Archive for October, 2010
This is a question I get a lot from potential clients, average homeowners and especially opposing counsel. Why should you care? You took out a mortgage and you are either paying it and everything is fine, or you are not and are in some stage of default. But you received the loan, live in the house and it is your responsibility to pay the mortgage. Correct? Yes and no.
There are plenty of sites out there with people trying to pitch the idea that somehow the fact you are in default is not your fault. It is the bank’s fault or Bush’s fault or Obama’s fault or the government’s fault or any other person or entity they can blame to make you feel warm and fuzzy about your current situation. All the while they are over-promising and under-delivering on claims of getting your home free and clear.
The facts are this: Lenders are required to abide by numerous laws in writing and issuing loans to borrowers. If the borrowers default on those loans, the lenders are again bound by numerous laws regarding their ability to foreclose on those properties. If the lenders did everything properly, then they can proceed as provided by law. If not, then they are not able to proceed. The problem is, the lenders, or more likely, entities only tacitly involved in the original loan transaction are proceeding with foreclosures regardless of whether or not any procedure has been properly followed. And this is the reason you should care.
If you took out a loan to buy your home, you owe money to someone. The chances are, however, that you do not owe money to the company making the calls all day, or, proceeding with foreclosure actions on your home. And this is the key point that most seem to be missing. It isn’t about robo-signers or predatory lending.
While those, and many other factors may be important in any potential litigation, the crux of any argument is whether or not the party foreclosing on your home actually has the right to do so. If not, then you may be in a very favorable position. But you will never know unless you raise the question.
Our affiliated attorneys can help you determine whether or not your foreclosure is being handled properly and what can be done to protect yourself if it isn’t.
The Secretary of HUD (Housing and Urban Development) Shaun Donovan recently appeared in an interview on CNBC to discuss the current mortgage crises, what some are calling “Foreclosuregate.”
During the interview, Secretary Donovan stated with respect to mortgages that are being reviewed, “We’re not finding any evidence of underlying structural issues in the mortgage market….This is really about particular institutions not doing their job.” He continued on to state “I think the real issue that we’re focused on are banks doing what they are required to do…and what they should be doing to keep people in their homes.” Secretary Donovan’s interview comes at the same time as multi-agency meeting is convened in Washington, including HUD, the Treasury, and the Department of Justice, to address the issue of foreclosures.
What does this mean for homeowners who are facing foreclosure? Given the fact it has been a couple months since news began breaking of possible foreclosure fraud (such as robosigners) on the part of banks and Washington is just now trying to sort things out, it does not seem that legislation aimed at helping homeowners will be arriving any time soon. Banks may try to be a little more careful with their books now that they know Washington is paying attention to them. However, with literally hundreds of thousands of foreclosures in line for processing, banks will probably remain more focused on their bottom line than working with homeowners to keep them in their houses. Homeowners would be wise to take matters in their own hands , either by retaining legal counsel or trying to work with banks themselves, rather than waiting on relief from lawmakers.
Bank of America resumed foreclosures in the 23 states that require judicial action to foreclose. No word on when they will proceed in the 27 states that allow non-judicial foreclosure.
According to the Wall Street Journal , BoA admits that they did find errors in “10 to 25 out of the first several hundred foreclosure cases it examined starting last Monday.”
Let’s break down the Bank’s admission a little further:
10-25 of the foreclosures had errors in them. What does this mean???? They don’t know if 15 of the foreclosures had errors? They are guessing at a percentage? They cannot count to 25 and just estimated?
The fact is, it is significant that BoA admits any errors at all. Even though the Bank is claiming the errors were “minor”, this is a relatively major admission by the bank. Frankly, BoA is simply playing the odds. They know most homes they foreclose on will simply be procedural and not questioned by any party. However, the mission of this blog, and our site at Lone Star Foreclosure Defense is to give you the information necessary for you to come to the conclusion that yes, you should question their foreclosure procedures. And every other national bank’s foreclosure procedures. These banks are getting away with murder. They made bad loans to bad borrowers, packaged them up and sold them off to investors and pretended to have all their paperwork in order. Paperwork they are legally required to have in order before proceeding with any foreclosure action. And good borrowers on hard times are getting caught in the crossfire.