Bank of America Settles with Homeowner for a Loan Modification and $332,154 in Principal Reduction

Fontana, CA resident Hung Vy scored a landmark victory against Bank of America in the fight against foreclosure. Her weapons of choice were a securitization audit from Paladin Securitization Auditors and foreclosure defense attorney Art Hoomiratana.

Fontana, CA -- (SBWire) -- 10/08/2012 --The negative amortization loan could very well be the Beelzebub of the foreclosure crisis. A staggering number of Americans were seduced into this type of mortgage loan by the allure of low monthly payments. The caveat was that the low payments only lasted for 3 or 5 years, depending on the loan. After that, the terms would “adjust”, monthly mortgage payment amounts would skyrocket, and homeowners like Huong Vy of Fontana, CA were left without a paddle.

Vy however, was unwilling to “give up the ghost”, per say. Instead, she put on her armor and went to war against one of the largest banks in the nation, Bank of America. She secured the services of Art Hoomiratana from who is a seasoned foreclosure defense attorney. Hoomiratana, being all too familiar with negative amortization loans, pulled out a little known weapon called the securitization audit.

If the negative amortization loan is the Beelzebub of the foreclosure crisis, then the securitization audit from Paladin Securitization Auditors can be likened to the sword of Michael. This document, when properly constructed, is considered legal evidence in a court of law – and Bank of America is well aware of this. Paladin Securitization Auditors, when compiling the audit, found that although Vy’s loan was purportedly owned by Bank of America, there was evidence that it may have been sold to Deutsche Bank:

A Servicing Transfer Notice was sent to the borrower as of July 4, 2011. The document entitled “Fair Debt Collections Practices Act and State Law Notice”. Buried in the document is a reference to the name of the creditor being DEUTSCHE BK (HARBORVIEW 2006-9). Nowhere else is there an indication that the debt is not owned by Bank of America. There is no mention of this fact in the Notice of Default or Notice of Trustee Sale. This indicates that this loan was purportedly sold to Deutsche Bank National Trust, as Trustee for the HarborView Mortgage Loan Trust 2006-9.

Additionally, no record could be found of a Corporate Assignment from Mortgage Electronic Registration Systems, Inc. to Deutsche Bank as Trustee for the HarborView Mortgage Loan Trust 2006-9. Nor could the Original Note be located for review that would have shown a valid endorsement to Deutsche Bank. The issuing entity, HarborView Trust had also been sued by investors for, “improper recordkeeping, making false and misleading statements and defrauding buyers of the bonds backed by the mortgages that were securitized.”

With the mountain of evidence showing that Bank of America had no standing to foreclose, they opted to settle out of court. The result was a principal reduction of $332,154, a 2% interest rate, and a reduction in monthly payments from $3447.32 to $1794.08.

With Hoomiratana carrying the victor’s flag for Vy and Paladin producing audits for clients nationwide, you can be sure that the war on foreclosure has found itself new heroes.

Click here for a copy of the original securitization audit.

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About Paladin Securitization Auditors
Paladin Securitization Auditors offers trial-ready securitization audits to attorneys and homeowners. They also offer unchallenged expert witness testimony.

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