Ohio woman sues Bank of America, robo-signer, Fannie Mae, AG Cordray

This may be the first lawsuit from an individual homeowner seeking to undo a completed foreclosure.


Sanduskyregister.com:

Rhonda D. McLaughlin filed her lawsuit against Bank of America, N.A., and Rhonda Weston, a vice president of Bank of America. Fannie Mae and Ohio Attorney General Richard Cordray also are named as defendants in the suit.


Sandusky attorney Dan McGookey, a foreclosure specialist, is McLaughlin's attorney.


It may be the first lawsuit filed in the U.S. by a private citizen seeking to undo an already completed foreclosure on grounds that a robo-signer was used, McGookey said.


McLaughlin lived at 1608 North Larchmont Drive in Sandusky when Bank of America foreclosed on the home in 2007.


McLaughlin, still a Sandusky resident, lost the home when Erie County Common Pleas Court Judge Roger Binette granted a motion for summary judgment in 2008.


The summary judgment was based on an affidavit from Weston, who said McLaughlin was in default on her mortgage.


Binette has been assigned McLaughlin's new lawsuit.


The lawsuit alleges Weston was a "robo-signer" who didn't actually review documents she referred to in her affidavit.


The suit cites news stories that say robo-signers signed thousands of affidavits each month without reviewing the mortgage documents, while banks tried to rush through as many foreclosures as possible.


The lawsuit refers to an Associated Press citing court depositions from a Florida attorney, who said employees at Bank of America and other banks commonly approved phony paperwork.


"Until now, only a handful of depositions from robo-signers have come to light," said the Oct. 12 news story. "But the sheer volume of the new depositions will make it more difficult for financial institutions to argue that robo-signing was an aberrant practice in a handful of rogue back offices."


McLaughlin's lawsuit asks for Fannie Mae, now the owner of the North Larchmont Drive home, to give the home back to McLaughlin. It seeks $50,000 in damages and other costs and fees.


Fannie Mae is named in the suit because it owns the home.


Cordray is named as a defendant because he's required by law to defend the courts from misconduct, the suit says.


Bank of America bought the home at an auction and assigned it to Fannie Mae, McGookey said.


If Weston signed the affidavit without looking at the mortgage documents, McGookey said, it's not a minor problem.


Binette relied on the affidavit when he issued the summary judgment, McGookey said.


"The court has got to act on the information that is presented to it," McGookey said.


Bank of America spokeswoman Shirley Norton said the bank will not comment on the lawsuit until it has a chance to review it.

And here is the court document of Rhonda D. McLaughlin from Stopforeclosurefraud website. Click here.