Wednesday, February 11, 2015

Virginia Homeowner gets $60,000 in cash for keys as a result of the BOA's improper attempted foreclosure

While robo-signing has not had much traction in Virginia (most of the time, the judges view such practice as causing no damage to the debtor who remains liable for the debt and who is not facing more than one bank trying to collect the same debt), a Virginia homeowner was recently able to settle a foreclosure-related litigation for some $60,000 in cash.

The homeowner came to us for help after he suspected foul play on behalf of Bank of America attempting to foreclose on a CountryWide loan.  The homeowner had done lots of "homework" on his own was able to pick up on quite a few subtleties in his paperwork.

After reviewing the case, we were able to file certain pleadings exposing BOA's foul play.  We had built a record showing that the Bank was artificially strengthening its position with, at a minimum, improper documents and, at a maximum, outright fraud.  We will never know how the court would have resolved the issue, but the bank certainly did not want to take any chances, even though most robo-signing cases go nowhere in Virginia.  What can I say...  even robo-signing cases are different and it's all about each individual case.

As part of the settlement, the bank also had to correct errors on the homeowner's credit report and remove reporting of the property loan to the credit agencies as a default.  This is because, upon the resolution of the case, not only did the homeowner NOT owe any amount of money to the bank. -- The bank ended up paying money to the homeowner to atone for its earlier conduct.

At the end, all parties were able to move on, and our client was able to get out from under a bad loan with a hefty sum of cash in his pocket.  Not a bad way to have a fresh start, and way better than a straight bankruptcy in this particular case.

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