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In this episode of As Bank of America Turns, we look in on how this All American, flag logo'ed institution got themselves all tied up in the sudden foreclosure OOOOPPPSSSSSS!!! they find themselves in. In all fairness to this bastion of arrogance and bad service, the recent foreclosure moratorium isn't just BofA's issue. Almost all the banks find themselves in a similar pickle.
The short version of what's happened is that once upon a time,and in order to more readily transfer your loan from one lender to the other, the large mortgage servicing banks created a company called MERS . MERS' job was to handle all the title transfers between lenders and other boring stuff you never know about when your loan is sold from one bank to the next. There was one tiiinnnyyyyyy problem with all of this. MERS never had the authority to "assume" any beneficial right to the title of your home. This created a "break" in the chain of title. By doing so, BofA and their banking brethren have violated parts of the very agreement they had you sign.
The reality is that none of this probably would have come to light except for one inherent oversight by the Big Boy Banks... blind arrogance. If you are a seller, buyer or agent, and have tried to get anything done..even the complicated stuff like having your call answered(much less returned)..with one of these banks, you know the attitude/disorganization/disdain with which you must go through. The days turn to weeks, which turn to months and in some cases YEARS. By in large, the banks have thumbed their noses at their distressed clients and anyone trying to purchase a home. Funny thing, at some point the public has enough.
Sooooo, after 4+ years of this type of service, people (read: attorneys) started to look into the banks. Guess what they found? Not only did they find the obvious lack of service, but wholesale,systemic and fraudulent problems with the way the banks are handling foreclosures. OOOPPPPSSSSSS!!! Oh, and there's one other ill timed little gem. All this happened square in the middle of an election cycle. Imagine how many headlines a politician can get by stepping into this fray.
Now do I think the banks are entitled to foreclose if a person can't pay? Yes, I do. Unfortunately, a house is no different than a car.If you don't pay, they take it. Do I hope the banks are run out of business for all of this? NO AT ALL. For better or worse, we need a healthy banking system.
But, what we also need is a system designed to be fair in how they conduct themselves.
For a short video on this situation:
CLICK HERE
The short version of what's happened is that once upon a time,and in order to more readily transfer your loan from one lender to the other, the large mortgage servicing banks created a company called MERS . MERS' job was to handle all the title transfers between lenders and other boring stuff you never know about when your loan is sold from one bank to the next. There was one tiiinnnyyyyyy problem with all of this. MERS never had the authority to "assume" any beneficial right to the title of your home. This created a "break" in the chain of title. By doing so, BofA and their banking brethren have violated parts of the very agreement they had you sign.
The reality is that none of this probably would have come to light except for one inherent oversight by the Big Boy Banks... blind arrogance. If you are a seller, buyer or agent, and have tried to get anything done..even the complicated stuff like having your call answered(much less returned)..with one of these banks, you know the attitude/disorganization/disdain with which you must go through. The days turn to weeks, which turn to months and in some cases YEARS. By in large, the banks have thumbed their noses at their distressed clients and anyone trying to purchase a home. Funny thing, at some point the public has enough.
Sooooo, after 4+ years of this type of service, people (read: attorneys) started to look into the banks. Guess what they found? Not only did they find the obvious lack of service, but wholesale,systemic and fraudulent problems with the way the banks are handling foreclosures. OOOPPPPSSSSSS!!! Oh, and there's one other ill timed little gem. All this happened square in the middle of an election cycle. Imagine how many headlines a politician can get by stepping into this fray.
Now do I think the banks are entitled to foreclose if a person can't pay? Yes, I do. Unfortunately, a house is no different than a car.If you don't pay, they take it. Do I hope the banks are run out of business for all of this? NO AT ALL. For better or worse, we need a healthy banking system.
But, what we also need is a system designed to be fair in how they conduct themselves.
For a short video on this situation:
CLICK HERE
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