Minnesota NOT affected: Halting Foreclosures in 23 States: Bank of America, Ally, & J P Morgan
Minnesota is NOT one of the 23 states where lenders, including Bank of America has halted foreclosures due to inadequate staffing. The lender is investigating instances of overloaded "robo-signers" who approved as many as 8,000 documents per month and approving files without reading them. Many of these files have been found to have forged signatures or were improperly assembled.
The 23 states are: Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.
The 3 lenders who have halted forclosures are: Bank of America, J P Morgan, and Ally (formerly GMAC). And as you can imagine, a large number of former homeowners are now scrambling to challenge their evictions in court cases that are sure to clog the already overburdened courts in the 23 states affected.
Click on the links above for the complete articles from CBS News.
Why is Minnesota Not Involved?
Minnesota has a redemption period that begins on the date of the Sheriff's Sale. In many states, the Sheriff's Sale date is the end of the process and the homeowner is evicted immediately. This also means that homeowners in these states have less time to find and correct any fraud or errors before they are evicted from their homes. In Minnesota, the Sheriff's Sale is the beginning of the redemption period, which is generally 6 months, but can also be as little as 5 weeks or as much as one year, depending on the individual circumstances.
This is another example of how Minnesota real estate and our local market is so different. Make sure you get the right information for where you live. You need local information to help you with your real estate decisions and that's what I am here to help you with.
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