Independent Report: Banks Continue to Foreclose Wrongfully
In fact, says the report, 94% of housing counselors report working with clients who were foreclosed on while under review for loan modifications. Under the Home Affordable Modification Program, this practice is supposed to be prohibited.
Most major banks entered into consent orders with their federal regulator, the Office of the Comptroller of the Currency, after the robo-signing scandal last year which require additional oversight of the foreclosure process. But the consent orders are toothless because they don’t expressly require banks to wait until loan modification applications have been evaluated before foreclosing.
Original article here: Bank Errors Continue to Cause Wrongful Foreclosures