'Free house' after foreclosure case, according to attorney

BOCA RATON, Fla. - The Williams family purchased at the top of the housing market to accommodate their growing family. Unable to sell their previous home for much of a profit when the housing bubble burst, their cash flow was crippled.

“I was worrying every night. I was crying. We were fighting," Candace Williams said.

She and her husband, Scott, asked their lender for a modification twice, but were denied both times.

“I stopped paying my mortgage. I never once, nor did my wife, want a handout. We never once were trying to cheat the system," Scott Williams said.

Eventually in foreclosure, the Williams had their day in court, and won.

“In my opinion they get the house for free," Roderick Coleman, the Williams’ attorney, said.

"The bank sued them, not only for foreclosure, but also sued them on the promissory note. Since they sued them on the promissory note trying to obtain the entire indebtedness on the note, plus interest etc., and lost, now it's res judicata , and they can't sue them again," Coleman said.

He said the bank lost the case because it couldn't prove it's the holder of the note and mortgage, but it is.

And even though Coleman said the house is free, mortgage bills will still come every month.

The Williams want to pay.

“We're still willing to say hey let's sit down and modify. But you know things have got to change for the Americans like ourselves who are in this situation," Scott Williams said.

"They stood up to the bank. Now that we took advantage of a weakness, now we'll have their attention and now we'll get a modification," Coleman said.

A spokesperson for the Williams’ bank said it has filed an appeal and cannot comment any further because of pending litigation.