In case you haven’t seen the news, several major banks–Bank of America, JP Morgan and GMAC–have declared a moratorium on foreclosures in 23 states, including New York.
Why? Because they’ve been so sloppy in processing foreclosures that they face a wave of class action lawsuits and actions by state attorney generals.
Specifically, a Bank of America employee admitted to signing off on over 8,000 foreclosure documents without even reading them! As a result, other major banks are reviewing their foreclosure procedures to see what’s going on under the hood in their companies. And the fact that they’ve put a stop on foreclosures indicates that they’re definitely concerned, if they don’t already know that they’ve got a problem.
Another problem is that in many cases they can’t even prove ownership of a mortgage. The title has changed hands so many times among so many banks and investors, that it’s hard to track it down. That’s bad form and bad news if you’re a mortgage lender trying to get paid. But potentially helpful information if you’re a homeowner trying to negotiate some breathing space with a mortgage lender.
Odds are that similar problems have been going on at other banks. They all have faced the same challenge: dealing with a mountain of foreclosure paperwork. So it wouldn’t be surprising to learn that other banks dealt with the problem in the same way as Bank of America, i.e., by rushing and cutting corners.
Ironic is a word that only begins to describe the situation.
But more importantly, what does this mean for the average homeowner in New York facing foreclosure? An increasingly likelihood that your mortgage lender might be more open to a short sale, deed-in-lieu transaction or workout plan.
If you have questions about your own financial situation or are concerned about the foreclosure process, please feel free to contact me for a free initial consultation. Unlike Bank of America, I follow the rules and don’t cut corners when it comes to helping clients navigate the bankruptcy and foreclosure processes.
Contact Bruce Weiner, Esq.
EMAIL Bruce Weiner
Phone
(718) 855-6840 (Local)
(866) 402-8476 (Toll Free)
Fax (718) 625-1966
Go to Brooklyn NY foreclosure attorneys to learn more about Rosenberg Musso & Weiner LLP and/or to set up a free consultation.
