Foreclosure Process Comes Under Fire in All 50 States
It seems nothing has been able to slow the tidal wave of recession-related foreclosures - that is, until now.
State officials across the U.S. are joining forces to investigate illegal activities that could have led to thousands of unfair foreclosures over the past few years, according to the AP Press. Allegedly, lenders have been allowing foreclosure documents to be signed without required witnesses, without proper analysis and - in some cases - without even being read. It's a victory for millions of consumers who may be struggling to pay the bills - but are still following the rules, say Atlanta bankruptcy attorneys.
So what can we expect from the investigation? At best, a slim few homeowners may actually have their foreclosures overturned and get their homes back. More likely, though, the benefits will be more subtle.
In light of the recent events, some big banks like JP Morgan Chase & Co. and Bank of America are temporarily stopping foreclosures until they get the kinks worked out of their systems. Not only does this mean banks might finally clean up their act, but it should be a wakeup call for those of us facing foreclosure to clean up our own acts.
Of course, this isn't some kind of get-out-of-foreclosure-free card. If you stop paying your mortgage, the bank will take your home one way or another. But it is an opportunity. With foreclosures momentarily slowing down, you can take action to protect your home before they pick back up again.
When you file for Chapter 13 bankruptcy, a legal action called the automatic stay goes into effect, stopping foreclosure as well as the seizure of your other assets. Meanwhile, you can agree on an affordable plan for lowering your debt. Find out more about how bankruptcy can help you find a better financial future with a free personal debt analysis courtesy of an Atlanta bankruptcy attorney.