BANK OF AMERICA TO PAY $46,000,000

Posted by on Apr 1, 2017 in Questions and Answers | 0 comments

 

Bank of America was ordered to pay a $46 million judgment last week after it wrongfully foreclosed on a California couple during the recession.

The order by Sacramento bankruptcy court Judge Christopher M. Klein describes in detail how the bank improperly engaged and foreclosed on Erik and Renee Sundquist’s Lincoln residence.

The judge awarded $1 million in actual damages to the couple. Klein gave the rest of the sum to outside entities focused on consumer law and education. The trouble began in 2009 when the Charlotte, N.C.-based bank reportedly asked the couple to default on the loan in order to obtain a mortgage modification. But the bank did not honor that promise.

At that point, the Sundquists filed for Chapter 13 bankruptcy, which triggered a stay on the foreclosure process. The bank disregarded the stay and started eviction proceedings. “Without identifying themselves, they staked out the premises, tailed the Sundquists, knocked on doors, knocked on windows, and rang doorbells, all to the terror of the Sundquist family,” Klein wrote in a 109-page opinion for the ruling.

Bank of America eventually gained possession of the property for six months, after which it then agreed that the foreclosure had been a mistake. The company returned the keys to the Sundquists. When they re-entered their home, the major appliances had been removed and the lawn was dead, according to the court.

“Throughout, the Sundquists were acting in good faith, not realizing that Bank of America had no intention of acting in good faith,” Klein wrote.

 

If you need further help with this or any other issue, please call Attorney Linda Fessler at 213-446-6766 for a free consultation.

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