Tuesday, October 26, 2010

Stop the Foreclosure Express -- Now!

Todd Swanstrom

By Todd Swanstrom and Chris Krehmeyer

It has recently come to light that lawyers processing the paperwork for foreclosures have been signing 10,000 or more documents a month without even reviewing them for accuracy and proper documentation. They are called robo-signers. Facing the threat of lawsuits for wrongful foreclosure, a number of the largest banks and servicing companies have suspended foreclosures until these problems are resolved.

Chris Krehmeyer
Instead of slowing down, the foreclosure crisis is speeding up and Missouri’s economy is being dragged down. About 11 percent of first-lien mortgages in Missouri are either delinquent or in foreclosure and 15 percent of mortgages are “underwater,” meaning homeowners owe more on the mortgage than the property is worth.

Everybody pays for foreclosures, not just those who are kicked out of their homes. Research has demonstrated that each foreclosure drives down the market value of properties located within one-eighth of a mile of a foreclosure by about 1 percent. The Center for Responsible Lending estimates that by 2012 Missouri property values will have dropped by approximately $7.3 billion as a result of foreclosures.

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