Home is not selected

12.10.2010 11:15
Articles about real estate | Home is not selected Due to massive errors in the major U.S. banks at the time stopped to pick up the mortgaged housing from defaulters. 40 U.S. prosecutors intend to investigate this matter.

Bank of America, serving 14 million mortgage loans, or one-fifth of the market in the United States does not transfer the ownership of housing non-payers in all 50 states. JPMorgan, GMAC Home Mortgage, PNC Financial and Ally Financial moratorium in the 23 states where the transition to home ownership is the bank required a judicial verdict.

Stopped some deals and a daughter »Goldman Sachs - Litton Loan Servicing. The reason - a possible error in the documents. Bank officers to sign papers in such a huge amount that those who do it, called robo-signers, literally "robots who sign the documents."

In II quarter sales of homes, selected from defaulters by banks, amounted to 24% of total sales (data from RealtyTrac). Florida, Michigan and Rhode Island - about one-third in Nevada - 56%. These homes are sold for a quarter cheaper than those that are not the property of the banks due to defaults, according to Bloomberg. In August, the banks seized from defaulters 95,364 homes, the same fate await further 338 836 homes (data RealtyTrac).

According to a lawyer from Florida, Richard Kessler, 75% of the documents or not collected in full, or improperly issued, reports Bloomberg. Because of this, the current homeowners may challenge the procedure to transfer the ownership of the bank and even the right to ownership of future home owners. Problems may emerge only after several years when the new home owner decides to insure the risk of loss of property. "If the banks chose the shortest route, there are concerns, and what did they do more?" - Said a senior vice president of RealtyTrac, Rick Sharga.

Prosecutors are about 40 states are preparing for the beginning of a joint investigation of possible violations of procedures for the transition of home ownership of banks, said prosecutor Richard Cordray, Ohio. According to Bloomberg, this could be announced today.

White House urges banks to deal with these difficulties as quickly as possible. Decision to freeze the transfer of home ownership of banks "has created uncertainty in an already fragile housing market," says U.S. presidential adviser David Axelrod. "Reasonable deal, apparently, must continue if the documents and their registration in order" - he believes.

The hardest situation in the states where the transition of home ownership of the bank requires a judicial decision. In Florida, the work had to go back to the judges, retirees, because their colleagues were unable to examine several hundred such cases in a day. Because of this, the average duration of procedure of transition of home ownership of the Bank increased from 302 days in early 2005 to the present 478.

In August, 4.4 million homes were in the process of transition in ownership of the bank or were delayed by 90 days (data LPS Analytics). Since 2006, the banks seized from defaulters 6.4 million homes.
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