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.
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.
Well, 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?
February 19th, 2012 at 10:05 am
Ooh, Burbed came up midnight black with dark blue werdz, randomly placed on the page, TEH HAXXORZ R 3133t & pikshures R fur L4M3RZ
February 19th, 2012 at 10:06 am
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….
February 19th, 2012 at 10:11 am
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.
February 19th, 2012 at 11:13 am
“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.
February 19th, 2012 at 11:18 am
Average tech guy near Marina Green on Marina Blvd. in San Francisco?
February 19th, 2012 at 1:25 pm
SEA, fortunately this patrol officer quickly zoomed in to make an arrest.
February 19th, 2012 at 3:03 pm
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.
February 19th, 2012 at 3:48 pm
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.
February 19th, 2012 at 4:42 pm
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.
February 19th, 2012 at 4:44 pm
“If you think a car is just to move you from point A to point B, you’ve never driven a Porsche.”