Ten homeowners resorted to federal court for help with their mortgages this week, saying Bank of America broke promises to modify their payments.
The civil case, filed Wednesday in Ohio, says the 10 troubled borrowers attended a federally sponsored loan modification event last October in Cincinnati. Some previously had tried to get loan modifications, a process that can be so lengthy and frustrating that regulators and lawmakers are pressuring lenders to improve.
During the event, the homeowners met with Bank of American representatives who offered each borrower a loan modification and promised written agreements would arrive by mail "within weeks," according to court documents filed by lawyers from the Legal Aid Society of Southwest Ohio.
No one has received the documents or had their mortgage payments reduced, the filing says. They have called to follow up and received no help. One woman has received notice the bank has begun foreclosure proceedings on her home.
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"Today, after months of agonizing worry and having experienced every manner of deception, confusion, avoidance, indifference and incompetence at the hands of BOA, Plaintiffs are no closer to receiving the promised loan modifications," the civil lawsuit says. "As a result, Plaintiffs are living with the daily trauma of imminent foreclosure and loss of their homes..."
A Bank of America spokeswoman said in an e-mail Friday that the bank can't comment on the lawsuit because it hasn't yet been served.
"Bank of America is committed to helping customers facing financially difficulties remain in their home," the statement said.