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Bank of America: Illegal Foreclosure and Harassment Lead to $6M Settlement

Tue Sep 19, 2017 by on Foreclosure Fraud

bank-of-america-settlement

The following is not a reality show; rather, it is a true story that highlights the worst of the financial crisis.

Erik and Renee Sundquist reached a settlement with Bank of America where the bank has agreed to pay them $6 million after eight grueling years of foreclosure.  The Sundquist family endured a stress-induced heart attack and a suicide attempt, and a “long personal and legal nightmare that has impacted every facet of their and their sons’ lives,” according to court papers.

Being no stranger to fines, penalties, and settlements for wrongdoing, Bank of America has paid nearly $60 billion since the 2008 financial crisis for violations including tax evasion, money laundering, fraud, and misconduct.

When It Rains, It Pours

Events began to unfold in 2008 when the couple took out a mortgage made by Countrywide Financial, which was later acquired by Bank of America. The family sought a modification, at which time a Bank of America representative told them that they needed to miss three payments and default before their mortgage could be modified.

Despite knowing that this would damage their credit score, the couple proceeded with bank’s advice and defaulted. However, the bank rejected more than 20 modification requests, claiming that the applications were “stale”, incomplete, insufficient, and even “lost”. Despite the Sundquists’ subsequent bankruptcy filing, Bank of America proceeded with the planned foreclosure auction, violating the automatic stay.

Realizing it was in violation of the automatic stay, Bank of America reinstated the family as title holders without notifying them.  When the family moved back in, they discovered their home had been vandalized, and that there was a $20,000 fine from their HOA for failing to keep up with the landscaping.

The end of a “state of battle-fatigued demoralization”

This entire ordeal is cited as the cause of Renee Sundquist’s heart attack and Erik’s attempted suicide, leading to what the judge described as a “state of battle-fatigued demoralization”.  The judge awarded the couple $6 million in damages, and also awarded several legal organizations that helped fight the financial abuse an astounding $40 million in punitive damages.

The Sundquists’ legal nightmare is over.  Unfortunately, the Sundquists had to pay the price for reprehensible and unlawful conduct that no one should ever have to endure.

 

 

From the trenches,

Roy Oppenheim

3 responses to “Bank of America: Illegal Foreclosure and Harassment Lead to $6M Settlement”

  1. tora says:

    i did not received any settlement from bac for not approving my loan modidification in 2011 and forclosed on my home i was a single parent at the time

  2. Kathy Jackson says:

    We live in Virginia. Ours is a long story starting in 2009 we bought in 2007. We were told we could do a short sale by BofA. We had a great offer and then they denied the short sale due to several reasons they said my heath was not bad enough. My disability was hampering me from going up two sets of steps in our townhome. We could not sell due to being 100k underwater on a 255.000 mort. I believe our mortgage paperwork may be part of the BofA Countrywide debacle. I am sorry I am rambling. As I said they denied the short sale they invited me to do. I did not send in the paperwork. The normal for them. They foreclosed on us in 2015 for less than our short sale amount. I have boxes of letters that contradict each other. I have letters giving me five different customer service reps in one month. Yes my husband and I did suffer personal and financial losses. If the statute of limitations in Virginia has not run out I know we have a great case against them. If you can’t halp me could you give me the name of an atty that could help me. I have great records. Thank You Kathy Jackson

  3. anon says:

    Someone is san diego is going through it too, only they have real evidence of major fraud.

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