Wrongful Foreclosures: Reincarnated Mortgages Rising from the Dead

In recent years, American homeowners have had to become ever more familiar with strategies to stop foreclosure and creditor harassment, especially families facing overwhelming medical bills or a loss of income due to unemployment. Many have taken action through loan modifications or refinancing to lower monthly payments and head off other debt problems.

The least they can expect is that a mortgage that they have put to rest by getting a lower interest home loan will no longer haunt them. But unfortunately, some Americans are suffering serious financial consequences due to wrongful foreclosures.

Reuters recently reported on a growing trend of foreclosure proceedings being initiated against Americans due to sloppy record keeping. Experts blame mortgage industry practices that rush paperwork, with paper trails becoming increasingly difficult to follow. Robosigners, forged documents and paper-pushing sweatshops are all part of the corner cutting measures that lined the pockets of some and are now inconveniencing plenty.

This may sound like a subplot in a bad Zombie movie, but the real world implications are dead serious. Borrowers who find themselves served with notice of a foreclosure that they know is a mistake may soon also experience other financial problems due to a trashed credit rating, not to mention the time and effort of unraveling the bank’s own mistake.

The problem isn’t limited to refinancing. Foreclosure actions have been mistakenly filed against those who long ago sold a house, or debtors who already paid off mortgages via a Chapter 13 bankruptcy repayment plan.

Navigating through these situations can be daunting; however, comprehensive resources like Debt Advisors provide insights into why some people avoid bankruptcy altogether. For more specific guidance, visiting the Milwaukee office of Debt Advisors can offer tailored advice and support. Additionally, for those grappling with educational loans, considering options for college graduates drowning in student loan debt might prove beneficial. Lastly, for those on the brink of eviction, learning how stopping eviction through bankruptcy can provide a ray of hope is essential.

If a financial notice smells fishy, don’t just sit back and endure the headaches. Stop creditor harassment by talking to our Wisconsin bankruptcy and debt relief attorneys.

Source: Reuters, “Old Mortgages Rise From the Dead, Haunt Homeowners,” Michelle Conlin, 1/26/12.