Posts Tagged ‘foreclosure moratorium’

Paperwork Issues Have Halted Foreclosures In Only 23 States

You may have heard about the Ally Bank employee who admitted that he signed off on foreclosures without actually verifying who owns the mortgage and the amounts owed. As a result, thousands of foreclosures have been stalled until the mess can get sorted out.

There were similar happenings at Wells Fargo and JP Morgan Chase which have resulted in the mortgage giants having to stop the foreclosure process until the documents can be sorted out. Furthermore,  recent news about so-called “foreclosure mill law-firms” who regularly submit false documents on behalf of the banks to “speed up the process” has also come to light.

It is clear that the fraud that precipitated the foreclosure crisis is now rife within the foreclosure process itself. There has been little accountability pressed on the banks and so far, they’ve gotten away with hundreds of thousands of foreclosures, of which a significant percentage may have been completed fraudulently.

To their credit, many state governments have acted quickly to enact laws that demand the lender make sure it has the right to foreclose and even if it does, that foreclosure must be the last resort step. However, some Federal action to impose at least a 90 day moratorium on foreclosures nation wide would help in making sure that more fraudulent foreclosures take place and that more borrowers have the time to try and save their homes.

CitiMortgage Suspends Foreclosures For Homeowners Affected By The Oil Spill in the Gulf

Citi-Vikram-Pandit

 

On Wednesday, June 16, Citi CEO Vikram Pandit announced that his company would be suspending foreclosures for homeowners in the Gulf region in the wake of the BP oil spill disaster.  All foreclosure actions on Citi-owned mortgages will be suspended from June 17, 2010 to September 17, 2010.

Usually, I don’t have too many good things to say about banks, especially where foreclosures and mortgages are concerned, but CitiMortgage is attempting to do the right thing here. In the wake of the worst environmental disaster in U.S. history, the last thing Gulf Coast residents need to be worried about is foreclosure.

Unfortunately, this three month foreclosure moratorium will not apply to mortgages Citi services but does not own.  However, for those Gulf residents with Citi-owned mortgages, this decision by the bank will certainly help them and that is a good thing.

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