STUDY: Faulty Foreclosures common

A recent study is showing how more and more families are pushed into foreclosure because of administrative errors by banks, lenders and mortgage servicers:

A recent study of more than 1,700 foreclosure cases by University of Iowa law professor Katherine Porter showed that questionable fees had been added to almost half of the loans she examined, the paper reported.

In one case, the court found that Wells Fargo (ChartsFortune 500), another major mortgage lender, assessed improper fees and charges that added more than $24,000 to a loan, or 12 percent more than the court determined was actually owed.

You can read the entire study online here. This is definitely happening in Virginia. In Virginia there is no recourse for a paying homeowner who is accidentally put into foreclosure. They have to hope their lender will pay attention to their protests and stop the foreclosure. Currently, Virginia homeowners have only one option if they are unable to get the attention of their lender/servicer: hire a very good lawyer and start suing everyone you can to halt the foreclosure.

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