The U.S. government may turn a profit on its equity investment in Ally Financial, one of the major mortgage lenders to suspend foreclosures earlier this year amid reports of illegal documentation practices, The New York Times reports. The Times‘ analysis stems from a recent conversion of government preferred shares into common stock.
This means Read More
Now that banks have taken a minute to sort through their legal filings to make sure the foreclosure proceedings they initiated have some legal basis, it’s taking a little longer than they expected to set the process in motion again. Although Bank of America said last week that it would be restarting foreclosure proceedings Read More
GMAC Mortgage, a subsidiary of mainly government-owned Ally Financial, announced today that it has resumed foreclosure proceedings in 23 states, ending its nationwide moratorium on home repossessions. The Detroit News reports:
“As we review the affected files in the 23 judicial states and take any needed remediation, the foreclosure process continues,” said Gina Proia, Read More
Former hair stylists, factory workers and Wal-Mart greeters are among the bank-designated “foreclosure experts” at the heart of the current paperwork fiasco that’s wrapping the housing market in a legal stranglehold. If anyone still had confidence in major mortgage lenders’ ability to properly process foreclosures, today’s news reports ought to complete the crisis of faith. Read More
“The first thing that needs to happen, I think, is to get these people out of their homes,” a man wearing a bespoke blue-striped shirt, a Hermés tie patterned with elephants and Ferragamo loafers said recently. “Correct! I’ll explain,” the veteran member of a bank restructuring and advisory team said.
Amid evidence of sham documents Read More
Today’s New York Times offers a wrist-slashingly depressing look at what people do when improper foreclosure documentation impacts their home purchases.
Twenty-eight-year-old Florida catering assistant Amanda Ducksworth is now couch-surfing at her boss’s house, her 7-year-old son in tow., She can’t move into the house she wants because it went off the market amid Read More
Add another item to the list of reasons that bankers are irate with President Barack Obama. The leader of the free world today refused to sign into law a bill that would have made it harder for homeowners to challenge foreclosure proceedings against them.
The bill quickly passed through the Senate without debate by Read More
Often incompetent and sometimes shady handling of foreclosure paperwork by lending giants Bank of America, JPMorgan Chase and Ally’s GMAC is creating a giant legal monster that threatens to keep the U.S. housing market in the muck for years to come.
JPMorgan Chase and GMAC have already halted foreclosures in 23 states, and now Read More
Attorney General Eric Holder is joining several state attorneys general in an escalating legal inquiry over reports of legally dubious foreclosure proceedings initiated by major lenders like JPMorgan Chase and Ally (formerly known as GMAC).
Reuters reports that Holder said today he’s looking into “charges that have surfaced in the newspapers in the last Read More
On the front page of today’s New York Times, Gretchen Morgenson describes the dizzying heights of incompetence and fraudulence at the core of a rising tide of “improperly handled” foreclosure proceedings initiated by some of the nation’s biggest lenders. JPMorgan Chase, GMAC Mortgage and Bank of America have all launched investigations into crummy paperwork that Read More
