Bank of America is trying to foreclose on a property in Florida that doesn’t even have a mortgage and was purchased for cash. Barry Ritholtz writes:

Freeze the Florida foreclosure mills. IF A COURT CAN FORECLOSE ON A HOUSE WITHOUT A MORTGAGE, THERE IS SOMETHING TERRIBLY FATALLY WRONG WITH THAT COURT SYSTEM. They are administratively incompetent, and until they demonstrate they are not renegade organized criminals (i.e., have some basic competency), they must freeze what they are doing.

No kidding.

I think this, like the Ally/GMAC foreclosure fraud that has been recently uncovered, is a good example of the dangers of a system in collapse. The banks are trying to process so many foreclosures, including in situations where it is unclear who owns the mortgage and if a foreclosure is in order, that mistakes unto criminality are surely taking place. It’s hard to believe that the titans of the finance industry are this incompetent by accident.

One thought on “Epic FAIL

  1. Actually the incompetence is not really incompetence as such, but is a function of the fact that managing the assets through their packaging and securitization was always an expense that was easy to cut corners on. The mortgage backed securities industry always assumed that there was no down side – home values would always rise, foreclosures would always be a nominal percentage. Instead of investing in the rigorous documentation and maintainance of these records, the way that the Wall Street banks that handled this process, permitted them to distribute much larger profits and bonuses to themselves . The folks that got the big bucks are now long gone and no one is looking to them to fund the expense of cleaning up the mess – that is for the little people and the taxpayers. This is just one more example of how the absence of regulation (and not just absence – vehement opposition to it in any form) leads t0 ordinary citizens subsidizing the profits of the major financial institutions and the bankers’ bonuses. The inability of the Democratic Party to articulate this in a clear and direct way coupled with the instant amnesia of the mainstream media presents us with the horrifying prospect of the Republicans being voted back into office just two years after being thrown out for their driving the economy into the ditch and prosecution of two unnecssary wars.


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