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Over the last week Bank of America angered the groupies of Francesca Lia Block, a prolific young-adult author who wants to modify the loan on her L.A. home — and took more heat for the guy it killed (on paper).
March 22 -
Some of the largest mortgage servicers are still fabricating documents that should have been signed years ago and submitting them as evidence to foreclose on homeowners. Several dozen documents reviewed by American Banker show that as recently as August some of the largest U.S. banks, including Bank of America Corp., Wells Fargo & Co., Ally Financial Inc., and OneWest Financial Inc., were essentially backdating paperwork necessary to support their right to foreclose.
August 31
Bank of America has made
In a twist that would excite law geeks and those
Foreclosure expert and plaintiff's lawyer
Szymoniak told HuffPo the bank has done the same thing 11 times since late March.
In the March 29 filing, B of A seeks to foreclose on a condo which names both the property owner and the bank as defendants.
“The company is literally seeking damages from itself in order to foreclose on the condo owner,” HuffPo observes.
B of A spokeswoman Jumana Bauwens told the website that the bank is servicing the mortgage on behalf of an investor, and that it owns the second mortgage.
“Naming the second-lien holder in the suit is necessary to eliminate the junior interest,” Bauwens told HuffPo.
The other lawsuits likely stem from a similar problem, HuffPo concludes.
“Many properties from the housing bubble had an additional home equity loan, or second lien,” the website says. “Banks could charge higher interest rates on these second liens because they were riskier loans -- the second lien is supposed to eat losses before anything happens to the first lien.”
“When a bank brings a foreclosure case in court, it has to notify whoever owns the second lien that it is taking action. In this case, Bank of America owns the second lien,” HuffPo says.
Professor Alan White of Valparaiso University Law School told HuffPost the move was a “classic robo foreclosure.”
“I'm sure the paralegal who did this did 100 others that day,” he added.
