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Bank Forgets To Tell Long Beach Couple Their House Has Been Sold

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The Los Angeles Times' David Lazarus covers a story that really comes down to some misinformation. Doesn't it always? Mike and Ellen Kahara fell behind on payments on their Long Beach home, which they bought for about $300,000 in 2004. A notice of default was filed by Wells Fargo in August 2009, but then a loan modification program dropped their payments. Then this past August, the couple was notified that a permanent loan modification had been rejected. That notice was accompanied by a letter assuring them they wouldn't lose their house, but it turns out that in fact the bank mistakenly sent that letter, and their home was sold without the couple's knowledge. According to the paper, "on Aug. 18 there was a knock at the door around 8 in the morning. Mike Kahara said a young man wearing a white polo shirt and dark slacks introduced himself as Sebastian Cruz of the investment firm Pacifica Cos. Cruz said his firm had purchased the house and that he would offer the Kaharas $1,500 if they'd agree to vacate the property within two weeks." Well, at least the $1,500 can go toward the $30,000 debt the couple owns on their credit cards.
· Suddenly, their house is taken over [LA Times]