Wells Fargo sues itself...

[akellar]

Wells has many different entities, and they all act as different business units. The 1st is most likely a different unit than the 2nd.

This is exactly correct. Wells Fargo Home Mortgage likely holds the first, with Wells Fargo Financial or WF Equity holding the second. If you read the comments posted with the story it makes it pretty clear that in order to foreclose correctly, this is the process that must be done.

[jbhtexas]

This is exactly correct. Wells Fargo Home Mortgage likely holds the first, with Wells Fargo Financial or WF Equity holding the second. If you read the comments posted with the story it makes it pretty clear that in order to foreclose correctly, this is the process that must be done.

From the article:

Yet court documents clearly label "Wells Fargo Bank NA" as the plaintiff and "Wells Fargo Bank NA" as a defendant

Wouldn't such a distinction between business units be listed on the court documents?

[akellar]

From the article:

Yet court documents clearly label "Wells Fargo Bank NA" as the plaintiff and "Wells Fargo Bank NA" as a defendant

Wouldn't such a distinction between business units be listed on the court documents?

Not necessarily. It depends mostly on how the liens were recorded originally. WFB NA is the title for the entire company, which includes WFHM, WFF, WFE, etc.

[cloneatlaw]

This is pretty simple. It's more difficult to release the junior mortgage and provide notice thereof than it is just to include it in the foreclosure filing. So they just include themselves in the foreclosure filing, and whenever they are both the foreclosing and most senior junior mortgage holder the case gets titled themselves v. themselves, although there are usually numerous other parties involved (the other junior lienholders). To someone who knows nothing about property law, this looks ridiculous. To others, it looks like an abuse of the system. However, this has happened for years, is pretty common practice, and is really nothing to get upset about. This isn't as crazy as the article tries to make it out to be.

[TxCycloneFan]

From the article:

Yet court documents clearly label "Wells Fargo Bank NA" as the plaintiff and "Wells Fargo Bank NA" as a defendant

Wouldn't such a distinction between business units be listed on the court documents?

What if Wells Fargo hired 1 lawyer to handle both sides of the case?

[Cybone]

When I was a freelance litigation technology consultant, I traveled around the country doing trials. I started a trial in Pocatello, Idaho that was supposed to last 6 months. The case started out a one company suing two other companies and Lockheed Martin. The suit was filed back in the mid-80's (Superfund site).

By the time the case was set to go to trial, Lockheed Martin had bought up all of the entities...so it was Lockheed Martin (subsidiary) vs. Lockheed Martin (subsidiary) vs. Lockheed Martin (principle). I got paid all the same, but I thought it was crazy...and that suit was for millions.

[jbhtexas]

This is pretty simple. It's more difficult to release the junior mortgage and provide notice thereof than it is just to include it in the foreclosure filing.

Why?

To someone who knows nothing about property law, this looks ridiculous. To others, it looks like an abuse of the system. However, this has happened for years, is pretty common practice, and is really nothing to get upset about. This isn't as crazy as the article tries to make it out to be.

I believe this waste of court resources is something to be upset about. And what's even more upsetting is that you and the others involved in the field of law who have responded here apparently are perfectly fine with wasting court resources.

Lots of things have gone on for years. That doesn't mean they are good or wise things to do.

Please address the comment quoted in a previous post from the New York City law professor.

[GoCubsGo]

Please address the comment quoted in a previous post from the New York City law professor.

It shouldn't be any surprise that a law professor knows little to nothing about the actual practice of law. These people are great with the theoretical aspect, but you would probably not want them to represent you in an actual dispute.

[jbhtexas]

It shouldn't be any surprise that a law professor knows little to nothing about the actual practice of law. These people are great with the theoretical aspect, but you would probably not want them to represent you in an actual dispute.

Might want to try again...

Link: Anthony Sabino

If I could afford him, I'd think he could represent me pretty well for a number of different matters.

[cloneatlaw]

Why?



I believe this waste of court resources is something to be upset about. And what's even more upsetting is that you and the others involved in the field of law who have responded here apparently are perfectly fine with wasting court resources.

What court resources are being wasted? I'm not any sort of an expert on the state laws involved here, my less than witty username notwithstanding, but the way a foreclosure works is the foreclosing party files (usually against the property being foreclosed,) gives notice to all junior lienholders, in some states the property owner then has a right to pay off the lien before the property is sold, it's then sold, and the proceeds are distributed based on legal priority (usually based on who was first to file the lien). There's usually not a hearing unless a party objects, and it's instead a maze of paperwork. I'm not fine at all with wasting court resources, but I fail to see where the waste is occurring.

Lots of things have gone on for years. That doesn't mean they are good or wise things to do.

Point taken. If there's a good way to amend state foreclosure laws and make them easier to administer, let's talk. However, publishing an article decrying a company's practice in compliance with the law as a major waste of corporate and state resources isn't very productive.

Please address the comment quoted in a previous post from the New York City law professor.

As far as I can tell, he's just being glib. State law requires the paperwork and the hearing either way. The only difference is whether there needs to be additional paperwork (notice of the release of the lien) or instead have the lienholder provide itself notice through the court proceeding.

[akellar]

What if Wells Fargo hired 1 lawyer to handle both sides of the case?

They avoid this because it could be seen as a conflict of interest. Most attorney firm's won't represent more than one party in a foreclosure (even if both parties are virtually the same client).

[jbhtexas]

What court resources are being wasted?

Doesn't the court have to spend time and money to process the response made by the lawyers defending Wells Fargo in the lawsuit?

Point taken. If there's a good way to amend state foreclosure laws and make them easier to administer, let's talk. However, publishing an article decrying a company's practice in compliance with the law as a major waste of corporate and state resources isn't very productive.

Courts operate on tax dollars. People writing blogs for FoxBusiness don't (at least that I know of). As long as FoxBusiness isn't wasting tax dollars (or squandering my investment if I happen to be shareholder), they can waste their resources publishing whatever they want to.

[cloneatlaw]

Doesn't the court have to spend time and money to process the response made by the lawyers defending Wells Fargo in the lawsuit?

In short, no. The court has to process the foreclosure either way, and Wells Fargo doesn't have to file a response. All parties to the action must re-affirm their lien or the court considers them void. That's all it files -- a statement essentially saying, "We still have this junior lien." The court spends zero additional time processing this. They have to be labeled as "defendants" because all junior lienholders are labeled that way and served to ensure they receive notice. If Wells Fargo doesn't name them all as defendants, it can't properly foreclose. Essentially, it looks like Florida law requires some sort of paperwork from WF, as the junior lienholder, either way (whether it provides notice through the foreclosure filing or through a separate process.) In this sense, there is less cost to the court system, because there is no later dispute that WF did not notify all junior lienholders. If you want to save Florida courts some money, change Florida law to not require notice to a junior lienholder that is the same entity as the forclosing party. Without this change, though, WF is legally required to go through this process.

[GoCubsGo]

Might want to try again...

Link: Anthony Sabino

If I could afford him, I'd think he could represent me pretty well for a number of different matters.

I'll admit that he appears to have more practical experience than most in academia. As the previous poster noted, perhaps it is a case of merely being glib.

[CylentButDeadly]

Is this similar to what happens if Chuck Norris kicks himself?