FORECLOSURE FREEZE COULD BE DETRIMENTAL FOR HOMEOWNERS

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) October 14, 2010 -- FOR MORE INFORMATION:
Samantha Townzen, Marketing Director
Castle Law Office, 314.446.4652
FOR IMMEDIATE RELEASE

St. Louis, MO. (Oct. 14th, 2010). Four different banks are being investigated after it was revealed that some wrongful foreclosures had been the result of fraudulent practices within the bank industry, including forged documents, faked social security numbers, lost paper trails and records, notaries signing documents without reviewing, etc.

Many class action lawyers are planning to file suit against these banks and Attorney Generals in all 50 states are launching an investigation into the actions of these banks. Bank of America, PNC Financial Services, Ally Financial’s GMAC Mortgage Unit, and JP Morgan and Chase have all, consequently, put some freeze on foreclosure sales.
Bank of America and PNC have recently agreed to stop foreclosure sales in all 50 states while they investigate. The other two have halted foreclosures in 23 states, most of which are states that require a judgment from the court in order to begin foreclosure proceedings. Missouri is a non judicial foreclosure state, so right now Ally and JP Morgan Chase will continue unless they take the lead of Bank of America and PNC.

“The problem with this pause on foreclosures is that people are going to start thinking they are safe from foreclosure,” said James Brown, a St. Louis bankruptcy attorney and founder of Castle Law Office. Brown continued, “In reality, this is very likely just a temporary, voluntary move by the banks to make sure paperwork is in order. If it is, rest assured they will begin foreclosures again. The danger is homeowners who are currently behind and continue in that direction will only hear that all foreclosures have stopped. Many will continue not making payments because they simply cannot afford to in today’s economy and will hold on to the hope that they won’t lose their home. It is simply delaying the inevitable.” Brown added, “These homeowners will get so far behind on their payments while the foreclosure sales are frozen that they will reach the point of no return. I fear for Illinois and Missouri homeowners alike.”
“This situation is absolutely temporary and, in my experience, when there are foreclosure freezes, homeowners are faced with immediate loss of property—and this time with a big balance on their mortgage. In fact, it was just at the end of 2009 that banks placed a moratorium on foreclosures and lifted it in early 2010.” finished Brown. Rick Sharga, a senior vice president at RealtyTrac, also doubts that the foreclosures will be overturned and actually still expects one million foreclosures in 2010.

To help St. Louis homeowners, James Brown is releasing a special report on this mortgage fraud crisis and what homeowners NEED to know about it. To get your free copy, call 866-570-8484 or e-mail them directly at questions@castlelaw.net.

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