Homeowners Foreclose on a Bank
It might sound like a story from Bizarro World, but it’s true: A Naples, Florida couple initiated foreclosure proceedings on Bank of America last week.
As reported on Yahoo! News yesterday, retired police officer Warren Nyerges and his wife, Maureen Collier, purchased their home in 2009 for $165,000, which they paid for in cash. In February 2010, evidently through some glitch, Bank of America attempted to foreclose on the property – even though they’d never taken out a mortgage!
The couple hired attorney Todd Allen, and the bank eventually dropped the matter. But Warren and Maureen spent $2,534 in court fees, and they felt Bank of America should pay for it. The court agreed, but after several unsuccessful attempts to collect, the couple’s attorney filed foreclosure against the bank.
Allen arrived at a local branch of the bank with sheriff’s deputies, who he instructed to remove cash from the tellers’ drawers, furniture, computers, and other property. Less than an hour later, the bank manager produced a check for $5,772 to satisfy Allen’s fees and additional costs.
While a great story of the tables being turned, the fact that this glitch happened at all calls to mind the scandal that erupted not too long ago with so-called robo-signers, automated programs that banks were using to process a backlog of mortgage requests without being sure that the applicants were qualified. As such, it also underscores the importance of dealing with people you can trust, and having documentation that’s compliant and will stand up to scrutiny.
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By: Present Value