Foreclosures and bank reviews continue to hit the news making it all the more confusing for struggling homeowners to make sense of what is going on with their mortgages. Are you going to get help or do you need to sell your home fast?
The new multibillion dollar mortgage settlement which was supposed to help bail out homeowners increasingly appears to have been a smart move by the top five banks involved, as it clears the path for them to foreclosure on delinquent borrowers faster, with immunity for prior foreclosure fraud issues.
Following these events CNBC News released an almost laughable article recently pointing out how tough the penalties will be for mortgage lenders who do not keep up their end of the giant settlement deal. Despite propaganda from the White House and penalties spelled out in the agreement, these mortgage giants have already managed to have the law changed in their favor and receive bailouts when they are irresponsible. Until more bankers go to jail instead of the investors and brokers they set up, they are unlikely to change their ways.
However, while those with mortgages with Wells Fargo, Bank of America, Ally, Citigroup and Chase may see their foreclosures put on the fast track, borrowers whose loans are with 8 of the other largest institutions currently under review by the Feds could face even more days of hair pulling ahead.
Investigations and reviews of foreclosure practices by SunTrust, OneWest, EverBank, Goldman Sachs, PNC, U.S. Bancorp, MetLife and HSBC have found “unsound” practices and could face heavy fines. This may not bankrupt these organizations yet but it means chaos for homeowners. Some foreclosures may be delayed temporarily but others may be sped up before new regulations are dealt out.
Foreclosure defense attorneys are still using the opportunity to push borrowers to pay for foreclosure reviews but while a few homeowners may benefit from trying to stall the foreclosure process, others are doing themselves more harm than good. Plus, borrowers need to double and triple check that they weren’t involved in any mortgage fraud when they took out their loans or they mind find themselves with free accommodation in the big house with bars on the windows for the next few decades.
Don’t wait until the auction date is set to seek help or it may be too late. Explore your options for selling your home or holding off foreclosure now so that you can make the best and most educated decision.
