Bank's mistake leaves Queen Creek homeowner in foreclosure

Posted: Updated:
By Andrew Michalscheck By Andrew Michalscheck

QUEEN CREEK, Ariz. -- Julia Campbell was stunned when she received a foreclosure notice, because she has never missed a payment.

The Queen Creek homeowner, who has worked in the mortgage industry for 12 years, said the foreclosure letter came from PHH Mortgage in June. It said her 5-bedroom home would go to auction in September.

"I'm in this business. I just couldn't believe it was happening to me," she told 3TV.

Campbell kept paying her July and August payments to PHH, even as the company was planning to seize her home.   

"They kept cashing the checks," she said.

After six weeks of unproductive phone calls to PHH, Campbell called Phoenix real estate attorney Rob Nagle.

"She was petrified about what was happening to her house. I was so surprised when she called and said she's been making all payments and the bank is still foreclosing," Nagle said.

This week, 3TV emailed PHH to try to get an explanation. Within hours, Campbell said the mortgage servicer called her to say they had made a mistake. Her situation was resolved, and the foreclosure was canceled.

"If this could happen to me, it could happen to anyone," she said.

Nagle said the case is truly unique. He calls it a good reminder to all homeowners that banks make errors, and to review all mail which comes from lenders.