Army vet sues Bank of America over mortgage on home flooded in 2008

An Army Reserves veteran filed a lawsuit last month after battling Bank of America for nearly three years because the bank will not report to credit agencies that his home mortgage is paid in full for a home that was flooded in the 2008 and has since been demolished.

According to the lawsuit, Ryan Bascom of Cedar Rapids, a decorated combat veteran who served in Operation Iraqi Freedom, couldn't make his monthly payments on a $105,250 mortgage after the flood, but he sent the $81,296 he received in flood insurance to Bank of America. However, the bank never credited his account and filed foreclosure action for 1600 6

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St. NW, where he resided from April 2007 to June 2008.

Frank Nidey, Bascom's attorney, said last week no trial date has been set on the lawsuit but he has filed a temporary injunction to stop Bank of America from continuing to report the mortgage debt as unpaid and order the corporation to report the debt was satisfied in 2001.

Bascom is attempting to buy a home and wants his credit report corrected, Nidey said.

A hearing on the injunction is set Monday in Linn County District Court.

According to the lawsuit, after a year of litigation, the bank made a settlement agreement with Bascom to “release and forever discharge” his debt and dismissed the foreclosure action Aug. 17, 2011. A month later, the bank threatened foreclosure again, and added a charge for flood insurance on the now vacant lot where the house was located.

Nidey contacted the bank's attorneys and sent them the settlement and other documentation of the paid debt but the bank never credited Bascom's account, according to the suit.

Klatt, Odekirk, Augustine, Sayer, Treinen and Rastede law firm, formerly Dunakey and Klatt of Waterloo, also are named as defendants in the suit. The firm has attempted to collect the debt for Bank of America, according to the suit. The firm hasn't returned a phone message left this week.

Attorneys for Bank of America Corporation hasn't returned phone messages left last week.

According to the suit, Bank of America also contacted The U.S. Department of Veteran's Affairs, which Bascom originally received the mortgage through, about Bascom falling behind in his monthly payments.

According to the suit, Bascom is asking for compensatory and exemplary damages and court costs from Bank of America.