It started with an announcement by several of the nations’ largest lenders to halt foreclosure proceedings temporarily in 23 States. Things, quickly escalated with the discovery of irregularities which included Robo signing foreclosure specialists who were foreclosing on homes at a rate of thousands per month. This sort of revelation caused Bank of America to cease foreclosure filings in all 50 Stateswhile the lending institution reviewed it’s paperwork process.
Meanwhile, the legal machine started up as State Attorney Generals in all 50 States filed suit against the nation’s leading lenders and the White House launched it’s own investigation. Investors who had been propping up the market have also begun to file suit to protect their investment as the issue of who actually owns the home has come into play due to the fact that there may have been illegal transfers of title because due process was not observed.
But even as Bank of America announced that is was re-starting the mortgage process yesterday after it had reviewed it’s process, reports are emerging of homeowners re-entering their foreclosed homes with claims that the home was seized illegally and they did not have the right to be evicted.
In one case, the homeowner took possession of their home in Simi Valley, California with the assistance of their lawyer who claimed that he needed to help the clients get back into their former home before the Real Estate Broker and Investor defrauded a new family by having them move in because there seemed to be some discrepancies in the transfer of title. You can view a slideshow of another similar situation in which the real estate agent is pictured outside a home which he was hired by the bank to sell.
It seems to me that this new phase which is unraveling has even more significant implications than the initial crisis. For buyers who are considering the purchase of a foreclosure, this may provide additional pause about making an investment. It’s also not difficult to imagine a scenario in which the legal system becomes inundated with claims by evicted homeowners and the market grinds to a standstill. Do you also find it challenging to make any sense of the cavalier attitude on so many fronts which has created a situation in which the truth grows stranger than fiction on a daily basis and one in which the harsh reality is impacting so many millions of individuals?
photo credit courtesy of Subterranean Tourist Board on Flickr