Trials & Litigation

Oops. Bank Apparently Forgot to Dismiss Foreclosure Case After Approving Short Sale


In the latest example of how the legal system is apparently too overwhelmed to properly handle a deluge of mortgage foreclosures, the South Florida Sun-Sentinel is reporting that the Bank of America mistakenly foreclosed on a home that had been sold—to a cash buyer—in a short sale more than six months earlier.

Although neither the bank nor the law firm that handled the case, Florida Default Law Group, initially answered his questions, owner Jason Grodensky said, the bank was considerably more responsive to the newspaper. A Bank of America spokeswoman has now acknowledged that it was at fault and promised to rescind the foreclosure at the bank’s expense.

Apparently, the foreclosure case that resulted in the short sale of the Fort Lauderdale home to Grodensky simply continued on without being dismissed after he purchased it. (The spokeswoman cites a miscommunication between the bank and its lawyers). Hence, although he held no mortgage on the home, the bank foreclosed on the previous owner’s mortgage.

Related earlier coverage:

ABAJournal.com: “As Bank Takes Possession of Home, Couple Argues, to No Avail, ‘We Paid Cash,’ Suit Says”

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