How do you foreclose on a home that doesn't exist?

That's the question KRPC-TV in Houston asked Texas homeowner Brad Gana, whose home was destroyed by Hurricane Ike in 2008 while he was overseas (via AGBeat).

Despite the the destruction, Gana continued to make mortgage payments on the property. Then, two days before Gana planned to sell the property, he learned the bank was foreclosing on it.

What happened?

Apparently, while Gana was making his regular payments, Bank of America had incorrectly placed a homeowner's policy on the non-existent property and additionally, increased his monthly mortage payments.

Bank of America says they notified Gana of the new insurance policy and changed mortgage, but as Gana points out, he didn't receive any of these notices because his mailbox was destroyed in the hurricane. Gana also says he provided BofA with a different email address and two phone numbers where he could be contacted, according to KPRC-TV. Gana explained:

It wasn't until about 20 calls that someone said, 'We had a homeowner's policy on your home that you reside in, and your monthly payments have gone up.' But they never notified me that my monthly payments had gone up.

Although Gana's attorney was able to stop the proceedings after he learned of the foreclosure, the bank still showed up to remove Gana's personal items.

A Bank of America representative who spoked to KPRC said the bank "incorrectly placed insurance" on a home that didn't exist and now has to "audit Gana's account to make sure the bank corrects any discrepancies."

A represenative added, “There were a number of factors that contributed to the issues that resulted in the actions that we took on [this homeowner's] mortgage and property. We continue to research the incidents. We have contacted [the homeowner] and we will work with him directly to address his concerns.”

Gana told KPRC, "Bank of America is ruthless in their incompetency."

Watch the full story here:



Bank of America Forecloses on Home Destroyed by Hurricane