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Man without Mortgage Loses Home in Foreclosure

Posted By Barry Ritholtz On September 23, 2010 @ 7:03 am In Foreclosures,Legal,Real Estate,Really, really bad calls | Comments Disabled

From today’s WTF file, the Florida Mortgage Mill Machinery, hard at work:

“When Jason Grodensky bought his modest Fort Lauderdale home last December, he paid cash. But seven months later, he was surprised to learn that Bank of America had foreclosed on the house, even though Grodensky did not have a mortgage.

Grodensky knew nothing about the foreclosure until July, when he learned that the title to his home had been transferred to a government-backed lender. “I feel like I’m hanging in the wind and I’m scared to death,” said Grodensky. “How did some attorney put through a foreclosure illegally?”

Bank of America has acknowledged the error and will correct it at its own expense, said spokeswoman Jumana Bauwens.”

Please. sue. these. bastards.

Oh, it gets even worse:

Court records show Countrywide Home Loans filed a foreclosure case in Broward County civil court against the former owner of the home on Southwest 14th Street in 2008. Bank of America took over Countrywide at the end of that year.

The following year, Grodensky and his father Steven bought the house for cash as an investment property. Jason Grodensky’s brother Kenny Sloan lives in the house now. They negotiated a short sale, which means the lender agreed to accept less than the mortgage amount. Documents show the sale proceeds were wired to Bank of America. The sale was recorded in December 2009 at the Broward County Property Appraiser’s Office.

But in court, the foreclosure case continued, the records show. There was a motion to dismiss the case in July, followed the next day by a motion to re-open it. A court-ordered foreclosure sale took place July 15. The property appraiser’s office recorded the transfer of the title to the Federal National Mortgage Association (Fannie Mae) the same day.

What unmitigated incompetence. Here is how to make this right

1. The attorney of record on this case should be suspended from the practice of law for 6 -12 months;

2. Sue the fuckers Bank of America. For your lost time, inconvenience, emotional toll, damage to credit ratings, etc.

The only way you can stop really bad corporate activities is by making it cost them money. Whack them for a few million dollars, and you will see less of this sort of egregious behavior.

3. 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.

4. The US Attorney General’s office should be looking into this disaster

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Thanks, Clint!

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Source:
Man’s home sold out from under him in foreclosure mistake [1]
Harriet Johnson Brackey,
Sun Sentinel, September 22, 2010 
http://www.sun-sentinel.com/business/fl-wrongful-foreclosure-0922-20100921,0,36776.story


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[1] Man’s home sold out from under him in foreclosure mistake: http://www.sun-sentinel.com/business/fl-wrongful-foreclosure-0922-20100921,0,36776.story

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