The federal government continues to crack down on banks and lending institutions whose large-scale fraudulent actions caused the real estate crash of 2008, the wide-spread effects of which continue to this day. The growth of Countrywide, one of the largest mortgage lenders in this country from 2004-2007, was directly related to its overt policies of using fraud to artificially inflate borrowers’ credit-worthiness. These fraudulent policies and actions, dubbed “the Hustle” by the feds, included using scissors, tape and White Out to alter documentation so that buyers’ applications would pass muster with the underwriters. Once it originated these loans (and drummed up millions in loan closing fees), it sold the bad loans to Fannie Mae and Freddie Mac. The federal government is seeking a billion dollar fine.
Bank of America purchased Countrywide in 2008, and the federal government is claiming it only continued the Countrywide fraudulent policies. Due to these predatory lending activities, many homeowners are struggling to pay loans they could never afford. Others struggled to pay the loans with limited incomes, and many have lost their jobs or are underemployed and are now facing foreclosure. Besides the people who had been scammed by these fraudulent activities, the actions of Countrywide, Bank of America and other lenders have caused property values to drop across the country.
If you have been a victim of predatory lending or are behind on your mortgage, please call us directly at 1-888-246-4346. Filing either a Chapter 7 or a Chapter 13 personal bankruptcy will stop foreclosure and provide you with options regarding the property. Many Chapter 13 bankruptcy filers are able to save their homes, pay back the past amounts due and become current with the mortgage payments.
Jenkins & Clayman– South Jersey bankruptcy attorneys