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Bungling banks and foreclosure mistakes

Charleston real estate foreclosuresThose wild and crazy bankers never seem to learn a lesson. First they made loans that should never have been made and now in their rush to foreclose on those loans gone bad, they aren't crossing their t's and dotting their i's and mistakes in the foreclosure process are the ultimate result.

There is the story of a Florida man who paid cash for his home but Bank of America foreclosed on it even though he didn't have a mortgage. On a positive note, BofA acknowledged the error and will correct it at their own expense. Here's more.  

But that pales with good old GMAC, a ward of the state, which admitted that it filed dubious foreclosure documents in its rush to file many foreclosures as quickly as possible. It seems that they had "robo signers" who signed thousands of documents per month but didn't necessarily examine "all books, records and documents" and the signatures weren't notarized at the same time.

“The issue has broad consequences for the millions of buyers of foreclosed homes, some of whom might not have clear title to their bargain property. And it may offer unforeseen opportunities for those who were evicted.” Read more from the NY Times.

Quite the mess.

Anyway, here in the Charleston real estate market, foreclosures seem to be much more orderly. Every day, several lender owned homes are listed for sale, some sell quickly while others sit on the market for a little while until a price reduction or two attracts interest from a buyer and eventually they sell. But overall, lender owned homes make up just about 5 percent of all homes for sale in Charleston.

For a current foreclosure list of lender owned homes in Charleston, click here. Or just contact me for personalized help.

Published Saturday, September 25, 2010 6:35 AM by Howard Arnoff

Comments

# Inspect that foreclosure

Just because you think you are getting a “good deal” on a foreclosure don’t forget to have it inspected.  Spending $300 to $400 for a qualified home inspector can save you thousands of dollars.  Many foreclosed homes are vacant and could have water leaks that lead to mold and structural problems.  In addition, the previous homeowner may have not taken good care of the property prior to their departure because of financial difficulties.

Sunday, September 26, 2010 2:16 PM by Kirk the Home Inspector

# re: Bungling banks and foreclosure mistakes

thanks Kirk, actually, everyone should get a home inspection whether you are buying a new home, a traditional preowned home being sold by a homeowner or a lender owned home. And in the case of a lender owned home, while most are sold as-is, the bank does give you the right to an inspection.

Monday, September 27, 2010 7:50 AM by Howard Arnoff

# The bank foreclosure mess and how might a foreclosure moratorium affect you

... if you are a homeowner facing foreclosure, a buyer interested in purchasing a foreclosure, a homeowner

Saturday, October 09, 2010 8:04 AM by Charleston Real Estate Blog
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