The Foreclosure Freeze
Over the past few
weeks, there have been many announcements by major financial institutions of
halting foreclosures in the 23 states which use a judicial process. This is in
response to reports of faulty paperwork from the lenders employees. GMAC was
the first to announce a freeze, followed quickly by JP Morgan Chase and Bank of
America.
Many in the media are anticipating a large scale response to the inefficiencies
within the foreclosure process on the side of the servicers from both the
public and the state and federal governments. Many efforts have already begun,
including class action suits, state-level investigations, and voluntary
foreclosure moratoriums in states with bureaucratic processes.
Author of post: Anne Rosen,NeighborWorks VISTA from NHS of Chicago.
What will the
foreclosure freeze mean for our communities?
There is a lot of news coverage, but I found that this article in the New York
Times gave the best overview:
http://www.nytimes.com/2010/10/04/business/04mortgage.html?_r=1&src=me&ref=business
For more on a class
action suit in Kentucky:
http://www.bloomberg.com/news/2010-10-04/citigroup-ally-sued-by-homeowners-alleging-racketeering-over-mortgages.html?cmpid=yhoo
Local view from
Chicago:
http://www.suntimes.com/business/2773188,CST-NWS-foreclose05.article
And, on a related
topic, here is a link to a report released this week about the linkage between
race and foreclosure:
http://blogs.reuters.com/felix-salmon/files/2010/10/10ASR10_629-651_massey-2.pdf
In : Foreclosure