Everyone heard the headlines last week concerning the issues that many of the large banks, including Bank of America, JP Morgan Chase and GMAC, have had with their foreclosure processes. Today that news continues. It seems that in light of all the Government programs designed to help consumers that have issues with paying their mortgages some of these banks have not followed the steps required during the foreclosure process.
The question, or questions, on everyone’s mind are: What does this mean to me? Will it affect me? Well certain states, including North and South Carolina, have required that these Banks stop their current foreclosure proceedings until which time they can determine that they are following correct procedures. We have also heard that some of the Banks, like Bank of America, have voluntarily stopped all foreclosure proceedings until they ensure they are following correct procedures.
By halting foreclosure proceedings, many believe that customers who are behind on their mortgage payments will be able to stay in their homes for a much longer time frame. They may also find that their lender will make it easier to complete modifications as well.