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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 110573
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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My bank has denied my application for

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My bank has denied my application for loan modification under HAMP Program on grounds which are contrary to financial information I supplied. Further when contacted by phone they give reasons which are not in their denial letter. When I ask them to confirm their new grounds in writing they refuse to do that. I feel they are trying to hide something to deprive me of the benefits under the Federal program. Do I have a legal remedy against the Bank in this case? Thanks and regards. Durga xxxxxx

Thank you for your question. I look forward to working with you to provide you the information you are seeking.

Unfortunately, under HAMP, contrary to the assertions of the politicians, there is no part of the Act that provides a mandate on the banks to force them to grant the modifications and there is no penalty against the banks for failure to provide a modification. Your legal recourse is exactly what you have done, the escalation unit appeal and the claim to the Financial Protection Bureau. As far as suing the bank for not approving the loan, I am afraid there is no legal basis provided for that in the law. If you can prove you are being denied based on your age/race/sex/disability (unlawful discrimination) then you could sue the bank for that unlawful discrimination, but simply because they do not want to lend the money, I am afraid that when HAMP was enacted they did not make any provisions for such suits.

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Customer: replied 3 years ago.

But I have seen a Report by Reuters dated June 14, 2013 that some borrowers filed a civil case against the Bank of America in 2010 and are now seeking class certification for Bank's mishandling of mortgage modifications. Do you have any comment on this?


Thank you for your response. The class action was not merely for denial against BoA. The class action is for BoA dragging their feet on approving these modifications and committing unfair and deceptive practices in ultimately foreclosing while claiming that they were working on a modification for the customer. The BoA engaged in deceptive practices such as asking for the same documents over and over and continuing to drag out the modification process all the while they intended to foreclose and never intended to grant a modification.

You did not give me any indication in your statements that they delayed modification only to give them time to foreclose on your property, but if that is what the bank did, then you would have cause to sue for the unfair and deceptive business practice in doing so. You cannot sue just because they denied the modification though, which was the impression I got from your original post.
Customer: replied 3 years ago.

I guess the intention of my bank is to lead me to foreclosure or to a refinance program whereby the bank gains most at my cost.

Do I have a legal recourse in that case?

The only recourse to join or file suit for the unfair and deceptive practices is if you can prove they delayed the process while they were preparing to foreclose all along, but not just simply because they denied your modification and have not foreclosed yet.
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