Bank of America, Wells Fargo Sue Themselves in Foreclosure Cases

Chalk this one up in the category of “How Stupid Can They Get.”  Bank of America has sued itself–multiple times–in foreclosure cases in Florida.  You read that right, Bank of America has sued itself to enforce a foreclosure.

As a Texas foreclosure defense lawyer, this even leaves me scratching my head.  The situation arose when Bank of America acted as the servicer for the for original lender (first mortgage holder) and when BoA also extended a home equity loan (a second mortgage) on the same property.  As the servicer, they sued to foreclose and named all junior lienholders, which they also happened to be as the lender of a home equity loan.

Technically, this may have been the correct procedure–in theory.  In reality, it’s absolutely ridiculous, both on the part of Bank of America and their lawyers.  As an attorney, I could not imagine a scenario where I would recommend to my client that they sue themselves.  In fact, I would have a conflict of interest as soon as the suit was filed, requiring me to withdraw as their lawyer.  This is a shining example of Bank of America mindlessly generating forms and documents without regard to their consequence.

You would think that something this absurd is a rarity, but it’s not.  As early as 2009, Wells Fargo was reported for having sued itself in similar cases.

So, when you’re working with your “lender” on a modification or reinstatement of your loan, and they act as if they’re genuinely interested in trying to help you, just remember that these are the exact same folks that will sue themselves.

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