foreclosure

Foreclosure: Angry villagers holding lighted torches and pitchforks, marching to the castle gates. Look again: That’s frustrated homeowners taking on the big banks in response to foreclosures. Despite accepted methods of other friendlier resolution – hardship letters, loan modifications, deeds in lieu – greedy lenders continued to stage a foreclose free-for-all. How powerful are the banks? They thumb their nose at the government at will. The Home Affordable Modification Program of 2009, legislation designed to help four million struggling homeowners hold onto their property, has had a positive effect on just a mere fraction of those facing foreclosure. Anger at the banks should be specifically aimed at their penchant for not carefully reviewing the documents for accuracy prior to moving the home to sale – the hardship letter doesn’t get due consideration, a loan modification isn’t granted, and the papers only get shuffled more on the way to foreclosure. It’s been too easy for the banks to take this avenue. In the past year, states have been forced taken action; 23 with judicial foreclosure process halted the foreclosures for Bank of America, Chase and GMAC. California does not have a judicial foreclosure procedure, but its Attorney General ordered JPMorgan Chase to suspend pending foreclosure activity while that megabank’s methods went under the microscope. Of course it’s premature to say homeowners’ rights can trump the banks’ greed … but channeling the anger over foreclosures has made a difference.