Clerical Error On Deed Of Trust Leaves Innocent Homeowner Facing F'closure, Despite Never Missing A Payment; Lacks Cash To Cough Up $5K For TRO Bond

In Boise, Idaho, KBOI-TV Channel 2 reports:

• The American dream has turned into a nightmare for Donna Lee of West Boise. She pays her mortgage each month but is facing foreclosure anyway. When she bought her home from a developer, there was a clerical error on the deed of trust that shows she should be living in a different unit. The developer has filed for bankruptcy and the bank wants the property.

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• Lee lives in the home with her son. Life was good until a year ago, when she found out someone messed up the paperwork in the process of buying the home. "I just can't believe that no one is willing to change the clerical error on the deed of trust. Someone couldn’t read the platt correctly and record it correctly. My big thing here is I want justice, I want it corrected", Lee said.

• Lee's lawyer, Michael Christian met with the bank the week of December 27, 2010, to try and work out a deal. Christian came out of the meeting with another disappointing decision. In an email, Christian told the Truth Squad: "Our discussion with the developer's lender's attorney was unsuccessful, and the developer's lender (Intermountain Community Bank, which is a DBA of Panhandle State Bank), has indicated it is unwilling to postpone its foreclosure sale to work out a solution to the mistakes that were made."

• Christian filed a [request for a] restraining order afterward to try and stop the foreclosure process. The judge granted the request but also asked for a 5 thousand dollar bond to enforce it. Lee doesn't have the money and she's running out of time.

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• Christian told the Truth Squad the developer’s bank might be interested in swapping units so Lee can stay in her home, but she might have to come up with some money to pay for any differences in the values of the properties.(1)

For more, see Boise woman facing foreclosure: 'It’s a nightmare'.

(1) I wonder if the homeowner or her attorney (or the bank currently holding her mortgage loan used to finance the home purchase) has been in touch with the title insurance company that (presumably) insured the title to the property to submit a claim on the title policy. See generally, Title Insurance: What Risks Does It Protect A Property Owner Against?