"Talk about a financial scandal," a Wall Street Journal editorial this weekend joked. "A consumer borrows money to buy a house, doesn't make the mortgage payments and then loses the house in foreclosure—only to learn that the wrong guy at the bank signed the foreclosure paperwork. Can you imagine?". In another editorial, the WSJ wrote, "We're not aware of a single case so far of a substantive error,out of tens of thousands of potentially affected borrowers, we're still waiting for the first victim claiming that he was current on his mortgage when the bank seized the home." They are 100% wrong. There have been many documented cases.
Here are a few from the Cleveland area.
CLEVELAND, Ohio -- Michael and Pamella Negrea have never been late on a mortgage payment in the 15 years they've owned their home in Eastlake. But they've been foreclosed on three times.
Martin and Kirsten Davis, meanwhile, lost their home in Cleveland to foreclosure two years ago. The reason: a mess that started when they accidentally paid 14 cents too little on their monthly payment.
And Michael Rendes of Berea had his mortgage sold last year to Bank of America. The bank foreclosed on him in November, after insisting for months that it didn't hold his loan and wouldn't accept his payments.