St Louis Loan: FBI Looking At Foreclosure Fiasco

This mortgage crisis has been a complete financial nightmare for banks and consumers. The problem is that this monetary snafu will not be going away any time soon.

The situation has deteriorated so badly that all 50 attorney generals have been and will continue to investigate possible fraud perpetrated by lenders according to St Louis finance experts.

Lawyers for evicted homeowners as well as those facing foreclosure are preparing lawsuits against major lenders.

Lawmakers on Capitol Hill have been holding hearings on this situation while judges reviewing foreclosure documents are doing so with heavy skepticism aimed at the banks.

In addition to what is happening on the state level, there have been those who have anonymously told CNBC that the F.B.I. is now taking the lead in determining what laws if any these banks have broken.

The overall question is did these banks who were lending and then foreclosing on these homeowners knowingly committing fraud or were they simply inept when this mortgage fiasco burst upon the scene. Many St Louis lending experts definitely have opinions of their own.

Hundreds of judges around the country have the authority to penalize bank officials who violated their procedural rules.

They could also force thousands of foreclosure cases to go to full trials rather than issue a quick ruling which will probably cost tax payers even more.

But the good thing is that judges won’t take well to banks that filed erroneous documents with their courts, said Indiana Attorney General Greg Zoeller.

The consequences for these irresponsible banks may be quite serious.

These lawsuits that are compounding at alarming rates will probably go on for many, many years.

“Some of these plaintiffs’ attorneys clearly smell blood in the water,” Cecala said.

Many St Louis mortgage brokers are now recommending that homeowners facing foreclosure or have “underwater” house values take advantage of a FREE loan audit. This may help stop the foreclosure and reduce the principal amount owed for your home or business.

To get a legal loan audit, go to Floyd Tapia’s site at http://www.StLouisMortgageGroup.com. A St Louis mortgage broker can assist you with a home loan or principal loan reduction. Call us at 314-334-0210.