Bank Forecloses On Home Destroyed By Ike
By Amy Davis
UPDATED: 6:32 pm CDT October 28, 2011
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HOUSTON — Hurricane Ike destroyed dozens of homes in Seabrook. Many families are just now rebuilding, but when Brad Gana tried to pick up the pieces, he learned that Bank of America was trying to take what little he had left.
“I was shocked when they said they were foreclosing on it,” Gana told investigator Amy Davis.
Gana was working overseas when the hurricane hit, destroying his home. But even then, he said he never missed a mortgage payment. It took him days to figure out why Bank of America was foreclosing.
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Why is BoA allowed to get away with this?
Clearly the bank regulators can’t do the job. Or won’t do it.
“Too big to fail” really means “too big to care”.
Solution seems easy.
(1) A cap by the Gooferment on the absolute size a “corporation” can be. “Too big to fail is too big to exist.”
(2) Mortgages can be sold, but if they go bad, they are the responsibility of the originating entity. No more sell it and forget it.
(3) Triple damages for “foreclosing in error”; punitive damages for fiscal malpractice. (As we cap, medical malpractice awards which have become like lottery tickets, “we” should put the Trial Lawyers on this problem.)
(4) Since bank regulators seem to be unable to regulate, let’s eliminate the regulations and sale all those costs.
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