Foreclosure Review Finds More Errors Than Originally Thought

by Isaac Benmergui, Esq on April 10, 2013

tug of war_edited-1The latest foreclosure reviews by government regulators have uncovered even worse news about homeowners and the practices of the nation’s biggest banks. Almost one-third of all foreclosed borrowers, many of whom live in Miami-Dade,  whose mortgages were held by the biggest U.S. mortgage companies were in danger of losing their homes due to potential bank errors or now-banned practices.

Thirty percent (1.2 million) of the more than 3.9 million foreclosed homeowners between 2009 and 2010, battled potentially wrongful efforts to seize their homes despite not having defaulted on their loans. Over 244,000 of those borrowers lost their homes, according to government data.

The estimates, disclosed yesterday, go far beyond the projections made over the past few years after robosigning practices were uncovered in 2010. Regulators made these latest figures public as part of a multi-billion dollar settlement. The findings include:

  • Almost 700 borrowers who faced foreclosure hadn’t actually defaulted on their loans
  • More than 28,000 households that faced foreclosure proceedings were protected under federal bankruptcy laws
  • 1,100 were following forbearance plans that their mortgage companies had agreed to, which allowed for delayed payments
  • 1,600 borrowers were protected by the Servicemembers Civil Relief Act of 2003, and still faced
  • 1.1 million borrowers had either been granted a modified mortgage, or had already been meeting all the requirements of a modification plan, but still faced foreclosure, a now banned practice called “dual tracking” (although the practice is still widely used).

Getting Legal Help

If you are facing foreclosure, give the law offices of Isaac Benmergui a call. We can help you with your legal real estate needs and possibly help you retain your home; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

 

 

Previous post:

Next post: