The fact that Bank of America has claimed to halt foreclosures in all 50 states is significant.  It is likely only a matter of time until the other big banks capitulate and offer some type of foreclosure freeze as well.

What will be the outcome?  It remains to be seen but for now there are several industries that are grinding to a halt: title companies, Realtors, buyers of foreclosed homes, and the banks trying to unload foreclosures are experiencing either a slow down or a complete stop.    Not to mention the bond holders of mortgage backed securities.   Try selling them now.  I’m no financial guru but I wouldn’t bid much for something that has good cash flow now but what is actually owned and therefore retrievable later is up in the air.

Who are the largest banks involved in this mess?  Reauters provided this list.

Watch for these sly foxes to start selling off loans and the servicing of loans that are in default to the smaller guys who don’t show up on the government or media’s radar.

- The Bank Slayer – see what other REALTORS have to say about us.

Not a pretty sight.  Man has little to no chance against the mighty Mortgage wielder.  Courts typically tip their hat and rubber stamp banks’ foreclosure proceedings.   But not every time.  Lawyers take note: on Oct. 9 in federal bankruptcy court in the Southern District of New York, Judge Robert D. Drain wiped out a $461,263 mortgage serviced by those crooks at PHH. Ruling that the lender, PHH Mortgage hadn’t proved its claim to a delinquent borrower’s home in White Plains, NY he smacked them down.  That’s right: the mortgage debt disappeared, via a court order.

To boot the United States Trustee, a division of the Justice Department has taken an interest in the White Plains case. Its representative has attended hearings in the matter, and it has registered with the court as an interested party.

I applaud Gretchen Morgenson not just because we share the same “SON” in our last names but because she continues to use voice at The New York Times to publish thought provoking and informative perspectives about Man versus Mortgage.  Her article on Oct 25, 2009 was outstanding.  Every lawyer working with a homeowner should take the time to review her article and read the cases she references.