Thursday, August 23, 2012

On Verge Of Foreclosure, Arizona Man Coughs Up $21K+ To Reinstate Loan & Halt Sale; Bank Pockets Cash, Auctions Off Home Anyway

In Maricopa, Arizona, KPHO-TV Channel 5 reports:

  • An Arizona man is accusing his bank of stealing his house and he wants it back. The homeowner was on the verge of foreclosure when he paid off all the money he owed, but the bank sold the house anyway.

    David Reed told CBS5 that he thought he had nothing to worry about when his home and 5-acre property in Maricopa was scheduled to be sold at auction, because he fell behind on his mortgage payments. "I called their payment line and asked them what is the total amount I owed to stop my house from going into foreclosure," said Reed. "They told me $21,573."

    The 52-year old, who's spent the past year battling health problems, sent the full amount straight to Cenlar Bank, which acknowledged receiving the money March 5. Reed was convinced his home was safe, but it wasn't.

    "I came home one day and had a notice on my door that somebody else owned my property and I either had to get out immediately or rent it back from them."

    Cenlar Bank had gone ahead with the trustee sale, March 23, even though Reed was now up to date on his mortgage and had paid all his interest and late fees. "I believe they just figured it was an easy way to make another $20,000," said Reed. "Let me make my payment, then turn around and auction it off and make more money."

    Reed hired a lawyer and filed a lawsuit after Cenlar failed to reverse the trustee sale. [...] Reed said that he was only able to pay off what he owed because of money he inherited recently following a death in the family.

    CBS5 made several calls and sent a number of emails to the attorney for Cenlar Bank to get their side of the story, but have not heard back.

No comments: