Homeowners Foreclose on Bank

Warren and Maureen Nyerges of Collier County, Florida, didn't owe a single cent on their house, but that didn't stop Bank of America from trying to foreclose on it. The Nyerges fought it in court, and won. The court ordered Bank of America to pay court costs and attorneys' fees, which they didn't. So the Nyerges foreclosed on the bank:

Sheriff's deputies, movers, and the Nyergers' attorney went to the bank and foreclosed on it. The attorney gave instructions to to remove desks, computers, copiers, filing cabinets and any cash in the teller's drawers.

After about an hour of being locked out of the bank, the bank manager handed the attorney a check for the legal fees.


Link via The Volokh Conspiracy | Photo (unrelated) via Flickr user taberandrew used under Creative Commons license

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@jason123, you'd think there'd be some legal way to get papers made showing you were th owner of the house if the bank couldn't show they owned the home. It may take years but it'd be worth it.
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Take note that a lot of banks who were saved from going bankrupt with taxpayers money are still paying millions in bonuses for their employees. Business as usual.
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I was discussing one of the cases where the bank lost the mortgage paperwork with a friend who use to rate the packaged loans for trading. His take was that while the bank might never be able to prove the homeowner owed them money, it would be near impossible to sell the property since they couldn't get a clear title and it would be unlikely any title insurance company would issue a policy for the property. I'm guessing he's partially correct and that you'd have to knock a huge percentage off the sale price to protect the buyer from the possibility of the bank one day finding the mortgage paperwork.

For what it's worth, my friend got out of the business about two years before the collapse when it became apparent to him that the whole thing was a bunch of BS and ready to explode.
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More - more!
From what I understand from this side of the pond, some American banks are unable to actually prove their holdings, having shuffled the pack so thoroughly. This should be their come-uppance.
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