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Foreclosure victim sues lender for selling possessions

Must lender pay punitive damages for violating bankruptcy stay?
Published on Jan 19, 2005

Kandi Kaufman was in default on her home loan secured by her six-bedroom, 5,230-square-foot house. She received a written loan solicitation from Coast Capital Corp. offering to refinance her mortgage "regardless of credit history, income or employment" to prevent foreclosure. Kaufman's loan application disclosed she was unemployed, had judgments against her, was delinquent on her home mortgage, had previously filed bankruptcy, was involved in a pending lawsuit, and had no other major assets than her home. Nevertheless, Coast agreed to refinance her existing loan. Purchase Bob Bruss reports online. The new loan arranged by Coast was funded by Polo Investments Fund I, a $10 million partnership organized by Coast. Not surprisingly, the new loan secured by Kaufman's home immediately went into default. Polo foreclosed on the home. Since there were no bidders, Polo took title. Coast's loan agent Joe Monte then bought the home from Polo. Following the foreclosure sale of Kaufman's home ...

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