GMAC and Bank of America lift foreclosure freeze? I guess all of the problems are solved then.
October 19, 2010 Leave a comment
Boy that was a quick freeze! It was over almost before it started! Is it a good idea to let these banks police themselves or should someone from the outside look at what they are doing?
Have they not heard about robo-signing? How about the allegations from Congressman Alan Grayson’s allegations of fraud and law-firm mills which process foreclosures fraudulently in bulk? How about the allegation that the banks don’t have the legal right to do a foreclosure because they no longer own the note?
I guess none of this matters. Bank of America and GMAC both announced that they will lift the foreclosure freeze and begin again to process these foreclosures, at least partially. This is bad news for those consumers who are currently facing foreclosure. These people have no way of telling if their foreclosure is being processed correctly and legally. They also may lose their home to a foreclosure that could be illegal. How will they tell?
Many of my clients don’t have the money to hire an attorney to sue the bank to stop their foreclosure and I believe the banks know that. Chase has set aside $1.3 billion for litigation for those that do but they will count on most people just walking away from their home and allowing the bank to foreclose.
It seems that the only people who can stop these banks and their foreclosures now are the lawyers. Lawyers can possibly stop these people by filing lawsuits against the banks. For now though there are federal and state investigators in Florida looking the foreclosures there. Florida is a state which can compete with California in foreclosures. Lets hope that the investigators can make their way west to our state. Maybe they can stop this tidal wave of foreclosures.