I had not heard about this turn of events. I'm curious as to what is behind it. It would be nice if the consumer really was winning for a change. Does anyone have any insight? This is a story to watch!
VERY INTERESTING! This morning the Bank of America decided that they MIGHT have made a couple of tiny errors in foreclosing on as many as 20,000 homes...OOPSIE!
So, they joined the growing list of lenders and banks who have finally come to see that even THEY must follow the law and READ THE DOCUMENTS.
The B of A warns everyone that they're not going soft or "going all wobbley" or anything...they're just taking the time to dot their "T"s and cross their "I"s (I meant to say that). Oh, and 50 Attorney's General didn't have anything to do with them taking the time to read the Foreclosure Documents and see whether:
THEY REALLY HAVE THE RIGHT TO FORECLOSE!
It appears that the lawsuits may go on for years and years. Many folks who were ordered to leave their homes and actually did before foreclosure were... well... DUPED! Now the lawyers will have to UN-DUPE them.
Which brings me to the point. When one of your clients wants to do a Short Sale or let their home go to foreclosure...
MAKE SURE THEY SEE AN ATTORNEY! BOTH REAL ESTATE AND BANKRUPTCY.
As you will recall. In most, if not all, states, real estate loans are "secured". If the value of the property falls below the amount of the first loan...the junior notes can be stripped off the property, legally and completely in Bankruptcy.
Everyone, including the banks, have to play by the rules. Make sure both YOU and your CLIENT know the rules and follow them so we don't need to get YOU an attorney, too.