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by Dan Bacher In California, foreclosures continue to batter homeowners, averaging out at 1866 a day, 77 an hour each day the past 10 months, or 1.3 foreclosures per-minute. That's surely on the minds of many Occupy Wall Street “99 Percenters” Want to …
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Lenders suspected of fraudulent foreclosures in several states are under investigation from the state attorney general. This could result in a freeze on foreclosures and evictions in 23 states. According to the San Francisco Chronicle these states would include Ohio, Connecticut, Florida, Texas, North Carolina, Iowa and Illinois.
Lenders and servicers such as GMAC, JPMorgan, Bank of America, Wells Fargo along with others will be asked to stop all sales of properties previously foreclosed upon until it could be verified that they are complying with laws of the court.
It will be interesting to see how all this plays out since many of the ARM adjustable rate mortgages will reset in the coming months. This is a prudent action among the court officials since unemployment has caused many who could afford their homes to lose them to foreclosure.
Now that lenders, loan servicers and title insurance companies are being held accountable to provide honest business practices. There could be a major change to the way foreclosure filings are verified in the future.
This will mean that homeowners of these states that are in the process of foreclosure can file a class action lawsuit if they feel they have a case. Title insurers are also at risk of of being sued.
The whole mortgage lending industry has not seen the last of the adverse consequences to its actions. So what does this mean for the many other borrowers who need mortgage relief?
According to the Wall Street Journal Well Fargo will provide over 700 million dollars to help homeowners who originally took out mortgages with Wachovia or Golden west and are affected by the adjustable rate mortgage loans.
The new loan modification will be offered to qualified borrowers in Nevada, Arizona, Florida, Colorado, New Jersey, Washington, Texas and Illinois.
Those who do not qualify for the Home Affordable Modification Program will be helped with steps to prevent or mitigate foreclosure. It is good to know that measures are in place to help those who find themselves in these unfavorable situations.
As the vastness of the foreclosure landscape continues to grow, it will be interesting to see the development and how it will change the property preservation and the mortgage field service industry.