The Feds Seek Crackdown on Flawed Foreclosure System
According to a New York Times report yesterday , banks have been pushing the foreclosure action with sloppy, inaccurate, or even forged documents for years.
Federal regulators are, according to the report, attempting to crack down on these type of practices with fines.
Hailey could very well be victim of such sloppy procedures.
Derrick Johnson, a paralegal from Layman Legal Writing who attends foreclosure sales regularly to "observe the system", is skeptical of the crackdowns, because, he believes, it's all one large scheme.
"All of these banks, the Citibanks and JP Morgans, are aware that the federal government, and the loan monitors, are looking the other way regarding loans," he said. "They have not been doing their jobs to investigate if a loan should be accepted or not."
He said the banks have been getting rich off handing out loans left and right, adding "you could have gotten one even if you didn't have a proper job, because they know how to twist the paperwork."
But the home-buyers should absorb some blame too, he said.
"And us regular folks, we were obviously giddy the banks told us we could afford a home, so we take the loan even though, technically, we couldn't afford."
It's all a system, he adds.
Indeed, according to the Times story, robo-signers have been a problem, with one specific case citing a bank employee signing 750 mortgage documents with minimal review.
For Hailey, she's actively seeking free legal advice on what to do. Her home--which goes back three generations--is at stake.
Get the This Week's Top Stories Newsletter
Every week we collect the latest news, music and arts stories — along with film and food reviews and the best things to do this week — so that you’ll never miss Village Voice's biggest stories.