Foreclosure Carrions Feed On The Woes Of Others

July 23rd, 2008

The foreclosure is like carrions that feed on the woes of others. Nobody wins in the long run – neither the prey that suffers from indigestion for having eaten more than it could digest or the hapless victim thrown out of houses that were homes. Society too is at the receiving end with a disgruntled population living from hand to mouth. Crime and disease is on the rise while politicians are fishing in troubled waters.

Who has been taking the pickings behind the scenes? It is the small group of legal firms and mortgage servicing companies representing lenders who have been tucking in enormous profits. They impose various dubious fees to calculate what the borrower owes and then writes out documents to throw people out of their homes. With the increase of the foreclosure crisis their business too rose to dizzy heights. Firms that deal with loan defaults are the primary beneficiaries of this game.

Wall Street securitization operations helped to spread questionable lending right across the length and breadth of the country. Court affidavits show that some of the giant lenders have tripped in repeatedly submitting wrong affidavits when trying to seize house or levy unjust exorbitant fees. It makes it more difficult for defaulters to catch up with dues and foreclosure becomes inevitable. These operations have been termed ‘foreclosure mills’ by consumer advocates. The payment they get is in proportion to the speed and volume of foreclosures executed said Mal Maynard of Financial Protection Law Center, a non-profit firm dealing in such matters.

Of the many victims mention may be made of John and Robin Atchley of Waleska. During four months they have twice been thrown out of their house by Countrywide. This roughshod behaviour trampling on borrowers is causing increasing concern to the judges because a mockery is being made of the judicial system. Bankruptcy judge Joel B Rosenthal referred to a case linked with the name of Wells Fargo in connection with this type of blatant misuse. Even the most basic legal requirements were not complied with. The firms dealing with foreclosures are going all out to make it difficult for borrowers to save themselves from eviction. More and more people are convinced that “foreclosure mills” are actually blocking the path of workouts.

In June 225,000 houses in the country were in foreclosure – a hike of about 60% from the previous year during the same time.