New “Bank That Foreclosed on Me Was Bad” Opinion

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The U.S. District Court issued an opinion in another “the bank was bad when it foreclosed on me when I wasn’t, you know, paying my mortgage” case.

Plaintiffs, Pasadena, Maryland residents, sued Bank of America alleging that the bank’s failure to process a mortgage modification, after the servicer informed them it would help them change their mortgage terms, was actionable. The big crime? Bank of America was only willing to lower the payment a bit.

Judge Catherine C. Blake dismissed the case, finding that:

  • Plaintiffs cannot show they reasonably and detrimentally relied on any of the bank’s statements;
  • A bank being hard to deal with is annoying but not actionable (I’m paraphrasing!)
  • The absence of “a clear and definite promise” make promissory estoppel inapplicable;
  • A letter that lacks bargained-for consideration and a definite manifestation of mutual assent cannot alone be a contract;
  • There are no tort claims in this case that would make claims for negligence or negligent misrepresentation under Maryland law.”