Bank regulators found that large mortgage lenders broke laws that cause some people to be wrongfully evicted. The investigation of 14 of the largest mortgage lender including Wells Fargo, CitiBank and Bank of America discovered the lenders allowed third parties to sign affidavits without reviewing fundamental information. The lenders are accused of deficiencies and shortcomings in the way foreclosures were handled which lead them to break state and local regulations. The transgressions of foreclosure regulation could affect the real estate market which in has negative ramifications for the US economy. The banks will be fined for breaking these rules.
The probe found many banks rushed homes for through the foreclosure process which didn’t give the defendants or their foreclosure attorney’s fair opportunity to keep their homes. The lender also stalled the paperwork of loan recipients who were attempting to restructure their mortgages. The lenders were more concerned with pushing papers through the system in a timely fashion than the integrity of the paperwork.
The oversights caused many people who were already approved for loan restructuring alongside those who had filed for bankruptcy to unjustly lose their houses. A foreclosure lawyer can help many homeowners who face foreclosure keep their houses. The dishonesty of mortgage lenders caused a small number of homeowners to unnecessarily enter the foreclosure process. Facing foreclosure is terrifying but the guidance of a foreclosure attorney can alleviate their fears and make lenders more accountable for their negligence.
