Last week, President Obama and his administration proposed a plan to settle with banks plagued by robo-signer concerns. Among other things, the settlement included an agreement on the part of the lenders saying that they would either pay around $20 billion in civil fines or that they would fund a comparable amount of loan modifications, including reducing principal on those loans[1]. Not only do lenders say that this settlement will “bring…enormous costs that would far outweigh any potential benefits,” (according to BofA mortgage strategist Chris Flanagan), but they also believe …

In Arizona, previously-common lending practices that led to the robo-signer fiasco last fall could now lead to impossible foreclosures and voided foreclosure sales. The state Senate has passed a bill, SB 1259, requiring that lenders provide a complete list of any previous owners of a mortgage note before they can foreclose on that note[1]. Failure to do so not only sets the lender up for a lawsuit including damages and foreclosure reversal, but can also void a foreclosure sale. The bill has not yet passed the Arizona House of Representatives.

Essentially, …

In an effort to make up for mistakes on military foreclosures, JP Morgan Chase announced yesterday that it is going to “significantly enhance its programs to help military and veteran customers”[1]. In a statement from Jamie Dimon, the company’s chairman and chief executive, the lender expressed regret for “the mistakes we made on military foreclosures,” calling the incidents a “painful aberration on [our] track record [of honoring military and veterans].” The lender admitted before a congressional committee last week that they foreclosed on homes of active-duty personnel who should have …

According to an article in the Florida Bar Journal, the Florida Bar Association considers it an attorney’s responsibility to notify judges of potential foreclosure fraud when working on foreclosure cases – even if the property has already been foreclosed upon and even been sold at auction[1]. The types of fraud particularly noted are “robo-signed affidavits and forged notary stamps.” Given that in the 1.2 million foreclosures filed in Florida since the beginning of 2007, “tens of thousands of forged signatures, backdated documents and other problem paperwork” have been detected already, …

Talk about teamwork: when Tim Hardaway, former star of the NBA team the Miami Heat, ran into trouble and ended up with a hefty tax lien on his property, his former team bailed him out[1]. Hardaway faced the loss of everything, including his mansion in Miami which is currently work $2.5 million and has a pool and basketball court that have been customized to show the Heat Logo. His former team stepped up, purchasing the home and enabling Hardaway to remain in the residence, although the property remains for sale.
Oddly, …

In Nye County, Nevada, a judge has ordered a unit of Bank of America Corporation to halt the majority of its foreclosures in Nevada pending investigation of allegations that the unit, Recon Trust, has been operating without a state business license and has been serving foreclosure notices without even being appointed a Bank of America trustee[1]. These are serious allegations under any circumstances, and just more bad news for the beleaguered lender who recently concluded a “deal” with government-controlled Fannie Mae and Freddie Mac that has led many people to …

Although most projections show that the housing market should start to make a very slow recovery this year, homebuilders are not joining in the atmosphere of cautious optimism. In fact, they are downright discouraged and don’t expect much to change for them any time soon, reported the National Association of Home Builders (NAHB) yesterday[1]. The air of general concern in this sector is largely due to some serious challenges that stem from new home construction. Because of the huge glut of homes – many relatively new and even unlived-in – …

Banks and lenders repossessed more than 1 million homes in 2010, but more than 3 million homes actually entered foreclosure last year. As a result, 2011’s foreclosure numbers stand to be far worse than 2010’s as banks attempt to “catch up” on properties that have been delinquent far longer than would usually be permitted[1]. Lenders will be moving through a serious backlog as 2011 gets underway, and one in every 45 U.S. households will have received a foreclosure filing in 2010 that the homeowner will have to confront in 2011.
While …

The economy may be getting back on its feet and trying to forget the hurts of the past, but it will have a hard time doing that as foreclosure cases are still trying to get a clear grounding [1]. A recent ruling on two Massachusetts foreclosures is now the talk of industry experts. Is it indicative of what’s going to happen to other foreclosure proceedings nationwide or is it something that’s unique to the state?
Last Friday, the Massachusetts Supreme Court ruled that two foreclosures instigated by Wells Fargo and U.S. …