Bank of America Sues Itself

April 13, 2012

Here we go again. First, as CWN reported in 2009,  Wells Fargo Sued Itself.  Now, it’s Bank of America’s turn.  Dow Jones Business Columnist and blogger Al Lewis flagged us to this latest nonsensical undertaking in the wacky world of foreclosures.

Essentially, Bank of America is foreclosing on a property on which it services the loan for an investor and holds a second mortgage. Uh-oh, that creates a bit of a conflict. What to do?  Let’s sue ourselves, of course. The company is literally seeking damages from itself in order to foreclose on a condo owner.  The Huffington Post’s Zach Carter lays out all the details here, if you’re interested.

For Bank of America, this is actually not the first time it’s sued itself in a foreclosure case.  The company has done so at least 11 times in Palm Beach County. “Naming the second-lien holder in the suit is necessary to eliminate the junior interest,” Bank of America spokeswoman Jumana Bauwens told the Huffington Post.

Back when Wells Fargo sued itself, Dow Jones Columnist Al Lewis opined, “It takes some pretty shameless lawyers and a rich culture of corporate stupidity for a company to sue itself.”

I guess not much has changed.