Another bad bank story....

[cedman]

There are brain-dead liars, thieves, morons, assholes and idiots running this bank; I don’t want to name names but their initials are BB&T.

Here’s the situation… My mom died in August 2010. She had a will but it seems to have “disappeared”. Legally, she died intestate. In NC, when this happens, the surviving spouse is entitled to 1/3 share of the property and the surviving children are entitled to an equal share of the remaining 2/3.

Well, three weeks after her death, my step-dad secretly goes to the bank and borrows 60k against her free-and-clear house (only her name is on the deed) which has a market value of 145k. My math skills are weak but even I know this is in excess of his 1/3 share of the value. Also, only his signature is on the loan papers. If others (the children) have a share in the property, they would have to sign for the loan too. In other words, BB&T made a loan without the knowledge or consent of all share holders; a title search was never performed.

Fast forward to 2012… my step-dad eats a 20 gauge shotgun (no great loss except for the poor shotgun shell) and we find out all this about the house loan by going through the papers while cleaning out the house. I get volunteered to open my mom’s estate and contact BB&T with a copy of the deed (with only my mom’s name on it), a copy of her death certificate, a copy of the loan agreement, a copy of the last loan statement, a copy of step-dad’s death certificate and a copy of my letters-of-administration. I also included a nicely worded letter stating that unfortunately, BB&T, you have made an improper loan and now must bite the bullet (like my step-dad did, ha!) and cancel this loan because you have no proper financial instrument giving you any claim to the property, thank you very much.

I sent all this to the CEO, (I don’t want to use initials but his name is KK) thinking to crack the nut by going to the head honcho. Well, of course, it’s handed off to an underling (I don’t want to use initials but his name is MT) who calls me and lets me know they will turn the matter over to their legal department for review. I start to smell the BS as he keeps repeating he will “reach out” to me.

In a few days, I get a nicely worded letter from BB&T that basically says, your step-dad had an interest in the house so screw you.

I filed a complaint with the NC commissioner of banks whose stated purpose is, “promoting and maintaining the fairness of the North Carolina financial services marketplace through the supervision and regulation of financial service providers” and they did an investigation through another BB&T underling (again, I don’t want to use initials but her name is MW) and sent me BB&T’s nicely worded response to it… the step-dad had an interest in the house so screw you.

Three different attorneys (pro-bono) have reviewed the documents I have prepared and ALL state that BB&T hasn’t a prayer in hell of making this stick. It would seem that we are all headed to court.

Notice that in the Pit I have not used any profanity… my rage is far too encompassing for trivial swearing; I have developed ulcerative colitis from the stress of this situation. So, BB&T, I would “reach out” to you. If it were in my power, I would infest all of your minions connected with this matter with the most hideous diseases known to humankind. If it were in my power, I would have every A-10 in the USAF to make an attack run on every branch of your bank utilizing a full ordinance load while you watch staked out on an ant hill with your eyelids cut off and your delicate parts covered with honey. If it were in my power, I would find legions of crack heads who will go medieval on you working you over with pliers and a blowtorch. If it were in my power, I would then toss your still living carcasses into a pen of wild hogs that haven’t eaten in over a week and delight in the cries of despair that blubber out of your mouths as your final thoughts are that all that you are now and all that you are going to become in this life and in the life to come is a few pig turds. Then I would fall to my knees and beg the pigs for forgiveness in making putrid, malodorous, foul, offensive, rancid offal like you pass through their digestive tracts.

The end.

[Smeghead]

I feel for you, but posting wishes of death and blowing up by the Air Force and whatnot is probably not the wisest of ideas with litigation still forthcoming.

I suspect a highly-paid bank lawyer might be able to penetrate the thick veil of secrecy you’ve used here to access the cleverly hidden real names beneath.

[Terr]

Bank does something improper. You ask them to rectify the situation. They refuse. Your lawyers tell you you have a great case. You’re headed to court.

Good story. Why all the rage though? Go to court, win the case, get the money. Winning!

[astro]

I’m not getting the rage and angst. You want them to eat a $ 145,000 loan and you are astounded and outraged to the point you wish death on them that they do not agree with your arguments.

Seriously… what did you expect, for them to roll over with their paws in the air?

There’s lots of silly stuff in your OP like sending your letter to the CEO etc. that makes me think your analysis of this situation might not be quite as cut and dried as you think. But good luck.

[Dag_Otto]

@cedman

Here’s the situation… My mom died in August 2010. She had a will but it seems to have “disappeared”. Legally, she died intestate. In NC, when this happens, the surviving spouse is entitled to 1/3 share of the property and the surviving children are entitled to an equal share of the remaining 2/3.

@cedman

Fast forward to 2012… my step-dad eats a 20 gauge shotgun (no great loss except for the poor shotgun shell) and we find out all this about the house loan by going through the papers while cleaning out the house. I get volunteered to open my mom’s estate and contact BB&T with a copy of the deed (with only my mom’s name on it), a copy of her death certificate, a copy of the loan agreement, a copy of the last loan statement, a copy of step-dad’s death certificate and a copy of my letters-of-administration.

This doesn’t make much sense. You waited two years to open your mother’s estate? Why? Even if she was intestate, you still have to actually go though the probate in order to get the title changed on the house.

[cedman]

@Smeghead

I feel for you, but posting wishes of death and blowing up by the Air Force and whatnot is probably not the wisest of ideas with litigation still forthcoming.

I suspect a highly-paid bank lawyer might be able to penetrate the thick veil of secrecy you’ve used here to access the cleverly hidden real names beneath.

Hyperbole my man, hyperbole! And, of course, there is this little thing called the First Admendment.

[cedman]

@astro

I’m not getting the rage and angst. You want them to eat a $ 145,000 loan and you are astounded and outraged to the point you wish death on them that they do not agree with your arguments.

Seriously… what did you expect, for them to roll over with their paws in the air?

There’s lots of silly stuff in your OP like sending your letter to the CEO etc. that makes me think your analysis of this situation might not be quite as cut and dried as you think. But good luck.

1. Re-read my post and understand that they must eat a 60k loan (Whose balance is now 48k)

2. I expect that they would realize that what they did was ILLEGAL and seek to make amends rather than being forced to pay anyway PLUS damages.

3. Re-read my post and understand that 3 (three) attorneys have reviewed the case and all agree that the bank is in deep shit.

4. What’s silly about sending the info to the CEO? All 3 (three) attorneys applaud that effort and agree that that is the best way to get action rather than consulting the janitor at the local branch.

[cedman]

@Dag_Otto

This doesn’t make much sense. You waited two years to open your mother’s estate? Why? Even if she was intestate, you still have to actually go though the probate in order to get the title changed on the house.

We waited because my step-dad was still living and we are far and away nicer (maybe too nice) than him; we would not turn him out as he was in his 80’s and had no where else to go.

[Morgenstern]

@Terr

Bank does something improper. You ask them to rectify the situation. They refuse. Your lawyers tell you you have a great case. You’re headed to court.

Good story. Why all the rage though? Go to court, win the case, get the money. Winning!

Good story, except you forgot the part where the lawyer ended up getting all the money in fees. At least that’s how these things end around here.

[Miller]

[Moderating]
I’ve removed the names of the individuals named in the OP, and replaced them with initials.
[/Moderating]

[Dag_Otto]

Here is what I see happening. The house will get sold, the surviving children with split up 2/3rds of the proceeds (about $96,667, assuming the house sells for $145K), and the bank will get the step-father’s share of 1/3rd ($48,333) to go towards the loan. An other assets he has will be split up by the probate court.

Unfortunately, more of that $145K will go to lawyers that necessary. Waiting to settle the mother’s estate probably wasn’t a good thing. You could have settled, changed the title, and still allowed the step father to live there.

[Saint_Cad]

As the OP has found out and my SIL is realizing right now, being nice to family members by ignoring your own legal rights to money is never a winning proposition.

[get_lives]

@Dag_Otto

Here is what I see happening. The house will get sold, the surviving children with split up 2/3rds of the proceeds (about $96,667, assuming the house sells for $145K), and the bank will get the step-father’s share of 1/3rd ($48,333) to go towards the loan. An other assets he has will be split up by the probate court.

Unfortunately, more of that $145K will go to lawyers that necessary. Waiting to settle the mother’s estate probably wasn’t a good thing. You could have settled, changed the title, and still allowed the step father to live there.

What legal standing does the bank have to claim interest in the home? I don’t know NC inheritance law, but that doesn’t sound especially like a solid claim. No name on deed is not a great way to establish proof of ownership, just on the face of it. I could be wrong, but it sounds shaky.

I wouldn’t bother answering this unless you know NC inheritance law. I know enough from working in the mortgage industry for several years to know that states differ widely on all this.

And why couldn’t he sue the bank for attorney’s fees as well? I’m not saying that would stick, but it would at least seem possible.

Finally, I don’t see why the attorney’s fees would be all that much to begin with. there are just a few facts to establish:

1. per NC inheritance law, did the stepfather have a claim to ownership in the house?

2. Did the bank have any obligation to contact the children of the deceased prior to making the loan?

That’s about it, AFAIK. IANAL, but this sounds cut and dried, and shouldn’t take more than a couple dozen hours of a lawyer’s time. file the lawsuit, have your documents with you, research NC inheritance law a little bit, and show up for your 1-2 hours in court. Again, IANAL, but…

[cedman]

@Dag_Otto

snip Waiting to settle the mother’s estate probably wasn’t a good thing. You could have settled, changed the title, and still allowed the step father to live there.

Here in NC, when there is no will, an administrator must be appointed with the consent of ALL heirs. My step-dad would never agreed to ANY situation that involved any of the children so our hands were tied until he fortunately died. Hence the 2 tear wait.

[cedman]

Year not tear!

In fact, to show what a prick this guy was, his younger brother told us he said that the only reason he borrowed money against the house was to make it difficult if not impossible for the children to get anything. This is hearsay coming from me but if we go to court, the brother will be summoned to give first hand evidence.

Another thing… mom developed cancer within a year of the marriage; there is NO history of cancer ANYWHERE on her side of the family going back 6 generations. Step-dad’s last two wives also developed cancer within a year of marriage. he took all of their property too.

[cedman]

@get_lives

What legal standing does the bank have to claim interest in the home?snip

1. per NC inheritance law, did the stepfather have a claim to ownership in the house?

2. Did the bank have any obligation to contact the children of the deceased prior to making the loan?

That’s about it, AFAIK. IANAL, but this sounds cut and dried, and shouldn’t take more than a couple dozen hours of a lawyer’s time. file the lawsuit, have your documents with you, research NC inheritance law a little bit, and show up for your 1-2 hours in court. Again, IANAL, but…

It seems that you know quite a bit about the mortgage industry! Yes, he had 1/3 interest per law. But also per law, to borrow against or sell real estate in NC, ALL parties that have an interest in a property MUST agree and SIGN the paperwork to establish liability. It’s a lot like the title of a car. A simple title search (which is SOP and never done in this case) would have prevented all of this mess. That’s what make this loan, at least, improper and perhaps illegal. BB&T has loaned money against my collateral without my knowledge or consent and now demands that I make good on a loan I was not a party to.
(When I say “my” I mean myself and my brother and sister.)

I put this in the Pit just to vent but I have gotten good input from you and I thank you!

[Dewey_Finn]

@cedman

In fact, to show what a prick this guy was, his younger brother told us he said that the only reason he borrowed money against the house was to make it difficult if not impossible for the children to get anything. This is hearsay coming from me but if we go to court, the brother will be summoned to give first hand evidence.

IANAL but I can’t imagine that his motive for borrowing against the house is relevant.

[alphaboi867]

@cedman

Here in NC, when there is no will, an administrator must be appointed with the consent of ALL heirs. My step-dad would never agreed to ANY situation that involved any of the children so our hands were tied until he fortunately died. Hence the 2 tear wait.

Really? :dubious: There’s no way at all to force the issue and have the court appoint an administrator? That’s really surprising.

[D_Odds]

@cedman

Another thing… mom developed cancer within a year of the marriage; there is NO history of cancer ANYWHERE on her side of the family going back 6 generations. Step-dad’s last two wives also developed cancer within a year of marriage. he took all of their property too.

What does he do, feed them 10 pounds of saccharin a day?

That said, bank wants to test if you’ll go to court. Law is on your side, but lawyers on the payroll are on their side. Their lawyers get paid either way, so they hope to make it financially difficult for you to pursue the matter. IMNSHO, it is the biggest problem with the way our legal system is set-up. It too often gets too expensive to assert one’s rights.

[obfusciatrist]

Out of curiosity since I have absolutely no idea:

If the bank gave him a loan improperly securitized by the house I can see this meaning the bank has no ability to foreclose on the house but does that clear your stepfathers estate from an obligation to repay the loan if it can (which, conveniently, appears to currently work out to about 1/3rd of the house)?