A recent proposal from FDIC Chairman Sheila Bair may bring an assistance program to stop improper foreclosure practices by giving more accountability or aiding homeowners who have suffered from servicer mistakes related to foreclosures on their home. Obviously, problems with foreclosures are still an issue for many homeowners and there are those who feel that improper paperwork processing and overall lax foreclosure practices by some financial institutions have led to homeowners being unjustly evicted from their home or suffering difficulties related to foreclosure prevention efforts.
Bair hoped to implement a program that would offer settlement for homeowners who had been evicted from their home improperly due to improper practices on the part of servicers, but there are obvious voices of opposition to this idea as there are those who feel it could be costly for some servicers down the road. Yet, the FDIC Chairman argued that, in the long run, servicers would actually save money thanks to lower foreclosure expenses.
Essentially, more accountability and foreclosure prevention efforts on the part of servicers are what will be stressed and more in-depth review processes of a homeowner’s situation and foreclosure practices may not only help homeowners avoid the loss of their homes through foreclosure, but could also, again, lower the expenses that banks must meet when they do actually process a foreclosure home.
Obviously, homeowners who have been struggling with potential foreclosure and have attempted to take advantage of foreclosure prevention programs have argued, in some cases, that they felt their foreclosure prevention review or, in general, their foreclosure was not properly processed and they lost their home unjustly.
Foreclosure suspensions and moratoriums were a hot topic in the latter part of 2010 and a recent ruling against mortgage servicers in Massachusetts decided that there were improper foreclosure documentation methods used and this has led to more questions as to whether foreclosure processing and documentation review methods need to be changed.
Hopefully though, when it concerns foreclosures and reviews of a particular homeowner’s case, more attention to detail will be offered or assistance may be given to homeowners where an injustice has been done, as there are mixed results from reviews concerning questionable foreclosure practices. While, again, the ruling in Massachusetts went against servicers due to questionable foreclosure practices, there have also been reviews conducted in other states with various servicers which have pointed out that foreclosures would not have been stopped despite more concise foreclosure practices in those cases.
Yet, it’s understandable that homeowners who have been unjustly evicted would benefit from such an assistance plan proposed by Ms. Bair, but when it comes to preventing foreclosures initially through proper review and documentation practices, obviously, homeowners simply want attention to detail and the opportunity to save their home.