Questionable bank tactics could result in claims for damages by foreclosed homeowners

October 12, 2010

Congress and the Obama Administration are weighing in on the issue of the legal and ethical behavior of banks during the foreclosure crisis. As the allegations of illegality grow, and the foreclosure crisis grinds to a halt in South Florida, the issue could allow people who lost their homes to foreclosure in Miami to make a claim.

Our Miami foreclosure defense lawyers can seek a waiver of any deficiency judgment or a cash settlement. In some cases, you may be able to stop foreclosure or even argue to reclaim your property.
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MSNBC reports that House Speaker Nancy Pelosi and House Democrats are pushing for an investigation into bank practices. At issue is the ownership of hundreds of thousands of mortgages that were packaged and sold as investments by banks that later foreclosed on the properties. Some of the nation's largest banks -- including GMAC and Bank of America -- have been forced to halt foreclosures in South Florida and throughout the nation as evidence has surfaced that the banks and their attorneys were signing off on thousands of foreclosure cases without adequate knowledge of bank ownership.

Meanwhile, Senate Majority Leader Harry Reid has also called for an investigation and President Obama vetoed a measure last week that would have made it easier for banks to foreclose.

Democrats are also pointing to an "apparent pattern" of practices that led to the foreclosure crisis, which they contend could have been avoided.

"The excuses we have heard from financial institutions are simply not credible three years into this crisis. People in our districts are hurting," said a letter signed by 30 Democratic lawmakers to U.S. Attorney General Eric Holder, the nation's top law enforcement officer. "It is time that banks are held accountable for their practices that have left too many homeowners without real help."

Among the claims are that banks have failed to respond to efforts by homeowners to seek loan modifications or other relief. And that banks have failed to respond in a timely manner, misplaced requested documents, and have sent mixed signals about what is required to avoid foreclosure.

If you need help with foreclosure issues in Miami or the surrounding areas, including short sales, deficiency judgments, strategic defaults or other help for Miami homeowners, contact our South Florida foreclosure defense firm for a confidential appointment to discuss your rights. Call (305) 350-5055.

Pelosi pushes foreclosure irregularities probe Raw Story.pdf