Many homeowners think that wrongful foreclosures are already a thing of the past. They think that since housing prices are on the rise, and because big banking institutions have lost major foreclosure lawsuits, that wrongful foreclosures are no longer happening. Unfortunately, most people who ever read this are doing so because of a wrongful foreclosure situation.
Despite massive payouts from the worlds largest mortgage lenders, these banking institutions are still wrongfully foreclosing on homeowners daily. In California, we’ve seen an uptick in mortgage fraud, coming from consumers who have already been foreclosed on. We want to dive a bit further into why this is happening, and let you know how we can help.
As these large banks continued to be bombarded with massive lawsuits stemming from illegal foreclosures during the recent depression, they realized that it was safer to sell their loans to other companies. For anyone who was in the process of trying to get a loan modification, making trial payments, or even in a permanent modification, there is a decent chance that this was interrupted when the loan was sold. This is where the recent wrongful foreclosures have been coming from.
Bank of America Sold my Loan to…
SPS, Ocwen, etc. There are lots of smaller lenders out there buying up mortgages from Bank or America and other large companies. These loans are typically sold when the homeowner is in default, and the original bank sells the mortgage to the second bank at pennies on the dollar. It’s interesting how the new lender never seems to miss any money that they can collect on, but they often “misplace” loan modification paperwork during the transfer process.
What happens next is where the real problem occurs. The new lender fails to honor the loan modification from the original mortgage company, and then wrongfully forecloses on the home because of it. This process can all happen very quickly, leaving the homeowner with almost no time to take action.
Stop the Eviction
If you are a victim of a wrongful foreclosure, you need a foreclosure attorney that can help you stop the eviction. Our wrongful foreclosure attorneys will work with you to develop a plan to keep you in the home for good, and to sue the bank for illegal procedures. Call us today for a free legal consultation to get started.