Friday, February 18, 2011

Foreclosure: Banks to Pay Penalty - Yahoo! Finance

IF you read any part of this article by clicking the title link: make sure to let your representatives know what you think! WE vote for the last sentence of this introduction: Throw their asses in PRISON or better yet - foreclose on their home, take away their credit, their money and job and replace their car with a broken down junker. Bolding is out edit.

Foreclosure: Banks to Pay Penalty - Yahoo! Finance: "Foreclosure Clutter

At the time of foreclosing homes, many lenders use ‘robo-signers' -- employees who sign hundreds of documents a day without verifying decisive information like the previously outstanding amounts of borrowers.

Despite being aware of the imminent danger, the negligence of homeowners and lawyers aggravated this problem. In many cases, signatures were not reviewed by any notary. Even when notarizations took place, it was unlikely that the officials executed the signings as per the legal requirement.

Flawed paperwork also raised questions about the validity of the ownership documents. There are many cases in which an individual who moved into a house after a payment may not be the legal owner. This resulted in mortgage lenders improperly expelling original owners from their homes as part of their foreclosure process.

Penalty: To What Extent?

According to the commissioner of the Federal Housing Administration, David Stevens, there are different views about the form and extent of penalty. It could be in the form of a fine payment to the government or a principal forgiving or perhaps something else. The final decision is yet to be hammered out.

According to Walsh, regulators have the power to seek financial penalty. They can also issue criminal referrals."

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