When in Doubt... Sue Yourself!

July 16th, 2009 by 
PK

Before I read this article, I could not imagine a scenario which would lead a company to sue itself.  Yes; you read that correctly.  Wells Fargo is suing itself in Florida in order to facilitate the foreclosure of a property in which it has multiple liens.

How Could This Happen?

Sue Yourself!  From Carolyn Coles
From your left to your right pocket? From Carolyn Coles

Wells Fargo happens to have the first mortgage, and therefore the first lien on the condominium in question (it's located in Sarasota, FL).  It also has a second lien on the property.  Florida law maintains that to foreclose on a house, the holder of the first lien has to notify all holders of second liens.  That's where Wells Fargo comes in... again.  Wells even had to hire a different law firm for their first lien (Florida Default Law Group., P.L.) than the firm for their second lien (Kass, Shuler, Solomon, Spector, Foyle & Singer P.A.).

Too Big to... Who Knows?

This story was broken by Angie Moreschi of the Consumer Warning Network.  See the original post here.  The comments in her post are enlightening, and include a statement from Kevin Waetke, Communications Manager of Wells Fargo:

“Due to state foreclosure laws, lenders are obligated to name and notify subordinate lien holders — as well as all parties with an interest in a property — as a property moves through the foreclosure process. The primary reason is to clear title and ownership interest in a property to prepare it for sale.”

Crazy.  I don't even know what to think of this, except to laugh.  What do you think?

Seagull thumbnail sourced from www.flickr.com/photos/9146943@N06/2093839429, shot by Nancy.
      

PK

PK started DQYDJ in 2009 to research and discuss finance and investing and help answer financial questions. He's expanded DQYDJ to build visualizations, calculators, and interactive tools.

PK is in his mid-30s and works and lives in the Bay Area with his wife, two kids, and dog.

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