Man pays cash for house, Bank of America forecloses on it

[The Straight Story]

Lauderdale man's home sold out from under him in foreclosure mistake

When Jason Grodensky bought his modest Fort Lauderdale home in December, he paid cash. But seven months later, he was surprised to learn that Bank of America had foreclosed on the house, even though Grodensky did not have a mortgage.

Grodensky knew nothing about the foreclosure until July, when he learned that the title to his home had been transferred to a government-backed lender. "I feel like I'm hanging in the wind and I'm scared to death," said Grodensky. "How did some attorney put through a foreclosure illegally?"

Bank of America has acknowledged the error and will correct it at its own expense, said spokeswoman Jumana Bauwens.

Grodensky's story and other tales of foreclosure mistakes started popping up recently across South Florida. This week, GMAC Mortgage, one of the nation's largest mortgage servicers and a major mortgage lender, told real estate agents to stop evicting residents and suspend sales of properties that had been taken from homeowners in foreclosure. The company said it might have to "correct" some of its foreclosures, but was not halting those in process.

http://www.sun-sentinel.com/business/fl-wrongful-foreclosure-0922-20100921,0,36776.story

[Dawson Leery]

1. This is a sizable problem with BOA.

Damn TARP. These parasites needed to die.

[Xipe Totec]

3. BOA - Aptly named

[Curmudgeoness]

2. Un-fucking-believable. nt

[Beaverhausen]

4. story on MSNBC this morning about one person signing 10,000 foreclosures per month

He was robo-signing when he was supposed to also review them.

http://www.msnbc.msn.com/id/39311619

[CoffeeCat]

7. Proof that the economy is not getting better...

One person was to sign 10,000 foreclosures in one month?

This little factoid slipped out sideways--because it was included in a story
about the foreclosure mishap.

There is so much we don't ever hear, because they're keeping bad news from us--with
the hope that we'll continue our Super Target and Walmart spending sprees.

It's so bad...maybe we don't even want to know.

I'll be in a fetal position with my blankey if anyone needs me.

[struggle4progress]

9. That's like one foreclosure every minute all day every day week after week

Weeks per month 4.3
Workdays per month 4.3x5 = 21.5
Workhours per month 21.5x8 = 172
Workminutes per month 172x60 = 10320

(10000 foreclosures/month)/(10320 workminutes/month) = 0.969 forclosures/minute
It's a foreclosure every 62 seconds all day every day week after week

[Historic NY]

14. Interesting wouldn't that be"offering a false instrument for filing"

[pinboy3niner]

5. See also dixiegrrrrl's related OP:

YeeHaw !!!!! Alan Grayson Petitions FL Supreme Court - Foreclosures
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9169948

[ohheckyeah]

6. Doesn't the bank need to have

a deed or deed of trust or something to prove they have the right to foreclose?

[gscraig]

12. you'd think so

I think that if the paperwork is filed correctly, all sorts of documentation is required. But the problem is that these companies aren't used to handling the load of foreclosures, and some big mistakes are made. I would imagine that most that are this grievous are handled pretty quickly, but it makes one wonder what happens to those borderline cases.

[DirkGently]

8. They and their lawyers are foreclosing so fast they don't know which way is up. And don't care.

[customerserviceguy]

10. The buyer's title insurance should protect him in this case

Since the mortgage in question predated the deed to the house that was presumably insured.

[DirkGently]

11. Edit: Yep.

Edit : Scratch that -- short sale screwup. That will indeed be title insurance. Short sales blow up like this daily. Lender "forgets" to tell its lawyers to stop the foreclosure, or the law firm forgets to tell the court, etc.

[flvegan]

13. Florida Default Law Group? Big shock.

When your title work is done in Panama by 12 year old children, what can you expect.