May 7, 2014

Foreclosure Fraud Worse Than We Thought

The Government Accountability Office recently released a report that says something we at McCarthy Law have long suspected – “errors made by banks and their agents during foreclosures might have been significantly higher than was previously believed.”

The report specifically cites one unidentified bank who escaped any prosecution and was not part of the 15 bank, $10 billion settlement deal, but the bank had a 24% error rate in loan modifications and foreclosures. Previously, regulators had guesstimated a 6.5% error rate for all banks.

The problem is that government regulators were so anxious to “reach a deal” and get money into the hands of those harmed that they did not wait for the investigations of every bank to be completed. A few banks had completed less than 2% of their review.

This report calls into question that judgment call. It also makes us wonder about the thousands of people who will never be repaired for this egregious offense. These banks stole homes from people – something that can never be replaced with money. It is very sad.

Read more here: https://dealbook.nytimes.com/2014/04/28/g-a-o-report-sees-deeper-bank-flaws-in-foreclosures/?_php=true&_type=blogs&_r=0

If you are a homeowner who is struggling to keep a hold of your home, contact an attorney who can protect you against big bank harassment, advise you of your rights and best options. If you are a homeowner who was wrongfully foreclosed on, please contact an attorney immediately – you still have some rights!

 

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