Thursday, October 14, 2010
by Don DeHanas, Associate Broker
Allegations of possible mortgage fraud against financial giants GMAC, JPMorgan Chase and Bank of America read like a criminal rap-sheet: forged documents, faked Social Security numbers, phantom titles, disappearing paper trails, "robo–signers" and mortgages sliced and diced so many times that nobody really knows who owns them.
With news just starting to come out about how criminally mis-managed the Foreclosure process has been in the banking industry, it is hard to say what will happen next. One thing is for sure, we have a real mess on our hands. Any delay in getting through this housing crisis will cost the American homeowner, big time!
Across the country, State Attorney Generals have begun filing petitions to halt foreclosures pending an investigation in the thousands of allegations that big banks have committed fraud in the Foreclosure of hundreds of thousands of home. In addition, class action lawyers are signing up entire neighborhoods as clients, and gearing up for one of the largest class action law suits ever.
Being on the “front line” of this crisis, Realtors, all too often, hear the horror stories of struggling homeowners trying to fight with their mortgage holders for loan modifications. There are accounts of people spending more than a year in this process, not to be any better off than the day they began. As a Certified Distressed Property Expert (CDPE), I have a responsibility to help homeowners make the best choice for their situation. My first obligation is to help them stay in their home if at all possible. In order for this to happen, there must be an open line of communication between the home owner and the mortgage institution. The sad part about this is the vast majority of homeowners who attempt this process give up in frustration because of the lack of responsiveness from their bank. It becomes an overwhelmingly, frustrating task to get a mortgage modification, and in most cases short sale or Foreclosure is imminent.
If you feel as though you have been a victim of Foreclosure fraud, you should contact your States Attorney General to file a complaint.
