A federal bankruptcy judge has ordered Bank of America Corp. to pay $46 million for proceeding on a foreclosure despite a bankruptcy stay.

A California couple was allegedly told in 2009 by the financial institution to default on their mortgage in order to qualify for a loan modification.

But when BofA denied the modification request, the coupled filed Chapter 13 bankruptcy in U.S. Bankruptcy Court for the Eastern District of California.

Source: Mortgage Daily