Bankruptcy Law, Credit, Debt Relief, Foreclosures

Bank of America Accused of Racial Discrimination as Neglect of Foreclosures Worsens

The National Fair Housing Alliance (NFHA) and nine local fair housing organizations filed an amended discrimination complaint against Bank of America (BoA) this week.  The complaint alleges illegal discrimination by BoA in African American and Latino neighborhoods in six additional cities.  The cities include: Columbus, OH; Gary, IN; Minneapolis, MN; Newark, NJ; Tampa, FL; and neighborhoods in suburban Detroit.

“Bank of America’s deliberate neglect of its foreclosures in communities of color creates financial concerns as well as health and safety risks for people living near poorly-maintained foreclosed homes,” said Shanna L. Smith, President and CEO of NFHA. “Too many of these foreclosures have overgrown weeds, unsecured doors or windows, and debris left in the yard, creating perfect breeding grounds for rats, mice, snakes, and mosquitoes.  Bank of America is exacerbating the risk of spreading the Zika virus in south Florida by allowing standing water to accumulate in pool covers, tires, and debris around these foreclosures.”

This new evidence formed the basis of the amended complaint.  The complaint is now comprised of evidence from 1,267 BoA properties in 30 metropolitan areas and 201 cities throughout the United States.

Evidence obtained during the investigation reveals continued failure by Bank of America to perform simple and routine maintenance on its foreclosures in African American and Latino neighborhoods.  This includes the failure to lock or secure doors and windows, remove trash and debris left by former owners, mow and edge lawns, trim shrubs, and cut back invasive plants.

On the contrary, the investigation revealed BoA keeps its foreclosures in white neighborhoods in good condition.  Lawns are mowed and edged regularly, and BoA properly disposes of the belongings left behind by former owners. BoA is paid to perform these routine duties in all neighborhoods for all of its foreclosures.

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