1 in 3 Foreclosures Have Bank Errors to Blame


A shocking number of U.S. homeowners who had foreclosure proceedings brought against them by the biggest mortgage companies during the housing bust nearly lost their homes because of a potential banking error, The Huffington Post reported. Nearly a third of foreclosed borrowers, or 1.2 million, in 2009 and 2010 were fighting off foreclosure even though they never defaulted on their loans or were otherwise in good standing under bank-approved plans.

Bank foreclosure errors: Bank liquidation sign
Bank foreclosure errors: Bank liquidation sign

This from The Huffington Post:

Close to 1.2 million borrowers, or about 30 percent of the more than 3.9 million households whose properties were foreclosed on by 11 leading financial institutions in 2009 and 2010, had to battle potentially wrongful efforts to seize their homes despite not having defaulted on their loans, being protected under a host of federal laws, or having been in good standing under bank-approved plans to either restructure their mortgages or temporarily delay required payments.

More than 244,000 of those borrowers eventually lost their homes, government data show.

The estimates, disclosed Tuesday, far exceed projections made over the past few years after document abuses known as robosigning gained widespread attention in late 2010.

Read the entire story at The Huffington Post.

See more on foreclosures:
10 Banks Foreclosing On the Most Homes
Foreclosures Returning to Pre-Housing Bust Levels
Boomerang Buyers Return to Market After Foreclosure

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