Lenders Likely to Face Class Action Lawsuits Over Foreclosures

By | October 13, 2010

  • October 13, 2010 at 12:35 pm
    Insurance To The Rescue says:
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    These claims are touted as the saviors of the mortgagors wronged, but is anyone fooled about who ultimately derives the most benefit? For the unenlightened I’ll tell you. The attorneys.

    Moreover, risk will be transferred via E & O coverage causing increased premiums and higher operating costs of the mortgagees.

    Translation-Lawyers make money and we all pay.

  • October 13, 2010 at 12:50 pm
    Bob says:
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    Anyone know the meat of this issue? Were there people who were paying their mortgages on time being forclosed on? or is it a dot the “i”s and cross the “t”s issue? And how did a homeowner suffer as a result of these actions.

  • October 13, 2010 at 1:00 am
    Former Status Quo says:
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    Homeowners were not paying their mortgages and the banks that were doing the foreclosing either a) did not have the proper paperwork showing that they were the owner of the loan or b) the person at the lender/Financial Institution was not properly investigating and signing off.

    Truth be told: I don’t care if you got the mortgage through BoA and they sold it to JPM and then they sold it to CitiGroup. These people weren’t making the payments and therefore they are not the owner of the property. Nor have they been wronged by being foreclosed on – if you don’t make payments then you don’t get to live there.

    Oh to the era of entitlement and lack of personal accountability.

  • October 13, 2010 at 1:21 am
    Sarah says:
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    You buy a house, pay twice what the value now is, You thought you could flip it in a few years and double your money. So now you dont pay your mortgage for 18 months and ITS THE BANKS FAULT?

    Its not my fault, It’s someone else’s.

    Hmmmmm…. This is why the tea party is so prevelent. If this isnt liberal thinking I dont know what is.

  • October 13, 2010 at 2:04 am
    cindy says:
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    No one is saying that it is the banks fault that people are having issues. We are saying that the bank is abusing its clients. The modification program started by Obama is sooo loosely worded that no one is being approved, people start the modified payments and in 99% of the cases are later denied permanant modification

  • October 13, 2010 at 2:30 am
    bds says:
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    I sign the 100’s of papers to buy a house,
    you name it..privacy act, relinquish all
    mineral rights on (under) my house…
    Agree to make payments for taking possession of the property. I do not make my payments for whatever reason. The
    house goes back to the lender who bought the loan? Seems simple enough.
    Leave it to lawyers to come up with another way to make their rotten bucks.

  • October 13, 2010 at 2:42 am
    Sarah says:
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    Cindy,
    They should be denied! I bought my home. A home that I can afford. I saved my money and put down a good percentage down payment. I made sure I could afford my payments and have been making them on time. My question to you is, Why can’t I get my loan modified down to half the balance, Should I stop paying my mortgage until someone cuts my mortgage in half?

    Of course not! and niether should anyone else. This is liberal welfare entitlement thinking if I have ever seen it.

  • October 13, 2010 at 3:09 am
    Baxtor says:
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    When the banks start crying that they are getting sued and probably will end up paying something, they’ll complain they have no money and the government will come to the rescue. Then it’ll be back to the people that can pay their bills and their taxes to supplement everyone else, the people that cannot afford houses and the millionaire CEO’s of banks!! No more middle to low middle class anymore in this country. We’ll be sucked down to the poverity stricten while keeping the rich, wealthy.

  • October 13, 2010 at 3:22 am
    SWFL Agent says:
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    The loan modification program cannot help those people that have no means to pay. Doesn’t matter how poorly the program was designed. Which I am sure it was poorly designed. So what if the banks didn’t handle every small detail. If the house is vacant then let the bank foreclose. I am sure the foreclosure laws were designed to protect homeowners that were attempting to keep their homes. Not live in for free for 12-18 months while the bank handles it’s backlog or using the “foreclosure by convenience” method.

  • October 13, 2010 at 3:47 am
    Joker says:
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    Amen Sarah. Its nice to see some people still get it. What I want to know is how many of the people complaining about these foreclosures, bought well beyond their means, then used the home as an ATM machine to buy all sorts of crap they don’t need. I can see it now. Yeah my home is in foreclosure but damn I look good driving this Escalade w/ 24″ rims and 3 TV’s in the back.

    Fact is most of these people shouldn’t have been given mortgages to begin with. This is nothing more than a money grab by the dirtbag attorneys.

  • October 14, 2010 at 12:02 pm
    Ratemaker says:
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    For the most part, it is a dot the i’s and cross the t’s issue. But because “i’s aren’t dotted,” some of these banks pushing through tons of foreclosures are hitting properties that aren’t in default.

    Yes, this is mostly anecdotal, but I’ve heard of foreclosures on homes without any payments missed, and in one case a foreclosure on a home that had already been sold and a new homeowner moved in.

  • October 20, 2010 at 5:32 am
    Mod says:
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    You people don’t have a clue what you’re talking (I suggest you shut your holes) about a loan modification and or its little cousin trial modification is nothing more than a payment of interest only. The printable is applied to the loan balance and will incur interest in essence it is called forbearance which puts the balance at the end of the loan. There is no money forgiven and or paid by U S tax payers this is a myth. Now under this supposed trial modification the printable of the payment is compounded and becomes due at the end of the trial modification process thus creating in some cases a negative property value. Now keep in mind that most of these people have never faulted on their loans prior to the collapse of hedge funds market on Wall Street perpetrated and facilitated by our own government. So the next time you think you know what you’re talking about think again

  • October 20, 2010 at 5:36 am
    Mod says:
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    You people don’t have a clue what you’re talking (I suggest you shut your holes) about a loan modification and or its little cousin trial modification is nothing more than a payment of interest only. The printable is applied to the loan balance and will incur interest in essence it is called forbearance which puts the balance at the end of the loan. There is no money forgiven and or paid by U S tax payers this is a myth. Now under this supposed trial modification the printable of the payment is compounded and becomes due at the end of the trial modification process thus creating in some cases a negative property value. Now keep in mind that most of these people have never faulted on their loans prior to the collapse of hedge funds market on Wall Street perpetrated and facilitated by our own government. So the next time you think you know what you’re talking about think again

  • October 22, 2010 at 12:52 pm
    Buckeye says:
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    I have been skeptical of this latest “crisis” from the very beginning. There are few issues requiring some critical thinking:

    1) I’m simply not hearing horror stories involving people that have paid like clockwork and are now on the street. If this was happening, the stories would be front and center. To the contrary, we seem to be getting what appear to be nothing more than platitudes and general statements in the news.

    I find it hard to believe that a homeowner who has made payments is out on the street and new homeowners are now occupying the house after the bank, following foreclosure, sold the property. Does this really seem plausible? I can only speak for myself, but it would be a cold day in Hades before I would allow this to happen to my family. This simply strikes me as a “there has to be more to the story” situation.

    2) How does market value fluctuations affect one’s ability to pay his/her mortgage? My house has dropped in value, but my mortgage payment has not changed. If I signed a contract agreeing to make payments, then I simply continue to make payments regardless of the value. What am I mising?

    Problems caused by taking out additional mortgages or buying too much house are nothing more than a personal responsibilty issue in my view. It’s sad and unfortunate, but falls into the “not my problem” category.

    3) The last time I checked, the banking industry is one of the most heavily regulated in the country. Ironically, the regulation is executed by geniuses at the federal level. So this happened in spite of intense oversight and scrutiny by regulators and we’re expected to believe additional regulatory scrutiny or yet another government initiative is the answer? It is a virtual given that anything the federal government becomes involved with will become a complete and total disaster, especially if it is outside the framework of the Constitution.

    By the way, I would be delusional to think November 2nd is the answer. I just think people are going to be gravely disappointed even if Congress changes hands. The political parties, which are full of nothing more than ruling class elitists, are a big part of the problem. John Boehner? Are you kidding me? Until he proves otherwise, I have him tagged as nothing more than a clown and an opportunist. He’s been in the Congress for 20 years and in the majority for over half of it. What in the heck has he really done to reduce the size of the federal government and ensure that it operates strictly within the framework of the Constitution? The answer from this middle class conservative, who also happens to be from the fine state of Ohio: Not much!!!!

  • April 18, 2011 at 1:53 pm
    Anita H says:
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    I put down 40% on my home….then upgraded it with many nice features. Thebanks became greedy and started lending inflated mortgages to people who couldn’t aford them,and could get i with almost nothing down. This hurt people like myself who did invest lot’s of money, who through all these foreclosures got affected by the process of the collpsed economy. I lost my business and couldn’t make my payments anow i have lost my house. Huh!! Entitlement you call it !!!! No…it is gred on behalf of the lenders



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