• DYE CULIK PC | Consumer Protection Division

Massachusetts Court Allows Culik Law Lawsuit Against Bank of America to Proceed

Bank of America Headed To Trial in Wrongful Foreclosure Case

The lawsuit alleged that the bank made “negligent misrepresentations” and violated the Massachusetts Consumer Protection Act, called Chapter 93A, in connection with the homeowners’ attempt to obtain a loan modification.

The court wrote that “plaintiffs’ allegations that they were unfairly strung along over the course of several years is sufficient to raise a plausible claim that defendants unfairly disregarded and mishandled their HAMP applications.” Such behavior by a bank “would certainly cause one knowledgeable of the mortgage modification arena to raise an eyebrow.”

The homeowners allege that over the course of a number of years, Bank of America required the homeowners to submit numerous loan-modification applications — which were uniformly denied — and provided “shifting rationales” for these denials.

Courts in Massachusetts have not dismissed cases based on administrative or clerical errors in connection with loan modifications, but a number of course have allowed homeowners’ claims to go to court if the homeowners can show an extended period of bad faith, misrepresentations, or pretextual denials.

The First Circuit Court of Appeals, the federal appeals court for Massachusetts, has held that homeowners may be entitled to accrued interest and damages from credit reporting.

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Culik Law is a Massachusetts Attorney / Law Firm. The posts on Culik Law’s blog are not intended as legal advice. If you have questions about your particular situation, CONTACT CULIK LAW for a Free Consultation.