Foreclosures: a Nationwide Crime Scene

(10 am. – promoted by ek hornbeck)

Cross posted from The Stars Hollow Gazette

The foreclosure fraud perpetrated by the banks and private mortgage companies that was given a pass by the Obama Department of Justice.

Nearly a third of all foreclosed borrowers who faced proceedings brought by the biggest U.S. mortgage companies during the height of the housing crisis came to the brink of losing their homes due to potential bank errors or under now-banned practices, regulators have revealed. [..]

The estimates, disclosed Tuesday, far exceed projections made over the past few years after document abuses known as robosigning gained widespread attention in late 2010. [..]

They reveal that nearly 700 borrowers who faced foreclosure proceedings had actually never defaulted on their loans (pdf).

More than 28,000 households that faced foreclosure proceedings were protected under federal bankruptcy laws, while roughly 1,100 had been meeting all the requirements of so-called forbearance plans that their mortgage companies had agreed to, which allow for delayed payments.

Some 1,600 borrowers who faced foreclosure proceedings were protected by the Servicemembers Civil Relief Act of 2003, which forces mortgage companies to cap interest rates and follow special procedures when foreclosing on homes belonging to active-duty members of the armed forces and their families.

Banks are foreclosing on military members, on people who had been approved for a loan modification, and even on people who were never behind in their payments–all part of an astounding settlement that shortchanged millions of homeowners and left hundreds of thousands wrongfully ejected from their homes.  Former Governor Elliot Spitzer; Alexis Goldstein, former Vice President at Merrill Lynch and Deutsche Bank, now an Occupy Wall Street activist ; and Faith Bautista, who was the victim of wrongful home foreclosure in 2009, join Chris Hayes and paint a stark picture of what happened, who is responsible and why there isn’t more justice from the government.

The big banks continue to receive %83 billion a year in tax payer money to bail them out. Where is the justice for these homeowners?