In a story dated July 10 on Fox Business, it was reported that Wells Fargo Bank has filed suit against Wells Fargo Bank? Huh? A bank is suing itself? The story relates how the bank is holder of both first and second liens on a property now in foreclosure.
Since foreclosure laws require lenders to name and notify subordinate lien holders, Wells Fargo, one of the banks receiving billions of TARP money, has decided to hire one law firm to file suit against itself and another to defend the case. While the bank is required to clear the title in preparation for sale, suing itself seems about as ridiculous as the sometimes loose lending practices that precipitated this mess.
The good news is that the TARP money won’t be wasted; it will go to deserving attorneys : )
Source: FoxBusiness
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