Two articles on foreclosures
The first talks about going after individuals whose homes went into foreclosure, and the banks go after them later for the difference between the mortgage amount and what they sold the house for. So, for a $400,000 mortgage, the bank forecloses and sells it off for $200,000, then they come after the original guy, years later, for the difference of $200,000. Plus interest, plus fees, plus plus plus ...
And *they* say that they just go after the people who walked away but could really pay the mortgage. How would they know? Well, because they paid their other bills.
Right. End result is declaring bankruptcy.
And then we have one from ProPublica, where ...Bank of America employees regularly lied to homeowners seeking loan modifications, denied their applications for made-up reasons, and were rewarded for sending homeowners to foreclosure, according to sworn statements by former bank employees.
Which, of course, Bank of America says, with raised eyebrows (Who, me?
Sometimes, homeowners were simply denied en masse in a procedure called a Ã¢ÂÂblitz,Ã¢ÂÂ said William Wilson, Jr., who worked as an underwriter and manager from 2010 until 2012. As part of the modification applications, homeowners were required to send in documents with their financial information. About twice a month, Wilson said, the bank ordered that all files with documentation 60 or more days old simply be denied. Ã¢ÂÂDuring a blitz, a single team would decline between 600 and 1,500 modification files at a time,Ã¢ÂÂ he said in the sworn declaration. To justify the denials, employees produced fictitious reasons, for instance saying the homeowner had not sent in the required documents, when in actuality, they had.
Here is a link that might be useful: propublica