With all the hype surrounding the foreclosure market, it is increasingly becoming difficult for distressed homeowners to believe in a particular thing. The housing market is in more confusion and self-conflict mode than ever before. There is so much going on at the same time, for example, the federal and court investigations of the banks, the moratoriums, suspension of evictions for the holiday period and the ubiquitous paperwork issue which keeps surfacing in every second case handled by major lenders across the country.
The lender firms are under strict scrutiny today for their foreclosure and other processes, but the damage had already been done. Substandard work that was done and laws that were violated are causing havoc in the housing market now. A report lately mentioned about a scam run by a bank’s own employee.
Rachel Keyser, a resident of Deerfield, New Hampshire, got caught in a scam and ended up getting her house stuck in the foreclosure process. Keyser bought a house in 2004 and Countrywide held her mortgage. She paid $100,000 as down payment while purchasing the house. Just after a few months, a bank employee approached Keyser and forced her to get a refinance.
Keyser said she is not good with legal procedures and ultimately signed papers offered by the employee, which later turn out to be an equity-stripping scheme and has put her house under foreclosure today. As per the papers she signed, she borrowed extra money from the bank in disguise of refinance. This money was transferred to a bogus account and even her earlier mortgage payments were then transferred to the phony account. Because the payments never reached the right account of the lender, it eventually showed that she had defaulted on her payments and it lead to foreclosing of her house.
The amount she was duped for summed up to $165,000 that she claims is the “entire equity of the house.” Later, the firm Countrywide ran out of business and Bank of America took over. It has been six years since Keyser is battling it out with Bank of America, but in vain. This year, in July, she received a notice from the bank that her house is going to be foreclosed and since then she has been trying to get modification on her loan so that she can get her loan to current and save her house.
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