In this edition of ANH Legal Group's blog, we will discuss the on-going foreclosure crises in this country and how the end is far from near. Believe it or not there was a lull in foreclosure activity in the past 9 months due to the fact that in many states the banks were caught using and filing false documents to foreclose on home. These issues stopped many homes from being fully foreclosed upon but these issues have been "resolved" as far as the banks are concerned and the foreclosure machine is back to full throttle forward.
In the past several weeks, we have seen a surge in clients filing for Chapter 13 Bankruptcy to stop an imminent foreclosure as lenders are moving full speed ahead with foreclosure without any regards to the status of a loan modification file or a pending short sale of the property. Foreclosures, have become very mechanical and factory like!
After the problems with the foreclosure tactics of the banks became too pervasive to ignore, the Attorney Generals for all 50 states began an "investigation" into the practices of the banks. Not much is known about the results of these investigations, but it appears that a possible settlement of the50-state probe of foreclosure practices is in the works. Overall, state and federal officials are negotiating a settlement with the five largest mortgage servicers, including Bank of America in Charlotte, N.C., and JPMorgan Chase in New York, over their servicing and foreclosure practices. The word is they are going to give the banks a complete pass with a blanket immunity!
If a deal is reached, the banks will be provided with immunity for all they have done and they are absolved of all liability for their fraudulent tactics.Overall, the failure of HAMP combined with the faltering economy will continue to make things difficult for the real estate market and make things even more difficult for small business whom are being driven to Bankruptcy in record numbers!