Complicated Home Foreclosures Add to Woes

Foreclosing on a home is a lengthy and complicated process involving many different parties. Seemingly obvious things like the ownership of the home loans themselves can be difficult to ascertain as more mortgages are packaged up by the thousands into securitization trusts that are then sold off to investors. In fact, 40 percent of creditors foreclosing on borrowers did not show proof of ownership of the note or security interest in the property!

Strange fees charged by lenders have also become a serious problem in the foreclosure process. One study found that questionable fees had been added to almost half of the loans examined by the group. These fees are almost always excessive and can rarely be backed up with real descriptions.

Homeowners themselves often look to judges to stop banks from foreclosing on properties and lenders from seizing homes without supplying proof. However, these courts are experiencing a huge case load and often push the decisions past without a second look. Only a few judges are sympathetic to borrowers who were unfairly treated when being foreclosed upon.

Some lenders are now trying to work with borrowers in order to curb foreclosures, as it is hurting them almost as much as the consumers. The government has also been pushing them to reduce principal in instances where borrowers owe more than their house is worth in order to help give them hope. It will be interesting to see if these measures work..

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