Bank of America Seeks Dismissal of Robo-Signing Suit
Bank of America Seeks Dismissal of Robo-Signing Suit
Bank of America is seeking a dismissal of a suit filed against it by a group of Indiana plaintiffs who are alleging that the bank had used robo-signers to speed up its foreclosure process.
The company said the plaintiffs failed to prove that they incurred damages as a result of the bank's alleged robo-signing practice, adding that the latter might have lost their homes regardless of whether or not the allegation is true.
The bank also noted that a relief under a federal debt collection law is improper since foreclosures deal with the homeowner's interest in properties and are not intended for debt collection.
The move may be seen as part of the defenses that banks and mortgages are planning to put up in response to the growing number of lawsuits being filed against them for their alleged foreclosure malpractices and misrepresentations in mortgage-backed securities.
The lawyers for the plaintiff had not yet commented on the matter. The plaintiffs are also urging the court to recognize their suit as a class action representing thousands of homeowners.
Homeowners are accusing banks, mortgage firms and loan servicers of improper foreclosures, claiming that they have utilized robo-signers to expedite foreclosure proceedings against their properties. Many are also claiming that they were not properly apprised of the loan documents and their terms.
It was reported that bank foreclosure rates have declined 9 percent in the month of October from September after banks have imposed suspension of evictions and moratorium on their foreclosures. But the freeze is believe to only stall the processing of documents and does not actually improve the current standing of those borrowers who are already delinquent and have overdue accounts.
Banks have voluntarily suspended and halted their evictions and foreclosures following massive revelations that banks have improperly foreclosed thousands of properties by using robo-signers and routine paperwork. The foreclosure freeze was led by the US largest banks such as Bank of America, JPMorgan Chase, Wells Fargo, and Ally Financial.
All state attorneys general of the 50 US states have formed a joint probe committee to investigate various claims of fraud and illegal bank paperwork practices.
