FL: BB&T tries to claim fraudulent default to collect from FDIC and keep the property to boot

This is what happens when the government is capable of picking winners and losers in "private" business and when it has power to dole out sweetheart deals to "private" entities.

BB&T v. Kraz LLC, Case No. 10-CA-000304-K (FL Hillsborough Cir. May 18, 2012):

"Plaintiff [BB&T] stood to profit by declaring a fraudulent default under the subject loan, collecting from the FDIC under the [Purchase and Assumption Agreement with FDIC] for such default, and then enforcing the subject loan against [borrowers], and retaining the property until such time as a real estate turnaround occurred."

Of course, this is not the first time FDIC has doled out a "sweetheart deal."  One can only shudder at the thought of how many such sweetheart deals go unnoticed and uncovered.

The court's order can be accessed here.