An Ohio Bank Accidentally Foreclosed the Wrong House

[MechAg94]

http://www.clevescene.com/scene-and-heard/archives/2013/07/24/an-ohio-bank-accidentally-foreclosed-the-wrong-house-and-repossessed-all-of-the-owners-stuff

I saw some discussion of this on another forum and thought this deserved mention here. 

A women goes on vacation and comes back find the door locks changed and all her stuff gone.  She later finds out a local bank foreclosed on the wrong house, already resold all her stuff, and the police drop the investigation saying it wasn't criminal. 

I was really kind of wondering what would happen if she had some guns and ammo.  Would the bank resell those also or involve the police?

[Hawkmoon]

I saw that elsewhere, too. I disagree with the police. It WAS criminal. Someone forced their way into her home, without her permission, removed her possessions, and sold them. There are laws that describe that sort of activity, and I believe they generally fall under the category of burglary. Given the dollar amount, I'd guess we're talking felony.

She needs to have a criminal lawyer chat up the police chief.

[Lee]

I think she will soon look like the surprised and happy Monopoly game guy that the bank is handing a wad of cash- 'Bank error in your favor'.

[Regolith]

I think she will soon look like the surprised and happy Monopoly game guy that the bank is handing a wad of cash- 'Bank error in your favor'.

Nope. She tried to get the bank to cough up $18,000 to pay for her lost items. Bank thought that she was lying about how much her stuff was worth and wanted to see receipts...you know, something most people don't keep and even if they did would have been with the stuff the bank stole.

She's retained a lawyer and is going to sue. I wonder if the idiots at the bank realize that they made a multimillion dollar mistake, because I wouldn't be surprised if that's how much she eventually recovers.

[roo_ster]

Why should corporations be shielded from the consequences of actions that, if a private citizen were to commit, would be considered illegal and prosecuted most places?

[MechAg94]

Nope. She tried to get the bank to cough up $18,000 to pay for her lost items. Bank thought that she was lying about how much her stuff was worth and wanted to see receipts...you know, something most people don't keep and even if they did would have been with the stuff the bank stole.

She's retained a lawyer and is going to sue. I wonder if the idiots at the bank realize that they made a multimillion dollar mistake, because I wouldn't be surprised if that's how much she eventually recovers.

The problem I saw discussed was that many states put limits on punitive damages without negligent intent.  If she can't show some sort of negligence or bad intent, she may only be able to get her $18K plus some small multiple of that in punitive damages. 

[MechAg94]

Related to my last post, I do think the bank (with a small amount of effort) could easily make good on this lady's problems.  Surely they do business with local funiture companies and could arrange to get her new furniture at near cost.  I have heard new furniture is marked up as much as 400%.  They could probably arrange to get her house set up, then pay her a small amount to make up for small items and come out much cheaper than $18K with both sides happy.  However, that would require some effort on the bank's part. 

Also, the repo group ought to have some records of the abandoned property they confiscated (at least some of it).  I think someone asked if that state required them to hold abandoned property for a period of time before disposing of it. 

[AZRedhawk44]

I pay my mortgage in a timely manner every month.  And I work from home.

If this happened to me, there would be a very forceful denial of entry coupled with a promise of impending gunplay for burglary and grand larceny and fraud if any further attempts are made to enter the property, and grand larceny and fraud are going to be pursued no matter what.  The most annoying and successful libertarian lawyer in the state of AZ is programmed into my phone.

I've got my mortgage statements for the last 4+ years in a filing cabinet and can prove no negligence.

[MechAg94]

She was paid up on her mortgage also.  Her mortgage was with a different bank.  This bank and repo people they hired repossessed the wrong house.  How they managed to make that mistake I have no idea.  Someone in the process was responsible for verifying the location of the home to be repossessed.  They screwed up.

[Tallpine]

She was paid up on her mortgage also.  Her mortgage was with a different bank.  This bank and repo people they hired repossessed the wrong house.  How they managed to make that mistake I have no idea.  Someone in the process was responsible for verifying the location of the home to be repossessed.  They screwed up.

Well, the cops do it all the time.  So why not the banks? 

[slugcatcher]

One of the clues the repomen used was that her grass was high so it must be the abandonded home.  They also blamed their gps for bringing them to the wrong house which was across the street from the actual repo.   The reporter used a gps and it took him to the correct house.  The bank president laughed at her when she handed him the bill and he told her wasn't paying new replacement costs for used items.  Behaviour like that is what gives businesses and banks a bad name.  I do think when all is said and done it will cost the bank a wee bit more than $18K.

[MechAg94]

Blaming GPS and long grass is not good enough.  Those should not be the methods used to determine which house they break into for repossession.  If that is all they can say, I would think a lawyer could easily show negligence. 

[41magsnub]

What I have a hard time with is both the repo company and the bank should have insurance for this sort of thing, right?  Wouldn't the issue be ultimately between the homeowner and those insurance agencies?

Regardless, dick move by the bank.  They should be falling all over themselves trying to make this right.

[HankB]

The bank should be falling over themselves to settle.

If this case gets to trial with an actual jury . . . the lady may end up owning a bank. (As a homeowner, I know how I would vote were I on the jury.)

[Monkeyleg]

The problem I saw discussed was that many states put limits on punitive damages without negligent intent.  If she can't show some sort of negligence or bad intent, she may only be able to get her $18K plus some small multiple of that in punitive damages. 

What about emotional distress? I'm sure there was a ton of that.

[Gowen]

I read of a case like this in Florida and the person go a judgment against the bank.  The bank never paid so they got the county sheriff to foreclose on the bank branch(something like that).  The sheriff kicked everyone out and turned possession over to the person.

[HankB]

I read of a case like this in Florida and the person go a judgment against the bank.  The bank never paid so they got the county sheriff to foreclose on the bank branch(something like that).  The sheriff kicked everyone out and turned possession over to the person.

Sounds right and proper. (Wonder who got custody of the vault and safety deposit box contents?)

[41magsnub]

I read of a case like this in Florida and the person go a judgment against the bank.  The bank never paid so they got the county sheriff to foreclose on the bank branch(something like that).  The sheriff kicked everyone out and turned possession over to the person.

I remember this one.  What happened is they showed up with the sheriff to foreclose.  The branch manager was magically able to cough up a check for the money owed right then so it didn't go any further.

[RevDisk]

I hope she "negotiates" just long enough to prove that she tried to be reasonable, and Evil Bank still won't pay for what it stole from her. I sincerely hope she takes them to the cleaners. I concur with Rooster. If it's illegal for an individual, it should be illegal for a corporation. B&E, theft, etc.

[erictank]

I hope she "negotiates" just long enough to prove that she tried to be reasonable, and Evil Bank still won't pay for what it stole from her. I sincerely hope she takes them to the cleaners. I concur with Rooster. If it's illegal for an individual, it should be illegal for a corporation. B&E, theft, etc.

She's already negotiated more than she should have to - she showed that her house was not the one the bank should have taken action against, and asked for them to pay to replace the personal belongings she had stolen from her through the bank's actions, an incredibly-modest sum in point of fact. They had their chance to be reasonable, and chose to laugh in her face. Time for her to collect what she SHOULD have demanded up front, along with (figuratively-speaking) the manager's head.

[Ned Hamford]

They had their chance to be reasonable, and chose to laugh in her face.

That is some cartoon level villainy right there.

[MechAg94]

I do agree.  $18K to refurnish a house is isn't all that much considering appliances probably need replacement plus multiple rooms.  You could probably do it, but it might be tight. 

[Lee]

Regardless of the payout to the lady, I'm guessing the PR is going to motivate a lot of their current customers to change banks.  Dumb move.

[Hawkmoon]

Blaming GPS and long grass is not good enough.  Those should not be the methods used to determine which house they break into for repossession.  If that is all they can say, I would think a lawyer could easily show negligence.  

If you can read a GPS, you should be able to read the house number on the mailbox or next to the door. And realize that the odd (or even) numbers are ALL on the other side of the farking street ...

[lupinus]

18k to make up for everything in the house? Personal possessions? Electronics? Probably appliances? If that was honestly all she wanted the bank manager is a bigger freaking idiot than the jackasses who couldn't be bothered to look at the number on the house.

I agree, something like this should be criminal. Kind of hard to put a corporation in jail, so the corp should be subject to massive punitive damages paid out to the victim.