IYC Update: Foreclosure Fiasco

This is an archived article and the information in the article may be outdated. Please look at the time stamp on the story to see when it was last updated.

SHAWNEE, OKLA. - We have new information on an Oklahoma family with a big fight on its hands.

First mother nature damaged the Choate's home. Now their bank wants to take it!

Michael and Paula's foreclosure nightmare started with a single missed mortgage payment.

“This is not loss,” Michael said. “This is back door acquisition of my home.”

The Choates, who had never missed a payment, allege Bank of America wouldn't help them lower their mortgage payment, unless they were at least 30 days delinquent.

So they skipped one payment in order to start the loan modification process.

Two and a half years and one late payment later, their credit is wrecked and their home is in foreclosure.

“I'm at the point right now. I won't give up,” Paula said. “I'm not going to walk away. They're going [to] have to drag my a** out of here if they want my house.”

The Choate's attorney, Babette Patton, got busy filing motions in court, causing Bank of America to voluntarily vacate its previous judgment. 

A judge has even put the foreclosure filing on hold.

Meanwhile, the bank’s attornies finally reached out to the Choates about lowering their mortgage payment once and for all! 

The family said thanks, but no thanks and is now suing Bank of America.

The Choates spent Easter weekend with family at their Shawnee home.

The family is not yet out of the woods, but still choosing to see their glass half full.

As it stands now, both sides are preparing to go to trial.

If and when they duke it out in court, we'll be there every step of the way.

There’s more encouraging news.

The state reviewed the Choate's case and recently awarded the family a small portion of its $18.6 million mortgage settlement with five national lenders, including Bank of America.

Oklahoma Assistant Attorney General, Julie Bays, said, “Originally in 2008 it started coming to light to all the Attorney's General around the country that the practice of the banks were maybe not fraudulent, but there was problems.”

The Choates could receive additional compensation from a federal foreclosure review program, which earlier this year reached an $8.5 billion settlement with 14 national lenders, including Bank of America.

Unfortunately it's too late to file for a Federal foreclosure review through the Office of the Comptroller of the Currency.

Oklahoma Attorney General: Nation's First Mortgage Settlement

Notice: you are using an outdated browser. Microsoft does not recommend using IE as your default browser. Some features on this website, like video and images, might not work properly. For the best experience, please upgrade your browser.