Wednesday, October 27, 2010

How The Foreclosure Crisis Began (Video) *A small house in Maine, a volunteer attorney*

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A foreclosure notice and affidavit that was in "bad faith"?

How The Foreclosure Crisis Began: a small house in Maine, a volunteer attorney

There's plenty of media coverage on the foreclosure-signing fiasco, foreclosure crisis, and/or mortgage mess that has caused a huge uproar in the financial system. Below is a video by CNN on how, and where, this issue started. This all started with a small rural house in Denmark, Maine and a former bank foreclosure attorney, Tom Cox, now nonprofit volunteer for Pine Tree Legal Assistance, helping people being foreclosed on.

The courts will ultimately decide what the cost to the mortgagees, the lenders, will be regardless of all the amounts being headlined by the media. The courts will decide if there has been "bad faith" by the lenders and what the liability is. Unless there are out-of-court settlements with affected parties (e.g., mortgagors and investors) these legal proceedings could be lengthy as there are potentially billions of dollars at stake. Some links about the foreclosure crisis are below the video.

CNN's Mary Snow reports on the small house in Maine that uncovered the foreclosure signing fiasco in the country.

Banks May Face $97 Billion Loss From Mortgage Mess (CNBC)
Foreclosure crisis: What it means for you (MarketWatch)
Mortgage Industry Bristles at `Robin Hood' Foreclosure Theories (Bloomberg)
The Foreclosure Crisis (WSJ)

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