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Did mortgage giants ignore foreclosure abuse?

Monday, October, 17, 2011

A wide range of problems have caused this country's economic turmoil. But few factors have slowed the economy's recovery like the glut of foreclosed homes dotting the country. These foreclosures, especially prevalent in states such as Florida, California and Arizona, have pushed housing prices down, something that has stalled hopes for a stronger economic recovery.

Now comes the news, according to a story in the New York Times, that mortgage company Fannie Mae knew as early as 2003 that many of the law firms that had been hired to remove homeowners who had fallen behind on their mortgage payments were guilty of foreclosure abuses. The fear is that some homeowners were evicted from their residences unfairly because of the negligent actions of these law firms.