« Ind. Decisions - Upcoming oral arguments this week and next [Updated] | Main | Ind. Courts - More on: Marion County Traffic Court in the news today »

Monday, June 29, 2009

Law - "Paper Avalanche Buries Plan to Stem Foreclosures"

Here is a quote from a story today in the NY Times by Peter S. Goodman:

For now, progress is constrained by the limited capacities of mortgage servicing companies, said Michael S. Barr, the assistant Treasury secretary for financial institutions. He offered the first signs of the administration’s impatience with the institutions that control home loans.

“They need to do a much better job on the basic management and operational side of their firms,” Mr. Barr said. “What we’ve been pushing the servicers to do is improve their infrastructure to make sure their call centers are doing a better job. The level of training is not there yet.”

This story may not go far enough. Bankruptcy lawyers have had to deal with mortgage servicing fraud for years. Take a look at this blog, The Home Equity Theft Reporter, and this entry from more than two years ago, citing this story from RealtyTimes.

The ILB had this entry on Nov. 7, 2007 headed "Bankruptcy law changes and mortgage servicing fraud may heighten impact of mortgage crisis."

[MORE] From the Supreme Court website, this release today that begins:

The Indiana Supreme Court encourages Hoosiers facing foreclosure to consider making an important call on June 30th. Lt. Governor Becky Skillman announced a statewide phone-a-thon that will give troubled borrowers the opportunity to access foreclosure prevention assistance. On June 30, between 5:00 p.m. and 10:00 p.m. EDT, Hoosiers having trouble paying their mortgage will have the opportunity to call a toll-free number and speak with a member of the Indiana Foreclosure Prevention Network (IFPN).

During this event, troubled borrowers will be able to ask questions and discuss their situation with an IFPN counselor, attorney or other qualified volunteer. Based on their mortgage situation, borrowers will receive a follow-up packet with details about the next steps they should take.

Posted by Marcia Oddi on June 29, 2009 08:41 AM
Posted to General Law Related