A City review shows the rates of San Francisco foreclosures with some sort of error reach an astounding 84 percent.
A review ordered by City Assessor Phil Ting shows the rates of San Francisco foreclosures with some sort of error reach an astounding 84 percent.
Even though much of the errors were technical, the review points to overall problems with the handling of foreclosures since the market meltdown. It also highlights California’s need to update outdated and convoluted real estate regulations.
Ting told the Associated Press that the system is completely broken and doesn’t work for anyone. “These rules were made for people who walked or rode their horse to the bank” he added.
The review found alarming problems such as missing signatures of the original loan owners. It also exposed the fact that some lenders failed to file legally required affidavits showing they had contacted owners to discuss options 30 days before sending out default notices.
The review also showed some homeowners were potentially accused of defaulting on loans they had never agreed to. Furthermore, they were foreclosed upon by lenders who were not in possession of the original note. Ting told The AP:
“How can we expect homeowners to have a fighting chance of saving their homes when they can’t even find who currently owns their debt?”
Last week, California Attorney General Kamala Harris said her office was reviewing the audit. “The allegations are deeply troubling and, sadly, no surprise to homeowners and law enforcement officials in California,” Harris said.
