Recently, BofA halted foreclosures nationwide recognizing errors in the process being used which approach criminal actions of forged documents and other improper actions. As an appraiser, I must keep all files 5 years after completion and I know Realtors are under similar obligation. Lenders are supposed to keep all documents for the term of the loan. Now comes the difficult question: How far back do these improprieties date? What an upheaval in the entire real estate market if this starts a domino effect of reversing foreclosures and even reinstating ownership rights. Will we next see TV commercials similar to those run by attorney firms seeking class action suits against drug companies? If someone was wronged 1, 3, or 5 years ago, shouldn't someone wronged 10 years ago by the lenders in the foreclosure proceedings also be compensated? The possibilities are never ending.
This is a mess that is going to take a long time for it to get cleaned up.
Greed. By bankers. There are a lot of good people who work for banks that will be hurt by the greed of the top executives. We have never been in a situation like this and the leaders who decided to do the illegal acts should go to a tough jail and serve real time.
I also wonder about those buyers who lied about their income on the 'no doc" loans. Will thy also be pursued for fraud?
It looks like the "fun" is just starting. This is ugly, and it is going to get much uglier. I don't know what to expect, but I sure hope the scoundrels get a healthy dose of justice.
That is like asking "when does history begin?" That is why there are statutes of limitation on the books. In most situations an action for damages must begin within a limited amount of time, so that records and memories can be found.
That does not mean that really old cases are not legitimate, it is just that we have to draw the line somewhere.
In the case of the foreclosure fiasco we could go back as far as the Savings and Loan mess in the late 1980's if we wanted to.
That of course does not apply to the collection of most taxes. The gov't has exempted itself from the need to be reasonable.
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