Bank of America “Bailout” Doesn’t Help Homeowners by Anthony Russo

According to reports, Bank of America received $25 Billion in the Federal Government bailout just over a year ago. Under the Troubled Asset Relief Program (TARP) the money was to be used by the bank to work with homeowners who were having trouble meeting their mortgage payments due to the downturn in the economy and subsequent job loss.

Two Seattle homeowners have now filed a class action lawsuit against the banking giant alleging that they have lived up to their end of the bargain under TARP. Under the new federal agreement, banks were to offer a revised three-month payment plan for the borrower. If the borrower was able to meet the obligation under the trial plan, the bank would be required to offer a permanent loan modification. The lawsuit alleges that Bank of America dragged their feet and still hasn’t done what was both promised and required under federal regulations.

We will have to just wait and see what happens next. One thing is for sure though, in this economy, our fellow Americans should not become victims a second time. While job loss is at an all time high and according to statistics, one out of every eight U.S. home mortgages could be on shaky ground, this is no time for a large lender to manipulate the law and further burden an already burdened people.
Attorneys for the plaintiffs presented some pretty staggering numbers. According to their statement, Bank of America services more than 1 million mortgages that alone qualify for some type of financial relief. To date, according to attorneys, Bank of America has only offered 12,761 permanent modifications. If these numbers are proven true, we hope that Bank of American will be held accountable. Regardless of what one thinks of the Government bailouts there is one overriding intention behind it – to provide financial relief for people and not to further line the pockets of companies like Bank of America.

This lawsuit will likely play out in a very public way, as it well should. Abuse of monies that are supposed to be used for the consumer needs to be brought to light and those companies responsible should be held accountable. Times are difficult enough without corporate greed entering the picture. We will keep you posted on this debacle and any new developments.