BOA Wrongful Foreclosure On Old, Paid Off Loan

In a recent blog we discussed the most common types of wrongful foreclosures.  We have to add a new one to the list.  We are representing borrowers in cases where banks are trying to foreclose on loans that have already been paid off in full.  Loans are coming back from the dead to haunt hardworking homeowners.

In one case, the homeowner had refinanced with now defunct Taylor, Bean and Whitaker, paying off TBW's affiliated bank Colonial Bank (also now closed).  The wire transfer showed the pay-off of over $80,000. The homeowner started making payments on the new loan, which was with Platinum Community Bank, another bank which was taken over by the FDIC in 2009.

Over seven months ago, Bank of America started sending letters to the homeowner indicating that she was behind on the paid-off Colonial Bank loan.  For over seven months, the homeowner reports that she wrote letter after letter to BOA and called them constantly to tell them that her former Colonial Bank loan had been paid off.  She even provided BOA with evidence of the wire transfer paying off the loan.  BOA still proceeded to foreclosure and has scheduled an auction date in June.

We've been hired to help stop the foreclosure.  Homeowners need to read every letter they receive from any lender.  Had our client ignored the letters she received from BOA, she would be in a much worse position.  Borrowers also need to be diligent about creating a paper trail of complaints to the servicer and lender that can be used in a later court case.

Legal Help for Wrongful Foreclosure and Seizure in Any State.  Phillips & Garcia, P.C., a leading law firm in wrongful foreclosure and seizure cases, is now taking cases in any state where there has been a wrongful foreclosure, lock-out and trash-out of a borrower's home.  Although we are licensed in Massachusetts, weassociate with a qualified attorney in your state.