REAL ESTATES FORUM

The New York Times

Borrowers Face Dubious Charges in Foreclosures

Photo:
http://tinyurl.com/2j7can
David Lienemann for The New York Times
In a study of foreclosures, Katherine Porter of the University of Iowa found
questionable fees on almost half of the loans. Such fees can make the
business of loan servicing even more lucrative.

By GRETCHEN MORGENSON
Published: November 6, 2007

As record numbers of homeowners default on their mortgages, questionable
practices among lenders are coming to light in bankruptcy courts, leading
some legal specialists to contend that companies instigating foreclosures
may be taking advantage of imperiled borrowers.

Because there is little oversight of foreclosure practices and the fees that
are charged, bankruptcy specialists fear that some consumers may be losing
their homes unnecessarily or that mortgage servicers, who collect loan
payments, are profiting from foreclosures.

Bankruptcy specialists say lenders and loan servicers often do not comply
with even the most basic legal requirements, like correctly computing the
amount a borrower owes on a foreclosed loan or providing proof of holding
the mortgage note in question.

łRegulators need to look beyond their current, myopic focus on loan
origination and consider how servicersą calculation and collection practices
leave families vulnerable to foreclosure,

On Tue, 06 Nov 2007 09:21:57 GMT, Faubillaud wrote:
: The New York Times
:
: Borrowers Face Dubious Charges in Foreclosures
:

Ecxellent article. ISTM another example of how the utter lack of
oversight and federal limitations on recourse inevitably lead to
abuse, and, all too often, out-and-out fraud.