Amazing how much interest there is in the current foreclosure situation in America today. I read another article put out today which also reports some homes that were foreclosed on, then sold to new owners, may end up going back to the previous owner due to defective titles, improper sales, no title insurance, cash only type of deals. It's turning into a real financial mess out there, including some large finance companies stopping all foreclosures for now.
Suddenly, there is a frenzy over foreclosures. Every attorney general in the country is participating in an investigation into the flawed paperwork and questionable methods behind many of them. A Senate hearing is scheduled, and federal inquiries have begun. The housing market, which runs on foreclosure sales, is in turmoil. Bank stocks fell on Thursday as analysts tried to gauge the impact on lenders' bottom lines.
All of this is largely because Mr. Cox realized almost immediately that Mrs. Bradbury's foreclosure file did not look right. The documents from the lender, GMAC Mortgage, were approved by an employee whose title was "limited signing officer," an indication to the lawyer that his knowledge of the case was effectively nonexistent.
GMAC, which began as the financing arm of General Motors, has received $17 billion from taxpayers in an effort to keep it from failing and is now majority-owned by the federal government. (more at link)