Updated October 13, 2010
This morning, the Attorneys General in all 50 states announced a coordinated investigation into the foreclosure crisis. They will be probing whether mortgage loan servicers submitted false affidavits regarding foreclosure documents that were never reviewed before being signed by the so-called “Robo-signers.”
According to the Washington Post, “the multistate investigation will initially focus on whether Bank of America, J.P. Morgan Chase, Ally Financial and other large mortgage companies made misleading or fraudulent statements to evict struggling borrowers from their homes.”
Last Friday, Bank of America announced it would expand its foreclosure freeze to all 50 states. J.P Morgan Chase has expanded its foreclosure freeze to 41 states, while Ally Finance (formerly GMAC Mortgage) has expanded its foreclosure freeze to all 50 states.
Three major U.S. banks have suspend foreclosures in 23 states to “amend” filed paperwork. Ally bank, Bank of America and JP Morgan Chase have halted foreclosure proceedings after admitting that there have been some processing problems. Among the problems is the use of “robo-signatures”–employees whose only task is to sign foreclosure documents without reviewing the paperwork.
Real estate expert Ilyce Glink was interviewed on Good Morning America to discuss whether or not the foreclosure freeze will help homeowners.
Watch the full story from GMA below, look for Ilyce around the 1:15 mark.
Ilyce is also updating her CBS Moneywatch blog with the latest info on the foreclosure freeze, here’s the link.
On her Moneywatch blog, Ilyce writes, “I suppose, in the best of all worlds, slowing down or freezing foreclosures might actually force lenders to take a harder look at ways they might keep folks in their homes, like doing more loan modifications. That would reduce the so-called “shadow inventory” and keep housing values from crashing again. Again, that’s the best possible scenario. I think it’s too soon to tell.”
The News Hour with Jim Leher Picked up the Good Morning America Clip:
Of course, I’m not a real estate analyst in the traditional Wall Street sort of way. Anyway, they used it. And, in fact, they used lots of the footage from the Good Morning America piece. Interesting.
There is no way out. Either they let the housing market to come down to bargain value quickly and hopefully a real recovery can start, or this housing depression will drag on for years.
I have a question regarading recent ruling on GMAC to Stop foreclosures. I was threatened every other day with foreclosure although I never missed a mortgage payment. They went ahead and paid taxes and insurance and added that to my monthly payment.
Would I have a chance of obtaining a Remodification under these circumstances (although I never had a foreclosure and am paying $77 extra per month (for a year) to make up for Shortage for something they never should have paid?
Now, GMAC offered me a 7-year, 4% APR.
Do you think this is risky? I am 79.
John is so absolutely right!
However, the part that really steams me is that the so-called experts know this too. When they are in front of CBS, NBC, ABC etc…why don’t they just SAY IT DAMN IT!
Be very carful with loan modifacations. I’ve found through reasurch that the loan modifacation is in the lenders benifit not the home owner. And be very carful of the fine print because when you sigh it gives them leagal issues that can be used against the home owner. Basicly it gives the lender ammo to use against you if they try and foreclose on the home owners house. I am personally dealing with an issue myself where due to illness our payments fell behind a few months, nothing serious you would think, till they sent last months payment back and refuses to take the new payments with threat of forcloser. So I started reasurching and I’ve found that lenders talk you in circles all with diferent answers, this is done to distract the home owner, Anyone that has gone through this knows you will never get an answer or information from the lender. Almost all lawyers give a free consultation I’ve retained one-a very good one- myself. At that point all calls and threating leathers stop and the lawyer deals with the lenders lawyer. At this point, atleast in fl and depending on your status which sounds good, In my opion I would not contact your lender I would retain a lawyer and watch how quickly things change. I hope this helps and will gladly share what I’ve learned just so new home owners know whats going on that I feel alot do not know and how to protect your home and not be abused by scare tatics. Theres more I can go into but I’ll just ramble on. Good luck.