February 19, 2012

SF Foreclosures: They’re Doing it Wrong

Here’s some cheery news for your Sunday open house visiting!  This might make you think twice about offering anything on a short sale, REO, or previous foreclosure.

Audit Uncovers Extensive Flaws in Foreclosures

By GRETCHEN MORGENSON, Published: February 15, 2012

An audit by San Francisco county officials of about 400 recent foreclosures there determined that almost all involved either legal violations or suspicious documentation, according to a report released Wednesday.

120216-ting

Photo, right: Phil Ting, Phil Ting, the San Francisco assessor-recorder, found widespread violations or irregularities in files of properties subject to foreclosure sales.  Annie Tritt for The New York Times

Phil Ting, the San Francisco assessor-recorder, found widespread violations or irregularities in files of properties subject to foreclosure sales.

Anecdotal evidence indicating foreclosure abuse has been plentiful since the mortgage boom turned to bust in 2008. But the detailed and comprehensive nature of the San Francisco findings suggest how pervasive foreclosure irregularities may be across the nation.

The improprieties range from the basic — a failure to warn borrowers that they were in default on their loans as required by law — to the arcane. For example, transfers of many loans in the foreclosure files were made by entities that had no right to assign them and institutions took back properties in auctions even though they had not proved ownership.

120216-fraudWell, that’s San Francisco for you.  That doesn’t mean foreclosures in the nation’s other 3140 counties and county-equivalents should have any problems at all.  You see, bankers in San Francisco were so terrified of the terrible impact Prop 8 had on gay marriage and real estate values, they didn’t want to look at what they were signing.  For three whole years!

Good thing the $26 billion foreclosure settlement between five huge banks and 49 state attorneys general is already signed!  Who knows what kind of trouble there would be if this sort of report had been released beforehand.  Why, San Francisco homeowners wouldn’t be getting their share of the $147 million (provided they managed to hold onto the house while the banks were doing everything possible to claw it away, in which case $2,000 each ought to cover it).

This is an Open Thread.  Are you more or less likely to buy in San Francisco after reading this story?

Comments (10) -- Posted by: madhaus @ 5:09 am

10 Responses to “SF Foreclosures: They’re Doing it Wrong”

  1. The Gilroy Alex Says:

    Ooh, Burbed came up midnight black with dark blue werdz, randomly placed on the page, TEH HAXXORZ R 3133t & pikshures R fur L4M3RZ

  2. The Gilroy Alex Says:

    On 2nd load its teh fixted.

    The magic words “Produce the note!” have been shown to make bankers melt down like the Wicked Witch of the West….

  3. sprezzatura Says:

    Sounds like lot of Lucky Ducks who’ve managed to hold onto their homes can now sue the banks and walk away owing nothing on those homes, thereby kicking off yet another round of HELOC equity extraction, rising home prices, and more froth.

  4. SEA Says:

    “Good thing the $26 billion foreclosure settlement between five huge banks and 49 state attorneys general is already signed!”

    The bank forecloses and you may get a small sum of cash.

  5. SEA Says:

    Average tech guy near Marina Green on Marina Blvd. in San Francisco?

  6. madhaus Says:

    SEA, fortunately this patrol officer quickly zoomed in to make an arrest.

    cop car

  7. Sunny(vale) Kim Says:

    That Porsche guy was hoping that his car would fly over the wet cement like an aircraft.
    Just in case you don’t know, Porsche has “aircraft quality feel” and that guy took it literally.

  8. Crissa Says:

    The settlement only affects monetary not criminal. It gets the banks charged now, monetarily. It’s good in that it’ll make the banks healthier later, less doubt.

    But it doesn’t stop these investigations or looking at criminal or forcing them to change their procedures, so we shouldn’t let up the shaming and investigations.

  9. magdalena Says:

    I sure hope it wasn’t real esater in that Porsche. He needs to keep that thing running so he has a place to live.

  10. SEA Says:

    “If you think a car is just to move you from point A to point B, you’ve never driven a Porsche.”


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