Leading Consumer and Homeowner Rights Attorneys: Protecting Families, Achieving Economic Justice

Michigan Wrongful Foreclosure Case Added to the National List

We have been making an effort to keep American citizens aware of the rash of wrongful foreclosures occuring throughout the country.  Wrongful foreclosures involve a bank trespassing and entering a home when it has no legal right to do so.  We are now representing a homeowner in Michigan in a situation where the bank foreclosed on a house it sold in a short sale. 

We reported a similar case in Massachusetts just a few weeks ago.  In the Massachusetts case, we represent a homeowner who bought a house from Bank of America in a short sale.  About two weeks after the short sale, BOA's foreclosure contractors entered the home, changed the locks and stole some of the homeowner's tools. 

The Michigan case also involves a short sale.  The property, which is approximately 20 miles outside of Grand Rapids, was owned by a Deutshe Bank trust as part of a pool of securitized loans.  After our clients bought the house in a short sale from the bank, the bank came back and foreclosed on the property, breaking in and changing the locks. 

It looks like homeowners who buy property at a short sale aren't even safe.  Apparently buying the property at a short sale and holding a deed to the property with no mortgage with the bank does not matter.  It is just a matter of time before one of these wrongful foreclosures ends up in tragedy as the bank's contractors break into an occupied home.