Probing of foreclosures by Barbora Misakova

In the times like these, is losing the house, except losing the job, the biggest misfortune. Economic situation is so unstable and economy itself so fragile. Any kind of turbulence is making it even worse. When people are insecure, the country they live in is insecure as well. Series of allegations that claim mortgage companies used flawed documents to foreclose thousands of homeowners are shaking harshly with America. But banks are not the one who should be monitored. Lenders should accept the need of independent monitor as well, even though it will take months till settlement will be reached. As some employees acknowledged in depositions, there were thousands of foreclosu! re documents that were signed without being read as required. Tom Miller, Iowa Attorney General said, it was not about some glitch in paperwork, but about violation of the law. There are also information that the documents were not only signed by mortgage company employees who didn’t verify the information in them, but also many documents were signed without a notary public witnessing that signature. As he added at a news conference, the states might be open to alternatives to financial penalties for the banks for example in a form of helping people with reduction of their loan payments. According to RealtyTrac Inc., a foreclosure listing service, lenders seized more U.S. homes this summer than in any three-month stretch since 2006, but many of these foreclosures will probably go to court. The thorniest question is whether state investigators can persuade bank employees to divulge some of the industry’s secrets.

related story (sgx18397): ! http://news.yahoo.com/s/ap/us_foreclosures_states;_ylt=Aq5yr...

by Barbora Misakova for Cantell TV (http://cantell.tv)

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