According to a report disclosed by JP Morgan, the bank could face "material" fines and "significant" legal costs from the investigation into fraudulent foreclosures that has been occurring.
JP Morgan, the second-largest U.S. bank by assets, has also revealed that there are over 10,000 legal proceedings against it as of the end of 2010. They estimate that they could end up with a loss of up to $4.5 billion.
The bank has stated that they are cooperating with the investigation process, which began last fall after lenders were accused of falsifying and “robo-signing” foreclosure notices that put thousands of Americans out of their homes without due reason.
Other banks accused include Bank of America Corp. and Citigroup Inc., which have also disclosed similar reports and concerns over the regulation process that federal authorities are undergoing.
Foreclosures are a difficult process for homeowners. It’s not easy having your property taken from you, but there is still hope to turn banks away if you have defaulted on your mortgage. Contact a foreclosure lawyer right away to discuss your options.
A foreclosure happens when a mortgagor has defaulted on their payments to their lenders. The bank repossesses the property and often sells it at auction. While the process is scary, foreclosure attorneys can help. Your paralegal will sit down with you and review your credit history. Based on your individual situation, they will then speak to your lender and try to work out an agreement that does not involve you losing your home.
Contrary to popular belief, banks are not out to foreclose on homeowners. The process is very expensive for lenders and they don’t usually make back the money they invested from auction sales. In order to come up with an agreement that both lenders and mortgagors can be satisfied with, your foreclosure lawyer will devise a plan of action, bringing to the table the idea of a mortgage modification, lowering your principal amount, refinancing the home, or even a temporary halt on your payments.
Speak to a foreclosure attorney immediately to begin working on your case. With a top paralegal on your side, you can rest assured that your case will end with the best possible outcome.
