Shaffer & Gaier, LLC represents nine homeowners who had negative amortization loans with Countrywide (Countrywide was, of course, bought by Bank of America.). Our firm represented these homeowners who brought a consolidated lawsuit against Bank of America for their fraudulent and duplicitous conduct. All of these homeowners were victims of Countrywide’s negative amortization loan scheme which they used to defraud these homeowners. Countrywide offered a variety of loan products that were both financially risky and difficult for borrowers to understand, including payment option ARM’s. Countrywide craftily hid the true cost of the loan from the homeowners by failing to issue accurate Truth in Lending Disclosure forms thereby luring the homeowners into thinking the loan was less expensive than it actually was.
The option ARM, which Countrywide classified as a prime product, is a complicated mortgage product which allows borrowers to pay a “teaser rate” then the rate jumps up beyond reasonable market levels. However, the homeowner is tricked into paying part of the principal only. Therefore, the loan keeps recalculating causing the homeowners to lose additional value. Bank of America filed extensive Motions to Dismiss and our law firm filed responses to those Motions. After significant litigation, Bank of America has agreed to withdraw those Motions to Dismiss to allow the parties to continue with settlement negotiations. Our firm welcomes inquiries into these negative amortization loans, payment option ARM’s and any other fraudulent or deceptive loan product offered by Countrywide, Bank of America or any other lending institution.
Contact Shaffer & Gaier
To set up a free initial consultation, contact our office online or call our foreclosure hotline at 855-289-1660. Or call our office location in Philadelphia at 215-751-0100, or in New Jersey at 856-429-0970.