Another Homeowner Faces Foreclosure Despite Having Made All Payments; Allegedly Delinquent Mortgage Is Owed By Previous Property Owner

Buried in a recent story in First Coast News is the following excerpt on a Northern Florida resident who faces foreclosure on a home he bought two years ago, despite the fact that he's made all his payments:

• Tom Bloomer is a Camden County businessman on the wrong end of inaccurate foreclosure documents. "First I said they goofed up here, and then they said no we're taking the house. It started to get scary," he said. [...] "I have made my payments. I've made every single payment," said Bloomer.

• He purchased his home two years ago from a Wells Fargo bank customer and is current on his mortgage. So he's left wondering why his home is in foreclosure. "They will not listen to me at all. I have actually filed a complaint with the Comptroller of Currency," said Bloomer.

• Now Wells Fargo, unable to reach the seller about a debt, is foreclosing on Bloomer even though he doesn't owe Wells Fargo anything. In fact, his mortgage from the day he purchased his home has been with Bank of America. Bloomer said he is the victim of a wrongful foreclosure. "It is a scary ordeal."

• The Atlanta law firm McCalla Raymer filed Bloomer's foreclosure lawsuit. The firm would discuss neither the number of cases it files nor Bloomer's case. [Jacksonville Area Legal Aid attorney Lynn] Drysdale said this type of filing is characteristic of foreclosure mills. [...] Bloomer has hired an attorney to put an end to his wrongful foreclosure nightmare so he can live the American dream of owning a home.(1)

For the story, see 'Foreclosure Mills' Using Wrong Documents may Lead to Wrongful Foreclosure.

(1) Homeowners in this situation would be well advised to dig out and read the title insurance policy they (presumably) obtained when they bought their home (hopefully, it hasn't been thrown away or gotten moldy sitting in a damp attic, basement, etc.), and file an insurance claim with the issuing underwriter. In addition to indemnifying a homeowner for losses due to title defects existing on the day the policy was obtained, the title insurer is required to:

• defend the title in court against any attacks by those claiming an interest in the property that pre-dates the date of the insurance policy, and
• foot the bill for the legal fees incurred in connection therewith,

provided the homeowner properly files a claim with the insurance company.

In this story, it's possible that the homeowner is suffering the consequences of a sloppy lender. A case like this could also be the result of the lender never having gotten paid off at closing, and that the escrow agent who handled the settlement improperly pocketed the proceeds intended to pay off the existing loan and headed for parts unknown.