October 21st, 2010 5:33 pm | by JAMES PITKIN News | Posted In: CLEAN UP, CLEAN UP, Cops and Courts, Business, Business

JUICY SUITS: Screwed by Bank of America

Echoing growing frustration nationwide around home foreclosures, a Portland man is suing Bank of America, alleging the financial giant gave him bad loan information and then wrongfully sold his house.

According to a lawsuit filed Oct. 19 in Multnomah County Circuit Court, Matthew Marcott, now 51 years old, took out a home equity line of credit (HELOC) for an undisclosed amount in 2002. The line of credit was secured by a trust deed on his property at 2323 NW Mill Pond Road in Portland.

At the time, the single-family residence was worth $398,000, according to county property records.

The original lender, America's Wholesale Lender, sold the HELOC to Countrywide Home Loans Servicing, and the HELOC was later transferred to Bank of America in a merger, the lawsuit says.

On May 3 of this year, Marcott received a notice saying his HELOC was in default and his home would be sold on Sept. 8, the lawsuit says. Marcott called Bank of America and was advised to delay paying the $2,300 he owed on the HELOC, the lawsuit says.

Instead, Bank of America advised Marcott to apply for a loan modification because he was also two months behind on his first mortgage, the lawsuit says.

According to the lawsuit, Bank of America told Marcott they would send him notification of their modification decision on the HELOC by mail. On July 20, the lawsuit says, Marcott called back to ask about the loan modification for the HELOC. Bank of America told him he would receive notification in about 30 days, according to the suit.

On Aug. 24, the lawsuit says Marcott called Bank of America again because the Sept. 8 sale was approaching. The bank told Marcott his loan modification was "in review" and should take 2-4 weeks, according to the suit.

On Sept. 27, a real-estate agent came to Marcott's door and told him his house had been sold Sept. 22 at a foreclosure sale on the HELOC deed of trust, the lawsuit says. The lawsuit doesn't say how much the home sold for, and the sale doesn't show up in online property records.

The suit, filed by Hillsboro lawyer Benjamin Knaupp, seeks return of the house plus $250,000 for negligent misrepresentation and false dealing. Bank of America has not yet responded with a comment.

Read about more Juicy Suits here.
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