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Banks Breaking Into Homes

And the beat (continues) to go on.

Banks are just breaking down doors of foreclosure properties whenever they want

The inspectors who decide whether homes have been abandoned and are ready for foreclosure are doing such a terrible job that the whole system requires a major overhaul, and maybe should be scrapped altogether, a government watchdog warned on Tuesday.

Property inspectors hired by banks and other mortgage companies are routinely doctoring photographs to make it look as if they have visited a property when they actually haven’t, among other serious record-keeping errors, according to a report by the inspector general of the Federal Housing Finance Agency, the nation’s top housing regulator.

What’s more, federal requirements that inspectors pass criminal background checks have been “inconsistently adopted” by the dozen or so mortgage companies that hire inspectors, according to the report. The Huffington Post has previously reported on how property inspectors, some with criminal backgrounds, are accused in hundreds of lawsuits of breaking into occupied homes and stealing or trashing people’s possessions.


One Comment

  • Deb says:

    OK, Matt,
    This hits me more than once. I am ready to sue the banks for their interference in my contracts and the destruction of owner property.

    Picture this: As a real estate agent I have a listing in an area that is a thirty minute drive from the office. It is a bit out of the way, but not isolated. I have a “for sale” sign in the yard and am advertising the property for sale. In January, I get several calls from other agents who want to see the property. I send them on this ride and tell them that my lock box is on the post and give them the code to my box. Nearly three weeks go by before someone calls and says that the key doesn’t fit the lock.
    When I go to check, I find that my “for sale” sign has been removed, the entry lock has been destroyed, removed and replaced with a bank servicer lock. After a two hour daisy chain call, I learn that they will not give me any information on this until I provide the account number and the social of the borrower (This was not a short sale). I still do not have the key.
    They did this without calling me (my sign was bold and indicative of the intent and contact info).
    This home WAS not a short sale, but may turn into a short sale since they interfered in the marketing during the high season.
    I feel that it would be justified to sue the bank and the servicer company for damages caused by lack of access. At least six agents are quite angry with me for sending them on a wild goose chase. They could at least call the agent on the sign and inquire as to whether or not the house is being watched. This one in particular was being watched. The out of state owner sent a check for lawn service (which I did not use because the bank had it mowed without warning). The house was not in bad condition, it was simply vacant.
    A suit, even a small claims, win would be a minor victory but fair warning to those lenders who intrude upon property under the pretense of loss prevention and mitigation. Even with the right to protect, it should not give them the right to interfere with the seller’s attempt to market and sell. In this case, the seller was borderline short sale. There was a chance that he could sell without shorting. Once they interfered, he lost weeks of good marketing time.
    It costs me and it costs the seller without doing any more to protect the property. If they had called, we could have given them access. They could have used a key to open the door, changed the lock (if still necessary or lawful) and supply the agent with a key to fit the new lock by simply placing it in the key box on site.

    Another bank got a judgment, but owner filed bankruptcy and bank still changed the lock before title changed. In the process they destroyed my Supra lock ($100).
    To top it off, this bank refused to issue closing instructions to a buyer who was ready, willing and able to close seven days prior to the foreclosure sale. The price at the time was $140,000. Six months later, the bank has reduced their asking price from $180 to $143 and still has not sold it. I ask, “who won on that?” I was denied an earned commission because the bank refused to issue closing docs yet they wasted time and money to come to a lesser (likely) result months later.

    So, sue them for interference. Will it bother them?

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