Chaos erupts when lender’s mistake brings foreclosure sale

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Michael and Ruth Selesia fell behind on payments for their $15,000 home mortgage held by Bank of America. The lender began foreclose on the house. Just four days before the scheduled foreclosure sale, the borrowers paid the late payments at a Bank of America branch and their mortgage was reinstated. Purchase Bob Bruss reports online. However, Bank of America failed to cancel the foreclosure sale after the mortgage was reinstated. The foreclosure sale took place as planned. Alan Boyajian, acting on behalf of the La Jolla Group II partnership, submitted a high bid of $15,500. Boyajian, who is in the business of buying properties at foreclosure sales, estimated the fair market value of the house was $115,000. A deed was issued to La Jolla Group. It was recorded a few days later. But five days later, a Bank of America representative informed Boyajian and La Jolla Group a mistake had been made and the foreclosure sale never should have taken place because the Selesia home loan had b...