Think Bank of America is regretting the day it decided to salvage Countrywide? The acrid aftertaste of that acquisition just got a little worse with the news that Allstate Corp has sued BofA and 18 other defendants, alleging losses on more than $700 million of mortgage securities Allstate purchased from Countrywide.
A woman who thought she was doing a simple refi for $50,000 and became the victim of an elaborate swindle was just dealt her final savage blow: her house is getting foreclosed on.
Children are an overlooked victim in the mortgage meltdown. Experts are growing concerned about the negative social, emotional and academic impact foreclosure turmoil is having on kids. Everything from forced relocation, moving to a new school, seeing your parents at each other’s throats over money, to coming home and finding all your belongs in the trash takes its toll, and there isn’t currently a public policy response to address the issues.
Florida has special high-velocity courts presided over by retired judges that process foreclosures at the rate of 25 per hour. That’s potentially one evicted family every 2.4 minutes. Rolling Stone reporter Matt Taibbi sat in on one of these “rocket dockets” to show what goes on, marveling at the shoddy and fraudulent paperwork the banks are cramming through the courts.
For the first time in a long while, foreclosures actually dropped in October, falling 9%. The big drop came about as several big banks halted foreclosures across the board after news about the robo signers began to emerge. Foreclosures are expected to pick back up again November, albeit at a softened pace. It may be 3-4 months before the rate fully resumes. So take a gasp, homeowners behind on your mortgage, you just caught a temporary break.
After the foreclosure fraud scandal broke, banks scrambled to fix what they described as “procedural” errors and “technicalities.” But the lawyer whose deposition of a former robo-signer sparked the uproar says all the banks have done is put bandaids over bandaids.
Having trouble keeping track of all the different players and abbreviations and names in the latest foreclosure fraud mess? ProPublica offers a handy primer.
As mentioned here earlier this week, the current foreclosure freezes by Bank of America and others have more than a few people in limbo as they wait to either buy or sell a foreclosed property. To help these folks out, Reuters has put together a list of helpful tips for weathering the freeze.
While a lot of attention has been paid to recent foreclosure freezes and the hordes of unqualified “robo-signers” hired to rubber stamp mortgage documents, the bankers of Wall Street want to remind the homeowners of America — This is all your fault.
In spite of their nickname, “robo-signers” — those hired to process the mountain of foreclosure documents during the recent recession — are flesh and blood human beings. And like many human beings, they also know very little about mortgages and foreclosures.
Bank of America announced Friday that it was halting foreclosures in each and every case that hadn’t gone to judgement. They became the third major bank to put the brakes on foreclosures after revelations that document processing firms were allegedly forging papers and signatures on a massive scale.
A foreclosure firm listed “Bogus Assignee” as the mortgage owner on the documents they submitted to the court to process the foreclosure. That’s one of the many oddities surfacing in the investigation of a Florida foreclosure firm for allegedly using improper documentation to speed up foreclosures. Another is an employee “Linda Green” who signed of on thousands of foreclosure affidavits claiming to be executives from Bank of America, Wells Fargo, U.S. Bank and other lenders.