Bank of America settles with state over foreclosure proceedings
This is a vtdigger.org article.
The Vermont Attorney General will distribute $180,000 to Vermont Legal Aid and $10,000 to the Vermont Judiciary as part of a settlement with Bank of America.
The settlement resolves claims that Bank of America “did not live up to the terms of agreements” made with homeowners during foreclosure proceedings, according to the AG.
Vermont Legal Aid will use the money to hire attorneys to represent Vermonters in foreclosure actions for the next three years. The judiciary will develop a website to improve information for homeowners who are representing themselves in court.
Nearly 1,200 new foreclosures were filed in Vermont last year, and more than 75 percent of homeowners went through court proceedings without a lawyer.
Eric Avildsen, executive director of Vermont Legal Aid, said the funding will allow the nonprofit legal organization “to defend Vermont families fromthe illegal and misleading practices of national banks and mortgage servicing companies.”
“With this funding, Legal Aid will be able save homes from foreclosure and help families avoid homelessness and the downward economic spiral that so often follows foreclosure,” Avildsen said.
Vermonters who were affected received $250,000 as part of the $1.25 million settlement with the AG’s office. The funds for legal aid and the judiciary were made available after homeowners were compensated.
“Banks are not above the law,” Bill Sorrell, the Vermont Attorney General, said in a statement. “We responded to legitimate complaints about faulty mortgage foreclosure actions. Now, the claims of affected Vermonters have been satisfied. With the remainder of the settlement funds, we seek to assist low and moderate income Vermonters for years to come.”
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