GALVESTON – Claiming its property in Galveston was wrongly foreclosed, American Furnishing Inc. has filed suit against Bank of America N.A. and BAC Home Loans Servicing LP.

The plaintiff argues that Bank of America had no lien on the property in question and the defendants covertly planned the foreclosure, according to the original complaint filed Aug. 31 in Galveston County District Court.

American Furnishing acquired the lot in the Pointe West Subdivision on Galveston’s West End from Bank of America in April.

During the transaction, Bank of America instructed Landsafe Title of Texas, Inc., its indirect subsidiary, to issue the plaintiff its owner’s title policy.

The suit claims that BAC Home Loans Servicing prepared the property for foreclosure in favor of Bank of America during the conveying process.

The defendants then had one of its employees, Steve Leva, conduct a foreclosure sale on or around June 1 without any notice to the plaintiff, court papers add.

Leva is a co-defendant in the case.

American Furnishing, which learned about the alleged events last month, insists it paid cash for the property and was free and clear of mortgage.

“To make matters worse, defendant Bank of America in August 2010 trespassed upon the property, publicly advertising the property as its own property, and offering the property for a bargain sale,” the suit says.

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