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Friday Foreclosure Stories

Mortgage companies and servicers continue to suffer the effects of the crisis even though last year saw the lowest level of foreclosures since 2007 when the recession began. With an uptick in foreclosures expected in 2012, homeowners should take note of these blunders by mortgage companies to help avoid some serious consequences.

Maria and Joseph Perez purchased their Texas home in 2007 with a mortgage that was backed by Bank of America and serviced by a firm called Taylor, Bean & Whitaker. In August 2009, the couple refinanced the loan through Quicken in order to get a better rate.

When Joseph was contact by Bank of America about being behind on the old loan, he found out that Taylor, Bean & Whitaker, the mortgage servicer, had ceased operations the same month they had refinanced and Bank of America hadn’t received the funds from the new loan to pay off the old one. Further, Quicken had sold the servicing rights to the new loan to Bank of America who refused to acknowledge the refinance. Eventually, Bank of America acknowledged that they had refinanced their loan and stopped sending the payment notices until a year later when they were served with a foreclosure notice.

The couple ended up moving to a different state with their children but they are suing Bank of America for unspecified damages for pain and suffering.

Read more about the Perez’s story and others on CNN Money: Foreclosure nightmares: 3 families fight for their homes

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