Friday, June 25, 2010

Foreclosed Home Preservation Contractor Says It's Also A Victim Of Mortgage Crisis In Suit Against BofA; Claims Bank Gave It $400K Stiffing

WFAA-TV Channel 8 reports:
  • A property preservation company with business in Texas charges Bank of America with fraud and deceit, breach of contract, and unjust enrichment in a civil suit in California. Diversified Field Services of Tustin, California — which maintains foreclosed properties for banks — says in the lawsuit that Bank of America signed DFS to a contract to maintain repossessed homes in 14 states last year. The company says it spent nearly $2 million preparing for the work, but that the work never came.


  • "Homeowners are not the only victims of this [mortgage] crisis; it extends to firms like DFS and onward to the mom-and-pop businesses who actually mow the lawns and clean the countless homes that now sit empty," said DFS attorney Eric Goodman. DFS also alleges B of A publicly misrepresented the quality of the work DFS did, destroying its business and ruining its reputation. DFS also alleges the bank never paid it for nearly $400,000 in work that it did do. The suit seeks unspecified damages.

Source: Property preservation firm sues Bank of America.

For a press release issued by Diversified's attorney, see Diversified Field Solutions, Inc. Sues Bank of America.