Realizing that they cannot ruin lives without, um, following the law, Chase has joined GMAC in suspending foreclosures while they sort out what has become regarded by Inman News as the “robo signing controversy.” Governing agencies have criticized the large lenders for sloppy procedures in pursuing foreclosures, requiring them to audit their files and make sure they are following the proper steps prior to repossessing and displacing more people. In Chase’s case, 56,000 foreclosures are now on hold in 23 states.
If you’ll allow me to indulge in a metaphor, the government is making sure the banks find the soft tissue of the borrowers so they can make a cleaner kill when they pull the trigger. You don’t want the victim, um, delinquent borrower to writhe in pain on the floor and have to use a 2nd bullet to finish them off.
Given the stories we have read recently on this very platform of banks foreclosing on homes owned free and clear and beginning short sales on the broker’s home instead of the clients, I agree that it is a good idea to mind the Ps and Qs prior to booting people out of their homes and into a Super 8 or basement apartment.
One has to wonder aloud how many people have lost their homes who shouldn’t have, and how many more lenders will suspend their own foreclosures.
Yet again, another mess, created by the banks.