There are a lot of question circulating the freeze on foreclosures and the effects it may have on us
as homeowners. So let's try to sum up what is going on...
The head of a key congressional committee called on top U.S. mortgage lenders and banks to put
a voluntarily mortgage freeze (stop) on foreclosures in all 50 states including DC until the banks'
legal departments review their companies' procedures.
A total of 5 Banks (as of Oct 11, 2010) have agreed to undergo procedural investigations, some
in all 50 states. The banks are Bank of America, GMAC, Ally Financial, PNC, JPMorgan. These
banks continue to pay for the costs of maintaining seized and foreclosed home inventory until the
end of the foreclosure freeze. The foreclosure freeze is estimated to last 90 days, but may have
residual effects for years to come.
Hmm...now your probably wondering what procedures are being investigated? Well, how about
fraud for one, not to mention other allegations being made by multiple sources. The fraud, in this
case, is being referred to as "robo signing" Robo signing occurs when one person signs hundreds
of documents by skimming text and without fully reading them. The law requires that person be
under oath and swear everything in the foreclosure documents is 100% correct and accurate.
So what if my home has been foreclosed on due to robo-signing or faulty documentation? That's
the million dollar question. How will we ever know? Stay tuned to find out more...
One thing is for sure, take advantage of the foreclosure freeze if you are currently in foreclosure.
Know your state foreclosure laws, and follow blogs or news for important updates. Use this time
to get out of debt, rebuild your credit and your life.
Visit http://usforeclosurefreeze.com to learn more about your state foreclosure freeze. Please join
THE FREEZE - 2010 Foreclosure Freeze Blog @ http://blog.usforeclosurefreeze.com