Foreclosure Ruling May be Good News for Homeowners
Lenders may become more willing to cut deals with homeowners.
Palm Coast, FL – January 11, 2011 – A ruling against two lenders in Massachusetts on Friday sends a warning to the industry: Before foreclosing on what is for many Americans their most valuable asset — their home — lenders must have proof they have the authority to do it.
“What banks are going to have to do is make sure they’ve dotted their I’s and crossed their T’s before going through with a foreclosure,” said Stuart Rossman, director of litigation at the National Consumer Law Center. The center submitted a brief in the case, on behalf of the homeowners.
“It’s similar to the problem with the ‘robo-signing’ case,” he said, referring to employees of lenders or servicers assigned to sign off on thousands of foreclosure affidavits in a short amount of time.
Extra caution with the paperwork could mean a slower pace of foreclosures ahead, said Roy D. Oppenheim, senior partner at Oppenheim Law, based in Weston, Fla.
And lenders may be likelier to consider other cures before deciding to proceed with a foreclosure, he said.
Read More >>>> MarketWatch
Leave a Reply
Want to join the discussion?Feel free to contribute!