Wednesday, January 12, 2011

Michigan Couple Victimized By Illegal Trashout Linked To Wrongful Bank Foreclosure Of 'Mortgage-Free' Home Settle Lawsuit

In Grand Rapids, Michigan, The Grand Rapids Press reports:

  • A couple who said a bank wrongly foreclosed on their $14,000 fixer-upper have settled their lawsuit. Rick and Sherry Rought of Gowen bought the house near Big Rapids in 2009 for their daughter, Hannah, while she attended Ferris State University. Seven months later, a company allegedly hired to “trash out” the house changed locks and turned off utilities, the couple said in a lawsuit filed last year in U.S. District Court.(1)

  • Their house, bought with cash, was not subject to foreclosure. They sued Deutsche Bank National Trust Co., Field Asset Services and American Home Mortgage Servicing. The companies denied any wrongdoing, and said a contractor, Out in the Woods, “may be wholly or partially at fault.” Out in the Woods was not named as a defendant in the lawsuit.

  • The parties reached a settlement that was not disclosed in court records. The agreement, which results in the lawsuit being dismissed, was signed Monday by District Judge Janet Neff.

For the story, see Grand Rapids homeowners end lawsuit against bank in foreclosure case.

(1) For the lawsuit, see Rought v Deutsche National Trust Company, Trustee, et al.

(2) For examples of other lawsuits involving these illegal lockout cases, see:

For those homeowners who've been screwed over by wrongful lockouts by foreclosing lenders (and their confederates) and seek some possible guidance on how much their cases might be worth if they seek to sue, see:

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