Last Friday, the attorney generals of Arizona and Nevada filed suit against Bank of America alleging state consumer fraud violations for a practice that’s come to be known as “dual tracking” — bank employees are telling homeowners seeking modifications to make a reduced payment while the “modification is pending.”
All the while, the lender is still holding the homeowner in breach of the contract and taking payments until such time as it decides to go ahead and foreclosure. It’s a slimy tactic. If the homeowner knew they were getting nothing for the deal it would have been better to save the money and short sell or surrender the property in bankruptcy.
This bankruptcy law firm has seen a number of similar cases during the past year with homeowners in Maryland and DC. We have written about this abuse against homeowners in another posting on this blog.
Most states, including Maryland and DC, have similar consumers laws addressing “unfair and deceptive acts and practices.”
Good for you Arizona and Nevada. May this suit go places.