Bank of America seized the couple's rental home in Florida, evicted the tenants there, and locked it up.
The bank said the Cardosos were late on their mortgage.
But they don't actually have a mortgage because they paid cash up front when they bought the property.
"We have a lot of friends there and we telling them the house is been paid and now they think we lying," said the foreclosure victim, Maria Cardoso.
"All of a sudden you find out your house has padlocks, tenants scared to death to stay there and they move out and your personal belongings taken," said attorney Joseph DeMello.
It appears three address numbers were wrong on a court document - which led Bank of America to foreclose the wrong home.
A spokesperson says the bank is willing to work with the couple. But they have now filed a lawsuit in federal court.