You may have heard that mortgage lenders like Bank of America have started to freeze their foreclosure processes because of lax protocol. In most, if not all, of the cases uncovered thus far, it's likely that the borrower was indeed behind on payments. That's not the question at hand. The problem is that the lenders haven't bothered to follow their own rules on the process of getting to actual foreclosure. If borrowers are required to dot their i's and cross their t's, well it makes sense that the lenders should do the same.
But keep in mind that these lenders have a massive back log of delinquent properties to process. I've heard that Bank of America has 1.5 million homes currently foreclosed upon already. That's a big number.
Here's an article on the national impact of these ill-processed foreclosures.
Casey
Edmonds, WA
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Casey Bui, MPA
Managing Broker,
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That is a HUGE number. Hard to comprehend that just one (large) lender has that much control over the market...
Makes me wonder how and why we let financial institutions get so big. Haven't we learned anything about "too-big-to-fail" scenarios? I thought that was what antitrust laws were for.
This is a good example of control issues that we should not allow. They call all the shots and we are just the peon's. They just are not geared for such a devastating blow to our industry like this. Many people are going to be affected and scarred for a lot of years to come as it is going to have the trickle down affect taking place.