Banks Gone Wild! Now Wells Fargo sues... itself!

[mwooldri]

I visit another "forum", where it's news for nerds.... well I like the site.

I think it should be posted here too: though the article they reference comes from Faux Business...

http://www.foxbusiness.com/story/markets/al-lewis-wells-fargo-bank-sues/

Basically it goes like this: Condominium defaults on its mortgage payments, the condo has a 1st & 2nd mortgage, both issued by Wells Fargo. Lawyers administering the 1st mortgage sue all lienholders - i.e. itself on the 2nd. Wells Fargo has retained lawyers for both mortgages and filed suit as Wells Fargo vs Wells Fargo.

Isn't this absolutely stupid? Congratulations guys, this is your bailout money at work!

Mark.

[BlooInBloo]

1. A lien against itself cannot stand!

[flvegan]

2. Nope, they have to do this.

If Wells holds the first and second, the lien in first priority must name the inferior interest to wipe it out. The paper COULD change hands, and amending the Complaint midstream would be dumb.

Additionally, if the property goes to a third party bidder at the sale, any funds over the final judgment may go to remaining creditors, ie the 2nd loan. Erego, they stand to get funds.

At least, this is the case in Florida.

The style is actually going to be Wells Fargo v Owners, Owners' unknown spouse/co-tenant, Wells Fargo, Condo Assn, Any other lien holder(s), and unknown tenants in possession.

[transeo]

3. Jarndyce v. Jarndyce?

It's been a long time since I revisited this story, but aren't the lawyers in Dickens' "Bleak House" simply perpetuating a lawsuit to perpetuate a lawsuit and drain the coffers of the Jarndyce fortune? Seems apt.