Vermont Business Magazine Attorney General Bill Sorrell has announced that the final distribution of a$1.25 million settlementwith Bank of America earlier this year will be distributed to Vermont Legal Aid and the Vermont Judiciary. The settlement resolved claims that Bank of America did not live up to the terms of agreements it made regarding treatment of homeowners during foreclosure proceedings and created a $250,000 fund to compensate affected Vermonters. As part of that settlement, BOA agreed that any money remaining in the fund after the Vermonters were compensated could be distributed to Vermont Legal Aid and the Vermont Judiciary to assist with foreclosure matters.
The Vermont Judiciary will use $10,000 to support the development of a website designed to improve services and information for litigants representing themselves. Vermont Legal Aid will use the remaining $180,000 to fund attorneys representing Vermonters in foreclosure actions over the next three years. “Banks are not above the law. 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,” said Attorney General Sorrell.
Last year there were still almost 1,200 new foreclosures filed in Vermont. Over 75% of homeowners in foreclosure proceedings are unrepresented. Eric Avildsen, Executive Director, said, “Vermont Legal Aid is very pleased to receive these funds which will allow us to defend Vermont families from the 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.”
Vermont AG: Dec 23, 2015