Wednesday, November 7, 2007

Lenders Might be Using Questionable Practices.

Disturbing article in the New York Times on poor disclosure on the part of lenders. Excerpt follows-

"As record numbers of homeowners default on their mortgages, questionable practices among lenders are coming to light in bankruptcy courts, leading some legal specialists to contend that companies instigating foreclosures may be taking advantage of imperiled borrowers. Because there is little oversight of foreclosure practices and the fees that are charged, bankruptcy specialists fear that some consumers may be losing their homes unnecessarily or that mortgage servicers, who collect loan payments, are profiting from foreclosures."