State Officials Across the U.S. Investigate Legality of Foreclosures
It's still a shot in the dark, but there's a possibility that some foreclosed homes could be returned to their owners, according to Chicago bankruptcy attorneys.
Officials in every state across the U.S. - including Washington D.C. - are investigating improperly handled documents and illegal activities that may have allowed lenders to foreclose on thousands of homeowners who should not have lost their properties, according to the AP Press - things like signing documentation without a required witness, having signatures given by employees who didn't know anything about the material in the documents or - even worse - by people who hadn't even read the papers.
So what does it mean for you and me? If you lost your home to foreclosure since the recession began, there's a slim possibility you could get it back. But for most of us, this is merely a sign that officials are finally trying to set the crooked mortgage industry straight. In recent weeks, banks like Bank of America and JP Morgan Chase & Co. have put foreclosure processing on hold - other banks could do the same.
If you're at risk of losing your house, this could be a golden opportunity. Make no mistake; this isn't the end of foreclosures, just a temporary delay to clean up the process. If you stop paying the mortgage, you will lose your home - whether it's today or tomorrow. What this investigation can do, however, is spur you to take action - and maybe buy you extra time to do it.
You don't need to live in denial or in hope of a miracle - you can stop foreclosure. It's your legal right when you file for Chapter 13 bankruptcy. Aside from providing an affordable way to pay off debt, Chapter 13 comes with an automatic stay, a legal action that protects property, your house included. Want to learn more? It's free with a personal debt analysis courtesy of a Chicago bankruptcy attorney.