Bank of America Allegedly Forecloses on Wrong House, Cuts Off Power, and Locks Out Couple . . . But Insists Lawsuit Has “No Merit”

Dr. Alan Schroit and his wife had a truly scary Halloween in Galveston, Texas this year. When they went to their home to get ready for a party the next day, they found the locks changed and needed the police to get into the house. They then found putrid food due to the electricity being turned off. It turns out the Bank of America foreclosed on the wrong home, but the Bank’s counsel still claims Schroit’s lawsuit is “has no merit.” Hmmmm.

Upon entering the house, the couple was hit with the overwhelming smell of rotten fish: the result of the Bank turning off the power with 75 pounds of Alaskan salmon and halibut in the freezer.

The couple has no connection to the Bank, but spokesman Rick Simon insisted that the filing has “no merit.” Unless they are mistaken about the involvement of the Bank of America, it is hard to why this is a meritless claim or what it would take to have a credible claim against the Bank.

The Bank of America has been previously accused of seizing the wrong house, here.

At the Consumerist site below, someone suggested trying this with one of their branches to see if it would have merit.

For the full story, click here and here..

23 thoughts on “Bank of America Allegedly Forecloses on Wrong House, Cuts Off Power, and Locks Out Couple . . . But Insists Lawsuit Has “No Merit”

  1. The response is obvious. Get the sheriff to lock the bank and cut the power going to it, so as to unfreeze the money inside that they aren’t lending to anybody.

  2. This implies that the locksmiths, utility companies, etc. act on the mere say-so of the bank to enter peoples homes to do things like change locks and cut services. If I was at legal risk of felony trespassing charges, I would do a little due diligence before messing with someone else’s house.

  3. I like this angle. Now if the Plaintiff’s attorney can get that Florida judge to hit em with a 100K sanction for filing a frivolous defense without merit?

    Hell if I was the bank I would have at least claimed as Affirmative Defenses: Laches, Assumption of Risk, Plaintiff failed to mitigate its own damages, but for the neglect of the Plaintiff the damages would not be so sever, Breach of Contract, the Statue of Anne, Statue of Frauds, UCC, Violation of Truth Lending disclosures as a consumer, Deception under the Fair Debt Collection Practice Act, Fraud and Slander, Interference with a Contract, trespass to land and chattel, conspiracy with the local law enforcement to trespass and utter and publishing and as many as the local court rules would allow. The list is not exhaustive, nor collectively inclusive.

    This could prove to be a wonderful consumer protection case. Now the next question, where the hell was the Insurance Company that collected the Premiums. They surely received notice that the House was Foreclosed upon. Surely for that extra premium that they collect for that little ole rain thingy called a Hurricane. Hopefully the insurance company and the really US owned Bank of America can cough up some dough rhea to mia….

  4. I know very little about the American banking structure, but I can’t even begin to wonder how something like this can happen!

  5. TomdArch:

    “This implies that the locksmiths, utility companies, etc. act on the mere say-so of the bank to enter peoples homes to do things like change locks and cut services. If I was at legal risk of felony trespassing charges, I would do a little due diligence before messing with someone else’s house.”

    That is a most excellent point. I wonder if the couple will bring charges against anyone else.

  6. Here in Texas a Foreclosure is not unlike any that you have seen. Notice RRR to borrower, 20 days. After that another 20 and demand full payment. Then a Notice is sent and posted in the county of the property noticing a sale. Then it is sold as the borrower gives a power of sale in the case of default. If not, then they have to go through the Judicial Foreclosure process. Hence no judicial process/enforcement.

    Then in Texas, the borrower has no right of redemption after the sale.

  7. Boy Hogwallop: “Paw said I could shoot anyone that come from tha’ bank.”

    A phrase from the Depression Era comedy “O Brother Art Thou?”, coming soon to neighborhood near you.

    Sponsored by

    Wall Street! We steal more before noon than you can make in a thousand life times!


    Washington D.C. – When you need the law in your favor? Just bring the cash. No offer too low. No request too low. We are open 24/7 for you “legislative” needs!

    in cooperation with the graft merchants of K St.

    K Street – Where the Money Meets The Road And The Tires Meat The Human Race! A division of Mammon, Inc.

  8. Buddah

    I had an epiphany in the last week because of a horrible experience with AT&T. It made me think of your cynicism toward corporations.

    A couple of months ago my wife tried to order cable and internet through AT&T. In the process of acquiring the service they told us that we would have to pay a $500 dollar deposit. Being that we are both college students my wife informed them that we would not be able to acquire service through AT&T.

    Two days later a gentleman called my wife and informed her that he had set up the internet service. That day a lengthy process began of speaking to almost a dozen service representatives about solving this problem. I eventually received a bill for $40 dollars and didn’t I should have had to pay it. All of the service representatives I spoke with agreed with a number of times I was told the bill would be taken care of.

    Then last week I received a notice from AT&T that corporate had denied my claim and that I still owed the money. I again called and was this time told by two service reps that I shouldn’t have to pay the bill but that corporate had already made the decision so I was basically screwed. It is ridiculous that I couldn’t even get an explanation of why I should have to pay the bill.

    Eventually I was contacted by someone who said they would take care of it but it makes me wonder about how much power they had. They could essentially do this to anyone.

  9. Chris,

    One lives to be of service.

    A shield against liability is a terrible tool for society to loose control of.

    Welcome to the Machine. Here . . .

    “I know of no safe depository of the ultimate powers of the society but the people themselves; and if we think them not enlightened enough to exercise their control with a wholesome discretion, the remedy is not to take it from them but to inform their discretion.” – Thomas Jefferson

    The Gentleman from Virginia’s feelings on corporations proper need not be restated.

  10. This is an amazing case of ineptness by B of A,and some serious arrogance. AY, I was shocked when you informed us that Texas does not have redemption rights for the borrower! Just one more reason to stay away from Texas. That is horrible.

  11. Move Your Money!!!

    Abandon “too big to fail” banks in favor of credit unions and community banks. In the last 30 days, tens of thousands of people have shifted their checking. savings, CD’s, even mortgages to smaller more responsive, less expensive local banks. There’s virtually no risk, people are saving money, community banks are investing in small businesses…. It’s a win-win for everyone except BofA and their ilk.

  12. Abandon “too big to fail” banks in favor of credit unions and community banks.

    I’m in the process of doing just that. While I’m not surprised by this story,or AY’s description of Texas Law, there is a certain sense of stupefecation in the thought that banks are allowed to foreclose with so little verification of their right to do so.

    We can give thanks to the University of Chicago, Harvard Business School, Ronnie Reagan, the Republican Party, Fundamentalist Christians,
    Neocons, Free Traders, Bill Clinton and Democrats on the take, for ushering in a new age of Pirate Capitalism. The non-elite citizenry are the “marks,” politicians the “shills” and the “Corporatist’s” the scam artists.

  13. It’s painfully obvious the bank didn’t perform its due diligence. A simple title search of the land records, if not by the bank, but by the bank’s agent, could have gone a long way in avoiding foreclosing on the wrong property.

  14. It is incredible to see just how out of touch our main stream media is.

    I have been researching the Mortgage predatory lending market for some time now, gathering a whole bunch of dirt on Angelo Mozilo, David Sambol, Kurland and others at Countrywide Home Loans. I uncovered more than a little dirt on Bank of America and its CEO Kenneth Lewis. But what moved me the most was coming across this Lone Ranger like character named David Merritt.

    This is a guy who got suckered into one of those Countrywide Predatory loans. He and his wife are first time home buyers who wanted to put 5 to 10 % down on their $729,000 home in Silicon Valley California – 2 miles from Yahoo headquarters, 4 from google and 5 from Apple.

    With just 2 days to remove their loan contingency, and with at least two other lenders ready to sell them a relatively decent mortgage, Countrywide talked them out of going with the competition by presenting a 1 to 3 percent, FHA Good Faith Estimate and declared: “if you can find someone to beat this loan, then go with them and we’ll pay the closing costs.”

    Countrywide staff were trained on how to determine how much knowledge a home buyer had, and they knew that the Merritts were suckers to be taken. Once they fired the other lenders and committed themselves to Countrywide, the Merritts found themselves locked into a 100% financing Pay Option ARM and HELOC which was destined to charged them over 2 million dollars. Countrywide had a policy of talking buyers out of putting down payments, and convincing them that they would give them a loan that was better. In fact, they would always tell home buyers that No One Could beat them and the truth was that they did beat everyone at the application stage in order to remove all the competition, but they left out that by the time the home buyer was closing escrow, most competitors would have done better.

    The Merritts signed a loan that was charging twice as much as the average lender. What is more is that they signed a loan which Countrywide assigned Mortgage Electronic Registration System as a lender. As it turns out, MERS was designed to be a front company which allows: 1) Note holders to hide from public scrutiny; 2) the duplication of one loan note that could be sold off to 2 or more investors or mortgage backed security pools: 3) evasion of paying local recorder fees; 4) Overriding state legislatures recording the laws on recording liens, beneficiaries and holders in due course; 5) attacking Public Policy in regards to its goals of protecting consumers and lenders from fraud via recording laws; and last, but not least, 6) being a conduit for billions of dollars to pass right by Uncle Sam and into Cayman or Canadian banks where no federal taxes can touch it.

    This is how Countrywide rose to the top. And they intentionally targeted elderly, minorities and unsophisticated first time buyers.

    Now in July 2008 Bank of America bought Countrywide out for 2 billion dollars. A company with assets that exceeded 20 billion, and servicing machine that churned out billions more.

    Bank of America went to all the states Attorneys Generals and asked them to bring lawsuits on behalf of their state citizens against Countrywide and to already agree to cut a sweet settlement deal with Bank of America. This was a strategy to persuade that Public that BofA was sincere about cleaning up the mess Mozilo and cronies created. But what is left out is that they are also trying to cut off home buyers ability to charge BofA with the predatory loans of Countrywide.

    Behind the scenes, BofA has been supporting Countrywide since 1969. It has always been in the predatory loan business, but through other front companies. For the longest, evidence shows, Kenneth Lewis was very close allies with Mozilo and planned with him to defraud Americans out of their home equity.

    It is so strange to see so many Americans enslaved to the Banking and Finance gangsters and not even know it, or if they do, just accept it.

    David Merritt is literally one of the 21st Century modern epics “David versus Goliath.” And all the has is a little sling and a rock against Goliaths billion dollar war armor. Check out some of his thoughts on many issues at, but the 9th Circuit Court of Appeals has before it Merritt v. Countrywide, BofA, Wells Fargo et al, Docket No 09-17678 where he has charged straight at these Greedsters with RICO and other federal violation. And in Santa Clara Superior Court Merritt v. Mozilo et al No. 109CV159993.

    He is actually looking for other victims who have deeds of trust assigned to MERS and he wishes to help in anyway possible to fight these folks offensively , he prefers, but he has enough information to help defensively as well. Lawyers from around the country taps into this Big David. So circulate the word.

    Mark Doyle

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