GMAC recently stopped foreclosure proceedings in most states. Now JP Morgan Chase has also stopped foreclosures. The reason? Consumers who have wrongfully had their houses foreclosed are fighting back.
The problem is that after a home buyer signs for a mortgage, the mortgage is bundled with other mortgages and sold. To save money, the companies that buy and sell the mortgages decided not to publicly record the lien transfers as is required by law. They just decided to keep electronic records among themselves. Incredibly, this seemed like a good idea to them.
Watch this video clip from Florida Representative Alan Grayson.
Friday, October 1, 2010
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