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Bookkeeping error leads to lawsuit over foreclosure

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One Arizona family is filing suit over a foreclosure notice it says was caused by a bookkeeping error by the bank.

After adopting five children from Ukraine, Cheryl and Rick Mexin bought a home in Mesa, Arizona and thoroughly enjoyed the house they acquired, KSAZ-TV reports.

Earlier this year, the Mexins received a mortgage modification from Bank of America and were able to maintain their house without having to file for bankruptcy. Months later, the Mexins received a foreclosure notice from Bank of America saying they owed more than $20,000 in missed payments, the news source explains. According to the source, the bank said that the letter saying the modification had been approved was a bookkeeping error by the company.

Further, Bank of America initially denied having any record of the altered mortgage with the Mexins.

"The Mexins sent a copy into Bank of America they said 'oh yes we do have a copy but it’s no longer valid because it doesn’t meet our investor guidelines'," the Mexins' attorney Jonathon Frutkin told the news source.

Legal fees accrued by the bank regarding the bookkeeping error may be covered under its errors and omissions insurance

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