Wall Street Foreclosure Fraud Gone Wild — Bank of America Forecloses On Man Who Has No Mortgage


A few days ago I reported Federal Judges have finally started cracking down on Wall Street banks committing widespread mortgage foreclosure fraud.

3 different cases finding Wall Street bankers committing mortgage foreclosure fraud in the last month. Among the culprits U.S bank, GMAC, JPMorgan, Chase and WAMU.

Amazing… Everyone of these banks held out their hands for TAXPAYER bailout money.

Now that the tables are turned they are all committing fraud to foreclose on people’s homes.

I followed up on that story with even more fraudulent Wall Street Foreclosure Fraud which has halted banks from Foreclosing on homes in 23 states.

But Just How Bad Is Wall Street Foreclosure Fraud?

Boing Boing helps us answer the question in the article Bank of America forecloses on a man who has no mortgage.

Jason Grodensky, a Fort Lauderdale man who bought his house with cash last December was surprised to discover that Bank of America had foreclosed on him, though he has no mortgage. Florida’s foreclosure mills being what they are, the checks and balances against erroneous foreclosure have eroded to the point where banks can seize and sell homes they have no interest in.

Grodensky’s story and other tales of foreclosure mistakes started popping up recently across South Florida. This week, GMAC Mortgage – one of the nation’s largest mortgage servicers and a major mortgage lender – told real estate agents to stop evicting residents and suspend sales of properties that had been taken from homeowners in foreclosure. The company said it might have to “correct” some of its foreclosures, but was not halting those in process.

And the legal efforts required to resolve a foreclosure mistake are complicated. “Unwrapping it is like unwrapping Fort Knox,” said Carol Asbury, a Fort Lauderdale foreclosure attorney. “It’s very difficult.”

That’s right. As the Sun Sentinel reports this man’s home was sold out from under him even though there was not mortgage on his home and he bought his house with cash.

When Jason Grodensky bought his modest Fort Lauderdale home in 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. Plenty of people do have a mortgage for their house though, people can even calculate what you could release if they use it for equity when they are older. However, in this instance, the man 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. He states if he had known he would have used a bridging loan calculator in order to find a way to repay what he owed. “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.

Imagine that.

Living in your home which you own free and clear.

Then you find out you are being evicted and the deed to your house has been transferred to some government backed lender.

When you ask for answers information is locked down as tight as Fort Knox and no one will give you any answers on how it happened.

Only in America.

Ultimately, as this story demonstrates, navigating the real estate sector in the USA can be difficult at the best of times. This is particularly true for rental property owners who can encounter numerous complications when trying to sell their properties.

Consequently, if you are in the process of trying to sell a rental property there are some useful resources on the Roofstock website that might be helpful.

Above all, where real estate is concerned, be sure to always do your research and seek expert legal and real estate advice if necessary.

Thumbnail credit: Jason Grodensky had bought the Fort Lauderdale home with cash last December, then says his home was sold out from under him. (Robert Duyos, Sun Sentinel / September 19, 2010)

Categories: ECONOMY

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