How is there a gray area in home foreclosure

[bumbershoot]

That has to do with obtaining a refi, not with foreclosure. If BOA was not legally prohibited from doing so, they could foreclose on your coworker's home. It doesn't matter if she was trying to refinance. She was trying to refinance with a bank that no longer exists, and now has not paid a mortgage in almost 2 years.

But as you said, this attempted refi could turn into a foreclosure, so it has to do with it. This woman has been trying to work with them for quite awhile now, and they are the ones who have been stopping it. Sounds like they could have been receiving payments for, what, a year now? If the bank thought about it, they'd help this process, not hinder it, so they could get some money!

If you stopped paying your mortgage I really don't see how you have any rights left.

You always have rights...even a convicted murderer has rights...let alone someone who hasn't been able to pay their mortgage...

 

[jlima]

The big problem is that banks bundled up mortgage's and sold them as investments and the paper trail is so muddied that the government wants to make sure that the right mortgage company is foreclosing on the right owners in default. I've heard about people who sold via a short sale and were later foreclosed on by a separate bank who actually owned the mortgage. The new owners no longer owned the house and the original homeowners had two black marks on their credit- short sale and foreclosure. SO it is important to make sure that the right paperwork is finalized.

This.

If your loan was sold to bank #2, who combined it with 99 other loans and sold that group to financial institution #3, who sold 10% of this bundle to financial institution #4, 30% to #5, 55% to #6 and the last 5% to bank #7, then who really owns your mortgage? You are sending your payment to a company that's only servicing the loan.

These banks and investment houses are buying and selling the future proceeds of your mortgage. This article may help:
http://www.finalcall.com/artman/publish/article_4275.shtml

It may take years to sort out all of the mess.

 

[LuvOrlando]

Anyone else out there curious why this paperwork mess has been ignored for so long? The banks halted proceedings for a while, years in some cases, why didn't they use that time to make sure everything was in order then instead of doing it now? Seems like no-one is steering any of the buses driving our lives any more I think they need to replace the slogan "too big to fail" with "too big to succeed"... what a catastrophe.

 

[scnana]

We lost our house to foreclosure last year. BOA bought our mortgage from Countrywide and we were ONE month behind on our payments. I talked to someone from BOA twice and was told about all the paperwork to be submitted (basically reapplying for the loan we already had) and I asked twice if there was any guarantee that we would keep our home. I was told no, but they would TRY to help us after they reviewed the paperwork. My husband was having some serious health problems and for that reason.........we walked away from it.