Irresponsible Tricks Used by Bank of America in Foreclosure Cases RevealedPosted in Stop Foreclosure, by Jane Scott
After the malpractices of JPMorgan Chase and GMAC, the latest scandal to emerge is the tricks used by the Bank of America (BofA) in foreclosing issues.
It has been revealed by the Sun Sentinel of Fort Lauderdale that the bank had recently foreclosed a certain Florida property which was not even a mortgage-holder. The foreclosure procedures which were started by Countrywide, a subprime mill acquired by the bank, in 2008, were continued despite the fact that the house was paid for in cash by Jason Grodensky, the new owner, last December.
Grodensky said, “I feel like I’m hanging in the wind and I’m scared to death. How did some attorney put through a foreclosure illegally?”
BofA has admitted to its fault and according to a statement by its spokeswoman; it has been fixing the problem on its own. However this has not been the first time that the bank has resorted to such foreclosure tricks.
The previous year BofA, in a foreclosing process, had turned off the power and locked out a Texan homeowner. BofA had to finally concede to the fact that the house was actually owned by Alan Schroit, but he in the meanwhile he had to return to his house to find that 75 pounds of fish lay spoiled in his fridge.
The bank in the year 2009 went even further when it locked out Angela Ianelli, a homeowner in the Pittsburgh area who always paid her mortgage on proper time. In addition to this the bank even shut off her utilities and took away her parrot which she kept as a pet. She decided to sue the bank which coaxed an apology from it due to the harassment its mistake had caused. However the bank must be very proud of itself for targeting a person with actual mortgage.
The response that BofA gives each time such cases happen, seem to point to the fact that such mistakes are commonplace.
In the case of Schroit a spokeswoman said, “We sincerely apologize to the homeowners affected for the confusion and stress these errors have caused. We are working aggressively to improve our process through formal training, enhanced checklists and improved communication.”
It does not seem enough though. As Barry Ritholtz remarks in his blog, the banks will learn only if big judgments are lost in the court by them as seen in the Schroit case where a compensation was demanded that would “to deter BOA’s arrogance.”