A new legal tool in the foreclosure crisis is suing for wrongful foreclosure. Jacqueline Horton’s condo was illegally foreclosed on by Bank of America and her property sold at auction July 7, 2010. On September 9, 2010, she hired Axsmith Law to fight back and is suing for $3,508,500.00 under DC law.

Ms. Horton is suing Bank of America for not only illegally foreclosing and selling her property, but then buying it in a directly self-dealing transaction. While it is common practice for banks to buy properties they have illegally foreclosed on, it is also fraud. Axsmith Law intends to attack this fraudulent scheme.

When Bank of America sent Jacqueline Horton a letter with a phone number on it, she expected it to be correct. When that phone number was given as a source of information about her mortgage loan, she expected the information given to also be correct. It wasn’t. Her home was foreclosed on illegally by Bank of America while she was told to not take legal action because the foreclosure process was put on hold. She lost her home as a result and faces homelessness for her and her children. And we’ve got a witness: DC Housing Counseling Services, 2410 17th Street NW, Suite 100, Washington, DC 20009.

Christine Axsmith, Esq.
Axsmith Law



Anonymous said...

I don't get any of this, honestly. If people stop paying their mortgage because they want to clear the debt, or can't afford it their home any longer, then why challenge it?

What is the moral argument that I'm missing?

I feel more sorry for potential buyers who have been derailed by this, and may be at some kind of risk if the new title isn't free and clear.

The market needs to clear itself of these properties; the more foreclosed properties that clutter up the market, the longer it will take for the market to stabilize.

Econo-Girl said...

The problem is that people are being told they are in an agreement wih a mortgage company and then, without notice, their house is sold to someone else and they have to move out, having lost all the equity. The mortgage companies are getting incentives from the government to rework these loans.

Surviver said...

@Econo-Girl; Anonymous doesn't get it and never will until he misses 3 payments and sees the face of foreclosure too.

If he falls behind on his payments by one month, he will ask for help from his bank and they will pretend to assist him through modification.

They will tell him he doesn't have to make payments on his loan while this transaction takes place. While he hustles to collect and submit the information the bank asks for to complete his modification, the bank will continue with the foreclosure sale. If he's really busy working on his modification, he will probably never see the mail regarding the foreclosure and sale of his property.

Also, the sale date on the materials will be innacurate anyway so any hopes he has to negotiate or fight back are lost.

Finally, his bank will send henchmen via satelite from their cushy California offices, to threaten and harass him AND his neighbors, telling him he is trespassing; even with bullhorns!!!

He will quietly tuck his tail and leave his precious home suddenly, out of pure fear.

The bank will not even offer Anonymous cash for keys because he is a blameless casualty of Wall Street's shamless collection of house notes to collateralize their American Dream.

On top of that, if Anonymous has an FHA loan, his lovely bank will receive $7,500 in bailout money from our Federal Government, for taking a loss on Anonymous' property.

Anonymous will STILL be on the hook for the difference too by the way. The bank will sue him AGAIN for the money they lost on his deal AND their legal fees.

WE are ALL facing or in foreclosure we just don't know it yet.