Foreclosure Moratorium?

Homes In Foreclosure

Are You Affected?

Homes have been foreclosed without banks reading the documents! Three major players in the foreclosure business have decided to delay foreclosures in 23 states – JP Morgan Chase, GMAC and Bank of America. There are a number of mortgage companies who have rushed the foreclosure process without fully reading the documents in each case.

Associated Press has received a document that a bank official acknowledged in a legal proceeding that she routinely processes and signs 7,000 to 8,000 foreclosure documents per month. Renee Hertzler is quoted as saying: “I typically don’t read them because of the volume that we sign.”

Sloppy Foreclosure Procedures

At issue here is the growing concern that homeowners were not given adequate options for mortgage assistance. Several states are bringing pressure on the banks because of errors, general sloppy procedures and foreclosures occurring by entities that did not have the authority to foreclose.

Connecticut Attorney General Richard Blumenthal moved to freeze all home foreclosures for 60 days. California’s Attorney General Jerry Brown called on JP Morgan to show it complied with state consumer protection laws which require the lenders contact at risk borrowers to see if they qualify for mortgage assistance. And Florida and Ohio have asked their courts to review all GMAC foreclosure cases.

Following is a table of the GMAC and Bank of America affected states:

New Jersey
New Mexico
New York
North Carolina
North Dakota
South Carolina
South Dakota

JP Morgan is temporarily halting 50,000 foreclosures in order to review procedures and documents.  But Wells Fargo and Citigroup insist their policies and trainings ensure that proper procedures are followed.

Foreclosure in Montana

As a Realtor working in Missoula it is a shame to see that Montana is not on the list for the moratorium – just checking one bank’s list of upcoming foreclosures showed that there are 74 homes at risk in Missoula alone. What about the other 4 big mortgage companies – how many are on their lists?  I have seen first hand the sloppy work by the contractors hired by the mortgage companies – some of whom are not even licensed in the State of Montana.

Millions of homes have been foreclosed upon, why are we just now investigating the procedural errors? What about all of those that lost their homes in the last 2-3 years during this great mortgage debacle? Why is it in a National Crisis such as this – is no one “available for comment” – or worse held accountable for improper foreclosures?

About the author

Sherry Fields Sherry Fields has been working in real estate since 2002. Working with the development team for the Hilton Garden Inn gave her strategic information on the commercial real estate market in Missoula. Broadening her scope she moved into the residential market and earned the designation SFR in short sales and foreclosures. Currently affiliated with Prudential Montana Real Estate, she works with both buyers and sellers "building relationships so you can buy & sell with confidence". Sherry Fields has recently earned the CREN designation - Certified Real Estate Negotiator. While price is a large part of negotiation - it is also about timing everything from the closing date to inspections, appraisals, home insurance - and it is about negotiating items that can show up in home inspections to achieve a mutually acceptable outcome.

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4 Responses to “Foreclosure Moratorium?”

  1. Foreclosure Moratorium?…

    I found your entry interesting do I’ve added a Trackback to it on my weblog :)…

  2. Peggy Grace says:

    This recent news of foreclosure freezes will help stabilize a dropping market. (I hope!)

  3. […] This post was mentioned on Twitter by Home Marketsite, Heath Lackey. Heath Lackey said: Foreclosure Moratorium?: Homes In Foreclosure Are You Affected? Homes have been foreclosed without banks reading t… […]

  4. mike timothy says:

    Loving obama’s passion for energy but I’m doubtful this initiative will help the economy at all during this next year. I know i’m pessimistic, but I think there is a lot more bad to come before we see the economy recover. Lots of foreclosures to come this next year…

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