A story about Bank of America suing itself in a foreclosure action got a bit of publicity recently, from sources like Credit Slips blogger and lawprof Alan White, but the snark was misplaced, says Kevin Funnell. Banks serve in various capacities in the real estate context and that makes such situations inevitable: “The bank is agent for the owner of the first lien loan and is also the owner, in its individual capacity, of the second lien loan. It has to name itself. This is ‘Foreclosure 101.'”

For instances of “auto-litigation” with a bit more to them, see this one from Illinois a few years back, as well as the ones collected at Lowering the Bar.

Filed under: banks, mortgages