Hello and thank you for contacting us. This is Dwayne B. and I’m an expert here and looking forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Also, I can only answer the questions you specifically ask and based on the facts that you give so please be sure that you ask the questions you want to ask and provide all necessary facts.
As a general rule, there is no obligation under the law for the bank to inform a customer of an issue such as you describe. If it had moved forward to a foreclosure a lack of notice is a defense, but not as to them placing information on a credit report.
There are exceptions to the general rule but the only one which I've ever seen is if the bank, either in their advertisements or in their documents, puts extra duties and responsibilities on themselves. As an example, if they state they will never return a check without notifying the account holder first, then they have contractually obligated themselves to follow that rule, even though no such requirement exists in the law.
What you may want to do is gather all of the paperwork, emails, letters advertisements, etc. that you have seen from the bank and get a local lawyer to review them to see if they may have inadvertently placed some additional obligation on themselves. If they did, and then failed to meet that obligation, you have a lawsuit for breach of contract.