Massachusetts is a state known for homeowner advocacy, but that is not necessarily slowing the foreclosure process down in this area of the country. In fact, in June Massachusetts posted its highest number of foreclosures yet – and all while Massachusetts attorney general Martha Coakley continues her battle to resolve robo-signer issues and mortgage electronic registration system (MERS) ambiguities in the system[1]. You might think that with all this uncertainty around the foreclosure process, lenders would hesitate to tackle foreclosures in the state. However, 931 foreclosures took place in Massachusetts in June – up 64 percent from the month prior. “It seems more foreclosures are being pushed through the pipeline,” says Warren Group CEO Timothy Warren Jr., who added that there are “still a glut of foreclosed properties on banks’ books” that will hinder any housing recovery.
Do you think that these foreclosures will stand? Should banks just stop foreclosing until MERS and robo-signer issues are resolved?
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[1] http://www.boston.com/Boston/businessupdates/2011/08/mass-foreclosures-start-pick-again/7EQE4IblOPAdYuWbmW5QLJ/index.html
The courts have started to take the side of the Banks on the Robo signing and MERS issue, that is why the Banks are now foreclosuing in record numbers since they know at the end of the day, the courts will rule in their favor. Their mind set is, why wait, we will foreclose, get control of the property, then deal with the courts later. The real issue here is this, the banks and courts are saying that the borrowers owe the money, why should we stop the foreclosure process on a technically? and the gov’t and consumer groups are saying to the banks and the courts, the lenders broke the law, and they should be held accountable for breaking the law. It is all a dog and pony show, since at the end of the day, the Banks are going to pay a fine to the gov’t, and the gov’t will waste that money, and the homeowner will still be out on the street.