Foreclosure settlement a failure of law, a triumph for bank attorneys - The Washington Post
We never want to see an innocent party “accidentally” evicted from a home. The legal system has evolved so this has become a “legal impossibility.” Imagine returning home from work or vacation to find the front door padlocked, the belongings strewn all over the block, a big orange sticker screaming “FORECLOSED” on the garage door, with an auction sign in the front lawn. Now imagine that this occurred even though you are not in default or even delinquent on payments. Thanks to the robosigning banks, this legal impossibility has happened repeatedly, even to homeowners who paid cash for their houses and had no mortgages. Imagine that — foreclosed with no mortgage.
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Barry Ritholtz nails it. Here's the #1 reason why the foreclosure settlement (the "terms" of which are still a secret) is so awful.
2 comments:
"Imagine returning home from work or vacation to find the front door padlocked, the belongings strewn all over the block, a big orange sticker screaming 'FORECLOSED' on the garage door, with an auction sign in the front lawn. Now imagine that this occurred even though you are not in default or even delinquent on payments. Thanks to the robosigning banks, this legal impossibility has happened repeatedly, even to homeowners who paid cash for their houses and had no mortgages. Imagine that — foreclosed with no mortgage."
As regular readers of this blog are aware, this is common in H.O.A. land.
Yet some people still insist that H.O.A.s should have the power to foreclose for unpaid assessments, because they are too big to fail...
Sounds like a cause of action for conversion.
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