Although this blog article could be about any lender that has offered a loan modification to a borrower, I’m going to pick on Bank of America because of what recently happened to a potential client. The subheading for this article could also be “do not ignore important legal notices”. Bank of America “wants to be your friend again“? Yeah, I don’t think so.
A few months ago, a potential new client called me about an upcoming foreclosure sale. Bank of America was foreclosing on a second mortgage, which is highly unusual for a lender to do in California. The sale was about a month away and I was able to determine with the help of an appraiser that we could use a Chapter 13 bankruptcy to help get rid of the second mortgage permanently. Unfortunately, the homeowner was lured away by the intoxicating promise of a loan modification and Bank of America delayed the foreclosure sale.
Days and weeks went by and the homeowner did not return calls or reply to our emails. We turned the page and moved on to other cases and clients.
After about 4 months, the homeowner contacted us again after receiving an eviction notice. During the negotiations for the loan modification, Bank of America had rescheduled the foreclosure sale. The homeowner ignored the mail and the notices posted on the property and the foreclosure had already taken place prior the latest phone call. The property ended up in the hands of a third party buyer, making it nearly impossible to file a lawsuit to undo the sale. The home was gone.
When you are facing foreclosure, you need to see a bankruptcy attorney before the auction occurs. Once the home has been sold off, you could end up losing any chance to save it. If you are in Southern California and are facing the loss of your home and other financial problems, please call me today at (619) 448-2129 to ask about a free consultation.
image credit: Paul Lowry