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FIASCO: Bank Of America Forecloses On A Home That Doesn't Even Exist
Business Insider ^ | 11/03/2011 | Dina Spector

Posted on 11/03/2011 9:25:30 AM PDT by SeekAndFind

How do you foreclose on a home that doesn't exist?

That's the question KRPC-TV in Houston asked Texas homeowner Brad Gana, whose home was destroyed by Hurricane Ike in 2008 while he was overseas (via AGBeat).

Despite the the destruction, Gana continued to make mortgage payments on the property. Then, two days before Gana planned to sell the property, he learned the bank was foreclosing on it.

What happened?

Apparently, while Gana was making his regular payments, Bank of America had incorrectly placed a homeowner's policy on the non-existent property and additionally, increased his monthly mortage payments.

Bank of America says they notified Gana of the new insurance policy and changed mortgage, but as Gana points out, he didn't receive any of these notices because his mailbox was destroyed in the hurricane. Gana also says he provided BofA with a different email address and two phone numbers where he could be contacted, according to KPRC-TV. Gana explained:

"It wasn't until about 20 calls that someone said, 'We had a homeowner's policy on your home that you reside in, and your monthly payments have gone up.' But they never notified me that my monthly payments had gone up."

Although Gana's attorney was able to stop the proceedings after he learned of the foreclosure, the bank still showed up to remove Gana's personal items.

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Society
KEYWORDS: bankofamerica; foreclosure; homes

1 posted on 11/03/2011 9:25:32 AM PDT by SeekAndFind
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To: SeekAndFind

CLICK ABOVE LINK FOR THE VIDEO OF THE WHOLE STORY


2 posted on 11/03/2011 9:26:06 AM PDT by SeekAndFind (u)
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To: SeekAndFind

BoA is run from the very top like a loan shark.


3 posted on 11/03/2011 9:28:54 AM PDT by StAnDeliver (/)
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To: SeekAndFind

So he had to have had insurance previously. Why haven’t they paid off yet?


4 posted on 11/03/2011 9:31:12 AM PDT by OCCASparky (Steely-eyed killer of the deep.)
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To: SeekAndFind

BOA needs to fail.


5 posted on 11/03/2011 9:31:43 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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Celebrate Jim's Birthday!

Click On The Balloons And Party!

6 posted on 11/03/2011 9:37:02 AM PDT by DJ MacWoW (America! The wolves are here! What will you do?)
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To: SeekAndFind

Several issues here. Headline is misleading. Just because a house is destroyed, doesn’t mean the lender can’t foreclose on the underlying land.
Notice requirements here are vague. He was overseas, which means nothing. If the owner didn’t notify lender of a new mailing address, than it’s the borrower’s problem.

Having said that, B of A is scum. I hope they go out of business.


7 posted on 11/03/2011 9:38:48 AM PDT by cowtowney
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To: SeekAndFind

OK, so I see some errors made, but I don’t see where BofA acted with any sort of bad intent. People make mistakes, in big companies and small companies. The insurance company made a pretty big mistake too, if they wrote a policy on a house that had already been destroyed by a hurricane.

Seems like a set of screw-ups that shouldn’t be all that hard to unravel.


8 posted on 11/03/2011 9:38:49 AM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: SeekAndFind

IMO Business Insider has no credibility as an objective publication. Their stories have more of a People Magazine slant.


9 posted on 11/03/2011 9:39:20 AM PDT by skeeter
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To: cowtowney

I guess reading the story is just not important, eh?

He gave them a new address, and two phone numbers.

BOA needs to die, and be gone and all their fraud along with it.


10 posted on 11/03/2011 9:43:18 AM PDT by TruthConquers (Delendae sunt publicae scholae)
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To: Ramius

So, why AFTER being prevented from foreclosing on him by the judge, do they GET TO STEAL his personal belongings?

How can that be OK with you?


11 posted on 11/03/2011 9:45:03 AM PDT by TruthConquers (Delendae sunt publicae scholae)
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To: Ramius

Nothing that 20 phone calls and a lawyer, and a TV reporter couldn’t unravel.


12 posted on 11/03/2011 9:51:24 AM PDT by DManA
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To: Ramius

I had a problem with my mortgage and insurance companies for years.

We bought a good size piece of land with a double wide on it. (The intent was to eventually build our dream home on the land.)

The double-wide was worth $70,000. The land was worth $35,000.

The insurance company would only insure the double wide for $70,000.

But we owed $103,000.

The bank insisted that we have to have an insurance policy that covered the entire mortgage. The insurance company wouldn’t cover more than the price of the structure.

We had to fight between the two of them every freakin’ year until the mortgage was paid down to the insurance amount. At one point the mortgage threatened to underwrite their own insurance policy and charge us $250 a month to cover it. (My wonderful insurance company fought for us on that one.)


13 posted on 11/03/2011 9:55:15 AM PDT by Marie (Cain 9s Have Teeth)
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To: SeekAndFind

I don’t now why anyone would do their banking at BOA.


14 posted on 11/03/2011 9:55:36 AM PDT by Ham Hock
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To: TruthConquers

Why would it be OK? Of course not, and I don’t think I said it was.

Why do you assume that BofA did all this on purpose? Do you think this is how they planned it all out?

One shouldn’t automatically assign to malice that which can be adequately explained by incompetence.


15 posted on 11/03/2011 9:57:45 AM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: SeekAndFind

Fiasco? Fiasco??

Stupid, yes. But this doesn’t amount to a fiasco.

God, the b.i.-blog editors suck. Hyperbole must be on the breakfast menu there.


16 posted on 11/03/2011 9:59:06 AM PDT by Larry Lucido
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To: skeeter; SeekAndFind

Thank you. I really don’t get folks’ fetish here for the b.i.-blog (as I call it).


17 posted on 11/03/2011 10:03:06 AM PDT by Larry Lucido
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To: Ramius

I assume BOA did the stealing of his personnal property on purpose. The judge just dismissed the foreclosure. Or are you going to say that was just a mistake as well?

Your lack of outrage and willingness to just “oh, well, nothing to see here” tone was ........ troubling.


18 posted on 11/03/2011 10:04:16 AM PDT by TruthConquers (Delendae sunt publicae scholae)
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To: cowtowney
"He was overseas, which means nothing."

I didn't see why he was overseas, but if it was related to military service, he'd have some protections under the Soldier's and Sailor's Civil Relief Act.

19 posted on 11/03/2011 10:04:36 AM PDT by Joe 6-pack (Que me amat, amet et canem meum)
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To: Marie

Seems to me that what the bank did understand there is that the land itself is the security for that much of the principal, and the insurance policy covered the remainder with the structure. Insurance policy + value of land = total principal. Sounds like a bank officer that didn’t know that you don’t normally need to insure land. It’s just the structure that’s at risk.


20 posted on 11/03/2011 10:04:52 AM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: Ramius

...bank didn’t understand... I meant.


21 posted on 11/03/2011 10:06:27 AM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: TruthConquers

Well, I’m not outraged by simple mistakes. It doesn’t mean they’re not annoying. I doubt very much that the bank really wanted to foreclose as their best possible outcome.


22 posted on 11/03/2011 10:10:02 AM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: Larry Lucido

Its totally incongruous name, Business Insider, should be a big red flag.


23 posted on 11/03/2011 10:11:32 AM PDT by skeeter
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To: Ramius

There is NO reason for them to STEAL from a house the judge just told them they CAN’T foreclose on.

NO REASON FOR THAT AT ALL.


24 posted on 11/03/2011 10:15:00 AM PDT by TruthConquers (Delendae sunt publicae scholae)
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To: SeekAndFind
So BofA messed up on this one, not surprised. There will always be a few of these stories out there.

There was the story about the doctor who amputated the wrong leg on a patient. Terrible thing that made the news; but it probably doesn't happen often!

25 posted on 11/03/2011 10:27:41 AM PDT by HereInTheHeartland (I love how the FR spellchecker doesn't recognize the word "Obama")
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To: Ramius

The insurance has to cover the amount of the mortgage. Once the mortgage is paid the owner would want to insure the replacement value.


26 posted on 11/03/2011 10:31:18 AM PDT by Terry Mross (Where is the OPPOSITION party? I'll only vote for a SECOND party.)
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To: Ham Hock
They buy a lot of mortgage notes from other banks, so some people aren't given the choice. They take out a loan at a different bank, then one day, surprise! BoA holds it now!
27 posted on 11/03/2011 10:46:29 AM PDT by Ellendra ("It's astounding how often people mistake their own stupidity for a lack of fairness." --Thunt)
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To: Ellendra
“They buy a lot of mortgage notes from other banks, so some people aren't given the choice”

Not any more. They are closing their correspondent mortgage channel. That was half of their 16% market share.
BofA is falling fast as a force in the mortgage market.

Many other lenders are also getting out. The regulation and liability is driving many people out. Fees and rates will go up as a result of all of this.

28 posted on 11/03/2011 10:51:59 AM PDT by HereInTheHeartland (I love how the FR spellchecker doesn't recognize the word "Obama")
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To: TruthConquers

Of course there’s a reason it happened. Most likely it’s because somebody neglected to call the cleanup contractor and cancel the job.

Do you really think the bank set this whole conspiracy in motion and took years to carefully plot out how to finally— finally!— get their hands on a truckload of household goods? Do you suppose it’s what they wanted all the time? Maybe they were after the stamp collection?

Seems a little absurd to me. They screwed up. It’s worth finding out if they’re willing to finally make it right. I don’t quite understand the mouth-foaming outrage. I see plenty of cause for frustration and exasperation with a bank that can’t seem to get the different parts to talk to each other. But sheesh... it’s just a paperwork foulup.


29 posted on 11/03/2011 11:23:45 AM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: Ramius
The insurance company made a pretty big mistake too, if they wrote a policy on a house that had already been destroyed by a hurricane.

Sounds like a great deal for the insurance company to me.

30 posted on 11/03/2011 11:29:05 AM PDT by Darth Reardon (No offense to drunken sailors)
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To: Terry Mross

Right... but the insurance doesn’t have to be the only collateral. Insurance only covers structures, and the land itself is collateral for the balance of the principal. Seems to me, anyway...


31 posted on 11/03/2011 11:29:56 AM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: Ramius

Move along now, nothing to see here, don’t trouble your minds over a fraud of a company that cn’at stop itself from stealing what isn’t theirs.

The growing corruption of this nation, the co-mingling of funds by MF Global, the $4 million dollar bonuses for running Freddie and Fannie into the ground and still needing 6 Billion more in funds.............

Yeah, just a little more thieving is nothing at all, eh?

So, why does this guy HAVE to go on TV, if it was just a mistake? Why weren’t his belongings returned ALREADY????


32 posted on 11/03/2011 11:45:20 AM PDT by TruthConquers (Delendae sunt publicae scholae)
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To: TruthConquers

Story said:
“Gana also says he provided BofA with a different email address and two phone numbers where he could be contacted”

You said:
“I guess reading the story is just not important, eh? He gave them a new address, and two phone numbers.”

Who read the story? Do you know the difference between an address and an email address?

Do you know the law on legal notifications? It would be spelled out in the docs. There is a difference between what BoA’s legal requirement for notification is and what they should do. I’m not saying they met the law. I’m saying there is a potential case for both. It’s not spelled out because we don’t have the docs.

Relax fella.


33 posted on 11/03/2011 12:31:15 PM PDT by cowtowney
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To: TruthConquers

Ah, so it’s just all those corporations... being all... corporationey, corporationing us all into their corporate evil... corporation stuff.

So which Occupy protest are you at?


34 posted on 11/03/2011 12:47:32 PM PDT by Ramius (personally, I give us... one chance in three. More tea?)
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To: SeekAndFind

SFL


35 posted on 11/03/2011 12:50:22 PM PDT by phockthis
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To: Ramius

I see you left out a response to this:

“So, why does this guy HAVE to go on TV, if it was just a mistake? Why weren’t his belongings returned ALREADY????”


36 posted on 11/03/2011 12:56:35 PM PDT by TruthConquers (Delendae sunt publicae scholae)
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To: DManA

foreclosure mills have no clue what they are doing since they just make up documents and fake chain of title. Most state bars, fl in particular, actualy CONDONE fraudent condunt.


37 posted on 11/04/2011 12:08:02 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory

spelling mistakes intentional and a service of BofA.


38 posted on 11/04/2011 12:15:32 PM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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