
At last count, we had learned about wrongful foreclosures and seizures taking place in seven different states -- Massachusetts, Florida, Louisiana, Texas, Kentucky, Michigan and Oregon. We know of two incidents in Massachusetts and at least three in Florida.
There are some common factual themes that are developing. In many cases, the owner has been away from the home or condo for several days when the bank sends one of its "property preservation" specialists to check on the property to see if it is abandoned. If it looks like the property is abandoned, the bank breaks in, changes the locks and winterizes the home. There appears to be little concern about such legal technicalities as breaking and entering and trespass.
Banks have broken into homeowner's homes and condos when there is no loan, the house was recently sold to the new owner in a cash short sale, when the borrower was up to date on their mortgage and when the borrower was up to date on a valid loan modification agreement.
Another common factual theme we are seeing involves the bank's failure to have adequate internal communications between departments to stop the foreclosure freight train once it leaves the station. The banks also lack adequate external communications to timely and properly notify their foreclosure attorneys and "trash out" teams that the bank has made a mistake.
Until we see some drastic changes in the communication systems used at banks, wrongful foreclosures and home seizures will continue. With 7.3 million Americans behind on their mortgage payments, there appears to be no end in site to wrongful bank foreclosures. The states with the biggest potential problems with wrongful foreclosures will, in all likelihood, be the states with the most delinquent loans. Those states are reported to be Florida, Nevada, Arizona, Georgia, Mississippi, California, Indiana, Michigan, Illinois and Ohio.
Post a Comment to "Phillips & Garcia Tracking National Chatter on Wrongful Foreclosures and Seizures"
To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."Let our legal experts review your case, and we'll help you obtain the compensation you deserve. Begin your case review by filling out the form below:
Phillips & Garcia, P.C.
13 Ventura Drive
North Dartmouth, MA 02747
Toll Free: (888) 449-5343
Get Directions