Posted on 10/08/2010 8:30:23 AM PDT by null and void
Live now. BofA stopping all foreclosures, due to inability to sort out faulty documents, laws suits over documents, etc.
Hold on to your hats and butts!
There is always more to the story, isn’t there?
Phony Forged Falsified Foreclosure Papers ping
So have the halted all new loan applications and approvals too?
Oh my. This will not end well.
I suspect you’re right...Much more to this story.
Yep. Major flood of repercussions for this. I smell a trillions dollars being burned right now.
I guess I’m dense.
Why would someone file a false claim? What is the motive to file a bankrupcy instead of having the house foreclosed?
Considering Pres. Jughead has managed to make a bad situation much, much worse; this whole mess was initiated by the DNC mandating that there was a ‘right’ for people who could not afford a home, to buy a home. When these people were unable to get a loan due to their own bad credit; they were given one for racial reasons.
Now we have had almost 2 years of declingin jobs and rampant unemployment - it’s no surprise that people can no longer afford the home they could easily afford just 3 years ago.
Dunno. Given the number of LCS/DOCX forged documents in the system, that would seem to be prudent.
Old Republic Title Insurance has stopped issuing title insurance for some lenders, that pretty much kills the loan process...
“Unfortunately, like any other human institution (for example, Holy Church), capitalism tends to run amuck when it is not restrained, and democracy provides inadequate means of keeping it in order. There is never any surety that democracy will throw up leaders competent to discern the true dangers of capitalism and able to remedy them in a prudent and rational manner. Thus we have vacillated between letting it run wild and trying to ruin it. Both courses are hazardous and ineffective, and it is hard to say which is the more so.”
H.L. Mencken, Minority Report
LMFAO! Go to Hell BofA! You took advantage of me for 3 years while I paid off my car, and it was a great day for me when I got to close all of my accounts with you.
Meanwhile, back at the ranch, I’m curious why all of a sudden documentation is the issue behind foreclosures? Foreclosure means you stopped paying your mortgage and the bank wants its asset back. Are they going to say that people who signed their loans with knowledge that they could not pay them back were in breach of contract? Then what? Drag them back in to re-fi?
FUBO and FUBofA!
Here’s a thought on how to “solve” this.
It won’t really work as well for existing foreclosures, but for borrowers who are near foreclosure, and the bank is avoiding filing due to what’s going on, what about this idea?
Modify the loan. I do realize you still have to have investor/note holder approval to modify a loan, but if I understand right, this is easier to come by than the physical signed note. Now, why modify when you know the bank can’t take the house? Well, one reason is the idea that eventually, you (as the borrower) will lose the house and your credit is shot as a result. This won’t work for all borrowers, but some might take an incentive that if the bank agrees to wipe all late payments off the credit report (for the loan in question) that they’ll modify the loan to a lower rate and/or balance, a loss but not as big of one as getting NOTHING including the property. Some borrowers might go for this.
NOW - you’re modifying and get a NEW NOTE. So, this note they keep track of, unlike the original, and if the borrowers screw up again (as many will) you now have a note to go off of.
Meanwhile..... the Dow hits 11,000?
Before some of you fellow FReepers start going off on the ‘dead beats’ the poor planners and how they shouldn’t have gotten the house to begin with, or how they just want a house they don’t have to pay for, or how the banks are just trying to foreclose on a bunch of non-paying low lifes let me say this; This no longer about just foreclosures. Even people who have made their payments are now in trouble because there is no way to make sure 100% that the deed is clean. The mortgages have been bundled and sold and resold, bundles have been sold piece meal most of the transfers were never legal recorded. So even those paying off their mortgages could end up with a house they can not sell borrow against, your house that you paid for could be open to a claim by almost anyone. That’s why the Title Insurance Companies are running scared!
I think so... I believe there will be mass conversions of loans from secured loans to unsecured loans, which might widen the bank's powers to go after people's personal assets rather than being limited to just going after the assets which were the basis of the secured loans.
This will spark the last -- and final -- leg of the collapse.
Then prompting mass refis at ANY rate so people can take the obligation back off their personal assets. Well, eventually, when the market allows it anyway.
I’ll say one thing - they’ll probably document loans better from now ON.
When mortgages got bundled into financial instruments the bundlers stripped out the paper documents and replaced them with electronic copies.
Guess what? Most states require the original paper documents to foreclose.
Oooooops.
The industry's response? Hire outside companies to "generate" the "original" documents and file these falsified and post dated documents with each county recorder's office.
Ooooops.
They got caught.
One financial expert thinks this is due to the large banks wanting to hold on to real estate in face of a looming crash.
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