Loan Modification

Bank of America and Countrywide Home Loans Sued by United Law Group

By admin

A law firm engaged in the practice of helping distressed homeowners negotiate loan modifications has filed a lawsuit alleging that Bank of America and its subsidiary Countrywide Home Loans deliberately and maliciously sought to harm its reputation with its clients in order to stall and mislead clients.

According to United Law Group, representatives from Bank of America are telling the law firm’s clients that United has not contacted them and that they have not received any notices and legal demands on their behalf. In response to those claims, United Law Group ? a provider of legal foreclosure prevention and foreclosure litigation service ? today announced that it filed a complaint in the Superior Court of the State of California County of Orange Central Justice Center against Bank of America and its subsidiary Countrywide Home Loans, Inc. for tortuous interference with contract, defamation (slander) and unfair business practices.

The complaint alleges that as a direct result of the representations, statements and recommendations made by Bank of America and Countrywide Home Loans directly to United Law Group’s clients, United Law Group’s clients became distraught and confused as to the state of their loan modification applications, the services being performed by United for those clients, and whether such loan modifications were even possible in the first place. In short, United is claiming that Bank of America representatives were aware that their direct communications with United Law Group’s clients would cause a significant crisis in confidence, and intended those consequences when the communications were made.

“Representatives from Bank of America are telling our clients that we have not contacted them and that they have not received our notices and legal demands,” says Richard Stinstrom, Senior Litigator for United Law Group. “This deliberate attempt to mislead our clients is a calculated move designed to shake consumer confidence so that these consumers cancel with United Law Group.”

United is asking the court to help recover actual damages, general damages and punitive damages. The firm is also seeking a preliminary restraining order and preliminary and permanent injunction against Bank of America and its subsidiary Countrywide Home Loans from engaging in any communications directly with the firm’s clients, other than as may be specifically permitted by United Law Group, following receipt of notice of representation by United Law Group.

Ralph R. Roberts, GRI, CRS Award-Winning REALTOR® and Author Loan Modification For Dummies (avail. Summer 2009)

Full post as published by KeepMyHouse.com on April 28, 2009 (boomark / email).