Will a freeze on foreclosures save my home?
Unfortunately, all of the State Attorney Generals and politicians coming on television and making announcements they are doing investigations or will have hearings in Congress, may mislead and give false hopes to some homeowners into believing they may be saved from foreclosure.
That simply will not be the case. The issue with robo signers which triggered all of these investigations mostly involved documentation on judicial foreclosures. For us in California, we are a non-judicial foreclosure state, so these technical violations involving judicial foreclosure procedures do not apply to us. Beside providing political capital for politicians during mid term elections, it is a moot point for homeowners in California.
Robo signer saga continues…..
Employees signing off on mortgage foreclosures without personal knowledge and the impact it is having on foreclosures is continuing to reverberate throughout the industry. States are filing lawsuit and at least one Congressman is taking action.
This will be a political topic that will have a lot of interest with only a month to go before voters hit the polls.
http://www.housingwire.com/2010/10/06/maryland-congressman-takes-action-against-robo-signers
Bank of America is now third lender to stop Foreclosure in 23 states
This is now the Third National lender to halt its judicial foreclosure efforts in 23 states.
It obviously was common practice among these national lenders to have the “Robo-Signers” sign off on judicial foreclosure documents without having personal knowledge about each case, as it is required in judicial foreclosures. With each of these banks voluntarily stalling their foreclosures efforts, the question as to the veracity of those homes that were already foreclosed on within the past three years must necessarily be challenged. This could possibly means thousands, if not, tens of thousands of foreclosures, depending on how many lenders in those 23 States used these Robo-Signers.
Attorney Generals of several States are demanding a moratorium on foreclosures.
This story definitely will continue on as more players either come out voluntarily or are forced out. Stay tuned.
But the larger implication
Beware, Loan Modification Scammers
Now jail time and fines await those who intend to defraud home owners in distress. Preying on the weak and vulnerable has now increased in cost of doing business for these con artists. Maybe we will read less about people being defrauded.
CA Attorney General Shuts down Fraudulent Foreclosure Relief Company
California Attorney General Brown shuts down company which took money under false pretenses and forces them to make restitution. If you were taken by this company, you can file a claim for re-payment. At least one big predator has been struck down and the victims have a chance at getting something back.
http://ag.ca.gov/newsalerts/print_release.php?id=1879
