A local bank sues … itself in foreclosure action

At first glance, it appears to be a normal foreclosure case.

An Ephrata business pledged a mortgage on some real estate as security for debt owed. The borrower defaulted on the debt, and so the lender, Susquehanna Bank, filed a mortgage lawsuit.

Against itself.

In an odd and complicated case, Susquehanna Bank sued Susquehanna Bank in Lancaster County Court on Nov. 2, with the plaintiff — the bank — demanding $1.7 million, plus continuing interest, late charges, attorney’s fees and costs from the defendant — also the bank.

The case was settled Nov. 7. Bank spokesman Stephen Trapnell said no money actually changed hands, so the bank did not write a check to itself.

Trapnell said the case was not as unusual as it appeared. “It is really just a necessary procedural step to obtain clean title on this property.”

Read more: http://lancasteronline.com/article/local/780146_A-local-bank-sues—–itself-in-foreclosure-action.html#ixzz2Cbzu4cGC

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