We will be discussing our Client who reinstated her loan (with Bank of America) prior to the foreclosure trustee sale of her property. The trustee informed my client they would be putting her sale on hold and if they did sell the proeprty they would announce Plaintiff had reinstated her loan. The trustee was Recontrust (a subsidiary of Bank of America) and although Plaintiff was informed that the sale would be put on hold, it obviously was not. A purchaser bought the property at auction for $198,000 then raced back to Plaintiff's house and coerced her into signing a purcahse and sale agreement for $250,000 alleging he was a "bona fide purcahser for value (or BFP as us lawyers call it). Gets more interesting, Bank of America continues to send Plaintiff monthly statements indicating she is current, and Plaintiff continues to pay taxes and insurance. Purchaser at auction starts eviction action. Bank of America does nothing. We file suit against Bank of America for $5,000,000 for fraud, wrongful foreclosure, and seeking to quiet title. Main Points of Story (morals of the story if you will) (1) The left hand DOES know what the right hand is doing. Like a boxer, the left hand is doing the jab ("you are current.....don't worry about, continue making payments" as they told my client) while the right hand is loading up for the knockout punch (sells house through its subsidiary for nearly 200k and throws this money in its back pocket forcing Plaintiff to litigate to set the reord straight). The banks and financial institutions are run by the smartest people in the world - I don't buy the nutty professor theory that this is just a case of miscommunication. They are headquartered in the biggest buildings in the world for a reason. (2) You cannot trust a thing a lender, loan servicer, or trustee says (at least not during this financial crises). They are out for profit at your expense. They will force you to litigate to defend your legal rights (in this case the right to reinstate your loan prior to foreclosure sale). You are better off trusting a car salesman when he tells you he is "going to get you top dollar for your trade-in." (3) Highlights the need to catch problems before the foreclosure sale IF YOU CAN. Once they foreclose they have a whole host of legal tricks and laws waiting for you (ex. tender /you should have got a TRO 33-811 in Arizona) etc. Get an attorney involved the minute you feel you are getting the run-around so that you can pursue an injunction or TRO and file a lis pendens to lock up the property in litigation. BOTTOM LINE - THIS IS "FORECLOSURE GATE" AND THE FINANCIAL INSTITUTIONS ARE RUSHING TO FORECLOSURE AND THE WHEELS ARE COMING OFF IN THE PROCESS. THE LENDERS MUST BE REQUIRED TO PLAY FAIR AND FOLLOW THE LAW AND HONOR THEIR PROMISES. UPDATE: Here is a link to video on Fox News Willis Report. You need to click on the November 16th show (Foreclosure hits home). http://tinyurl.com/3xehglm
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