says Bank of America has failed to make a good faith effort to help her try and save the home where she and her children live.

Las Vegas attorney Matthew Callister has filed a class-action lawsuit on behalf of more than 50 homeowners against Bank of America.

"We've been compelled to bring a series of class action suits to put a proverbial gun to the head of the lending institutions to force them to do what they are already obligated to do," said Callister.

He is also pushing for a hearing before a judge as soon as possible to get an injunction or stay to postpone any foreclosures and evictions against the homeowners taking part in the class-action suit.

Callister also has a suit against IndyMac on behalf of about 60 homeowners. He also plans to file suits against Chase Bank and Wells Fargo Bank in the near future.

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