A simple foreclosure coding error from the part of Bank Of America puts an American family on threat. Shantell Curtis who owned a house in Utah, had sold off this house to settle her foreclosure debts. Curtis was under the impression that with this sale, the last mortgage payment of the house would be done. However, the Bank of America did not record the transfer of title to the new owners as a result of a $1 coding error. Due to this Curtis still remained the owner of the house which she had sold off. An aftereffect of this was that the said house was put under the foreclosure procedures and Curtis, even though her debt was settled, was referred to the Credit Bureaus with an obliterated credit score, leaving her to suffer for a house which was no longer hers.
$1 Billion Foreclosure Program intended to help unemployed and impoverished homeowners with short-term help and thereby shun foreclosure had failed to reach its objective of serving more than 30,000 homeowners over 32 states. Only $ 432 million will be spending for the purpose and the rest will return to US Treasury as stated by a government official.
California Attorney General Kamala D Harris on Friday, 30th September refuses to have settlement negotiations with nation’s major banks over alleged foreclosure abuses. This had destabilized the effort of attorney generals and banks in all 50 states who had been working towards the settlement. Some state and federal officials had been seeking to the extent of $25 billion in penalties to write down loan balances for underwater borrowers. The agreement was expected to settle claims over poor mortgage and foreclosure practises including ‘robo-signing’ that approves documents in foreclosures without actually reading them. According to Harris the anticipated deal is inadequate for California homeowners and too much legal immunity had been given to bank officials under this. More than 2.2. Million California residents owe more on their mortgages than their homes are worth. As said by Harris ‘No other state had been harder hit than California’ and it was when they were trying to negotiate in good faith that foreclosures in California had upsurge again. Bank of America Corp., JPMorgan Chase & Co. and Wells Fargo and Co. are some of the major banks that were involved in the talk. JP Morgan Chase and Bank of America spokesman refused to comment whereas Wells Fargo spokeswoman Vickee Adams said that they will carry on working with all parties including their customers to reinstate home ownership nationally and locally. Harris said California will better have a settlement with the banks that would keep more families in their homes. The present deal may have been helpful to only 20,000 Californian homeowners out of 2.2 million. Haris also promised to continue her own investigation in the area and to look for regulations and legislation to avoid future problems.
The revelation that loan service providers were rapidly signing foreclosure documents moving through the court system in Southwest Florida raised in June, expected clue that the nine-month hitch caused by the robo-signing crisis is beginning to break.