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| Authored by: rsteinmetz70112 on Saturday, January 05 2013 @ 01:33 PM EST |
While there have been a few cases of houses being foreclosed in error (i.e. the
wrong person or home was foreclosed or records were in error).
Unfortunately some people found their economic situation changed by
circumstances beyond their control.
Other people made bad decisions, over extended themselves sometimes with second
homes or speculative purchases.
You cannot expect any of these people to be happy. A major industry has
developed of "activists", "community organizers" and lawyers
looking to help people keep houses they can't pay for, often for their own
profit.
Virtually all of the "complaints" involve foreclosures of homes where
the borrowers were in violation of their mortgage agreements and substantially
behind in their payments.
There are allegations that some lenders (or more commonly mortgage brokers)
induced people to take on obligations they could not meet. However to some
extent the borrowers must bear some responsibility for their situation.
Finally the various violations of foreclosure rules were to a large extent
technical in nature and were fairly quickly rectified.
The foreclosure process in the US is long and complex. I recently saw a table in
the Wall Street Journal which indicated it took on average over one year for a
bank to repossess a house.
All of this occurred as a result of a system that began to depend on transaction
fees and commissions driven by the real estate industry. The government played a
part by insisting for years that lenders loosen lending standards to allow more
"non-traditional" borrowers.
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Rsteinmetz - IANAL therefore my opinions are illegal.
"I could be wrong now, but I don't think so."
Randy Newman - The Title Theme from Monk
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