A couple months ago we at ShhortSale.com blogged about how a Bank of America employee was incentivized to push homes into foreclosure instead of proceeding with a short sale. Well, it seems as though Bank of America has done it again… According to a recent LA Times article, ‘A former Bank of America employee who had dealt with delinquent mortgages has been arrested on federal charges of accepting more than $1 million in bribes to allow homes to be sold far below their market value.Kevin Lauricella worked at a BofA facility in Simi Valley where he focused on short sales, said Ariel Neuman, an assistant U.S. attorney in Los Angeles.
Short sales are transactions that allow borrowers in default to satisfy their mortgage debts by selling the property for less than they owe.
A 28-count grand jury indictment, unsealed Tuesday, listed 18 properties allegedly sold in late 2010 and early 2011 at prices below those the bank would have approved. Lauricella is accused of enabling the sales by improperly approving short sales and falsifying bank records. Most of the homes were in the San Fernando Valley, but others were in Corona, Coto de Caza, Beverly Hills and Bel Air.“The buyers would either resell the homes at the actual property values or in some cases would refinance the property at the actual value, thereby extracting profits on the deals,” Newman said.’ To read the full article, click here.
This is the biggest reason that ShhortSale.com enjoys working for you as a Consumer Advocate, and information like this simply confirms that our efforts are necessary and appropriate. If we may help you in any way, please let us know.