Foreclosure Rescission Notice? May Indicate Bank Broke Foreclosure Rules and Took Shortcuts
Andrew J Garcia
Lenders like Bank of America, JP Morgan Chase, Wells Fargo and Citigroup, systematically broke rules and took paperwork shortcuts when foreclosing on homes last year according to a report by federal bank regulators released on Wednesday. Bank examiners revealed that the banks under investigation following the "robo-signing" crisis employed foreclosure practices that "failed to conform to state legal requirements."
According to agreements signed with the Federal Reserve, the Office of the Comptroller of Currency and the Office of Thrift Supervision, the banks must stop these sorts of practices and fix the problems with how they process home foreclosures. All three agencies determined that their practices were "unsafe and unsound."
Yet the agencies' efforts don't appear to have gone far enough in identifying the full scope of the problem. In a joint report on the findings, it appears that they did not fully review whether borrowers were assessed improper fees and they did not investigate servicing issues outside of the foreclosure process.
In addition, the agencies only examined a small number of files from among the thousands of foreclosures processed by mortgage servicers. In the joint report, the agencies actually admit that "the reviews could not provide a reliable estimate of the number of foreclosures that should not have proceeded."
This comes as no surprise because our lawyers have been hearing from more and more homeowners who have received notices from their mortgage servicers rescinding a past foreclosure. A rescission notice means that the bank has "cancelled" or reversed a foreclosure that took place.
While it may seem like good news to receive a notice that cancels out a prior mortgage, for many homeowners "the damage has been done." For many of these people, they have been displaced from their home and have been forced into a less than acceptable living situation. We have also heard reports from homeowners who have lost valuable personal property in a past foreclosure.
Homeowners who receive a foreclosure rescission notice from a bank many times don't even know why the foreclosure has been rescinded and they can't seem to get answers from the foreclosing attorney, the bank and even the court. They often don't know what rights they may have to potential damages for being wrongfully foreclosed on in the first place.
1 Comments to "Foreclosure Rescission Notice? May Indicate Bank Broke Foreclosure Rules and Took Shortcuts"
Bank's attorney sent Notice of trustee sale in Feb-3-2012,trustee sale set for March 6, postponed and rescheduled for June 5th through a new Notice of trustee sale. I sent a QWR to the bank asking for proof of standing; original note, assignments, etc.. Bank cancelled Trustee sale and sent Notice of Rescission dated June 12 2012. They have kept sending letters suggesting short sale, and recently threatened to start foreclosure proceedings again. The last full payment was done in April 20th 2009, defaulted the biweekly payment May 3th 2009. Statute of limitations in Texas is 4 years, and will expire upcoming May 3th, I'm thinking that's the reason they are rushing into it now. Not sure if they will really make good on their threats and start foreclosure proceedings again since they closed it once already. I don't think they all of a sudden fixed a problem that can't be fixed legally, only through forgery and fraud. I hope you can give me some advice on this, thank you very much!
Post a comment
Post a Comment to "Foreclosure Rescission Notice? May Indicate Bank Broke Foreclosure Rules and Took Shortcuts"To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."