Foreclosures Being Scrutinized Around the Country
We have previously commented on cases in which the table were turned on a lender in the middle of a foreclosure proceeding or the foreclosure was stopped by a defense such as discrimination, for example, here. But, those were individual cases and limited to New York.
The Wall Street Journal Law Blog, in a a post by Amir Efrati, now reports that judges around the country are scrutinizing foreclosure documents and not allowing the foreclosure to go forward if they find serious discrepancies (“Subprime Legal: Judges Scrutinize mortgage Docs, Deny Foreclosures”).
Our perspective on this remains the same: probably only a small percentage of borrowers can be helped by any of the defenses or discrepancies reported in these cases. But, good financial management, which should apply to personal finances as well as business, requires that all options be properly reviewed and considered. An opportunity may be missed if the borrower simply concedes at the outset and lets the foreclosure go through without scrutiny.