Bank Of America's 5 Greatest Foreclosure F*#!-Ups

Earlier today, when Bank of America said it was halting foreclosure sales in all 50 states, we decided to take a stroll down memory lane to revisit the wide array of foreclosure disasters that BofA has perpetrated on the homeowning public in just the year or so.

1. Aug. 2010: BofA Tries To Foreclose On Couple With Current Mortgage

Even though they have made every payment in full and on time, Bank of America sent one couple a letter asking them for the deed to their house….

Bank of America said sending the letter was an accident, the folks were completely current on their mortgage, and they would be looking into what caused the error.

2. Sept. 2010: BofA Forecloses On Man’s House, Even Though He Has No Mortgage

Bank of America stole Jason’s house from him, putting it through foreclosure even though he has no mortgage, with them or anyone, and he paid for it in cash.

3. Oct. 2009: Bank Of America Seizes Wrong House, Causes Big Stink. No, Really.

Bank of America screwed up and seized a vacation home that didn’t belong to them. They also changed the locks and shut off the power, leaving 75 pounds of salmon and halibut rotting for a week before it was discovered.

4. March 2010: Bank Of America Seizes Wrong House, Holds Parrot Hostage

After mistakenly believing that the property was in default, BoA instructed Snyder Property Services to “enter, seize, padlock, ‘winterize’ and take possession” of the plaintiff’s home. This included turning off the water, cutting power lines, filling her drains with antifreeze… and confiscating her parrot.

5. Jan. 2010: Not Having A Mortgage Doesn’t Stop Bank Of America From Foreclosing

Charlie and Maria Cardoso managed to do something few homeowners can: They own their vacation home in Florida outright, with no mortgage. But that didn’t stop Bank of America from kicking out a tenant who was renting the house, tossing out the Cardosos’ possessions, and, yes, foreclosing on the debt-free home.

FURTHER READING:
Data Shows Horrifying Bank Of America Refinance Story Actually Typical
Banks Gone Amok, Unlawfully Foreclosing

Comments

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  1. Mecharine says:

    So how did #5 turn out?

    • keepntabs says:

      They eventually regained possession of the property, because the man broke down a back door. B of A still is in the process of clearing up the manner, and is in litigation with the Cordoso’s attorney.

    • kc2idf says:

      The World Wide Web uses a wonderful technology called “Hypertext” implemented using a tool called “Hypertext Markup Language” or “HTML”. Look at the top of your screen, and you will see that the extension of the file you are now viewing on Consumerist has the extension “.html” indicating that it is of this variety.

      What makes hypertext (and by extension, HTML) special is that it is possible to highlight certain terms as “links” which replace the cross-references of old. By merely placing the cursor controlled by your mouse upon one of these “links”, and pressing the left mouse button (or the single mouse button if you use an Apple computer), one is quickly shuttled off to the article cross-referenced by the link, without any tedious turning of pages and searching for the page with the correct number in the corner.

      Web sites may, of course, customize the appearance of links in order to suit the aesthetics of the web site. Here on the consumerist, links appear in a sort of dark-red colour. You may, at this point, observe that the words “Not Having A Mortgage Doesn’t Stop Bank Of America From Foreclosing” above the text for item #5 are rendered in such a colour. You may further observe that by placing the pointer controlled by your mouse over these words, and pressing the left mouse button (or single mouse button if you use an Apple computer), that you are quickly shuttled off to the original article about this particular incident, in which you will find the following paragraph, amongst others:

      In order to take back his home, Cardoso had to drive from his home in Massachusetts, convince police that he was the rightful owner of the vaction house, and break down the door. When he finally got in, he found that the pipes had frozen, his power tools were gone, and the water and electricity had been turned off.

      • Hobz says:

        Ahhh Mr. Smarty Pants… I will ask the same question. How did #5 turn out?

        Did he get anything from BofA?

        Did BofA admit they were wrong?

        What happened to the mother and her two sons?

  2. Daverson says:

    Limiting it to five took great restraint.

  3. Buckus says:

    I’m waiting until they foreclose on the White House. Maybe that will make the government pay attention.

    • Loias supports harsher punishments against corporations says:

      Maybe a BoA vigilante employee can find a way to create some paperwork to forclose on 1600 Pennsylvania Avenue NW Washington, DC 20500. He would be my hero.

    • oldwiz65 says:

      BofA contributes enough money (ie bribes) to the Congressmen that they don’t have to worry about getting the government on their case for screwing customers (and non-customers). BofA goes on the theory that they never make mistakes, and if they do, they pay enough to the government so they can get away with it. The government lets them do it since they need the money from gifts for their lifestyles and election campaigns. The only time the govt cares about voters is when an election is coming near, otherwise they don’t give a rats tushie.

    • Paintmann says:

      I’m actually waiting for them to try for foreclose on some congressman or senator. We’ll see how fast the re-regulation of the banks comes to pass…

    • Sys Admn says:

      Don’t be silly. They already own it, and congress.

  4. Thyme for an edit button says:

    Needs that picture of the “We have a thief in the neighborhood” sign.

  5. DrStarkweather says:

    Im wondering how all this is going to affect people who want to buy a foreclosed home, or people who have been foreclosed on, but the property isnt yet out of the 6 month “wait a minute” period after they foreclose.

    • MadConsumer says:

      Many people bought foreclosed homes, thinking they own them, but they don’t! That is the second part of the mess yet to be discussed

  6. catnapped says:

    “BUT BUT BUT in all these cases it was SOMEHOW the victim’s fault! What a biased nonsense story!”

  7. sonneillon says:

    If Bank of America had hired me as a property preservation agent then those mistakes wouldn’t have happened. Crap help gives crap results.

    • BuyerOfGoods3 says:

      Amen to that!!

    • Difdi says:

      Odds are you’d have been fired for it too.

      Due diligence equals low metrics. Low metrics equal termination of employment.

      • sonneillon says:

        there are only 2 metrics that the banks I work with care about. Accuracy and timeliness. I’m good with both, but what works with one group doesn’t always work with others.

  8. Hitchcock says:

    I’d love to see some follow up on these stories.

    • The Lone Gunman says:

      Good luck with that. I strongly suspect that BoA will have folks signing binding agreements that prevent the details of any settlement from seeing the light of day.

  9. pearlysweetcake says:

    Eeeesh…no wonder nobody ever questions my decision to pay a little more in interest to keep my mortgage from being held by some giant faceless multinational corporation. AHFC + small local bank FTW!

    • Thyme for an edit button says:

      I don’t think the fact that you don’t have a mortgage with BofA would necessarily stop them from foreclosing anyway.

    • tbax929 says:

      It’s not uncommon for loans from those small banks to be sold to larger banks. Many of us with B of A mortgages didn’t actually stat out with them as the lender.

    • Omali says:

      If you hadn’t noticed from the list, not owning a mortgage through Bank of America won’t stop them from foreclosing and murdering your pets.

  10. runswithscissors says:

    IF THEY DIDN’T WANT TO GET FORECLOSED ON THEY SHOULDN’T HAVE BOUGHT MORE HOUSE THAN THEY COULD AFFORD! MCMANSIONS! WALMART SALARY! SOCIALISM!

  11. Jasen says:

    I suppose I should be scared that BoA currently holds my mortgage.
    They’re obviously not competent.

  12. mszabo says:

    The problem with these stories from an observation point of view is we never really get to hear the ending. I would love to see this article run again in a year or whenever the lawsuits finish up and see the score.

  13. Happy Tinfoil Cat says:

    BoA has been taking money for a tax escrow and we just found out today, they haven’t paid a cent of the property tax for years. I hope it’s not true… we’ll see Monday.

    • GearheadGeek says:

      That could be fun… there are usually fairly stringent requirements on escrowed money, though I’m sure requirements and penalties vary significantly by state. Odds are they were paying some other tax account with your money and it’ll be great fun to figure out.

    • Sudonum says:

      Don’t you get annual statements on the escrow account from BofA and an annual property tax statement from your local tax assessor?

  14. dadelus says:

    Bank Of America’s 5 Greatest Foreclosure F*ck-Ups…

    That we know of.

  15. SassySoy says:

    I really hope the Consumerist keeps up on the trials for all of these. I really want to hear about how far people can shove their foot up BoAs ass. lol
    Wow, when you fuck up this bad, you deserve to get sued.

  16. tailspin says:

    How in the world do you foreclose on a property not ever mortgaged by B of A? How is is even in their system — is it a case of someone making a clerical error and typing a digit wrong somewhere? That’s just beyond awful.

    • Jasen says:

      Yes, exactly. Either the wrong address was used through the entire court process, or was given to the people responsible for physically securing the property.
      Notice, that all of these examples were where the property owners were not present when everything went down.
      Just imagine how many wrong-foreclosures might have almost happened, in cases where the homeowners were actually there to protest and set things right before anyone was allowed to walk in and change the locks. These four are just the ones that made it this far.

  17. coffee412 says:

    All this doesnt suprise me a bit. This is what happens when you run scared and say “We have to bail out these failing companies”. There is a reason that companies fail and this is the best reason yet why you should let them fail. In the short term it hurts for unemployment and such but the alternative effect is MUCH worse. The only lesson you should learn from this is not to bail out failing companies. Now lets sit and watch to see what Goverment Motors does. People, You need to learn from this! Personally, I hope BofA gets sued big time!

  18. MurderGirl says:

    What we really need is an ambitious US Attorney to drop a RICO suit on BoA.

    • OutPastPluto says:

      > What we really need is an ambitious US Attorney to drop a RICO suit on BoA.

      It doesn’t have to be a government employee. A garden variety ambulance chaser could do this.

  19. Urgleglurk says:

    One of these days, one of these guys/gals punching out the locks on the wrong house is going to get his/her a$$ blown off by a frightened homeowner. I wouldn’t expect BoA to carry insurance for the repossessors, either.

  20. CrazyClover says:

    If someone unwanted knocked my door in I can’t say how that would turn out. I would hope they announced themselves first. Seems like a bad way to do business