Lately a big news on banks’ bad foreclosure practice has brought a lot of national attention. Now many banks are accused of having used robot signers to sign thousands of foreclosure documents a day. Robo-signers are banks’ employees or contractors who are hired to handle banks’ tremendous amount of documents in order to foreclose their borrowers’ properties.They generally do not have specialties or knowledge about the foreclosure process. You would think those complicated foreclosure documents should have been reviewed carefully and signed by qualified professional foreclosure specialists. But in reality, with the documents keeping piling up in a rate that has not been seen before, banks just don’t have enough resource to keep up during this real estate market meltdown. Therefore many home owners may have lost their homes and been forced out of their homes due to incorrect procedure.Now the public is angry with banks who have received billions of dollars of bailout money from tax payers. Banks are also facing investigations from state attorneys general on the potential fraud. What do all these bring to the borrowers?This is definitely a good news for borrowers who wish to get their mortgage modified. As banks slow down in order to correct their foreclosure practice, banks are now under more pressure to respond to loan modification requests.On the other hand, foreclosure is likely to take longer to complete, giving borrowers more time to negotiate terms with their lenders. If you haven’t started loan modification for your property, now is the right time!
