Bank of America Not Getting Off As Easy As They Thought
Distressed homeowners in Maricopa Arizona that are looking to short sell their homes may find lenders more receptive in the near future.
This article from DS News explains how Bank of America reached an $8.5 billion settlement with major investors only to have the Attorney Generals of thestates of Delaware and New York win litigation that will allow other investors, nit just the high powered sophisticated ones, to continue to pursue Bank of America for damages. Bank of America reached the settlement agreement with Bank of New York Mellon – the trustee for the 530 mortgage-backed securities trusts in question – in June. These securities were sold by Countrywide Financial,which Bank of America purchased in 2008.
As a spokesman for the New York Attorney General said, “Today’s ruling is an important victory in Attorney General Schneiderman’s continued work to protect the integrity of New York’s global financial markets while providing meaningful relief to those who have suffered from the mortgage crisis,”
Attorney Generals across the country continue to put pressure on the major lenders. In my opinion, the reason that we are experiencing a slow down in the flow of foreclosures is that the lenders are afraid of the repercussions that may occur should these lawsuits be successful. My take on it is that the lenders will make a strong effort to streamline their short sale process as some of their liabilty will “go away” if they have the approval of the owner to dispense with the bad debt. I am already seeing quicker reposnses on on my short sale listings and our buyers offers on short sales.
Read the full article http://bit.ly/sZGbDU
