Foreclosure Mistakes Lenders Make And How To Protect Your Home: An Interview With Katherine Porter

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Foreclosures are on the rise, and lenders and loan servicers are making a lot of mistakes in the process. In many cases, the servicers don't have the right to foreclose on homes because they don't own the loans. But unless borrowers challenge their foreclosures in court, the servicers prevail.

A Harvard graduate, and law professor at the University of Iowa, Katherine Porter, joins us on SpotLIght to talk about this dirty little secret of the lending industry.

Professor Porter recently conducted a study of 1,733 foreclosures that began in 2006. The study found that 40 percent of creditors foreclosing on borrowers did not show proof of ownership. Her study found that questionable fees had been added to almost half of the loans she examined. Last year, the United States Trustee, charged with overseeing the integrity of the nation's bankruptcy courts, said it would move against lenders that file false or inaccurate claims or assess unreasonable fees.

Set a show reminder and listen To SpotLight on Wednesday, May 28th at 1:00 PM Eastern Time.

We welcome questions and comments on the live show. You can call in to SpotLight at (718) 664-6583.

If you miss the live show, it will be available in our archives.

To read Ms. Porter's study see:

Misbehavior and Mistake in Bankruptcy Mortgage Claims

For more info see:

Bundled Mortgages and Dubious Fees Complicate Foreclosure Cases

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