A Study About The Proceedings In The Foreclosure Crisis
The major issue regarding foreclosure is getting just worse. The consumer finance companies are hard hit which are, non-bank institutions that provide loans to consumers. The reports have it that the consumer finance companies will be closely scrutinized who more than $ 10 billion assets. The credit unions, mortgage lenders and other large non-bank financial institutions will also be examined and put regulations on. The banks with more or less than $ 10 billion assets will be regulated by the bank regulator.
The crisis in the housing market:
A bureau headed by the President of US has decided to actively look into the matter of the crisis in the foreclosure matter. Recently, the President vetoed a bill regarding homeowners. The experts are in the opinion that the bill would have made quite an effect on the eviction of the homeowners who have missed their payments. The nation is now very much troubled by the constant unrest caused by the real estate market.
There are attorney generals all over the country investing on reports of false foreclosure documents and also looking into the matter of some of the banks seizing properties without having any ownership of the mortgage. This election season is in a lot of controversial matters regarding foreclosures. Even a lot of politicians have been against consumer financial companies who’re directly linked with the foreclosure matter.
In Iowa, Delaware and many other states, they have come to a decision to voluntarily freeze on foreclosures by mortgage lenders. This can have a dreadful effect on the banks and other consumer finance companies as they may lose millions of profit that they used to earn by selling off foreclosed properties.
Steps taken to investigate the foreclosure controversies:
Improper foreclosures are increasing which is giving way to the rising fraudulent activities all over. The mortgage lenders and other consumer finance companies have replaced legal documents of foreclosures while continuing with their foreclosing. So, the Federal Housing Finance Agency has started with investigations in the crisis in the real estate market which has completely overwhelmed the courts and decreased the sale of properties. Apart from the Federal officials, even the court judges are taking steps to rectify the matter of the false foreclosure documents.
In Washington, which has the highest foreclosure rates, a county judge have ordered a special reviews of the cases where the lawyers had earlier claimed of signing the foreclosure documents but hadn’t done so. This has put a stop to around 400 cases of foreclosures until the lawyers explain the reason of their lying.
The mortgage lenders and other consumer finance companies have now been asked to have proper legal paper signed by the lawyers when proceeding with foreclosures. If this doesn’t happen, they may have to prepare a new paperwork.
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