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So for $2,000 in lawyer fees I can stay in my house another few months.... what's the point.
I'm not certain you're following what is happening here... This is an incredibly huge story brewing.
Lawyer or not the short term implications are foreclosures are going to be placed on hold - stay in that house for months and months without paying your mortgage. Heck, if they can't come up with the proper documentation and paper trail for the note, you could feasibly stay indefinitely. Won't cost you a thing.
Longer term, lawyers will begin looking BACK into closed foreclosures. I can't imagine how they'll handle improperly foreclosed AND sold properties, which based on these articles happened - ALOT!
John Walsh, acting director of the Office of the Comptroller of the Currency, told lawmakers during a hearing on the financial regulatory overhaul enacted this summer that some lenders “clearly had deficiencies” in their system for foreclosures.
The banks contacted by regulators include J.P. Morgan Chase, which announced Wednesday that it was freezing 56,000 foreclosures after finding errors in its preparation of documents, according to OCC spokesman Kevin Mukri. Other lenders contacted include Bank of America, Citibank, HSBC, PNC Bank, U.S. Bank and Wells Fargo.
“We both want to see that they fix the processing problems but also to look to see whether there is specific harm [that has been caused] in individual cases,” Walsh said….
The paperwork problems range from potentially forged documents to bank employees who never read borrowers’ files before signing off on an eviction….
Mukri would not comment about other banks but said that the OCC has teams permanently stationed at each one and that those teams have been in close contact with senior management at the banks to ensure the reviews are completed in a timely manner.
Apparently alarmed about such a possibility, one of the major title insurance companies, Old Republic National Title, has sent a bulletin to agents saying that “until further notice” it would not insure title to properties foreclosed upon by GMAC Mortgage, the country’s fourth-largest home lender and one of the two big lenders at the center of the current controversy.
Foreclosures are about to take a nice long break - many to enjoy not paying their mortgages for the foreseeable future. Why pay when it's about to leak out that banks won't be evicting anyone?
A Bank of America official acknowledges in a legal proceeding that she signed up to 8,000 foreclosure documents a month and typically didn't read them.
The executive's admission adds the nation's largest bank to a growing list of mortgage companies whose employees signed documents in foreclosure cases without verifying the information in them.
Two other companies, Ally Financial Inc.'s GMAC Mortgage unit and JPMorgan Chase, have halted tens of thousands of foreclosure cases after similar problems became public.
The Bank of America executive said in a February deposition that she signed 7,000 to 8,000 foreclosure documents a month. "I typicallydon't read them because of the volume that we sign," she said.
Bank of America declined to comment.
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