Owner of Home Sold at Auction Sues Bank

LAKE HAVASU, Ariz. - An Arizona man has filed a $100 million lawsuit against Bank of America. He says the bank told him them would help modify his home loan, but instead sold his million-dollar home at auction for a fraction of what it was worth.

Joel Williams is accusing the bank of fraud and misrepresentation, saying he was duped. Williams says that while they were working with him to modify his loan, they were foreclosing on his Lake Havasu home at the same time.

The 2,600-square-foot Spanish-style house was once valued at a million dollars. But Williams fell behind on his mortgage, and turned to Bank of America for a loan modification.

"I was told I was doing everything the right way," he says. "I wanted to stay in the house, I wanted to keep the house -- I did everything Bank of America told me to do -- and one morning I get a call and the house is no longer there."

Williams says the bank started working with him in September of last year, and then sold the home without telling him.

"They sold the property out from under me for $192,000 -- a million dollar property."

Williams was given one month to move out of the home he and his family had spent 10 years working on. But Williams isn't going quietly.

He is suing Bank of America for $100 million to send a message. Wednesday in federal court, the judge ruled the case could go to trial.

A Bank of America spokesperson said they do not comment on pending lawsuits, but added the bank has helped more than 665,000 homeowners modify their mortgages since January 2008.