BofA Halting All Foreclosures

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socal78

socal78

Well-known member
After first saying it would put a freeze on foreclosures in 23 states, it will now include all 50 states.

"The announcement came two days after JPMorgan Chase (JPM, Fortune 500) said it will also halt foreclosures for about 56,000 homeowners after learning that its employees may have approved foreclosures without personally reviewing loan files....

Ally Financial, previously known as GMAC, the finance arm of General Motors, has also paused foreclosures in the 23 states."
http://money.cnn.com/2010/10/08/real_estate/bank_america_50/
 
My guess is that their lawyers see the waters pretty chummed up and the bloodbath is about to begin. They are the first to act, but expect others to do the same.

Note what's missing: Suspension of short sales. The REO sales aren't as numerous as SS's because the REO's were held off the market. The silver lining might be that the REO's will eventually come to light and we'll really see how wide and far the distressed real estate problem is.

My theory is that either this cluster fark will stop foreclosures until 2011 - remember, there's always a Christmas moratorium - and the mills will start back up once this tempest blows past, or the lame duck Congress will ram through some kind of Federal standards for all lenders to comply with. They can do this because the banks are FDIC insured. They'll hold the threat of withholding insurance on deposits if the servicers don't play ball. The Federal solution will be comprised of some sort of mandatory modification work through to be offered before the blade finally drops on the homedebtors neck. Extend, pretend part deux.

In the mean time, I'm buying stock in pitchfork and torch manufacturers. These are interesting times we're living in, eh?


My .02c

Soylent Green Is People.
 
Here's something interesting to read about Big 5'shttp://blogs.reuters.com/christophe...w-period-of-instability-obama-becomes-hoover/

"the avalanche of mortgage defaults now hitting Bank of America, Wells Fargo and other large lenders could force these banks to seek new government bailouts in 2011"

"the big risk facing the U.S. economy is not from the foreclosure crisis, but from the actions of the ?Big Five? financial monopolies ? Fannie Mae, Freddie Mac, Bank of America, Wells Fargo and JP MorganChase ? to prevent tens of millions of American homeowners from refinancing performing mortgages"
 
SoCal78 said:
"The announcement came two days after JPMorgan Chase (JPM, Fortune 500) said it will also halt foreclosures for about 56,000 homeowners after learning that its employees may have approved foreclosures without personally reviewing loan files....
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Seriously, this pisses me off, just let the homes foreclose.  If I had a 4ft high pile of foreclosures on my desk, I probably wouldn't personally go through each one thoroughly.  Let's see Homeowner A stopped making payments 8 months ago, done, foreclosure.  Next, Homedebtor B stopped making payments 15 months ago, done, foreclosure, next...
 
Blueberry East said:
shokunin said:
Seriously, this pisses me off, just let the homes foreclose.  If I had a 4ft high pile of foreclosures on my desk, I probably wouldn't personally go through each one thoroughly.  Let's see Homeowner A stopped making payments 8 months ago, done, foreclosure.  Next, Homedebtor B stopped making payments 15 months ago, done, foreclosure, next...
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What about homeowner C who never missed a payment or homeowner D who does not even have a loan with BoFa? The banks need to follow the legal process to make sure they have the right to foreclose.


Man without Mortgage Loses Home in Foreclosurehttp://www.ritholtz.com/blog/2010/09/man-without-mortgage-loses-home-in-foreclosure/
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What you describe is probably more rare than the actual true foreclosures.

And, in both cases... the owners did not lose their homes and the errors were corrected.

If people are foreclosed on erroneously, I'm sure they will find out and correct it. Foreclosure does not necessarily mean they can kick them out... if so... we wouldn't have all these "owners" living rent-free. You can correct a bad foreclosure... I think it behooves us to pay that small price in order to get those proper foreclosures processed so these "shadow inventory" homes are back on the market.

And Wells Fargo thinks the same:
http://www.bloomberg.com/news/2010-...ay-foreclosures-as-rivals-review-filings.html
 
I think this has more to do with politics rather than true legality and proper procedures.

I would bet that more of BofA foreclosures are proper than they are not... and again... these can be challenged and reversed if incorrect. A bank can't kick you out... so you have the ability to protect yourself... and an owner's self-litmus test is simple... have you been paying your mortgage or not?
 
irvinehomeowner said:
I think this has more to do with politics rather than true legality and proper procedures.

I would bet that more of BofA foreclosures are proper than they are not... and again... these can be challenged and reversed if incorrect. A bank can't kick you out... so you have the ability to protect yourself... and an owner's self-litmus test is simple... have you been paying your mortgage or not?
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what are you talking about? 

The bank who FC hires a 'relocation specialist' who shows up with some paperwork, the sheriff, and a locksmith.  And you are kicked out.  The sheriff follows the paperwork, no matter how much you might protest that you don't have a loan with the FC bank.


That said, I too think that it is rare. 

The bigger problem is banks *not* FC and leaving the properties in limbo, or FC then not paying the HOA or doing maint. on the property.
 
freedomcm said:
what are you talking about? 

The bank who FC hires a 'relocation specialist' who shows up with some paperwork, the sheriff, and a locksmith.  And you are kicked out.  The sheriff follows the paperwork, no matter how much you might protest that you don't have a loan with the FC bank.
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I should have been more clear... they can't kick you out without prior notice. Unless you're not home while this foreclosure process is happening... you should be aware of what's going on.

Our neighbors were foreclosed on... their cousin was squatting in the house for several months (he was probably there longer based on the NTS date) and one day there were notices posted on their door saying the bank has ownership of the home and for any occupants to vacate.

When we were looking to rent... there was a sheriff notice on one door that gave them 72 hours notice.

Even in 'The House of Sand and Fog', the owner was given notice multiple times (most depressing movie I've seen).
 
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