Was your house foreclosed in error? Regulators ordered hundreds of thousands of mortgage foreclosures to be reviewed for errors, so many that the backlog is now more than several months.
The delay insults injured parties for a second time, who are waiting to receive potential damages from aggressive home foreclosure tactics. Many Florida homeowners have been fighting in the past few years to correct this injustice that cost them their homes.
Florida law uses a judicial foreclosure procedure which means a lender must take the documents to the court to be reviewed. If the lender’s claim is found to be correct, the court allows the foreclosure. However, errors have occurred in mass quantity. And redemption is the goal.
The bank consultants responsible for reviewing possible wrongful foreclosures were initially supposed to have completed the awaited reviews by this month. But they explain the cases are more complex than originally thought, and the reviews may not be done until the end of the year.
People who have been waiting for months, facing many more months of waiting now, and seeing potentially four million more reviews on the horizon, are not in the mood to wait. Or maybe cynicism has set in and they are becoming numb to the never-ending trouble that is the foreclosure crisis.
The good news is that the foreclosure rate reportedly has slowed down as a result of reviews. Fewer families are losing their homes because of the faltering housing market and economy in general. Banks have decided to take a more cautious approach to foreclosure.
Source
USA Today: “Foreclosure reviews to take longer than expected,” Julie Schmidt, Jan. 13, 2012