Source: In These Times
Two thousand and eleven is destined to become the Year of Foreclosures. The recession officially ended in June 2009, but the housing market’s implosion continues: Banks set a record by seizing more than 1 million homes in 2010, according to RealtyTrac Inc., and housing experts agree that foreclosures will soar higher this year.
Bank seizures would have been even more numerous last year if not for the “robo-signing” scandal that revealed widespread fraud and caused the country’s biggest banks to halt foreclosure proceedings in the fall. Loan servicers’ illegal habit of rapidly signing off on huge numbers of faulty mortgage documents also inspired something unprecedented: Attorneys general from all 50 states began investigating a system that had wrongfully pushed thousands of families out of their homes.