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Bank of America Forecloses on the Wrong Homes in Florida—and Maybe Elsewhere

Charlie and Maria Cordoso, of New Bedford, Massachusetts, had no reason to expect their Florida home to be seized. They had bought the home in 2005 as an eventual retirement getaway and had paid in full for it. To their surprise, Bank of America locked them out of their home and removed their furniture and clothing. Now, Charlie Cordoso is looking for an apology from someone for the massive inconvenience and Bank of America has yet to oblige. Though there are special issues regarding 2nd homes or rental property, this mistake has been made on other occassions. Earlier this month, a Texas home was taken in foreclosure by Bank of America, though a local contractor assigned to securing the property has taken responsibility for the mistake. Another Kentucky case continues for the same issue, though Bank of America claims the case “has no merit.”

These stories beg the question: Why doesn’t the average consumer check into these things? Sure, the case in Florida could be blamed on the lender. But, with 2.8 million foreclosures in 2009 and 2010 foreclosure rates expected to be higher, a mistake isn’t surprising and maybe even likely. Receiving a foreclosure notice in the mail is certainly alarming and often confusing. So, what should the average consumer do after receiving a foreclosure notice?

If the foreclosure notice is expected, you may not need to call your bank to verify it. However, if it is not expected, calling your lender may be the best first move. Verify that the foreclosure is for your property. The possibility of this kind of situation is also a good reason to keep track of your properties, payments and debts. Then, if you want to dispute the foreclosure, you can reference your records.

If the foreclosure truly is for your property, it may be time to search for protection from foreclosure. As many of you already know, giving up your home to be sold at auction may be more dangerous than you’d think (See Article: What happens if I give up my home?) A Missouri or Illinois bankruptcy lawyer can give you the protection you need from foreclosure with a Missouri or Illinois Chapter 13 bankruptcy. If you are at the point of foreclosure, you may need help with your other debts too. Chapter 13 bankruptcy can help you reorganize your debt into a manageable plan that can allow you to live without the overwhelming stress of debt. However, if you have come to the tough realization that you can no longer afford your home, a Chapter 7 bankruptcy might be better. In most cases, Chapter 7 eliminates your unsecured debt and allows you to free up your income to pay for the things that truly matter most, like your home.

Wondering, “Should I file bankruptcy?” or what else a Missouri or Illinois Chapter 13 might be able to do for you? Request a free copy of my ultimate Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” today.

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