This has been going on for months and a number of homeowners have sued to keep their homes. I know of one case personally, and the homeowner was foreclosed on despite these issues with Ally. It’s a disgrace.
What’s particularly saddening is often the only entity that has suffered a financial loss is the taxpayer.
During the “Boom” appraisals were outcome-based and made of whole cloth. The result of the outcome based appraisal left plenty of room for “take-out” at origination AND plenty of room to over-insure the collateral at the outcome based value.
See: Ambac and AIG’s Credit Default Swaps.
The fact of the matter is - whether you are in default or not, your mortgage was used as a vehicle of unjust enrichment - and it all headed one way. Wall Street Banks.
Why on earth do you think it’s necessary for alleged lenders to fabricate all these bogus docs?
Please explain how a borrower can lie about his income when it’s standard to require an IRS 4056-T on loan apps.
The underwriting fiduciary and agency responsibilities were tossed out the window not so minorities could have homes too. That’s simply a ruse. It’s ALL ABOUT THE MONEY!