Friday, December 17, 2010

Judges allowing foreclosures without verification of ownership by the banks

Everyday we are seeing more and more stories about how the banks are just rolling along with the foreclosures with little regard for the law.  They are often getting away with improper filings because most homeowners do not have show up in court.  This could be for financial reason or many other things but it gives the banks the upper hand. 

One way to have your rights trampled is to not show up in court. Judges have little patients for cases where only one of the parties is there. The banks take advantage of this everyday. If no one is there to represent the homeowner the judge is not going to do anything but rubber stamp the bank request. They won't even give the file a second look.
The case may be changing in some areas as Yves mentioned but the vast majority of cases where the defendant fails to appear are wins for the bank. It won't matter if they have the right to foreclose or not.
The judges I have seen have had large or fragile egos of course and consider their time extremely valuable. It always seemed to me that the judges considered no shows as disrespectful to the judge and the court.
ECONned: How Unenlightened Self Interest Undermined Democracy and Corrupted Capitalism
I don't think there is a solution that will help homeowners other than the judges being skeptical of the banks. I don't anticipate a great number of judges bending over backwards to stand up for homeowners that fail to appear.
Yes the law is the law but reality is reality. Judges can get away with just about anything and if they can move through cases more quickly I am sure they will do it.

The fact that tarp money was not allowed to be used for legal aid etc, could still prove to a major set back that will keep thousands of homeowners from showing up in court.

Related Story at Naked Capitalism.com

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