Wheatland man sues Bank of America with no lawyer over foreclosure

A Wheatland man who says his home is in foreclosure is taking on the Bank of America in Yuba County Superior Court — without a lawyer.

Leonardo Lopez, of the 3600 block of Hokan Lane, filed the lawsuit Tuesday, charging the Bank of America and other defendants gave him a $475,000 loan that they knew he would not be able to pay off.

In a brief phone interview, Lopez said the home is in foreclosure, then ended the conversation, saying his phone needed recharging. He said he would call back, but did not.

The Bank of America, named as the "original mortgage broker," and Countryhome Loans, "the original mortgage lender," failed to verify his assets, income and debt when the loan was issued in 2004, according to the lawsuit.

The defendants were aware that "payment shock" would occur and that foreclosure was inevitable, Lopez wrote in the lawsuit.

He said most lawyers he contacted wanted too much money to represent him.

"For years, mortgage brokers and lenders have been selling loan products that they knew or should have known would never be able to be repaid by the borrowers and would prevent borrowers from ever actually owning the home," according to the lawsuit.

The defendants try to maximize their profits by offering only "negative amortization" loans. Borrowers pay interest only, Lopez wrote.

The loans are, in effect, short-term leases that violate federal truth in lending and other laws, he wrote.

Lopez is asking the court to rescind his loan and award him damages.

A hearing is scheduled Oct. 31.

CONTACT reporter Rob Young at 749-4784.