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Bank Tries to Foreclose on Wrong House! -- Must Read

By
Mortgage and Lending with Peachtree SEO

I received the below in my email today from a past client.  Talk about a monumental screw-up......

http://articles.moneycentral.msn.com..._blg=1,1628429

Quote:

Bank tries to take wrong house


Bank of America failed to listen to its own realty agent, lawsuit says, but at least in this case didn't leave the house reeking from rotten fish.


Posted by Teresa Mears on Friday, February 12, 2010 6:39 PM


You'd think that one sure-fire way to avoid foreclosure would be to pay cash for your house.

But Charlie and Maria Cardoso of New Bedford, Mass., who paid $139,000 in cash for a retirement home in Florida in 2005, experienced the embarrassment and expense of a foreclosure anyway, they say, when Bank of America tried to take their house by mistake.


In a lawsuit filed in federal court in Massachusetts, the couple said the bank changed the locks, took away family photos, power tools and other possessions, scared their tenant into moving out and disconnected the utilities, which caused the pipes to freeze.

Even Bank of America's real-estate agent knew the bank had the wrong house, according to a St. Petersburg Times story about the lawsuit, and the bank still moved forward. Between the time representatives of Bank of America first showed up in July to change the locks until Charlie Cardoso arrived in Florida to reclaim the property last month, the bank was told several times it had the wrong house.

The foreclosure was supposed to take place on a house about 10 doors down and across the street.  The bank was able to find that house and foreclose on it in September, the Times reported.


"This is absolutely devastating for the clients and their worst nightmare," Carlin Phillips, one of the couple's attorneys, told The National Law Journal. "(Bank of America) invaded their home that was bought and paid for. They had to travel to Florida to prove they owned their home." 

Charlie Cardoso is an unemployed construction worker and his wife is disabled. They spent their life savings on the three-bedroom retirement home in Spring Hill, Fla., about 70 miles northwest of Tampa. 
Bank of America declined to discuss the issue with the Times, but issued this statement by e-mail: "We have reached out to the Cardosos' representatives and hope to have the opportunity to work with them to properly assess and address their allegations. We are reviewing the allegations in the lawsuit, the actual events that led to them and the causes of those events, and will consider any hardship that resulted."

This isn't the first time Bank of America has been accused of trying to foreclose on the wrong home. Two other homeowners, neither of whom had mortgages with Bank of America, filed suit after they said the bank refused to reimburse them for the costs of cleanup.

In Galveston, Texas, Dr. Alan Schroit and his wife arrived at their vacation house to prepare for a Halloween party last year, only to find the locks changed and a bank notice on the door. When they finally managed to get in, they were greeted by the "overpowering putrid smell of rotten fish," from 75 pounds of salmon and halibut that had been in the freezer, according to the lawsuit as reported by the Galveston County Daily News.

"It was the most unbearable stench," Schroit told Laura Elder at the Daily News. "It was so unbearable the police officer asked if we could leave the house so he could take the report; it was absolutely horrible, a gooey mess." 

Bank of America officials told the Daily News they had not had an opportunity to review the lawsuit. "Based on previous discussions with Mr. Schroit, we do not believe the case will show merit," spokesman Rick Simon said.

A Kentucky man has also sued Bank of America after his home was damaged in an erroneous attempt at foreclosure, the Floyd County Times reported. 

We'd like to be able to give you advice on how to avoid erroneous foreclosure, but we're not sure even the savviest consumer can combat errors of this magnitude. We'll only suggest that when you're dealing with banks on major issues, be sure to get the name of everyone you talk to, keep notes and then follow up your complaints in writing to create a paper trail. Taking video wouldn't hurt, either. It's up to you whether you want to post it on YouTube, but we hear Bank of America watches.

Posted by

Brian Anderson

Partner

404-667-8864

Peachtree City, GA

www.peachtreeseo.com

Comments (13)

Guy Thomas
WR Starkey Mortgage - Colorado Springs, CO

You have to look at the  bright side in all this. Once they win the lawsuit, they won't have a mortgage anymore.

Feb 15, 2010 03:29 PM
Margo Currie
Exit 1 Stop Realty - Saint Augustine Beach, FL

How awful! I love your comment, Guy. Perhaps there will be a silver lining for the homeowner.

Feb 15, 2010 03:31 PM
Vickie Nagy
Coldwell Banker Residential Real Estate - Palm Springs, CA
Vickie Jean the Palm Springs Condo Queen

I'd love to see these homeowners "own" the bank after such a screw-up. Justice should be served.

Feb 15, 2010 03:36 PM
Brian Anderson
Peachtree SEO - Peachtree City, GA
SEO and Social Media Marketin

Absolutely Guy -- I told my wife this is actually a blessing as this couple will make out well.  I don't usually advocate suing for no reason, but this is a prime case of when the "big bank" needs to be made an example of.

Feb 15, 2010 03:44 PM
Marcie Sandalow
Marcie Sandalow, Compass 301.758.4894 - Bethesda, MD
Bethesda Chevy Chase DC real estate

What a mess.  I guess it's to be expected with so many foreclosures in the pipeline.  Would be nice if these folks has some recourse.  Hope it works out for them. 

Feb 15, 2010 03:50 PM
David Saks
Memphis, TN
Broker / Industry Analyst

I wonder if some disgruntled employee in loss mitigation at "Bonk" of America is trying to give the institution a bad name ? Ya think ?

Feb 15, 2010 04:23 PM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes

Honestly can't they get it right -- we had a similar, but not as bad situation where the bank basically took over a home they did not own and drained the pool - seriously drained a well kept pool on a house they did not own.

Feb 15, 2010 04:29 PM
Cameron Novak
The Homefinding Center - 1000 Palms, CA
Real Estate Broker since 2008

WOW... ummm... WOW

Feb 15, 2010 04:42 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Now that is a total melt down for the bank the agent and everyone who is involved.

Feb 15, 2010 04:58 PM
RJ Baxter
Clear Path Home Loans - Centennial, CO
303-670-0137

I thought I had heard it all before this....wow.

Feb 17, 2010 07:23 AM
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Amazing that they got that far along with the forclosure proceedings before stopping to check out all the complaints along the way.  Hope the owners make out well in their lawsuit on this one.

Feb 19, 2010 06:57 AM
Anonymous
Steve

The bank needs to be dealt with in criminal court. Someone needs to go to jail. They're not above the law.

Mar 11, 2010 05:35 AM
#12
Brian Anderson
Peachtree SEO - Peachtree City, GA
SEO and Social Media Marketin

@Steve - I agree, this is a horrible thing and the punishment should be severe.

Mar 12, 2010 03:57 PM