June 4th, 2011

Bank of America Branch Foreclosed On

http://www.news-press.com/article/20110603/BUSINESS/110603016/Bank-America-pays-debt-instead-losing-furniture

BofA tried to foreclose on a house that the owners bought for cash a couple years ago. The owners name is readily google-able, altho there may be variant spellings in coverage. Owners took it to court, obviously got to keep their house, were also awarded attorneys fees (on the order of $2500 according to some coverage). BofA never paid so after a few months, the Sheriff went to the branch to collect on the debt: with a moving van, locking out employees. Obviously, this is _way_ beyond what the branch manager is used to dealing with. Check was cut to the Sheriff which will presumably turn into a check to the homeowners.

This is a heavily blogged story, and obviously has a significant neener neener neener factor. The lawyer who represented BofA in the suit had apparently withdrawn a week earlier, so BofA was unrepresented in this particular action; BofA is trying to blame "outside" lawyers for this process being deeply flawed.

_I'm_ blogging about it because HA HA HA you stupid fucking bankers, duh. BUT, more importantly, this is why we cannot "expedite" foreclosure in an effort to "clear" inventory. If you expedite to the point where the people who pay cash for the cleared inventory have to go to court to hang onto what they bought, you're not going to increase confidence in the market. Also, looks like you're just circling the drain.

While this might be an isolated incident in terms of actually showing up at the BofA branch with a moving van, it is by no means an isolated incident in terms of a bank trying to foreclose on a property which has been sold to a cash buyer. Which should never, ever, ever, ever, ever (... add many more evers ... ) happen.

ETA:

Here's a roundup of other examples:

http://www.boston.com/realestate/news/blogs/renow/2010/03/new_bank_tactic.html
http://www.boston.com/realestate/news/blogs/renow/2010/12/banks_behaving.html