It is not often you see clear examples of bad faith by banks, but when they go wrong, it is always costly.
One recent case out of the Western District of Virginia shows how a bank trying to foreclose on a property while making phony assurances of approval of a loan modification to the homeowner can be very costly to the bank!
On November 1, 2012, sanctions were awarded against Bank of America after the bank delayed in paying out a settlement to one Laura Summers, victim of fraudulent foreclosure.
Ms. Summers, who had applied for and was granted a loan modification, accepted her modification and made all timely loan payments. Nevertheless, Bank of America then declared her modification rejected, began to foreclose on her, and refused to stop foreclosure proceedings despite admitting she had a modified loan, and therefore was not in default. She saved her property by filing a suit against Bank of America, alleging fraud, defamation, and other claims, and Bank of America ended up settling her case for $70,000.00.
55 days later, with no payment in sight, her attorneys filed a request for sanctions. The Court held that such delays were blatantly willful, and ordered payment of $7,500.00 on top of the $70,000.00 for the Plaintiff’s troubles.
Moral of the story: when you get a loan modification approval, be aware that the bank may still try to foreclose on your home. If that happens, call THE STRONG LAW FIRM for help. You can fight back! (703) 250-4241