Obama Still Hesitant To Freeze Foreclosures Nationwide
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Los Angeles is one of the areas worst hit by foreclosures. (Creative Commons)
On Wednesday, a federal regulatory committee called on lenders to refer possible cases of fraud to the authorities, fix problems, and check foreclosure processes.
In response, attorneys general from all 50 states announced Wednesday they would jointly investigate the foreclosure processes of lenders, including Bank of America Corp., JP Morgan Chase and Co., and Ally Financial Inc. The investigation will look into whether these lenders "robo-signed" foreclosure documents, failing to verify them.
Last Friday, Bank of America Corp. expanded its foreclosures freeze to all 50 states so they could examine the documents. Other lends have also frozen foreclosures in some states.
The Los Angeles area is one of the hardest hit regions by foreclosures with foreclosed homes accounting fore nearly 40 percent of homes sold.
Read more on the foreclosure crisis here.
Comments
Hmmm! How can prices go down any further, Here in Va homeowners have lost 70% of equity in some areas. so to foreclose and sell a home that was once worth 370,000 for 145,000 instead of modifying by lowering the interest rate and reducing principle be 20% to 30% would keep the market value up. The reason they don't do that is because the investor cannot re-coop losses unless the loan defaults.
[...] Obama Still Hesitant To Freeze Foreclosures Nationwide | Neon Tommy neontommy.com/news/2010/10/obama-still-hesitant-freeze-foreclosures-nationwide – view page – cached The pressure continues to mount for President Obama to call for a nationwide moratorium of foreclosures. But the President still won't budge, saying a freeze would only make the problem worse by driving prices down even more. Tweets about this link [...]
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