Apr 27

More Foreclosure Officials Suffer Credibility Problems

Slammed by a financial crisis created by greedy financial institutions, homeowners are quickly finding new foes to blame for their continued suffering: Foreclosure fighters in government positions who have a tendency to sell out.

To date, the Federal Reserve has found no wrongful foreclosures, the FBI says there’s no proof of financial crimes regarding the selling of mortgage-backed securities, and the Treasury Department officials are too busy getting cushy jobs at major banks to worry about investigating them.

Once Voted “Most Likely to Prosecute”

Just a few months ago, Iowan Attorney General Tom Miller rocketed to the top of the small set of public officials willing to take on financial and foreclosure crime by promising to prosecute major bank officials. Having made a name for himself taking on Microsoft and drug companies for financial crimes, hopes were high, but they didn’t last.

Last week the National Institute for Money in State Politics reported that “Nearly half of the money Miller raised in 2010…was donated after the October 13 announcement that he would be coordinating the 50-state attorneys general investigation.” What’s more, two contributors that gave him $15,000 are defending the banks against his investigation, and he made 88 times more contributions than the previous year from the financial sector, at over $260,000.

Miller issued a statement defending himself, but the Attorneys General investigation seems to be sinking fast, with other AG’s such as Florida’s Pam Bondi now backing away from asking the banks to pay any kind of settlement whatsoever, while the deadline to strike the deal seems to have vanished.

The Curious Case of the Missing Foreclosure Legislation

Perhaps setting a new high standard for misplaced foreclosure justice, a passed piece of legislation in Arizona congress that would have forced lenders to prove their ownership before bringing foreclosure mysteriously vanished overnight.

Nancy McLainCongresswoman Michele Reagan had won favor amongst foreclosure advocates for getting a law passed in the state congress to require lenders to prove ownership over properties they are foreclosing on. However after the bill passed somehow the entire language of the bill was altered so that it was no longer about foreclosures! While many initially were suspicious of Reagan considering her own personal mortgage litigation issues, it turned out that Representative Nancy McLain who changed the language of the bill after being told my bank lobbyists that it was no good. Later, McLain stated that protecting homeowners from wrongful foreclosure would in fact somehow hurt them: “In fact, I believe that this bill would have given those facing very dire consequences false hope, which is why I opposed it. Despite what some may think, SB1259 did nothing to help these individuals.  And it also opened an avenue for those who simply did not want to fulfill their obligation by potentially creating a loophole that could take years to resolve.”

We’ve said it before and we’ll say it again: the only people out there have the will, dedication, and integrity to help homeowners are professional foreclosure defense attorneys. Foreclosure defense tactics such as mediation, conciliation, and our soon-to-be filed mass joinder lawsuit have a proven track record of modifying loans and saving homes. Don’t wait for deceitful banks and untrustworthy government officials to cut you a break – contact us today to see if we can help you!

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