Banking Law

The good news never ends when Bank of America's enemies put their ear to the ground. That stumbling and bumbling they hear are the sounds of a blind bull in a Waterford crystal palace after its just consumed loco weed.

The latest foreclosure faux pas from BofA is distressingly similar to other incidents we've posted about (most recently here and here). In the alternative universe in which this behemoth bank lives, not actually having a mortgage lien on a piece of property is no bar to foreclosing the nonexistent lien. As to facts, BofA's motto is: "Facts? We don't need no stinkin' facts!"

Nancy Willmes paid cash for her Tuolumne home in 2001. So she was quite surprised when Bank of America send her a notice of default on the property in February.

"I honestly felt like Bank of America was trying to steal my property," Willmes said.

As the article relates, Ms. Willmes obtained chain-of-title documents that clearly demonstrated that Bank of America had no interest in the property, much less a mortgage lien. She even had a title company contact the bank and verify that Ms. Willmes owned the property free and clear. The bank cared not a farthing for the facts. With idiotic bureaucrats like that in charge of the foreclosure process, who can't be bothered to deviate from their grossly incorrect perceptions because that might require them to put forth the wattage of brain power required to propel a toothpick around the inside circumference of a tomato can, you'd swear you were dealing with a federal government agency. But, no, this is private enterprise at its finest, folks.

So, how did our hapless heroine finally derail this steaming locomotive of stupidity and arrogance? The way any self-respecting champion of truth, justice, and the American Way gets anything done: she called the local television station's consumer hotline, whose sole mission in life is to embarrass hide-bound woolly mammoths like the Bank of America until they start acting like they might possess an ounce of common sense.

Poof! Ms. Willmes suddenly exists!

Willmes said that's when Bank of America began returning her phone calls.

The bank rescinded the notice of trustee sale, stopping the foreclosure. In a statement to KCRA 3, Bank of America said the problem was a system error. It said it updated its records and canceled the sale.

"System error." Unfortunately, that's what critics of the entire commercial banking system in this country have been saying for the past several years. Stories like this do nothing but stoke the anger of the bootless and unhorsed.

I do have a two-word suggestion for Ms. Willmes, as to her future banking relationships: "community banks."

(Hat tip to American Banking & Market News)