Thursday, December 23, 2010

Lenders 'Foreclose' Homes They Don't Own

In dozens of incidents nationwide, confused banks have ransacked properties that were either not mortgaged at all or were mortgaged by a different lender or were a customer of the bank in question but were current on their payments.

For instance, Bank of America broke into Alan Schroit’s second home in Galveston, Texas, and turned off the power, allowing 75 pounds of salmon and halibut Schroit had caught on an Alaskan fishing vacation to spoil and create a reeking mess. Schroit had previously paid off the property. Schroit and the bank settled a lawsuit for an undisclosed sum.

Critics of the mortgage process say these kinds of incidents are evidence that the mortgage foreclosure business is flawed and needs to be reformed.

''Every day, smaller wrongs happen to people trying to save their homes: being charged the wrong amount of money, being wrongly denied a loan modification, being asked to hand over documents four or five times,'' says Ira Rheingold, executive director of the National Association of Consumer Advocates.

Source: The New York Times, Andrew Martin (12/22/2010)


Real Estate Note said...

This is the marvellous post that I have come over after huge searches. I am really thankful to you for providing this unique information.

Ida Abelson said...

So glad you find this useful!