Wednesday, July 15, 2009
Wells Fargo Sues Itself In Mortgage Foreclosure Case
Okay, just when you thought things in the mortgage industry couldn't get any more insane... Wells Fargo files a lawsuit against itself. That's right, Wells Fargo Bank NA v. Wells Fargo Bank NA.
Apparently, the lawsuit is related to a mortgage foreclosure case in Hillsborough County, Florida. Wells Fargo spokesman, Kevin Waetke reportedly said, "The primary reason is to clear title and ownership interest in a property to prepare it for sale".
Personally, I've never found it necessary to sue myself in order to prepare a property for sale. But then I've also never been dumb enough to give both a first mortgage and second mortgage to the same person on the same house either. So I guess it makes perfect sense if you're a "too big to fail" lending institution like Wells Fargo. You know, the kind where the right hand doesn't know what the left hand is doing so they end up hiring lawyers to sue themselves, and then have to hire lawyers to defend themselves too. Who knows, it might be a brilliant legal strategy because even if Wells Fargo loses, they also win! But then even if they win, they also lose.
The biggest losers here are the taxpayers who bailed this company out thinking it was "too big to fail". Sometimes stupidity needs to be allowed to fail. If Wells Fargo has nothing better to do with the BILLIONS of taxpayer dollars they received under the recent government bailout (TARP), why don't they just pay it all back?
Posted by Shannon Hubbard, AZ Realtor & Computer Guru on July 15, 2009 | Permalink
this is unbelievable how wasteful these banks are. wells fargo got $25 billion in tarp funds and they continue to make one bad decision after another. they're not too big to fail. let them.
Posted by: tony v | Jul 15, 2009 4:13:01 PM
Tarp was a scam for government to take control of banks. Here's a link to a funny video with the Tarp song:
Posted by: Aaron, phoenix | Jul 15, 2009 5:39:11 PM
I'm not sure about that...
Posted by: Vince123456 | Jul 16, 2009 12:07:49 AM
I agree that TARP was a big scam - maybe it wasn't intended to take over banks but it was also not intended to help "Main Street" like they said when they were trying to sell the idea. And here we are $700+ Billion later and banks are still not lending, foreclosures are at a record high and unemployment has nearly doubled. So much for Main Street. Gov't has bailed out everybody else and now wants Main Street to pay for it.
Posted by: Voice of reason | Jul 16, 2009 12:34:04 PM
you really cannot make this stuff up
Posted by: seriously | Jul 16, 2009 7:48:24 PM
Wells Fargo had a business practice of giving an equity line with their mortgages. It is a second mortgage and is a different division than the first mortgage. They called it the 80-20, which was 80% first and a 20% second. These are the ones giving them problems. Basically 100% financing.
Posted by: Richard Stabile Bergen County Real Estate | Jul 23, 2009 12:48:03 PM
The TARP monies are all just a joke. This is a prime example of it.
Posted by: Alexandria Homes for Sale - Ellen Crawford | Jul 30, 2009 1:46:50 PM
Wow, this is such a strange case, sues itself? first time I heard of something like this
Posted by: Andy McDonald | Jul 31, 2009 10:51:31 AM
Wow, haha the world is going crazy.. Why would you sue yourself? Doesn't make any sense to me...
Posted by: Arizona Pool Service | Aug 13, 2009 10:25:37 PM
Well writtn article. Keep it up
Posted by: Ralph D Bredahl | Aug 29, 2009 9:01:01 AM
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