Due to their special training, lawyers are in a unique position to conduct fraud, and real estate is no exception from the rule. In Chicago, a notoriously corrupt city, attorney Robert Lattas admitted his role in a $22.9 million mortgage fraud.
Banks are foreclosing on homeowners who are in default. While they’re at it, they’re even foreclosing on homeowners who are either current with their payments or don’t even have a loan with that bank. The confusion created by the robo-mortgage fiasco has resulted in lots of mistakes involving who owes what, and where those mortgaged houses are. However, that confusion hasn’t stopped banks from plowing ahead and throwing out the innocent with the homeowners in default. Continue reading
Want to know how your soon to be increased tax dollars are being spent? HAMP was designed to help homeowners, unable to pay their mortgages, avoid foreclosure. Instead, we’re spending millions of dollars just to give them a few more months in their home before they lose it. Now that’s money well spent. The results listed in the Treasury Department’s latest report show that it’s not working. According to the report, almost 50% of the 1.3 million homeowners enrolled in the loan modification program have failed to meet their requirements and are no longer in the program. According to Inman News, “Many analysts expect that more than half of HAMP loan mods will end up redefaulting.”
Homeowners aren’t the only ones making an investment decision to walk away from their mortgages. Apparently banks are walking away from their abandoned properties too. Banks that hold properties that suffer from deferred maintenance, vandalism, or declining property values may cost more to foreclose, manage and sell than the property is worth. In situations like these, many banks are a choosing to abandon the vacated property and consider it a loss. Continue reading