BluefoxToday blog : This Foreclosure Crisis Just Won't Go Away

This Foreclosure Crisis Just Won't Go Away

While banks have repeatedly assured us that their foreclosure problems, commonly referred to as “ForeclosureGate,” are nothing more than “paperwork” problems, it seems this foreclosure crisis just won’t go away. And with 50 states’ attorneys general continuing to investigate the matter, more problems can be expected to surface.

 

A story on Bloomberg describes how an employee at Bank of America is reported to have testified that promissory notes were routinely held by Countrywide Financial Corp., now owned by BofA, even after such loans had been bundled and sold. And while BofA has denied the accuracy of the testimony, lawyers on both sides are scrambling to uncover the facts—facts which could severely impact the standing of thousands of foreclosure actions, as well as bolster the cases of investors demanding that BofA repurchase mortgage-backed securities.

 

In a previous POST I pointed out the deceptive practices that have come to light as the foreclosure crisis unfolded, and this story only causes more to question the actions and statements of the country’s major banks.

 

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Comment balloon 7 commentsJohn Mulkey • December 01 2010 11:16AM

Comments

Michael - The banks had a major PR effort to convince the public that the borrowers were at fault--and for many their efforts were successful.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 7 years ago

The media wants to keep the foreclosure crisis going as long as possible so they have a story to milk for readers and viewers.  Many areas of the country have seen foreclosures drop (substantially in California) and instead of focusing on the improvements, the media tend to focus on the "might" and "could" options.

Posted by Bryan Robertson, Broker, Author, Speaker (Intero Real Estate) over 7 years ago

Bryan - And the banks are not helping by ignoring problems they created.

 

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 7 years ago

Of course it has gone away, we have solved all our problems and we are moving forward, onward and upward, through the summer of recovery to the best Christmas season in the history of this economy.

Posted by Jay Markanich, Home Inspector - servicing all Northern Virginia (Jay Markanich Real Estate Inspections, LLC) over 7 years ago

Jay - Now you've embarassed me; I failed to notice the change : (

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 7 years ago

John,

Looks like mortgage securities investors have another avenue to pursue to get their money back. What a mess.

Posted by Esko Kiuru over 7 years ago

Esko - I anticipate years of lawsuits over the foreclosure crisis.

Posted by John Mulkey, Housing Guru (TheHousingGuru.com) over 7 years ago

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