Recently, Bank of America announced that they will begin foreclosures in 23 states, despite the fact that there are still questions over the validity of certain foreclosure documents and procedures which caused Bank of America, along with other financial institutions, to suspend foreclosures. This issue has become a major concern not only for homeowners but individuals in the financial industry, regulators, and the banks themselves.
Homeowners have accused mortgage servicers like Bank of America of falsely beginning foreclosure proceedings, being unable to produce documentation proving that a particular financial institution even owns the home on which foreclosure has begun, and other questions as to origination, the selling of mortgage-backed securities, and whether foreclosure has been warranted on certain properties or not.
Understandably, homeowners have been angry at financial institutions since the beginning of the recession in areas that range from foreclosures to home loan modifications. Bank of America and other financial institutions have come under criticism for a variety of reasons and, there are now questions asking if homeowners have been wrongly evicted.
Yet, Bank of America has stated they have reviewed foreclosure documents which were questioned and have found nothing to point to the fact that homeowners were unjustly evicted or that fraud has taken place. Obviously, there have been errors which were made during the foreclosure documentation procedure, but financial institutions who have suspended foreclosures have stated that they feel the paperwork is in order and the only questions remaining stem from the lack of review on certain documents by some employees.
Homeowners argue that they have lost their home when a review was not given to their case, which could have led to the realization that a homeowner may have benefited from mortgage assistance, like a home loan modification plan.
Despite the fact that banks have pointed out that many homeowners who are questioning their foreclosures were already in default, which would make the loss of their home just, there are those who are calling for banks to be “reigned in” while a proper review, and even management changes, are implemented.
Many see these questionable foreclosures as proof that fraudulent activities have occurred at many of the nation’s top financial institutions, and as a result, some homeowners are facing the loss of their home and, overall, these bankers are becoming richer through criminal activities.
Yet, these heated accusations have not stopped Bank of America from announcing that they will begin foreclosing on Monday in 23 states, and there was also a statement from the financial giant which said they not only didn’t find foreclosures which were unwarranted in their reviews but they will also defend themselves against these questions over foreclosures if it is necessary. While there may be some cases where banks may have to conduct further reviews, the outcry remains from homeowners for action to be taken against these lenders that simply goes beyond foreclosure reviews.