A private citizen in Marion County has filed a lawsuit against Bank of America and its loan mortgages servicing unit, claiming that both engaged in fraudulent practices when it foreclosed on her home.

The plaintiff filed a complaint accusing Bank of America as well as its Countrywide Home Loans unit of using falsified affidavits and perjuring the same in expediting the foreclosure process.

This is not the first time that such accusation against the bank has surfaced involving homes in foreclosure. In October last year, a similar suit has been dismissed by a federal court judge for lack of jurisdiction. In an effort to pursue the case, the plaintiffs are now re-filing the said suit in Marion state court.

The plaintiff is accusing that the bank employed robo-signers to speed up the foreclosure process. Robo-signing refers to the banks and their mortgages servicing units’ practice of signing loan affidavits by the thousands even without authority by and knowledge of the borrowers. The said practice is said to have affected the outcome of many foreclosure proceedings, causing many homeowners to lose their properties.

The irregular practice is alleged to have tainted the foreclosure process of hundreds of foreclosed homes in Indianapolis and is being criticized by different sectors as a malpractice intended to defraud homeowners who may have put into foreclosure prematurely.

While the plaintiff says that she is not seeking a reversal of her foreclosure, she is nevertheless, praying that the court will award monetary damages to her and to those others who may have suffered the same fate. Homeowners from all over the country are doing their best to manage their mortgages but this controversy is undoubtedly a dent on the credibility of the banks.

But the Bank of America denied the allegations and had asked a federal court judge to dismiss the case. It insisted that the plaintiffs and all those who are accusing it of perjuring Indiana foreclosures have failed to show that they sustained damages due to the alleged “robo-signing”.

The bank is also arguing that even while the plaintiffs are claiming that they are not seeking for reversals of the foreclosures, the lawsuit proves that they are indeed trying to overturn the court’s decisions.

The Indianapolis plaintiffs have filed a class suit against the bank and are seeking damages from the court, arguing that the bank had committed racketeering and fraud. They contend that the foreclosure proceedings against those who have defaulted on their mortgages could have yielded different results if the alleged inaccuracies on the affidavits were discovered at the state level.

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