Obama’s Foreclosure Task Force Could Benefit North Carolina Foreclosures

February 29, 2012

President Barack Obama recently created a foreclosure task force of attorneys general and other officials with federal powers to investigate the misdeeds of banks, mortgage servicers and others involved in the real estate collapse of 2008; a move that could end up being beneficial to those facing a North Carolina foreclosure.

However, consumers seeking justice should consult an experienced real estate attorney. Through the evolvement of government intervention – and the announcement of one program after another – what holds true is that homeowners who fight for their fights have the best chance of prevailing in the end.

As the years have gone by, North Carolina foreclosure defense lawyers  continue to uncover the many unlawful actions taken by banks and those working for them. In many cases, robo-signing allegations, the creation of false documents to support a foreclosure and other actions could lead to a person being able to stay in their home.

News stories have chronicled how sometimes a person can live in their house without payments for up to three years because banks simply don’t have the information to support the foreclosure. What banks did to make money off of mortgages was bundle them together and sell them to investors as groups. Through Mortgage Electronic Registration Systems (MERS), a bank-owned recording system, these purchases and sales were recorded, but in many cases – not as accurately as they should have been.

Also, MERS was used to avoid the more strict recording practices of local government. Unfortunately, banks have been leaning on MERS to try to figure out if they have enough information to foreclose on a house.  Consumer advocates and foreclosure defense attorneys are demanding that the banks produce the correct documentation to support the foreclosure actions in NC. In many cases, the banks cannot produce the proper documentation and distressed homeowners can stay in their homes many times while the long process continues.

Actions by banks are often not only immoral, but in many cases unlawful. That’s why President Obama created the foreclosure task force to investigate mortgage lending practices that were fraudulent and that led to major problems after the initial wave of foreclosures.

The new unit will fall under the authority of the Attorney General and will include both state and federal prosecutors. They will be used to look further into the issues – including whether banks pushed minority lenders to higher-interest loans without cause solely to make them look more attractive to investors and whether banks were truthful with investors who were buying these loans.

The call for the task force comes as Obama has been pushing the 50 state attorneys general to reach a settlement with banks over many of these practices. The multibillion dollar settlement would provide some money for homeowners who have been victimized, but it would also give banks protection from future lawsuits, even if more egregious actions are discovered. About half a dozen states have rebelled against the settlement, saying that more needs to be investigated. If the settlement is approved, we may never know just how many injustices there have been.

The bottom line is that it is a positive step that the government is finally coming around to investigating these bank actions. But it has taken too long for more action to take place. For far too long, this has been treated as a civil matter, but it is more of a criminal situation. Bank officials who ordered unlawful actions should be held accountable.  The new foreclosure task force and the Consumer Financial Protection Bureau are positioned to hold these banks accountable, and we look forward to positive change.

Consult The North Carolina foreclosure defense attorneys  at Soboleski Law, P.C., for more information. We can also be reached at 828-285-8888.

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