Tuesday, June 7, 2011

Homeowner Forecloses on Bank of America

Homeowners Foreclose on Bank of America. Yes, you read that correctly, and no, in this case it's not the other way around.

In 2010, Bank of America brought foreclosure proceedings against husband and wife homeowners in Naples, Florida. This is not surprising, happens all the time, right? Well, in this case, there was one small problem: no mortgage loan had ever been taken - the homeowners didn't owe Bank of America (or anyone else) after they bought the home with cash.

The couple hired an attorney to defend them in the foreclosure action, and eventually Bank of America realized the error of its ways. By then, however, the homeowners had incurred several thousand dollars in legal fees. BOA didn't reimburse the homeowners after several requests, and a court order was entered that BOA make the homeowners whole. Bank of America, however, failed to comply with the court order in a timely fashion. As a result, an additional court order was entered allowing the homeowners to foreclose on local BOA property.

One hour after the homeowners' attorney and sheriff's deputies appeared at the local BOA branch to confiscate BOA property, the bank manager produced a check to satisfy the costs and fees owed by BOA.

The moral of the story?  Don't be a victim of this insanely broken system. McGrath & Spielberger may be able to assist you with your mortgage loan matter, whether by attempting to obtain a loan modification or by working with you to try to prevent foreclosure.