Couple Forecloses on Bank!

 Posted by at 6:02 am
Jun 092011

No, the headline is not a mistake. Turnabout IS fair play. It seems that Bank of America (BAC) foreclosed on the wrong house in St. Petersburg Florida–a house which had been bought for cash and had no mortgage. The homeowners spent some 18 months trying to convince BAC of their error, racking up attorney’s fees and other costs in the process.

Ultimately, BAC admitted the error. But in yet another example of the sorts of fiascos surrounding the foreclosure business, they failed to pay the homeowners the court ordered costs. Ultimately, the homeowners went back to court and “foreclosed” on BAC’s branch office in Naples–a judge agreed to allow them to seize bank assets for the unpaid debt. They and their attorney showed up at the branch office with a moving van and a court order. Apparently the branch manager was “visibly shaken” by the order, but BAC found a way to pay up within hours.

If you are currently involved in a short sale or foreclosure, you’ll want to read the entire article. An important piece of this fiasco is that the homeowners bought the home as a foreclosure. There is some speculation that their names got “transposed” during paperwork. This is not the first time things like this have happened. It’s a wonderful story of man biting dog, but it’s also fair warning to anyone involved in foreclosures or short sales.

Read USA Today’s version of the story.