Gallagher & Associates Team
Thursday, October 14, 2010
Monday, October 11, 2010
Foreclosure Alert
Lenders Suspend Foreclosures
In the wake of the recent testimony that loan representatives routinely signed thousands of documents a without reviewing the documents or verifying that the information was accurate or correct, four lenders have suspended their foreclosures pending internal investigations. The following lenders have announced that they will stay foreclosures:
Bank of America
GMAC/Ally Financial
JP Morgan Chase
PNC Financial
It is expected that additional lenders will follow suit in the near future given the widespread nature of the problems. However, Wells Fargo reported that it was not going to stay any of their foreclosures as it was confident with regard to their documents and practices.
Despite what appears to be good news, in at least one local case, attorneys for Bank of America have failed honor the stay and proceeded forward with the foreclosure litigation, stating that the stay only applies to some cases.
Caution for Occupancy Inspections
Homeowners should also be cautious for contrived occupancy or property inspections by contractors for banks which are really designed to intimidate and scare homeowners.
While the terms of most mortgages give banks the right to secure a vacant property and confirm that the borrowers reside in home, lenders are using this as collection effort where the representative will misrepresent the foreclosure process and threaten an immediate ejectment from the home.
After a homeowner has advised the inspector that they reside there and property is secured, you can direct them to leave your property as they have no legitimate reason for remaining on the property. In some cases the statements of the bank representatives have risen to a level of fraud and law enforcement has been summoned to issue a no-trespass warning.
State Attorneys General to Investigate Foreclosure Fraud
The attorneys general of up to 40 states plan to announce a joint investigation into banks' use of flawed foreclosure paperwork. An announcement could come as early as Tuesday.
Iowa Attorney General Tom Miller will likely lead the investigation. Miller already has been leading multistate reviews of questionable foreclosure documents. Additionally, Attorney General Eric Holder has said the federal government is also looking into the issue.
In the wake of the recent testimony that loan representatives routinely signed thousands of documents a without reviewing the documents or verifying that the information was accurate or correct, four lenders have suspended their foreclosures pending internal investigations. The following lenders have announced that they will stay foreclosures:
Bank of America
GMAC/Ally Financial
JP Morgan Chase
PNC Financial
It is expected that additional lenders will follow suit in the near future given the widespread nature of the problems. However, Wells Fargo reported that it was not going to stay any of their foreclosures as it was confident with regard to their documents and practices.
Despite what appears to be good news, in at least one local case, attorneys for Bank of America have failed honor the stay and proceeded forward with the foreclosure litigation, stating that the stay only applies to some cases.
Caution for Occupancy Inspections
Homeowners should also be cautious for contrived occupancy or property inspections by contractors for banks which are really designed to intimidate and scare homeowners.
While the terms of most mortgages give banks the right to secure a vacant property and confirm that the borrowers reside in home, lenders are using this as collection effort where the representative will misrepresent the foreclosure process and threaten an immediate ejectment from the home.
After a homeowner has advised the inspector that they reside there and property is secured, you can direct them to leave your property as they have no legitimate reason for remaining on the property. In some cases the statements of the bank representatives have risen to a level of fraud and law enforcement has been summoned to issue a no-trespass warning.
State Attorneys General to Investigate Foreclosure Fraud
The attorneys general of up to 40 states plan to announce a joint investigation into banks' use of flawed foreclosure paperwork. An announcement could come as early as Tuesday.
Iowa Attorney General Tom Miller will likely lead the investigation. Miller already has been leading multistate reviews of questionable foreclosure documents. Additionally, Attorney General Eric Holder has said the federal government is also looking into the issue.
Monday, October 4, 2010
Wednesday, September 29, 2010
Mortgage Fraud Stats
Florida is among the nation's leaders in yet another category.....mortgage fraud.
A predicate to the crisis of bad loans currently defaulting across the country was mortgage fraud in the application and underwriting of loans.
According to federal commission, Florida played a major role in the number of loans with associated fraud. The Financial Crisis Inquiry Commission opened hearings in Miami that focused on liar's loans, predatory mortgage practices and inflated home appraisals.
They concluded that the financial impact of the fraud was more severe than most have estimated, and prosecuting those responsible will be nearly impossible. It was the third of four hearings being carried out nationwide by the commission, which Congress assembled last year to investigate the causes of the global financial meltdown.
A predicate to the crisis of bad loans currently defaulting across the country was mortgage fraud in the application and underwriting of loans.
According to federal commission, Florida played a major role in the number of loans with associated fraud. The Financial Crisis Inquiry Commission opened hearings in Miami that focused on liar's loans, predatory mortgage practices and inflated home appraisals.
They concluded that the financial impact of the fraud was more severe than most have estimated, and prosecuting those responsible will be nearly impossible. It was the third of four hearings being carried out nationwide by the commission, which Congress assembled last year to investigate the causes of the global financial meltdown.
GMAC Halts Foreclosures
GMAC Mortgage directed their attorneys to halt foreclosures on homeowners in 23 states including Florida, Connecticut and New York.
They stated that they may "need to take corrective action in connection with some foreclosures." Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to an internal company document, addressed to GMAC preferred agents.
The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.
GMAC Mortgage ranked fourth among U.S. home-loan originators in the first six months of this year, with $26 billion of mortgages, according to industry newsletter Inside Mortgage Finance. Wells Fargo & Co. ranked first, with $160 billion, and Citigroup Inc. was fifth, with $25 billion.
GMAC was created in 1919 to provide financing for buyers of General Motors Co.'s vehicles. GMAC converted into a bank holding company in 2008 as it received more than $17 billion of government funds during the financial crisis.
They stated that they may "need to take corrective action in connection with some foreclosures." Brokers were told to stop evictions, cash-for-key transactions and lockouts, regardless of occupant type, with immediate effect, according to an internal company document, addressed to GMAC preferred agents.
The company will also suspend sales of properties on which it has already foreclosed. The letter tells brokers to notify buyers that the company will extend the closing date on all sales by 30 days. Buyers will be able to cancel their agreement to purchase and get their deposit back, according to the letter.
GMAC Mortgage ranked fourth among U.S. home-loan originators in the first six months of this year, with $26 billion of mortgages, according to industry newsletter Inside Mortgage Finance. Wells Fargo & Co. ranked first, with $160 billion, and Citigroup Inc. was fifth, with $25 billion.
GMAC was created in 1919 to provide financing for buyers of General Motors Co.'s vehicles. GMAC converted into a bank holding company in 2008 as it received more than $17 billion of government funds during the financial crisis.
Friday, September 24, 2010
Thursday, September 2, 2010
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