Owners of Foreclosure Properties for Sale Are Questioning Banks

by Peter Vernon on Foreclosures

There are several homeowners with foreclosure properties for sale who have started questioning the process used by certain banks and lenders to foreclose a property. One of them is Peter Ruplenas, a veteran photographer who had served in the Vietnam and Korean Wars and World War II.

The 91 year old West Virginia resident alleged that Bank of America pretended that it did not receive his mortgage payments. Ruplenas stated in his lawsuit that he paid the mortgage through a bankruptcy trustee, but Bank of America allegedly tricked him by saying that he should have paid the mortgage personally and directly to the bank.

The combat veteran also stated that he had applied for a loan modification under the Making Home Affordable program to prevent his house from being included in a foreclosure list. However, he maintained that he still received notices of foreclosure for months which caused emotional stress.

Lawsuit records showed that Ruplenas applied for Chapter 13 bankruptcy assistance in 2004 in an effort to avoid arrears on his mortgage and prevent his home from being classified under foreclosure properties for sale.

Under the Making Home Affordable program, participating banks are provided with incentives to lower homeowners’ monthly dues. A three-month trial period is then provided, with the Treasury Department allowing banks to push through with the process of foreclosure. This policy has reportedly caused a lot of anguish and confusion among homeowners, even those who have already seen their properties become bank owned homes.

Some real estate market observers have stated that a lot of homeowners are confused about the rule, thinking that they are about to get a loan modification under the program only to receive a foreclosure notice. This lack of clarity with regards to the policy’s interpretation has been blamed by some analysts as a contributing factor in the continued increase of bankruptcy homes, distressed properties and foreclosed houses numbers.

Ruplenas’ lawsuit also highlighted Bank of America’s alleged poor performance as a partner of the Making Home Affordable program. The lawsuit alleges that the bank has the lowest number of modified mortgages among the four largest participating banks and also has the biggest number of homes that ended as foreclosure properties for sale.

Click here to read more about the Peter Ruplenas Case.