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News US banks to send checks to 4.2M who lost homes

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  1. Apr 9, 2013 #1

    Evo

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    Staff: Mentor

    Finally, something being done for homeowners that lost their homes without proper evaluation.

    http://news.yahoo.com/us-banks-send-checks-4-153752525.html
     
  2. jcsd
  3. Apr 9, 2013 #2
    Amazing the banks did this! Did they need a quick injection of cash? Why would they want to put homes into foreclosure? I thought no one but investors won with them.
     
  4. Apr 9, 2013 #3
    Last edited: Apr 9, 2013
  5. Apr 10, 2013 #4

    Vanadium 50

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    Foreclosure is legally difficult (and is becoming more so). Certain things have to happen at certain times, or the whole process resets. The banks knew that they would have to foreclose on some fraction of the loans, but were not so sure of which exact loans. Hence the robo-signing, to keep their options open on as many loans as they could. Which is illegal.
     
  6. Apr 10, 2013 #5
    The who owns what home fiasco began with Mortgage Electronic Registration System

    Bold mine:

    http://en.wikipedia.org/wiki/Mortgage_Electronic_Registration_Systems

    Our local county Recorders office still has a lot of homes showing Mortgage Electronic Registration Systems as the owner.

    The County Assessors Office on the other hand always had the correct name of the owner for tax purposes.

    Somehow the big banks couldn't figure out how to find the correct owner even though most of this information was available online.

    I personally suspect that when large numbers of mortgages were sold to investment banks to be bundled they used their own numbering system to identify the mortgage information. The complete owner information was left behind in a computer in the back of a warehouse building somewhere.

    And this was complicated by the fact that the original brokers and MERS, who had or once had, the information no longer had any skin in the game.
     
    Last edited: Apr 10, 2013
  7. Apr 15, 2013 #6
    this is great ive heard about people who have wrongfully lost their homes while having a whole family to take care of i cant even imagine good job banks :approve:
     
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