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Bank Of America Explains Why It Never Assumed Title To Squatter-Filled Foreclosure

Bank Of America Explains Why It Never Assumed Title To Squatter-Filled Foreclosure

Yesterday, we told you about the California man who said he lost his house to foreclosure but who is being held responsible for the squatters who have moved into his former house because Bank of America has yet to assume the title to the property. Today, we bring you the bank’s side of the story.

 

According to a statement from the bank, BofA could not complete the foreclosure process on this particular home because the homeowner filed for bankruptcy in 2010.

“As a result, title to the property remains in his name as the file has continued to show that the property is in an active bankruptcy proceeding,” explains the bank, which points out that collection activities are restricted during bankruptcy proceedings.

And while the homeowner seemed surprised in the CBS San Francisco story to learn that he still owned the property that he’d claimed was lost to foreclosure around two years ago, a rep for BofA says that the bank has had “several conversations” with him in which it was explained “that he still owns the property and is in the strongest legal position to ask authorities to evict the squatters.”

“[The homeowner] had been made aware last fall that in order to resolve his concerns, we would need information that the property was no longer part of an active bankruptcy,” writes BofA, which says it finally received this notification in December 2012. Since then, the bank claims to have been working with the former homeowner and the mortgage owner to “expedite an acceptable liquidation of the mortgage that would lead to transfer of the title from his name.”

The bank says that the homeowner recently agreed to a deed-in-lieu (DIL) transaction, in which he would transfer the home over to the mortgage-owner rather than go through the standard foreclosure process, but that the investor holding the mortgage on the property did not initially go along with that proposal.

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