Two more would-be foreclosures were stopped by Dallas attorney Walker M. Duke of Duke Law Office, P.C. In one instance, Bank of America/BAC Home Loans tried to foreclose on a Fort Worth, Texas house through BOA’s foreclosure henchman Recontrust Co. “The problem was,” attorney Duke stated, “Bank of America had played ‘hide the ball’ with ownership of the loan so many times, nobody really knew who owned it.”
This homeowner faced the same problem many others face–the reality that residential home loans are sold, pooled together with similar loans, and resold by banks and asset-backed trusts, so that the true owner of the loan is a mystery, at least to those outside Wall Street. “Bank of America and Recontrust seemed to forget that you can’t foreclose on what you don’t own…or what you can’t prove you own,” said the homeowner’s lawyer Walker Duke.
In another case, JP Morgan Chase tried to foreclose on a North Texas home, until Mr. Duke stopped the process with a temporary restraining order. “We had direct evidence that the homeowner’s loan was owned by an asset-backed trust, not Chase. And the court has agreed with our position at this point.” The foreclosure attempt by Chase happened just as the bank seemed to be trying to work on a modification with the homeowner. “On the one hand, the bank tries to look like it’s working in good faith on a modification, but then it tries to foreclose before the mod process is finished. Sadly, it’s yet another example of how homeowners must be proactive in protecting themselves and their house.”
In Texas, foreclosure sales are required by law to take place on the first Tuesday of the month, and homeowners are to receive notice of foreclosure sales 21 days in advance. Duke warns, “If you have received notice of a foreclosure sale–often called a ‘notice of substitute trustee sale’–your house will be sold. Do not expect the lender to make any effort to prevent it, even if you’re in the middle of a modification.”