The Indiana Court of Appeals have suggested that banks that do not comply with Fair Housing Act servicing guidelines may not be able to foreclose a property until they do. HAMP—the Home Affordable Modification Program—is not much different in character than the FHA servicing guidelines, so the Indiana court’s decision might provide a way to stop foreclosures, at least until banks and mortgage services give the homeowner an honest shot at a HAMP mortgage modification.
It turns out that using HAMP as a shield has been tried with some success, so it’s probably worth a try for frustrated homeowners facing foreclosure after a failed attempt at mortgage modification.
It turns out that a lot of mortgage servicers haven’t been taking legal process very seriously. Robo-signers are employees whose jobs are to sign their name to as many affidavits as possible without reading them, and robo-signing is all the rage among mortgage servicers these days.
Instead of acknowledging that the mortgage industry created this economic and legal disaster, Treasury Secretary Timothy Geithner wants to blame the Legal Aid attorneys who discovered it was happening.
Force-placed insurance is an insurance policy your mortgage service picks out when your homeowners insurance policy expires. It can cost up to ten times more than a regular homeowners policy, in part because mortgage servicers are often getting kickbacks and other incentives due to self-dealing.