"Though several banks including Bank of America (NYSE: BAC) and housing finance giant Fannie Mae have restarted at least some foreclosures, the process has been irrevocably tainted by the industry’s apparent willingness to put profits above the law. Their legal exposure may be gigantic — billions of dollars — particularly if courts find that they improperly evicted people from their residences. Not only could the foreclosure be reversed, but they could face punitive damages as could the realtors and attorneys involved in the transaction.
But what about the people who bought these homes? That’s where things get a little dicey. Clearly, their rights were violated as well. But in the legal tsunami created by the robo-signed documents, they should be last in the pecking order. Many of them, particularly sophisticated investors looking for a quick flip, probably knew or should have known that something was amiss. How is it that the foreclosure process — which is purposely cumbersome to protect the rights of homeowners — suddenly became streamlined? What about the same people’s names appearing in hundreds of documents? That did raise any red flags either."
Monday, November 29, 2010
House Flippers: The Forgotten “Victims” Of The Real Estate Implosion - 24/7 Wall St.: