A family was subject to losing their home after their bank made huge errors on their file. The bank attempted to sell the home in foreclosure even though the homeowners were current on their payments. Fortunately, the California family was able to stop foreclosure on their home.
The homeowners’ mortgage was transferred from one bank to another. The previous bank where the mortgage loan was with, had agreed to a loan modification before the transfer was done. The new bank inadvertently foreclosed on the home without the homeowners’ knowledge. The homeowners became aware of this when a person, presumably affiliated with the bank, arrived at their home to inform them of the sale of the house and also demanded that they leave.
Eventually, after showing the mortgage company proof of the payments in good standing, the foreclosure was retracted and the homeowners got their house back. Unfortunately, there have been other consumers that have been subjected to unethical and illegal foreclosures that have lost their homes. One homeowner, who had actually paid his loan off prior to the due date lost his home. Another homeowner ‘s home was sold by her bank, even though she was up to date on her payments.
Unfortunately, hard-working homeowners have been ultimately left homeless due to illegal foreclosure practices. The mortgage company in this case, has to answer to a lawsuit that claims the company sought to cash out on mortgages purchased by the company instead of servicing them. California homeowners that are faced with this situation or something similar have avenues of recourse to stop foreclosure.
Source: thinkprogress.org, Family Current On Its Mortgage Had House Sold In Foreclosure, Alan Pyke, Sept. 16, 2013