Tuesday, January 24, 2012

Are foreclosures happening to often to Virginia homeowners? One legislator cites a study that homeowners are being closed on too soon


Are so-called wrongful foreclosures happening to often to homeowners in the Commonwealth?

One state delegate says yes, and that he’s fighting to put an end to it.

Delegate Bob Marshall says he’s working on targeted legislation that could curb the problem of dual tracking. That’s when lenders continue to pursue foreclosure even when a homeowner is in the middle of a loan modification to have their monthly payment reduced.

Marshall cites a recent study that revealed 87 percent of housing counselors in Virginia said their clients were foreclosed upon even though they were in the middle of a loan modification.

Housing experts tell us they’re glad to see several bills in the General Assembly that address this issue.
Here’s what the bills would do.

House Bill 822 would prevent foreclosures while homeowners are working through a loan modification process.

House Bill 821 would create a civil action for people wrongfully foreclosed upon, allowing them to recoup damages and attorney’s fees.

There’s also a Senate bill that tackles the issue. Senate Bill 163 would make using false records and statements in a foreclosure fraud, allowing victims to recoup damages and attorney’s fees.

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