Insane Bank Practices
It’s no wonder US banks now enjoy very similar reputation as our politicians in Washington DC and in most cases this reputation is well deserved. And they are not doing anything to improve on this reputation.
As part of a recent Settlement with the Justice Department for Foreclosure Fraud which included robo-signing and fabricated documents, the banks had agreed to pay as much as $25 billion in relief to distressed borrowers and direct payments to states and the federal government. It’s the largest multistate settlement since the Tobacco Settlement in 1998. The banks involved in this settlement are:
- Wells Fargo
- JPMorgan Chase
- Bank of America
- Citi
- Ally/GMAC
But according to a recent report in Inman News, 1 out of 10 settlement checks were sent to the wrong addresses . It appears being too-big-to-fail gives these banks the license to be stupid as well as greedy.
This is adding insult to injury specially since out of 25 billion dollars only $1.5B is allocated to pay these home owners who lost their home to fraudulent practices of these banks. And they can’t even get the few thousand dollars that the banks have agreed to pay since the banks are sending them to the wrong addresses.
This insane bank practice happened to one of our recent San Jose Short Sales where Wells Fargo was still sending legal documents to the home owner whose home was sold as part of a Short Sale. Yes, Wells Fargo was indeed sending legal documents 3 months after the close of Short Sale to the previous address of this home owner.
California is part of this large settlement as well and below is the contact information for the CA Attorney General’s office in case you believe you are entitled to receive a payment from these banks.
California Attorney General Kamala Harris (D)
1300 I St., Ste. 1740, Sacramento, CA 95814
(916) 445-9555
http://ag.ca.gov/
And we keep wondering why banks are the most hated institutions in America!?We would love to hear from you if you have were able to receive a settlement payment from one of these banks.
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