Foreclosure Process Scrutinized

By: Ashley Conroy Email
By: Ashley Conroy Email

The National Association of Attorneys General released a letter that says 50 states are filing an investigation into foreclosure documents that appear to have 'defects'. About 2.5 million homes have been foreclosed since 2007.

"Some representatives from some companies that admitted in testimony that they weren't actually reading the documents," said Mississippi Attorney general Jim Hood.

Attorneys general around the nation allege the documents were improperly submitted, such as affidavits saying homeowners knew exactly the terms of their foreclosure.

"Number one, we're asking them, what have you done thus far? You know, what are you doing to look and make sure that you don't have people to just sign away things that they don't know," Hood said.

An estimated 3,000-plus homes have foreclosed in Mississippi. But as the housing market bubbled and the nation saw foreclosure sign after foreclosure sign, some mortgage experts say, to some degree, this has helped the economy.

"I think you'll find out that a lot competition right now in the real estate market is buying foreclosures, whether you be at owner occupancy or an investor, and it does help the economy," said Bo Smith of Cornerstone Home Lending.

Realtor Justin Wright says investigating these 'questionable' foreclosures could lead to a halt in the business and create more problems down the road.

"Not only will consumers lose confidence in buying a foreclosure, but foreclosures will be taken off the market and they will be out of jobs by the thousands," Wright said.

But Hood says improperly foreclosing on a house does create problems.

"It's creating problems out there for people who are trying to buy these distressed properties," said Hood. "And you know, with as much trouble as we've already had with our real estate market, certainly we don't need that instability to come into play."

Hood says his office has received one formal complaint so far about someone who thought their home was improperly foreclosed; it's now under investigation.


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  • by Peabody Location: Zero on Oct 15, 2010 at 01:50 AM
    Granny: People like you and me are 'The working poor' while your husband as well as me may have the skills to hold a good high paying job there are none to be had.Finance companies are one small step above check cashing places but they are the poor peoples only choice. It seems like they are trying to force us to lose everything, get a government check and live off that.
  • by Granny Location: anywhere on Oct 14, 2010 at 03:27 PM
    I originally bought my house from Harrison Finance, all was fine, they worked with me when there was a promblem. Harrison sold to Tower Loan, without our consent. My husband lost his job, I am on disability. We got one month behind on our house payment, If Tower loan calls one time a month, they call every other day demanding payment. We ask them to put the one note on the end of the loan, we ask if anything could be done to help with the one note, Tower Loan says nothing can be done, can't refinace,they don't loan that much money, can't put on end, all they can do is keep adding interest and late fees on to the note. So now our credit is bad and we can't catch the note up, my husband don't even make 10.00 hr. We are doing the best we can. My question is, When Obama made all of his rules, why does it not apply to finance companies, why only banks? Middle class people can't get loans at banks, they have to use finance companies. What can we do about this? Please Help. Don't use Tower Loan
  • by One who has been there... Location: anywhere in the US on Oct 14, 2010 at 11:30 AM
    Causes problems for the ones trying to buy the homes?! What about the ones who lost them???? Take it from someone who knows, Bank of America added almost $10,000 to my escrow account, and can't, or won't, tell me why, then increased my monthly payment by $700.00 to pay it, and they won't accept "anything less than the increased monthly payment". And then they transfer my telephone calls around until I get tired of holding! Then I get a letter from them advising me they are going to foreclose on me unless I pay this amount! What happens if I agree to pay this amount? They do it again? Do you think I care what "adverse" effects this moratorium has on the big banks? If this has happened to me, how many other people are in the same circumstances? Everytime you read blogs about BofA, you read almost word for word the same things I am presently going through with them. I didn't choose BofA, my mortgage was with Countrywide. I have had nothing but grief since BofA took over my mortgage!!!
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