Foreclosure abuse rampant across U.S according to expert

February 22, 2012 by · Leave a Comment
Filed under: Real Estate News 

It has been sometime since my last posting.  In that time, I had to undergo a major surgery.  I am recovering great and should be posting with much more regularity.   It has taken a few days to catch up and see whats out there to write about.

I love that the banks are paying $25 BILLION DOLLARS and are still not admitting any wrongdoing.  This is just another way to reward the “bad actors” who committed fraud during the U.S. housing bubble.  In the end, we deserve what we have gotten.  We need to hold our representatives and regulators to account.   We should of never let this deal get offered.   It is quite obvious that “wrong doing” did happen so why do we allow LIES like this to permeate in our political and business culture?

At this point it is much more likely something along these lines will happen again down the line because we did not enforce our laws.   A democracy needs active participation from a large majority of a countries population to be effective.  A better outcome from this crisis would of been to see many executives that allowed this to happen, to be put on trial for these financial crimes.   Banks that were too big to save would of been brought down to a regulatable size and banks that followed the rules would of gain confidence of the markets and customers.  This would of allowed them to prosper and that is a sign of how a market economy would of worked in that situation.  We need to realize that the pain is a good part of the process to shakeout the weak links in your market.   In the end its all about word I have written over a hundred times…..PRECEDENT

 

Reuters: A report this week showing rampant foreclosure abuse in San Francisco reflects similar levels of lender fraud and faulty documentation across the United States, say experts and officials who have done studies in other parts of the country. The audit of almost 400 foreclosures in San Francisco found that 84 percent of them appeared to be illegal, according to the study released by the California city on Wednesday.

“The audit in San Francisco is the most detailed and comprehensive that has been done – but it’s likely those numbers are comparable nationally,” Diane Thompson, an attorney at the National Consumer Law Center, told Reuters.

Across the country from California, Jeff Thingpen, register of deeds in Guildford County, North Carolina, examined 6,100 mortgage documents last year, from loan notes to foreclosure paperwork.  Of those documents, created between January 2008 and December 2010, 4,500 showed signature irregularities, a telltale sign of the illegal practice of “robosigning” documents.

Robosigning involves the use of bogus documents to force foreclosures without lenders having to scrutinize all the paperwork involved with mortgages. The practice was at the heart of the foreclosure scandal that led to a $25 billion settlement between the U.S. government and five major banks last week.

The banks have never formally admitted any wrongdoing. A Wells Fargo spokesman said, “We have acknowledged we didn’t always follow our policies in the foreclosure process. We found some areas where there were deficiencies in our process.”

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