WASHINGTON -- Bank of America is suing itself for foreclosure.
"It's crazy," housing data analyst Michael Olenick told HuffPost. "They shouldn't be suing themselves."
Over the
past two years, the nation's largest banks and the Obama administration have
repeatedly vowed to clean up the foreclosure fraud mess. In February, banks
agreed to pay $25 billion and overhaul their foreclosure processes as part of a
50-state investigation into bank wrongdoing, resulting from practices that
included robo-signing.
But in
Florida's Palm Beach County alone, Bank of America has sued itself for
foreclosure 11 times since late March, according to foreclosure fraud activist Lynn Szymoniak, who forwarded one such foreclosure filing,
dated March 29, 2012, to The Huffington Post. (A white-collar crime expert,
Szymoniak was recently awarded $18 million for her work helping the government
recover $95 million as a result of bank foreclosure problems in North
Carolina.)
In the March 29 filing, Bank of America is seeking to foreclose on a condominium and names the condo owner and Bank of America as defendants in the suit. The company is literally seeking damages from itself in order to foreclose on the condo owner.
"We are servicing the first mortgage on behalf of an investor and we own the second mortgage," Bank of America spokeswoman Jumana Bauwens told HuffPost. "Naming the second-lien holder in the suit is necessary to eliminate the junior interest," Bauwens said.
Read on.
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