Max was interviewed by the Gaston Gazette.
But aside from the current review, servicing banks were rarely asked to validate or verify the foreclosure process. Few homeowners challenge foreclosures or demand that banks prove that they have the legal right to foreclose, Gardner said. In many cases, homeowners have no idea who actually owns the debt on their home, Gardner said. …
Most would assume the bank that made the loan and sends the monthly statement owns the debt, but often they don’t, he said. As of Nov. 1, Gardner said companies that purchase bad credit card debt and sue to collect on charged off accounts must automatically file an affidavit proving how they acquired the debt. But in a foreclosure filing — where a family’s home is at stake — that proof isn’t necessary without a challenge from the homeowner.
“Somebody’s got to challenge that,” Gardner said. “And unfortunately most people don’t.”
However, without an actual recovery in the U.S. job market and housing market, a foreclosure freeze or attempt to modify loans may only delay the inevitable, Gardner said. A homeowner with no job and no income is probably going to default on a mortgage, even if it has been modified with a lower interest rate and less principal debt. …
Embattled homeowners have watched the federal government dole out billions of tax dollars in aid to banks. With control of Freddie and Fannie, Gardner said the government should be doing more to rescue taxpayers.
“We own them. We’ve taken them over,” Gardner said of Freddie and Fannie. “The administration hasn’t done near enough to alleviate this crisis. … The average person has seen zero real assistance. I think that’s why people are so mad.”