Vegas Class Action Seeks To Stop BofA Foreclosures; Cites Lender's Lack Of Good Faith Negotiations In Loan Mods, Despite Grabbing Gov't TARP Cash

In Las Vegas, Nevada, KVBC-TV Channel 3 reports:

• As more homeowners find they aren't having any luck trying to work with their lenders, one local attorney is filing suit against one of the largest lenders of all: Bank of America. [...] The suit was filed on behalf of homeowners facing foreclosure who say there has been no progress made with regard to negotiations with their lender. And, as the president has discussed, there are actual laws in the books requiring lenders to negotiate with homeowners.

• However, throughout Southern Nevada, many insist it's simply not happening. "And that's why what we're calling for in this lawsuit," explains attorney Matthew Q. Callister. "(It) is an automatic stay of any further Bank of America foreclosures until such time as every Southern Nevadan avails himself of his right under federal law to have that fundamental 'good faith' negotiation."(1)

For more, see Local attorney files suit against Bank of America.

(1) According to the story, the class-action suit against Bank of America represents about 30 people so far; it alleges that the bank has failed to act in accordance with a section of the government's Making Home Affordable program, saying the lender has "refused to evaluate loans" and "failed to suspend foreclosure proceedings." Callister says Bank of America accepted TARP funds and now refuses to do what was required as part of the acceptance. loan modification