Wells Fargo Bank Sues Itself

[furrbear]

From SlashDot:

Extreme economic problems require extreme solutions, and Wells Fargo Bank has come up with a good one. They have decided to sue themselves. Wells Fargo holds the first and second mortgages on a condominium that is going into foreclosure. As holder of the first, they are suing all other lien holders, including the holder of the second, which is Wells Fargo. It gets better. The company has hired a lawyer to defend itself against its own lawsuit. The defense lawyer even filed this answer to the complaint, "Defendant admits that it is the owner and holder of a mortgage encumbering the subject real property. All other allegations of the complaint are denied." On the website The Consumer Warning Network, Angie Moreschi wrote: "We've apparently reached the perfect storm for complete and utter idiocy by some banks trying to foreclose on homes."

Disclaimer: Dave & I are Wells Fargo customers. We've never encountered this degree of corporate dumbness from them.

Comments

[cipherpunk.livejournal.com]

This is not so much corporate dumbness as legal dumbness. Florida foreclosure law requires that in the event of a foreclosure, the principal lender must get clear title from the other minor lenders. The way this is done is via court proceeding.

Dollars to donuts says Wells Fargo gave a 100% lend on a property, and split it up as an 80% first morgage and 20% second, or something similar. Thus, Wells Fargo NA v. Wells Fargo NA.

If Wells Fargo doesn’t settle with Wells Fargo for $1 and quickly withdraw itself from the litigation, I’ll expect to see the judge enter the courtroom with a Glock and a deranged look in his eye.

[hickbear.livejournal.com]

Bryon and I were Wachovia customers for years-n-years before we left the U.S. We encountered a few instances that put the "Ooh!" in "Stupidity" from "Walk-Over-You", but nothing quite to this level.

[allanh.livejournal.com]

I used to work there, and they hold our first and second mortgages.

Yes, they really are that dumb. And they're even meaner than they are dumb.

(Trust me on the mean part.)