Bank of America just recently suspended foreclosures on homes. Apparently they cut too many corners when buying/selling the faulty home loans that they can’t actually prove they own the title.
What happens to the homeowner then? I’m assuming he doesn’t now own a free-and-clear home? Do they continue to live mortgage-free in the home?
What happens if the mortgage purchase by BoA is from, say Coutrywide Loan (now defunct)?
Thanks for your answers.
Here is an article in the Huffington Post.
Apparently in some cases people have been living in their houses for years because the banks couldn’t produce the paperwork and others have used the missing paperwork as leverage to renegotiate their mortgage. A lot of this depends on local law in the state in question.
Here is a very informative article on the mortgage mess.