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More on “fraudclosure” | Washington Post

This from the Washington Post contains the details on the foreclosure mills aka law firms who are competing for their share of foreclosure work and form part of the ‘broken chain’ that is invalidating foreclosures.  This represents another layer of incompetence in the whole process.

First there is the matter of the legality of the mortgage

Second the sloppy methods employed by incompetent foreclosure mills and supported by fee penalties from Freddie for any delay in the foreclosure action.

For foreclosure processors hired by mortgage lenders, speed equaled money | Washington Post

The financial incentives show that the problems plaguing the foreclosure process extend well beyond a few, low-ranking document processors who forged documents or failed to review foreclosure files even as they signed off on them. In fact, virtually everyone involved – loan servicers, law firms, document processing companies and others – made more money as they evicted more borrowers from their homes, creating a system that was vulnerable to error and difficult for homeowners to challenge.

"This was a systemic problem. It’s not like a few renegade employees made mistakes," said lawyer Peter Ticktin, who defends Florida homeowners facing foreclosure. "It was industry-wide and pervasive, and everyone knew about it."

Written by Colin Henderson

October 16, 2010 at 21:40

Posted in Uncategorized

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