99% of the rancor is over technicalities.
I have yet to read where any substantial number of these foreclosures came about when the buyers were not in fact in serious default on their mortgage, over extended periods of time.
So, lets all jump up and down with populist angst against the evil banks, and allow some technicalities to force them to NOT foreclosure on people grossly in default and even though “saving them” now, forestalling the foreclosure now, will not improve their ability to prevent the foreclosure in the end.
Forestalling the inevitable over technicalities, when, in general we need the true bottom of the housing market to be arrived at sooner, not later. The longer the inevitable is forestalled, the longer before a healthy housing market can contribute to recovery.
Even if the Document Fairy comes by in the night, waves her magic wand, and cures all the document problems, the housing market is not going to recover until the oversupply of houses built in the last five years works its way back to equilibrium and enough decent-paying jobs are created for people to have the income necessary to support a house.
That’s years away, at best.
RULE OF LAW .... anarchy .... pick one.
Yea, like fraudulent affidavits, notary fraud, failure to produce evidence of right to foreclose.... you know, little technicalities.
BTW... just in case you persist in thinking that these are mere paperwork errors: In most states, filing a fraudulent affidavit is at the very least a gross misdemeanor and for a lawyer it is a felony. In states like Nevada, where I’m most familiar with the law, it is a Class D felony (1 to 3 years) first offense.
A substantial number (as in 10’s of thousands) of these foreclosure proceedings are based upon fraudulent documents. Then there is notary fraud, process service fraud, and we haven’t talked yet about the issues of failures to record conveyance in many states.
A judicial action of foreclosure based upon fraud can be vacated upon appeal. The case law is pretty clear on this one. Get a court to do your bidding based upon fraudulent information... and the courts don’t like looking like your patsies. First they undo what you conned them into doing, then they make you pay for the other guy’s lawyer. Then they start talking about whether or not they bring a case against you for fraud.
The best course the banks have is to stop submitting fraudulent documents, produce REAL documents so they can foreclose and have it stick. Because the fastest, best way to award a house “free and clear” of all future claims is to perpetrate a fraud upon the court by submitting fraudulent affidavits, have the case vacated upon appeal, and then the judge will probably toss in that the bankers have to pay the legal fees of the deadbeats.
Even if the deadbeat(s) don’t appeal, a foreclosure based upon phony docs will likely not have a quiet title. It will cost future buyers of the property a tidy bit in legal fees to clean up the docs and get the title quieted.
The paperwork needs to be cleaned up to make foreclosures successful and the properties ready for sale when it is all done.