Wells Fargo sues itself

Wells Fargo is suing itself to clear title on a property in order to foreclose on it; as the first mortgage holder, it must sue all subsequent mortgage holders, including the second mortgage holder…Wells Fargo!

The condo owner's attorney, Dan McKillop, suggested that the reason had to do with paperwork. While a lender could avoid suing itself as a lienholder by just releasing the lien after the foreclosure, that apparently involves an extra step or steps, which end up making it easier and faster for the bank to sue itself. That may be — I don't pretend to understand this area of law — but generally it is against the rules to file a complaint that you know cannot succeed (for example, because you can't recover against yourself), even if it may come in handy for some reason. Maybe this is in fact a clever strategy, or maybe, as a professor quoted by FOX Business suggested, "[t]his is just folks cranking out paperwork without conscious thought."

Financial Crisis Comes Full Circle As Bank Sues Itself