Were Many Foreclosures Illegal?
Over the last 3 years there have been a lot of foreclosures across the United States. Some states have been decimated by this, and it’s taken the housing industry down as well. I have stated many times in many places that I believe the banks caused this problem; now it seems I may finally be getting some backing on it.
There’s a federal task force being put together to examine foreclosures and the processes that have led to so many of them going through so fast. The belief is that banks and other financial institutions have used fraudulent documents in pushing these foreclosures through, partly through a process where some banks had people just signing paperwork without reviewing it. The belief is that many people might have been illegally evicted from their homes and that they were targeted by companies that lied to federal housing agencies by filing false paperwork.
This was part of the reason a call was made requesting banks and other financial institutions to stop foreclosure processes for the time being, which many did, even though Bank of America decided to resume almost immediately afterwards. Of course, they did have to forgive $3 billion in loans back in April, as well as deal with having to buy back $47 billion in bad loans from Countrywide Financial, which they also own, so I’m sure they’re feeling justified in being able to continue funding themselves on the backs of those who are in financial distress on their homes.
And it could get worse, as the Securities and Exchange Commission is also thinking about starting an investigation into all of this. That’s because if it turns out to have some merit, then banks have been using false processes to create a false sense of stability in many companies listed with them, which is in essence fraud.
Could all of this turn out to be a big housing conspiracy perpetrated against both the federal government and home owners? Stay tuned.