Mortgage Banking Article Notes Increase in Foreclosure Litigation, Legislative Efforts to Curb Foreclosures
A recent article in the Mortgage Banking Magazine by Donna Dezube summarizes numerous efforts by states, local governments, and borrower attorneys to delay or prevent foreclosure. "Lawyers defending mortgage brokers have their hands full today. The courts are jammed with motions to delay foreclosures actions, and frivolous litigation is going viral," the article states. The article also summarizes numerous legislative efforts to delay or prevent foreclosure, along with strategies used by private attorneys and counselors to prevent foreclosure or pursue loan modification. The article notes that, according to Perkins Coie attorney Fred Rivera, lenders desire to modify loans and avoid foreclosure, if borrowers are qualified and can qualify.
Without making value judgements at any level, I believe what we are seeing is the result of a growing public sentiment expressing dissatisfaction with traditional "capitalism" (Under such a system the primary job of government is to protect private property, enforce contracts and ensure rule of law). Rightly or wrongly, the current administration seems to at least correspond to such inclinations.
Thank you for the article.