Homeowners foreclose on Bank of America (1 Viewer)

Adam Gregorich · Jun 4, 2011

I am a believer in paying your debts. In this case BoA tried foreclosing on a couple who had paid cash for their home and never had a mortgage. When BoA never paid their legal costs as ordered by the court, the couple had deputies close a branch and seize the bank,s assets including computers, furniture and cash.

It started five months ago when Bank of America filed foreclosure papers on the home of a couple, who didn't owe a dime on their home.

The couple said they paid cash for the house.

The case went to court and the homeowners were able to prove they didn't owe Bank of America anything on the house. In fact, it was proven that the couple never even had a mortgage bill to pay.

A Collier County Judge agreed and after the hearing, Bank of America was ordered, by the court to pay the legal fees of the homeowners', Maurenn Nyergers and her husband.

The Judge said the bank wrongfully tried to foreclose on the Nyergers' house.

So, how did it end with bank being foreclosed on? After more than 5 months of the judge's ruling, the bank still hadn't paid the legal fees, and the homeowner's attorney did exactly what the bank tried to do to the homeowners. He seized the bank's assets.

"They've ignored our calls, ignored our letters, legally this is the next step to get my clients compensated, " attorney Todd Allen told CBS.

Sheriff's deputies, movers, and the Nyergers' attorney went to the bank and foreclosed on it. The attorney gave instructions to to remove desks, computers, copiers, filing cabinets and any cash in the teller's drawers.

Full article (with video worth watching): http://www.digtriad.com/news/watercooler/article/178031/176/Florida-Homeowner-Forecloses-On-Bank-Of-America

Richard Travale · Jun 5, 2011

I find the cash part of this story unbelievable. Furniture and stuff, yes...but the cash???
What about mortgage paperwork held in the branch? Were these transferred to this couple as well?

Adam Gregorich · Jun 5, 2011

They had a judgment against the bank that allowed them to seize assets. Cash is an asset. I doubt there was any mortgage paperwork in the branch (unless it was for loans in the process of being closed), and even so it would not have any value (used paper has no value). They were allowed to seize hard assets (cash, furniture, computers, etc).

Patrick_S · Jun 5, 2011

Thanks for posting the story.

Hopefully we'll see more actions like this so corporations get the message that they to have to act responsibly.

gene c · Jun 5, 2011

Corporations have become so large and impersonable that it's not surprising that a single customer can occasionally fall through the cracks and apparently get screwed "by the machine" but what happened in this case is hard to believe. Someone at BofA should have been able to correct this before it even got to court let alone foreclosure. Guess I should start paying more attention to my BofA bank statements from now on .

Cees Alons · Jun 5, 2011

I think the bank will, uhm, foreclose on some of their employees!

Cees

Gregg Loewen · Jun 6, 2011

I think the bank will, uhm, foreclose on some of their employees!

LOL

Chris Lockwood · Jun 6, 2011

Something smells here- if they really never had a mortgage with that bank, what led the bank to think they did? Gotta be more to this story.

Steve_Pannell · Jun 6, 2011

Originally Posted by gene c .

That's the problem with institutions like Bank of America. They are such a large entity that there is no "someone" there anymore.

Adam Gregorich · Jun 6, 2011

Originally Posted by Chris Lockwood

Something smells here- if they really never had a mortgage with that bank, what led the bank to think they did? Gotta be more to this story.

With all the fractional buying and selling of mortgages all it takes is a typo. Maybe they had a loan on 12345 Main Street, Anytown USA and it got entered into the computer somewhere along the way as 1234 Main Street. There is a house less than a quarter of a mile from me and the only difference in the address is I have the word "Old" in my street name and they don't. There are so many foreclosures that banks are just rubber stamping everything and not double and triple checking to make sure that everything is correct. They have decided its easier (cheaper) to deal with being wrong occasionally than pay for the extra steps to get it right the first time.

I worked with someone who bought a house several years ago, and the title insurance company missed that there was a third mortgage on the property (he suspects foul play as it was a company the sellers wanted to use). Several months later after they moved in and started working on the house that company tried to initiate foreclosure on the property. They were served by the Sheriff and had prospective bidders tramping through their yard at all hours of the day, knocking on the door asking to see the inside and making their life miserable. It took them months, a couple of thousand dollars for an attorney and a lot of stress before it was all straitened out.

Adam Gregorich · Jun 6, 2011

Time Magazine is now on the story with even more info. Here is an excerpt and the full story is worth a read (link below).

“We apologize to Mr. Nyerges that there was a delay in receiving the funds,”read the bank’s written statement to the Naples News. “The original request went to an outside attorney who is no longer in business.”

Some might say all’s well that ends well in this scenario, seeing as the Nyerges got their home, Allen got his fees and the bank got it’s comeuppance. But there are deeper implications to every one of these foreclosure foul-up horror stories we read about, and even those we don’t. The finger-pointing to outside attorneys seems reminiscent of the banks’ excuse for the robo-signing scandal that broke last fall, and just as flimsy: the fact that a bank has lots of foreclosures to process and hires an overworked, underqualified or otherwise not-up-to-the-job professional to do it does not justify the nonchalance with which documents and properties of such gravitas were treated. The similarity didn’t escape Allen, who told CBS News, “this is a symptom of a larger problem.”

Further, these excuses also doesn’t stand up to snuff: I’ve pointed out before that in transactions with far less monetary significance than foreclosure (and far greater frequency), banks get it right, almost every single time. Just think: when was the last time you got an extra $20 bill at the ATM? I’ve never met someone who could remember such a time. Similarly, while one or even several of the Nyerges’ efforts to get B of A to pay the court judgment might have gone to the defunct lawyer’s office, the Nyerges say they actually submitted their pleas directly to the bank, multiple times, to no avail: “I talked to branch managers, I called anyone who would listen to me,” the couple told the Naples News. “And I wrote a certified letter to the president (of the bank). No response, nothing.”

Read more: http://moneyland.time.com/2011/06/06/homeowner-forecloses-on-bank-of-america-yes-you-heard-that-right/#ixzz1OWnfI4qB

Gregg Loewen · Jun 7, 2011

hi guys

I saw this posted on AOL.

When the attorney and sherriff showed up to forclose and requested seizure of the furniture, computers, money, etc. The bank manager got busy and produced a check for the $5000 ish owing, so nothing was actually seized.

Very cool stuff.

Adam Gregorich · Jun 7, 2011

Originally Posted by Gregg Loewen

hi guys

I saw this posted on AOL.

When the attorney and sherriff showed up to forclose and requested seizure of the furniture, computers, money, etc. The bank manager got busy and produced a check for the $5000 ish owing, so nothing was actually seized.

Very cool stuff.

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