Econintersect: The mortgage foreclosure crisis has finally hit home. Bank of America has been subjected to a foreclosure action because of failure to compensate wrongfully processed homeowners who owned their home outright. When the bank failed to make court ordered payment for homeowner legal fees the homeowner completed a foreclosure action against a local bank branch office in Collier County, Florida.From Naked Capitalism:
Bank of America tried to foreclose upon the home of a Florida couple who had paid cash for their house and therefore did not have a mortgage. The wronged pair not only got the suit dismissed, but the judge awarded them legal fees. After five months of Bank of America ignoring letters and calls to the bank about their failure to pay up, their lawyer foreclosed a BofA branch.
Sources: Naked Capitalism and News Greensboro North Carolina
A big hat tip to Naked Capitalism for the newsclip video from CBS affiliate WFMY in Greensboro, NC.
