While Tennessee lenders have a legitimate right to request payment on a loan, they must also adhere to the laws that govern the money-lending process. A woman who owns a 16-unit apartment building in another state is gridlocked in a legal battle with the bank who loaned her the money to purchase the property. The woman says she has hired an attorney to help halt foreclosure.
When the woman purchased the apartment building, she was paying a mortgage on another home. She says the lenders convinced her to pay off the mortgage so that she could use the home for collateral for the new mortgage she was obtaining for the apartment complex. The home she paid off later caught fire, and the woman was shocked to discover that her insurance policy had expired.
Insurance administrators say there was a clerical error
Not only did the woman learn that a clerical error had kept her from finding out about her expired homeowners’ insurance policy, she also was unaware that the bank that loaned her the money for the apartments had taken an insurance policy out on the home and refused to release the fire-related payout to her. The woman took the matter to court, and a judge ordered the bank to release the payout. However, at the time of this writing, the bank had still not done so.
Bank is demanding millions of dollars
The bank says the woman owes millions of unpaid mortgage and penalty fees. The woman, on the other hand, says the bank is a predatory lender. She says that she hopes justice will prevail and the foreclosure that has been activated against her will be stopped. A Tennessee attorney who is well-versed in bankruptcy and foreclosure laws can review a particular case and make recommendations regarding what options are available to help stop the foreclosure process.