Monday, January 25, 2010

So many foreclosures, so little time

You would think that with all of the underwater and distressed properties around, banks wouldn't be terribly eager to foreclose on extra properties. Sadly, you'd be wrong, as ABC News reports
Some 2.8 million homeowners faced the threat of foreclosure last year, but it wasn't supposed to happen to Charlie and Maria Cordoso. In 2005, the New Bedford, Mass. couple paid in full -- in cash -- for a house in Springville, Fla., and rented it out with plans eventually to use the home as a retirement getaway.

They said they were shocked to learn earlier this month that Bank of America had locked them out and removed their clothing and furniture from the property.
The story goes on to report that BofA is being sued for foreclosing on other properties on which it did not hold or service mortgages.

You know that the mortgage system is stacked against homeowners when a company can foreclose on any property at all. In this case, BofA appears to have padlocked the property, removed possessions, and shut off the utilities. And all this appears to have occurred after BofA was informed that it was targeting the wrong property.

All in a day's work for BofA--it will probably even pay a bonus for the entrepreneurial forecloser.