As the economic recovery takes hold there are still major problems in the housing market. Everyday people that had been paying their mortgage payments are now finding that they can't because of a job loss. Many more homeowners are just a lost paycheck away from getting behind on their payments. The initial wave of foreclosure was based in part to payments that were adjusted up because of deceptive lending practices and from borrowers not reading (or maybe not understanding) the fine print.
Recently though, there have been allegations that many of the largest banks didn't read the fine print themselves and that mortgage applications were signed in mass quantities to expedite the process! Now there is concern that many of these same banks have filed false affidavits in thousands of foreclosure cases and are foreclosing on homeowners without due process.
Bank of America just became the first bank to institute a nation wide foreclosure freeze while it reviews its procedures. Hopefully, more of the big banks will follow suite and do the same. It seems that it is only fair that they would be bound by the same contracts that the rest of us are. After all, one would expect that they would have known what was in the fine print that they had put there! The U.S. Senate Banking Committee will be holding a hearing looking into the matter on November 16th.
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