
We thought that the case we filed for Henry and Sharon Newman against Bank of America and BAC for collecting on a paid-off loan was one of a kind. In the Newmans' case, they refinanced their Taylor, Bean & Whitaker loan before TBW was closed down and seized by federal regulators. The Newmans' old TBW loan was paid-off in the refinancing.
BOA, BAC and Recontrust attempted to collect on the loan and auction the Newmans home for over a year despite being repeatedly informed that there was, in fact, no loan to collect. We recently learned of two additional cases where nearly the exact same thing happened to homeowners in Texas and Arkansas. In both of these cases, BOA and BAC attempted to collect paid-off TBW loans. Luckily for these homeowners and the Newmans,
the FDIC Receiver for Colonial Bank and Platinum Community Bank, two banks that TBW did business with and took down with it, has been very helpful in conducting investigations on the status of such loans and taking action to stop any scheduled foreclosures.
BOA and BAC seem to work quickly to respond to the FDIC but what happened when the homeowners made repeated attempts to inform BAC that there was no loan to collect? Innocent homeowners have consistently been treated as the "collateral damage" of the great mortgage meltdown. We see it with illegal lock-outs and trash-outs and now with attempted foreclosures on paid-off loans.
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