Paralyzed Homeowner Battles Foreclosure
Photo by Taberandrew
Robert Galanida, a victim of paralysis, lives on $22,000/month and is battling foreclosure. When he was a teenager, an accident caused him to become paralyzed from his shoulders downwards. With legal support and insurance settlements running into the multimillions, he now lives with his mother comfortably.
They were surprised when Bank of America, the servicer of his mortgage, repeatedly tried to throw them out of his house in Tualtin. The house was built fourteen years ago and completely customized to fulfill his needs. The price for the house had been below $400,000. It has spacious halls and wide doorways in order to allow easy access for Robert’s wheelchair and the functioning of the house’s air purification system, which aids Robert in breathing and keeping a stable temperature.
He could afford the monthly pay off on the loan amounting to $4,800. How could he severely default?
Forty-one year old Galanida stopped paying from 2009 because he objected to certain discrepancies in the loan following the Bank of America’s takeover of Countrywide Home Loans. The bank told him to keep pending his payments while the matter was being investigated into, of which we were informed by his mother.
But the bank, without offering any alternative plan, suddenly initiated foreclosure proceedings against him. Bank of America sold it off to another party and then tried to throw him out of his home mercilessly. Galanida appealed to federal authorities for help and also to the Attorney General of Oregon; till now, matters have not been resolved.
A paralegal attached to the legal firm dealing with Bank of America’s assignments told Galanida on July 29th that the bank did not plan to save his house.
The case of Galanida highlights the defects in the federal practices relating to foreclosure and loan modification. This is the reason why many banks, particularly Bank of America, are now facing innumerable law suits in Oregon and elsewhere. Investors have lost confidence in Bank of America, which has caused the bank’s legal bills to mushroom. Countrywide is also one of the causes of BofA’s woes.
The Treasury pays money to servicers in order to incentivize them into modifying loans under the Making Homes Affordable plan. But since 2010, it has withheld the same from Bank of America and JPMorgan Chase. The Treasury wants these entities to make “substantial improvement” in reaching out towards the borrowers in all respects.
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