Monday, May 6, 2013

Foreclosure Defense & "The Elephant In The Room"

In Sandusky, Ohio, local foreclsoure defense attorney Dan McGookey writes in the Sandusky Register:

  • [A]s we [] often see, once you stand up to the banks, call them out on their fraud and expose the weaknesses of their case, they do a tactical retreat in their push to foreclose. The reason for this is what we call “the elephant in the room.”

    By definition, a securitized loan is one which is bundled with thousands of others in a loan pool or trust. This means that if even one of those loans is exposed to be fraudulent, the collectability of the rest is put in jeopardy.

    The elephant in the room is the unspoken but very real fear on the part of the banks that billions of dollars of loans could be lost. And that is a risk they are often unwilling to take. The result often is that the banks blink, which in turn leads to a great loan modification for the financially-stressed homeowner.

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