Live Chat
During This Challenging Time

We are open for business and remain dedicated to your case! All those working on-site and remotely are still available to answer your questions. The well-being of our clients and staff are vital, so we will provide updates as the situation progresses.

During This Challenging Time Close

Banks Are Not Playing Fair During Home Loan Modification

July 1, 2011

National banks that took federal bail-out money also agreed to participate in government home modification programs. These banks have created in-house loan negotiators to assist in home-loan modifications, which may reduce loan principle or interest to adjust the loan to an affordable rate. Many American homeowners have applied for these programs, but few have been approved. In many cases the empty promise of home loan modification leaves the homeowner in a worse position than when he started.

It has become clear that these banks are simply not playing fair. Several lawsuits have been filed against national banks alleging fraud. A federal lawsuit was recently filed by the State of Nevada Attorney General against Bank of America, the nation’s largest home loan servicer, alleging deceptive practices. Additionally, a class-action lawsuit against Bank of America is pending in Massachusetts federal court. These suits claim that Bank of America deceived consumers into depleting their savings by making mortgage payments based on false hopes they’d be eligible to modify their home mortgages. The lawsuits allege that BOA accepted $25 billion from the U.S. government in 2008 as part of the Troubled Asset Relief Program (TARP), but has failed to participate in programs such as the Home Affordable Modification Program (HAMP) aimed to minimize foreclosures.


If you are in need of a home modification, review your options with an experienced bankruptcy attorney. Many bankruptcy debtors are able to strip away a second or third mortgage, or pay past-due payment over three to five years. Bankruptcy debtors can also apply for government programs such as HAMP during the bankruptcy case, while under the protection and supervision of a federal bankruptcy court judge.

var lpMTagConfig = {‘lpServer’ : “”,’lpNumber’ : “12879226”,’lpProtocol’ : “http”}; function lpAddMonitorTag(src){if(typeof(src)==’undefined’||typeof(src)==’object’){src=lpMTagConfig.lpMTagSrc?lpMTagConfig.lpMTagSrc:’/hcp/html/mTag.js’;}if(src.indexOf(‘http’)!=0){src=lpMTagConfig.lpProtocol+”://”+lpMTagConfig.lpServer+src+’?site=’+lpMTagConfig.lpNumber;}else{if(src.indexOf(‘site=’)<0){if(src.indexOf('?')<0)src=src+'?';else src=src+'&';src=src+'site='+lpMTagConfig.lpNumber;}};var s=document.createElement('script');s.setAttribute('type','text/javascript');s.setAttribute('charset','iso-8859-1');s.setAttribute('src',src);document.getElementsByTagName('head').item(0).appendChild(s);} if (window.attachEvent) window.attachEvent('onload',lpAddMonitorTag); else window.addEventListener("load",lpAddMonitorTag,false);


Use the form below to send us a note, call us at 214.890.0711 or chat with us live. We are eager to help with your legal needs. Please keep in mind that any unsolicited information sent through our website cannot be treated as confidential. Contacting us through this site does not create a representation relationship with Fears Nachawati.

Contact Us


With offices across Texas, and attorneys licensed in Texas, Florida, Arkansas, New Mexico, California, Illinois, District of Columbia, Missouri and Oklahoma, Fears Nachawati is dedicated to attaining the best possible solutions for our clients’ business and personal needs. We strive to be professionals who are creative, empathetic and reliable.

All Areas Served

We Can Help

Contact Fears Nachawati today

Free Consultation

Live Chat (Online Now)