Banks Still Following Poor Practices

My big problem with this, is that I'm still not seeing cases where the mortgage wasn't delinquent and the foreclosure isn't warranted. I know everyone wants to paint the banks as "big bad evil corporations", but they really aren't. What they are is lazy for not doing the job properly the first time.

I think it is highly likely that someone who defaulted on their mortgage will end up keeping their house "free and clear" because the current holder of the mortgage will be unable to produce the promissory note or some other sort of documentation.

 

You are so full of crap. Those cases have received wide news coverage. And I especially liked the one in which the Florida couple who paid cash for their home, and had to go to court, was allowed to foreclose on a Bank of America branch near their home. They showed up at the branch with an order from the judge and the local police, to close it and begin selling off the assets until their costs of having to prove in court that Bank of America had wrongly foreclosed on their home was paid. Of course, a very shocked branch manager cut them a check for the amount.

 

In case anyone was wondering about the story CtR was telling. It's a very funny man bites dog story

We have like 3 or 4 debt collecters that call our business all the time claiming we owe money for stuff we have never even heard of. 1 of them is for construction of a building in Iowa, we are in north carolina!
Banks & debt collecters are the worst informed people on the planet.

 

I completely agree. Look, 99% of the time, when a bank goes to foreclose on a property it is because the homeowner actually IS behind on their mortgage. But there is a larger point here - a mortgage is a legally binding document, and when you foreclose on someone's house, you are required to abide by the legal arrangement you made.

The article focused on robo-signers. The very people that were supposed to be reviewing the mortgage and making sure that the bank was following these regulations, weren't even reviewing the documents that were having electronic signature applied to them. That's an obvioius breach of the agreement.

No one is claiming that if you don't pay your mortgage you get to keep your house. The arguement here is that just because the homeowner failed to live up to their legal agreement - i.e., to pay their mortgage - does not give the bank the right to cut corners and and not abide by their part of the agreement as well.