Los Angeles, CA (PRWEB) July 25, 2011
Real Estate Law Center has filed a mass tort lawsuit against Bank of America alleging fraud, negligent lending and cancellation of void contract among other causes of action. The complaint alleges that Bank of America defrauded homeowners by placing them into illegal loans. On June 13, 2011, the case was filed in Los Angeles Superior Court with Case Number BC 463386. The court documents also assert that Bank of America systematically committed deceptive and unfair business practices by not offering homeowners options out of “bad loans” that Bank of America and Countrywide originated.
The loans that the case contends are illegal include but are not limited to Adjustable Rate Mortgages, Pay Option ARMs, high interest loans, balloon payments, and loans with prepayment penalties. To bolster their lawsuit, the firm is utilizing a case in which a Stipulated Judgment was obtained by the Attorney General of California on behalf of its people vs Countrywide/Bank of America. They are using it as a guide to remedy and relief. This case, LC083076 was filed in Los Angeles Superior Court. It gave potential remedies such as interest rates as low as 2.5% and loans reset as low as 95% of current market value.
Lead Attorney Adlore Clarambeau states “numerous plaintiffs have contacted our firm with claims of fraud and bad faith perpetrated by Bank of America/Countrywide. This is unprecedented in my years of practice. We are still taking in hundreds of inquiries and clients daily”.
According to CNN Money on June 29, 2011, Bank of America settled a lawsuit for $8.5 billion by a group of investors. Now Bank of America/Countrywide is faced with this mass tort action on behalf of homeowners. Should the court rule against Bank of America/Countrywide, liability could be in excess of this $8.5 billion figure if one were to compute it by the principal reduction restructuring at below current market value. This is not including monetary damages that may also be an adequate remedy in addition to a restructure.
Mr. Clarambeau goes on to state “We believe strongly in the merits of the action and that Bank of America/Countrywide wronged our clients and numerous other potential plaintiffs. We urge homeowners to contact us if they feel they have been a victim”.
Because of the nature of these complex court cases, there may not be a resolution for months. However should the plaintiffs’ prevail, it could be a legal precedent for years to come.
Real Estate Law Center http://www.lenderlawlitigation.com is a California law firm which has over 20 years of experience in litigation and in the last 3 years, its lead attorney has litigated over 100 cases against lenders for predatory lending, bad faith and other lender violations.
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