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Bank of America halts foreclosure sales in 50 states

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posted on Oct, 8 2010 @ 01:05 PM
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Bank of America halts foreclosure sales in 50 states amid expanding furor over document errors

Bank of America Corp., the nation's largest bank, said Friday it would stop sales of foreclosed homes in all 50 states as it reviews potential flaws in foreclosure documents.

A week earlier, the company had said it would only stop such sales in the 23 states where foreclosures must be approved by a judge.

The move comes amid evidence that mortgage company employees or their lawyers signed documents in foreclosure cases without verifying the information in them.

Please visit the link provided for the complete story.
Source: www.rawstory.com...

While this looks like a good step, I fear that it is only an appeasment attempt, that will probably work. Bank of America was illegally evicting people from their homes and that should be enough alone, to deem the entire bank a criminal enterprise. This is not even mentioning the other alleged illegal activities of the bank, such as thwarting the democratic process and robbing the tax-payers for a bailout.

What's even more crazy, is if this would have been any mom & pop accused of the same thing, RICO would have already imprisoned most of the decision makers and the company would have been disbanded.

All in all, this may look like a good step on the face of it, but I'm sure it's only a hedge tactic to get around the obstacles they are facing, so they can continue to rob the American people. Now, I'm not saying that people shouldn't have to pay their mortgages, though I am saying that we shouldn't have bailed the banks out. Since we bailed them out, shouldn't they extend the same courtesy? Oh yeah, I forget that they are represented by this government, not the people.


--airspoon



posted on Oct, 8 2010 @ 01:09 PM
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As empty, or as divisive as I fear this action to be... It's about time!

We are becoming a nation of tent dwellers, pitching our cloth homes in the shadows of all the empty houses. Not all of the blame can be laid at the feet of the foreclosed upon, despite what others say - IMO. Variable rate loans, predatory practice, and lack of due diligence on the part of banks is just as much to blame as those who couldn't afford the homes that they bought.

Something needs to give here, whether it be property values, controlling interest levels, or some kind of amnesty. It does our nation, states, cities, and neighborhoods no good to have so many empty homes.

~Heff



posted on Oct, 8 2010 @ 01:50 PM
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Lately, it appears that certain banks, with the help of Congress, are trying to rewrite property law. Purchasing a home is the largest investment that people make, and property laws were supposed to protect that investment.

I agree that people need to pay their mortgages and if they do not, they should be evicted, but there is a long standing legal process for this action. How come banks do not have to follow the law anymore?

If the mortgage fraud is consistent and systematic throughout an organization, it seems like RICO laws would be used. That is what they were for, to discourage behavior like this.



posted on Oct, 8 2010 @ 01:55 PM
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No matter what happens to overcome this fiasco, SOMEONE(s) will be losing a LOT of money. The banks are, of course, desperately trying to ensure that it won't be them, but I can't see how they will win on this anyway. If 25% of the population is homeless with terrible credit due to foreclosures, who's going to buy the empty houses? Will we end up with another out of control housing boom which creates a elite group of Land Barons? Wow, scatually that is a scary thought...the idea that this could be the precursor to massive landgrabs.

Maybe BofA is actually freezing foreclosures because they realized that they will lose more money by continuing? Vacant houses don't go up in value.
edit on 10-8-2010 by rogerstigers because: (no reason given)



posted on Oct, 8 2010 @ 02:11 PM
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anyone have knowledge of what this means for those who already had their house foreclosed on by BofA? In my state they have the majority of REO's and I have 2 close friends who's countrywide mtgs were purchased by BofA prior to them losing their jobs and going into foreclosure. I wonder what their recourse may be? My opinion is this will delay us reaching the floor of the market by putting off the market dump of well over a million distressed properties.



posted on Oct, 8 2010 @ 02:17 PM
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Originally posted by rogerstigers
No matter what happens to overcome this fiasco, SOMEONE(s) will be losing a LOT of money. The banks are, of course, desperately trying to ensure that it won't be them, but I can't see how they will win on this anyway. If 25% of the population is homeless with terrible credit due to foreclosures, who's going to buy the empty houses? Will we end up with another out of control housing boom which creates a elite group of Land Barons? Wow, scatually that is a scary thought...the idea that this could be the precursor to massive landgrabs.

Maybe BofA is actually freezing foreclosures because they realized that they will lose more money by continuing? Vacant houses don't go up in value.
edit on 10-8-2010 by rogerstigers because: (no reason given)



THAT's IT!!

everything we see now is all part of the banks' "plan B".

1. if all foreclosures go on the market at once, the values drop to nothing!

2. if the banks can't recover the "amounts due" with a sale, and they can't garnish anything for "the difference owed", they get stuck!

3. if the banks stop selling (i.e. foreclosing), maybe prices stabilize?

4. the banks WILL wait for another "crisis bailout".

5. this "move" will buy a lot of time.

6. EVERYBODY involved in foreclosures (except most homeowners) are college educated professionals in this field! they know EXACTLY what they are (and have been) doing!

7. remember also, these "pros" are all getting paid big money as we speak.



posted on Oct, 8 2010 @ 04:01 PM
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Originally posted by xuenchen

3. if the banks stop selling (i.e. foreclosing), maybe prices stabilize?



This is the key.

If home prices fall, more people that are paying their mortgage would just stop doing so. They would just buy homes on the super cheap and fully paid for, why slave away for a bank? This is just the start. What a dramatic fall in home prices would do to the finance industry and retirees can be compared to the iceberg that ripped into the Titanic.



posted on Oct, 8 2010 @ 04:18 PM
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Originally posted by wutone

Originally posted by xuenchen

3. if the banks stop selling (i.e. foreclosing), maybe prices stabilize?



This is the key.

If home prices fall, more people that are paying their mortgage would just stop doing so. They would just buy homes on the super cheap and fully paid for, why slave away for a bank? This is just the start. What a dramatic fall in home prices would do to the finance industry and retirees can be compared to the iceberg that ripped into the Titanic.


yes, yes,

and maybe some people (if they sit tight for a while) can acually buy back their own homes for less money!

I know somebody who DID this .. it took about 6 months after foreclosure, then his brother-in-law bought the house for about $100,000 less !!! my friend moved right back in the house ! (he was living with the in-laws in the meantime).

sometimes it IS possible to beat the banks at their own game.



posted on Oct, 8 2010 @ 06:26 PM
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Apparently, according to the banksters, if this is not resolved in their favor, the economy will crash.

Now, that sounds vaguely familiar. Economy crashing... we need the taxpayer to... Congress applies the KY....

How many more times will the electorate fall for this garbage? It is blackmail, nothing more.



posted on Oct, 8 2010 @ 09:10 PM
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I can see it now .......

the next bailout will be called CARP-II (not Tarp-II) !!

all in honor of the bottom-feeders!

and we can watch the fish-bones float to the top.



posted on Oct, 8 2010 @ 09:45 PM
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reply to post by rogerstigers
 


I do think BofA is halting them because it costs money to keep a vacant house. You have property taxes, utility bills, insurance and yard up-keep. Late fall and winter is a horrible time to try to sell a home - spring is much better.

Besides additional homes on the market will only drop home values more - so they lose more money on homes already bank owned.

They already have a huge inventory of homes - the smart thing to do is to halt them for a few months (or until spring when the market is better).

Note to all home owners out there - learn about loan modifications. It's a horrible, slow, aggravating process which takes months. But it could save thousands (maybe 10 or 20) in the next five years.



posted on Oct, 8 2010 @ 10:14 PM
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Originally posted by xuenchen
I can see it now .......

the next bailout will be called CARP-II (not Tarp-II) !!

all in honor of the bottom-feeders!

and we can watch the fish-bones float to the top.


I think you have some letters transposed there.. specifically, the "A" and the "R" in CARP should be reversed.



posted on Oct, 8 2010 @ 10:41 PM
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You're right about how it cost's the banks money to have vacant properties. That's why the banks sell the notes (mortgage) or the properties in bulk to buyers like hedge funds or private investors like myself. I can't speak for other investors, but I buy them in hopes of helping out the home owner.

It's not to difficult to sell a property if you need to. You can sell your property on a rent-to-own basis/lease option.

If you do go the loan mod route, watch out for people charging you up front fees...most likely it is a SCAM! Also learn what the qualifications are for your lender, so you're not wasting time. If your lender will not consider a loan mod, maybe they will do a short sale. Also, it does not cost anything to have a short sale completed. If anyone tell you otherwise, run the other way and call your states Attorney General to report them.



posted on Oct, 8 2010 @ 11:05 PM
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IMO this could all become very interesting because as things stand right now, the investors were sold lies, IRS rules were broken (that's how they got Capone isn't it?) and various taxing districts were deprived of fees by titles not being transferred, etc. That means the banks will now be hit from multiple directions and with the moratoria on foreclosures the costs to the banks in the near future will be astronomical.

I coiuld see this being a boon for NEW home sales. At least you'll know you have clean title.



posted on Oct, 9 2010 @ 12:53 AM
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If the economy crashes tomorrow, big deal. Someone call them on that bluff. They don't want the economy to crash, their houses will get looted first when everyone blames them and quits protecting them.
There's a reason they started hiring personal protection and they know it, and it's time the public knew it.

It's time for some citizen's arrests. Where's local law enforcement? Isn't there local laws against forgery?

This is BIG. We can't let this just go black- we've got to at least talk to those we can about it. Especially if they start clamoring for more tarp money.

The economy might get better after all the infection is taken out.



posted on Jan, 11 2011 @ 09:35 PM
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All the rules have changed in the last couple of months. Lending banks are now being held accountable for the trap they set, borrowing money they didn't themselves have, while using loose and illegal practices in the process. The massive lawsuit against Wells Fargo / Wachovia, Indymac / OneWest bank, Citibank, Bank of America, JP Morgan Chase, GMAC..............can actually, not only put a stop to your foreclosure, but also pause your house payments with no loss to you............
sites.google.com...



posted on Jan, 11 2011 @ 10:09 PM
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Please remember that the banks don't own the loans for the most part, they just service them. Since they don't own them, they generally don't have the power to modify them. Thus foreclosure is the only remedy they are allowed to take for the investors they service. The other problem is that they can't sell the properties even if they foreclose as no one will issue title insurance, so why bother. Which leads to another problem, the securizations they service, require foreclosure action within a certian period of time. For the most part they have blown this as well, which increases the chances that they will have to pay penalties or buy the loan back from the investors securization trust.

Anyway you look at it, the banks are in a hot spot. Congressional action is needed. They need the goverment to come in and buy all the loans at face value and let them modify them with the homeowners. If they do it right they can keep the servicing rights and keep getting paid. The investors will probably be happy just getting there money back, although these actions may upset some hedging tactics. Too bad, there is no thing as zero risk. The goverment can then slash everyone's principal by 30% and refinance the loans at 5% for 30 years. They will get paid back $1.35 for every $1 of original face value. This should save a bunch of people and take the excess supply out of the housing market. Banks and investors can get back in the game for any new loans going forward. Hopefully they will be smarter this time around and avoid repeating the same mistakes.

Do this and the economy will do very well. The economy does well our deficits will be put behind us giving the dollar strength. This is really a no-brainer if you have the best interest of our country in mind. Who cares if some billionaires miss out on the potential profits from your mortgage. Put it into something tangible instead.



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