CFPB Takes Aim at 'Zombie' Foreclosures
The Consumer Financial Protection Bureau is looking into how bank "walkaways" from distressed homes are hurting borrowers and how to rectify the situation. "There is direct borrower harm if a borrower believes a foreclosure on their property has been conducted and they are no longer responsible, and months or years later find out that they are, that there was never a foreclosure and they have large financial responsibilities that they never knew about," explains the CFPB's Laurie Maggiano. According to RealtyTrac, there are more than 150,000 vacant or abandoned dwellings for which the servicer has not taken title. Maggiano believes the zombie foreclosure epidemic could be addressed by creating a standard definition of "abandonment" and expediting the foreclosure process so that vacant homes are sold faster to new owners or nonprofits.
From "CFPB Takes Aim at 'Zombie' Foreclosures"
American Banker (03/13/14) Berry, Kate
The Consumer Financial Protection Bureau is looking into how bank "walkaways" from distressed homes are hurting borrowers and how to rectify the situation. "There is direct borrower harm if a borrower believes a foreclosure on their property has been conducted and they are no longer responsible, and months or years later find out that they are, that there was never a foreclosure and they have large financial responsibilities that they never knew about," explains the CFPB's Laurie Maggiano. According to RealtyTrac, there are more than 150,000 vacant or abandoned dwellings for which the servicer has not taken title. Maggiano believes the zombie foreclosure epidemic could be addressed by creating a standard definition of "abandonment" and expediting the foreclosure process so that vacant homes are sold faster to new owners or nonprofits.
From "CFPB Takes Aim at 'Zombie' Foreclosures"
American Banker (03/13/14) Berry, Kate
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