Bank of America Must Pay $46 Million for Improper Foreclosure

March 28, 2017Article
Los Angeles Daily Journal

Brian Davidoff was quoted in a Los Angeles Daily Journal article on March 28, 2017, discussing U.S. Bankruptcy Judge Christopher M. Klein’s ruling in Sundquist v. Bank of America NA which awarded Erik and Renee Sundquist $1.07 million in actual damages and $45 million in putative damages for the improper foreclosure of their home.

According to the article, the Sundquists defaulted on their home loan per the advice of bank employees who said that they could not consider requests for loan modification unless the property was in default. After repeated runarounds with the Bank, the Sundquists entered into Chapter 13 to stay the foreclosure and in an attempt to cure the default.

Judge Klein wrote in his ruling that “Bank of America did not follow its own procedure, treating the foreclosure as valid. The automatic-stay violating foreclosure was thereafter apparent to anyone at Bank of America who cared to look. Nobody at Bank of America cared to look.”

Davidoff commenting on the ruling and Bank of America’s actions said, “The extent of the egregious acts by Bank of America, and the extent to which the judge penalized them, are both pretty extreme.”